Opinion by an Id*ot

1. The creation of money is soley under government control (at least for most of the world) by the means of central banks, who have the exclusive right to create new money. Other banks can indeed create new ‘promises to pay’, but they need to back it up by a percantage of actual money created by the state (reserve, liquidity, just search for these things).

2. Yes, the central banks take a interest rate for money they give out, BUT the actual economy, the economy of material goods, grows. This means for instance, if I invent a fuel that is 100% more effective than previous ones, everybody would end up paying just half of what they used to be for fuel. This would save them money which they could use to actually pay these debts that are deemed unpayable in this strip. In fact, inflation occurs if interest rates of the central bank are too low to counter growth (growth as you can see means new technology and increase of effectivness).

In the end the real problems leading to the current crisises are not mentioned at all. Now I will come back to be left. The real problem here was a weak state that knowingly allowed banks to give away ridiculous amounts of credit cards and loans, that allowed investment banks to become so enormously big that they need to be considered ‘too big to fail’ (also so big, it removed much of the competion) and a state that was believing in growth rates that were just non-existent. You can see this simply by looking at a US senate comission interviewing state financial regulators: http://www.c-spanvideo.org/program/CrisisandB

The idea of digital money is nice but it is flawed, simply because of technical difficulties. A gold standard is also no reasonable alternative, because there is not even enough gold in the earth crust (meaning all gold that will ever be available) to equal the amount of existing valueables in one bigger nation like the US or China, while furthermore gold is also useful for the industry. In other words: I dont want to pay 500% more for my cellphone, just because gold is our currency (yes there is some gold in your cellphone, but not much).

What we really should do is strenghten restrictions on finacial markets (this is maybe even the only market that needs extreme restrictions), like it was before (!) the ‘deregulation’-era of the 1980s. To support this I can bring simple proof: no financial crisis soley introduced by the financial system itself between 1929 and 1983, going well with legislation changes around both dates. In fact the legislation that was introduced after the great depression (1929) to prevent this from ever happening again was removed by Reagan (early 1980s) immediatly leading to the first crisis. Even more: in 1929 the US had a gold backed currency, still the great depression occured. Gold standard was finally turned down in 1971, not leading to an imediate crisis.

By now, December 2011, the total crash of world economy is almost inevitable, but I still wanted to inform you were the real problem is.

How do you handle a disabled person, or an old person that just doesn’t want to work anymore, or a person wanting to do something that is not of any direct value for the society (like certain artists), or a person that doesn’t want to work at all?

Who decides what is necessary?

Who decides which value any particular job has?

Who would control if and how the work was done?

What would be the minimum of ‘Work Credit’?

I’m looking forward to your answers!

Seldric Herrholz
Berlin, Germany

They give you money, however, when you withdraw from the account.

@Everyone, great as this documentary was, things did not gel until the end, with much of the exposition at the beginning and middle simply failing instructionally. I actually had to ask myself whether this was deliberate disinformation, the conclusions were so at odds with the arguments. Where this film shines, by the very end, is in illuminating the fraud of private banking, debunking gold as the answer, and offering a course of action. It dismally overlooks the Fed, however, which is where “The Secret of Oz” shines, as well as in crystal clear arguments and compelling conclusions. Your education is not complete until you’ve seen

http://topdocumentaryfilms.com/the-secret-of-oz/

The derivative crisis was spawned by greed that was rampant in the banking sector and loan sector.

Ultimate financial lending power leads to ultimate financial greed and this is exactly what was seen during the 2007 – 2009 banking crisis.

The banking system as it now exists based on everything that I have read is doomed to failure due to the greed of the private institutions lending the money. As a general rule there is a problem with the human condition and that is a desire to gather assets continuously for self preservation and survival that eventually surpass anything that is needed for a for a person’s survival and well being.

Over and over again we have seen individuals whose greed to gather assets knows no bounds and they eventually destroy the very economy they are getting assets from. Self destructive greed and gathering. Like a dog that will eat food continuously until it dies.

Put these people in charge of a private banking system and it is a recipe for disaster.

The banking system around the world I believe needs to become nationalized again and put into the hands of the people who need the money to make a modern economy work.

There is no need for taxes in this type of an economy. Taxes simply drain money out of the economy that could be better used for the purchase of goods and services.

It has been suggested that gold be the standard of a country’s money supply or other material resource or resources.

I disagree with this. In every single country around the world there is only one natural resource that needs money to function in a modern economy. That natural resource is the people living in that country. Only people need money to function in a modern economy. Natural resources do not need money there are simply finite consumables.

The new monetary system that I have proposed to American President Barack Obama, Canadian Prime Minister Stephen Harper and Russian President Dmitry Medvedev is the “Work Credit” system.

In a “Work Credit” based society people are assigned a monetary value that is paid back to them over the course of their life to do work for their community, city, state and country. People are also paid to do entrepreneurial work that may or may not generate revenue.

In a “Work Credit” based society growth is not important. What is important is providing the necessary goods and services for a society to exist and function.

In a “Work Credit” based society it is impossible to be homeless, unemployed, or in poverty, because a person’s very existence is a value to the society at large.

A “Work Credit” society works in harmony with a capitalistic society providing a steady source of income to pay back loans and purchase goods.

Every member of society is paid an income to participate at what ever is needed at that time during their life.

For instance children are paid to go to school from preschool to Grade 12 or what ever is the society norm. A society is much more productive if its children are educated to the highest level possible. Education is a job for children. They get up at early and work a full day. For kids at the higher grade levels it is not uncommon to work into the evening and on weekends. Education is a job. It needs to be recognized as such and children need to be paid for the work that they are doing to benefit society.

By recognizing education as job, drop out rate in high school will simply stop do to children who need to find a job to help support their families. Students dropping out of high school is a real problem in the United States today. This problem is easily fixed by paying students to go to school and learn.

This earned money can then in turn be used to purchase the kids clothes, food, supplies for school, computers for school, and assist their parents in paying a mortgage or rent. Children become an economic asset to their parents, their community, their state and their country.

This job of education continues into college and university. Students are paid to go to college and university and they are paid more to go into disciplines that are more in demand for their community, state and country. In this way the job skills are created and taught that society needs to function more efficiently.

Universities and colleges are also hubs for innovation and so students are being paid to learn and innovate.

It makes no sense what-so-ever that a country would require its students to pay for an education that the country needs to grow and prosper.

A “Work Credit” based society is NOT about equality. A “Work Credit” based society is all about providing a basic steady source of revenue to pay people to contribute to their local economy, state economy and country economy in a positive and meaningful way.

People with exceptional skills will earn more money in a “Work Credit” based society.

People with minimal skills will earn their basic “Work Credit” allowance allowing them to thrive in the economy and contribute in some positive.

The concept of “Work Credits” reduces crime because people do not need to steal or rob to survive.

“Work Credits” allows a government to focus its needs of infrastructure building and services to support the economy.

There is no age discrimination in a “Work Credit” based economy. People can work at what they love to do until they die of old age. As people age their interests will change, their capabilities will change, but at all times they can contribute in some meaningful way to their economy.

Making a profit in a “Work Credit” based economy is not necessary. This stops the need for growth engine that is currently a problem in society. Modern societies cannot keep perpetually growing. If they do so they will ultimately destroy their environment. An equilibrium must be obtained to ensure sufficient resources for long term society survival.

A “Work Credit” based society completely stops the necessity of runaway government deficits.

The government is in control of the money supply. The people are the base valuation of the money supply to be paid for work that contributes to their community, city, state, and country.

A “Work Credit” based society more importantly can be run independent of oil, natural gas and other energy resources required in today’s modern economies.

This is very important as the world is now passing the top of the Worldwide Peak Oil Curve. Beginning in 2011 it is all down hill from here. Meaning that there will gradually become less and less oil to maintain our current global based economy. Between 2020 and 2030 the modern oil economy we know will cease to exist.

The structure of current banking system will not survive the collapse of the modern oil economy for the simple reason that oil based and dependent companies will collapse creating a cascade of bankruptcies around the world. We have already seen this in the crisis of 2007 – 2009. Between 2020 and 2030 the economic situation will be much worse.

So the world economic banking system needs to begin changing today for the survival of modern economies to exist past 2020 to 2030.

A “Work Credit” based society is one way to do this. Where people become the source of their country’s currency with which to pay them to do work to benefit their society.

A “Work Credit” based financial system works in conjunction with a capitalistic system without the need for constant growth. It also allows for the nationalization of banks, elimination of interst rates, elimination of taxes, and the elimination of constant economic growth allowing cities to stabalize in their current size.

People are paid a base salary from cradle to grave to serve their society in what ever way suits them best. Required jobs are paid at a higher level letting natural human greed fill these positions. Entrepreneurs are given funding to pursue projects impossible in the old way of doing things. Children are paid to go to school, giving them an incentive and reason to go. The job of children is to learn.

But most importantly of all a “Work Credit” based society can function independently of fossil fuel energy resources which will become shorter in supply until their ultimate collapse between 2020 and 2030. At this time overall country populations will begin to decline as there will insufficent food available to feed everyone. Growth must stop.

A “Work Credit” based society will allow growth to stop and decline at an ordinary pace without causing social unrest, chaos and war. This must start today as 2020 is only 9 years away and 2030 is only 19 years away.

Arnold Vinette
Ottawa, Canada