Monetary Policy, Bank Regulations, and Economic Reform- considered dry, perplexing topics by many- are the least understood and yet one of the most powerful determinants for change: it is through the ebb and flow of equitable monetary and fiscal policies that individuals within social systems, and nation-states within global contexts are best able to peacefully coexist.
Money Creation
|
"The very idea of a government that can create money for itself allowing banks to create money that the government then borrows and pays interest on is so preposterous that it staggers the imagination." -- William F. Hixson, It's Your Money |
GCM: Public
Government Created Money. National banks can
create and regulate a nation's money supply out of nothing, (that
is, debt-free) at no interest, for national Governance- programs
and needs. [See
the Bank of Canada Act, Selected Sections]This is of use and
service to the peoples of the nation. The collateral required is
the trust of the populace in the legal tender so issued.
In Canada, for example, The Bank of Canada currently creates some 5%
or less of Canada's money supply- and this is not out of line
with what happens elsewhere.
BCM: Private
Bank Created Money. Rather than creating money
through national banks, most national governments borrow moneys,
at interest, from private banks- which also create it out of
nothing. This is why (i) private banks make skyrocketing profits; and (ii)
why national governments are so deeply in debt. (take our
EQ Test
to confirm this- if you dare!) Income taxes- yours and mine- are the collateral
required for this debt-based (not free) loan. BCM is of use only
to bankers and their immediate associates. Private banks and other
financial institutions, many of which are controlled by banks, currently
create some 95% or more of the money supply in most nation-states.
|
The profoundly negative social, economic, and environmental impact of the singular historical fact of BCM having superseded GCM during the course of the 20th century appears to have eluded many economists, activists, and the general populace. They have sought elsewhere for destructive causal factors, failing to identify that which has surrounded us all, that which we are completely immersed in. It is a problem which appears almost neutral it is so everywhere, seemingly too pervasive to name: BCM; which has a solution- GCM- too simple to believe. |
One of the great tragedies of the 20th cenury has been the severity of
the local/global destruction caused by the transference of
directive- political- power from national governments to the
private banking system. (See our Globalization
Tutorial)
One of the great hopes of the 21st century is that this tragedy
may be rectified. Solutions exist! COMER explores some of them on this
website, and through its publications. What is needed is
education, and political will.
COMER writes critically and considerably on the subject of monetary and
economic reform. Refer to the Articles
section, available from the homepage, and the Books
link at the top right of this page.
We hope that you enjoy your visit to our website. We would be glad to hear from you! Any comments would be appreciated. If you are indeed a NEWcomer, we would suggest that you begin with our economics tutorial...