Sustainable Expansion Of The Money Supply Through A Utility Other Than Banking - Renewable Energy
Posted on | July 27, 2010 | 3 Comments
What is inflation? An increase in the amount of money in an economy compared to the amount of true assets produced resulting in more money available to purchase assets.
Most countries aim for a 1% rate of inflation. I would define 1% inflation as stealing (defrauding) 10% of every persons savings and 10% of all future earnings, each decade for the rest of their lives.
In economics a general definition for the supply of money or the money stock: is the total amount of money available in an economy at a particular point in time “money” usually includes physical currency in circulation and demand deposits.
“The definition of money has varied. For centuries, physical commodities, most commonly silver or gold, served as money. Later, when paper money and checkable deposits were introduced, they were convertible into commodity money.
The convertibility of money into a commodity has been abandoned since August 15, 1971, when President Richard M. Nixon discontinued converting U.S. dollars into gold at $35 per ounce, has made the monies of the United States and other countries into fiat moneymoney that national monetary authorities have the power to issue without legal constraints.”[1]
Fiat money is a form of fraud because the government or banking entity is counterfeiting money. It has no real value so it will only be accepted through the use of legal force and coercion; fines or imprisonment.
Money is especially a unit of trade where as a certain amount of money stands for work performed or goods and services. The value of money is dependent on peoples willingness to accept the currency.
By increasing the amount of currency in circulation it devalues proportionately all other currency in circulation. The way in which the currency is inflated is irrelevant, whether by credit from a bank, central bank or printed by a government. The way in which inflation of the money supply is used however can correct the devaluation of other moneys in only one way - if it is used to create wealth.
The creation of wealth appears to be controversial so here is its definition for use within this theory. Wealth is anything of value that can be sold. Services are not wealth however they can add to the value of wealth. Wealth can also depreciate in value. The value of currency is equal to assets of the issuing country minus depreciation: Money, Assets, Depreciation. M=A-D
This is a theoretical formula for it requires no government or business deceit in the form of government accounting, central bank accounting, or business accounting fraud. The true way to raise asset value and lower depreciating rate is through technological advances and increased production methods. In a fiat system, currency is based on perception; what people believe the value is or what is enforced by law. Thirty percent of Americans belive the dollar is backed by gold. If more wealth is created than depreciated or destroyed the value of a currency will increase.
Businesses that create wealth balance out businesses that provide services. Some businesses create wealth that appreciates in value and others that depreciate in value. This is not to say that businesses in the service industry are not important because they are an essential part of the economy and a great source of employment. Business banks have traditionally been given a higher priority than other industries because they are seen as an utility.
The balance between credit to wealth creation industry and the service industry is typically balanced by the free market and leads to a slow price inflation or devaluation. The devaluation of currency can not be hidden or suppressed however price inflation can be manipulated through several monetary schemes. The stability of business banks in the modern world has been given a preference because they are a utility, which has lead to the creation of central banks and federal reserve systems around the world.
It appears too common that governments and bank operators have lost sight of their fundamental duty to loan money to businesses which is the only reason they are given a safety net and cheap “free” credit. In the pursuit of higher profits business banks have been allowed to deviate from their primary function and have become involved in consumer debt: short term(credit cards) and long term(home mortgage), and speculation in commodities and stocks among other activities. The deviation from its wealth creation purpose has led to massive devaluation of currencies and price inflation, which has been accelerated due to central banks and central planners.
A careful review and understanding of political history and monetary history leads to the conclusion that neither a central bank or political system is capable of controlling the money supply responsible.
“Since 1914 a sustained decline of the money supply has occurred during only three business cycle contractions, each of which was severe as judged by the decline in output and rise in unemployment: 1920-1921, 1929-1933, and 1937-1938. The severity of the economic decline in each of these cyclical downturns, it is widely accepted, was a consequence of the reduction in the quantity of money, particularly so for the downturn that began in 1929, when the quantity of money fell by an unprecedented one-third. There have been no sustained declines in the quantity of money in the past six decades.”[1]
It is therefore necessary to create a framework for a sustainable and stable economy in which the expansion of the money supply is predetermined by a specific wealth creating industry. The amount created should have a set range, from growth in GDP to a set limit of double GDP growth. The only reason banks are giving the power to create money and receive interest upon it is that they are a utility and they should decide where loans should be made.
It’s alright to have banks as a utility however their utility is not to create money but to arrange loans between the savers and the investor. The creation of money or credit which are indeed one and the same should not be expanded into the banking system because whereever new money is expanded it will end up in the banking system immediately.
I do agree the expansion of money should be in the form of credit but to a different utility, that of energy and the best long term energy investment is renewable energy because the energy is free if you give the energy bank the same deal central banks give commercial banks.
In this system of expanding the money supply through an energy bank instead of a central bank, the business banking sectors power to create credit must be limited and understood by the public.They have no money to buy assets or commodities they only have credit, a power granted to them by the people to expand businesses and jobs, not consumer credit and debt. Business banks should only be allowed to invest in businesses, they should only be allowed to hold reserve cash in preferred stock that pay dividends, treasury notes that pay no interest but are adjusted for inflation, cash, or gold. They should not be allowed to participate in other forms of banking or buy securities unrelated to business loans.
A central banks role should be to make sure the banks are holding the required reserve ratios established by law, the higher the reserve ratio to less inflation and “bubbles” the banks may cause. The money supply or the money stock is the total amount of money available in an economy at a particular point in time.The standard measures to define “money” usually includes currency in circulation and demand deposits. A sound currency based economy backed by energy would require the currency in circulation to equal energy reserves in storage (ERS). Depending on the reserve ratio demand deposits may not be required to be backed by ERS.
The modern economy is based on energy which is a utility more important than banking. The best wealth creation industry is renewable energy; wind, hydro, geothermal, solar, and also nuclear power. These are wealth creators that appreciate in value, wind power takes 8-10 years to pay for itself then creates wealth for approximately 65 more years. However current monetary policy and interest rates make wind investment 16-20 years to pay for itself. Approximately 1 year is added for 1 percent increased interest rate charged. Solar power which is a 12-16 year investment is turned into a 20-24 year investment at an interest rate of 8%. If the expansion of the money supply were redirected to renewable energy, energy prices would fall for the next several decades until it reached its bottom.
By expanding the money supply through an energy bank the interest rate it charges should have a set range such as 0-4 percent and those businesses which want the loans would be required to match a percentage of the loan in that energy project set at a range of 25-50 percent of the loan (1 Billion dollar loan at 25% =250 million business investment). This matching provision would remove the moral hazards now present in our banking system which allows a small group of people to decide which banks are given the cheap loans; “credit”.
Business banks should still be protected from collapse and should only be allowed to loan to businesses because they still have the power to make money through the money multiplying effect granted in a fractional reserve bank. In addition the currency in a stable economy must be backed by a commodity, something of value, actual wealth. In the modern economy I believe energy should be used as that commodity because it will give the added benefit of stabilizing energy prices, it has easily measurable quantities, it is counterfeit proof, and more can be created.
Energy is now and will be in the foreseeable future the most valuable commodity. For every quantity of energy a country stores it can issue currency backed by that wealth in storage without causing inflation. This is because the modern economy is based on the price of energy; crude oil, coal, natural gas make the majority now. Funding renewable energy will pay for itself and if the energy bank is giving the credit through a central bank it would cost nothing. Besides the cost of maintaining the transmission lines and plants that convert the energy to hydrogen, natural gas or liquid fuel the energy prices would begin to fall as well as energy imports.
A rapid decrease in the price of energy would be a shock to the economy and should be smoothed out over a long period of time by adjusting the matching percentage of the loan and the interest rates of the loan. The energy companies receiving loans would be required to pay a certain percentage of their federal taxes in the form of energy, which the government is required to hold in a strategic petroleum oil reserve. For the first ten years the currency should be backed by oil, the following ten years should also be backed by natural gas in storage and in the following ten years should also be backed by hydrogen in storage.
“The United States has experienced three major price inflations since 1914, and each has been preceded and accompanied by a corresponding increase in the rate of growth of the money supply: 1914–1920, 1939–1948, and 1967–1980. An acceleration of money growth in excess of real output growth has invariably produced inflation in these episodes and in many earlier examples in the United States and elsewhere in the world.” [1]
In 1918 the size of the physical money supply doubled from 1 billion to 2 billion in the US, and the currency lost half is purchasing power. Of course the central bank has been the key to paying for sustained wars in the last two centuries. With out the inflationary tax of central banks government would not be able to convince its people to pay for long wars with obvious tax increases.
“That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct empirical relation between long-term price inflation and money-supply growth. These underlie the current reliance on monetary policy as a means of controlling inflation. This causal chain is however contentious, with heterodox economists arguing that the money supply is endogenous and that the sources of inflation must be found in the distributional structure of the economy.” - Money supply - from Wikipedia, the free encyclopedia (also see Lance Taylor’s 2004 Reconstructing Macroeconomics)
It appears an argument over money supply growth vs distributional structure is irrelevant because they are one and the same. If the distributional structure does not increase with the money supply growth then you are growing the money in the wrong place. Every recession is preceded by an increase in the price of necessities and followed by a collapse of credit. The price of everything in a modern economy is based on the price of energy in some measure.
A increase in energy price leads to general price increase and to a shrinking economy; all other things being equal. Out of the last 10 recessions, 9 have been preceded by a large rise in oil prices. In an economy which imports a large percentage of its energy with a trade deficit leads to a devaluation of the currency. The ultimate question a great society can answer is what utility to increase the supply of money in; Banking, Energy, Education, Food and water or Transportation?
Set rules to maintain 0% inflation and honest accounting standard. An overall analysis I believe that inflation is not unstoppable, debt is not perpetual, peace is not impossible, and war is not inevitable with a modern monetary policy. The concise encyclopedia of economics Money Supply by Anna J. Schwartz www.econlib.org/library/Enc/MoneySupply.html
For more on Renewable Energy, check out Green Energy.
Read more about Energy based economy.
A working paper
By: Sean Shea
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Nursing Careers Start With An LPN Online School
Posted on | July 9, 2010 | 2 Comments
Consider how real it truly is to become a licensed practical nurse from anywhere in the world with only a computer, solid Internet connection, as well as a devoted part of your time. Because of LPN online lessons, you are able to obtain a LPN degree without worrying about hassle associated with going to a actual university. That is a perfect option for students who would like to study and also get lessons part time or are not able to be in a campus environment.
Accomplishing this really is very difficult feat, similar to the scrupulous steps pupils should take before becoming a full fledged practical nurse. For the program, an LPN online college should initially be approved and then licensed from the State Board of Nursing, should be self-sufficient when it comes to having a full line of internet facilities and research materials for a complete LPN training. For the scholar, taking this alternative method of studying frequently will take about a year to complete and the courses are usually taken through the internet via on-line lectures, manuals, tutorials, live presentations and webinars. LPN degree programs over the Internet may cover all main prerequisites required in a normal degree and generally, quizzes and tests can be carried out online as well.
Following are a few of the LPN schools delivering LPN online programs, according to RN Central:
University of Phoenix
The University of Phoenix delivers 27 nursing certifications. Students who would like to pursue their employment aspirations as a registered nurse can surely study right here. The university embraces not only scholars fresh from high school, but additionally offers working adults the expediency of taking medical courses whenever they can.
The College Network
It is a conglomeration of approximately 10 colleges that offer medical degrees. The particular Network is recognized as considered one of the top providers in the US offering excellent nursing courses online.
South University
As a licensed online organization, it provides a professional Allied Health Science Associate’s Degree for people who want to be part of the healthcare workforce. The lessons provided listed here are presented completely online, providing students the opportunity to master and train in their own time without the need to get away from their present duties.
With technological know-how moving forward and individuals always on the move, pursuing a diploma at the best online LPN schools is becoming a practical alternative for future practical nurses who are already working for a living with a objective of a sound career in health care.
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Starting A Nursing Career With LPN Programs
Posted on | July 9, 2010 | No Comments
Health care graduate students are continually in demand and pursuing a healthcare employment is an aspiration for many people. One diploma specifically, Licensed Practical Nurse (LPN), is a fantastic option because of a balance between an interesting job and excellent salary conditions.
LPNs care for ill, hurt or handicapped people, doing work under guidance of medical doctors and registered nurses. LPNs work consists of numerous elements. Bedside care, including monitoring vital signs and setting up and giving injections and enemas, is one area in which LPSs are indispensable. Collecting biological samples for testing and carrying out laboratory tests, and supervising food and liquid consumption is another. LPSs furthermore support patients with washing, hygiene, dressing up and walking. In certain countries, LPNs can administer prescribed drugs, intravenous fluids and care for patients who are on life support. Finally, certain LPNs also take part in delivering and caring for infants!
As opposed to doctors, LPNs do not have a specific specialization and operate in all areas of health care. Even so, in some instances LPNs work in a specific setting, such as a nursing home, at a doctor’s clinic or at a person’s house.
To get an LPN degree, enrollees must complete an LPN training program in practical nursing from a respected LPN school. A listing of LPN schools can be found online or through the State’s board of nursing. LPN programs are available from technical and vocational schools and colleges, as well as high schools, hospitals and universities. It’s also entirely possible to attain the LPN online degree.
In order to apply for LPN courses, one must have a high school diploma or an equivalent, though a number of programs will admit applicants not having a diploma. LPN classes comprise essential nursing and patient care, pediatrics, obstetrics, pharmacology, physiology and first-aid.
LPNs job chances keep on to be fantastic even in the current market. The number of LPNs jobs is predicted to grow by 20% between 2010 and 2020, which is faster than the nationwide average for all jobs combined. The reason for this better growth is the maturing of the population, which results in a greater need for skilled medical professionals. The earning potential is also very good, with the top LPNs getting in more than fifty thousand dollars per annum. Last but not least, LPNs have lots of possible career options, such as progressing to registered nurses via an LPN-to-RN programs or getting a credential in a certain discipline, such as pharmacology or IV therapy.
To conclude, LPN program is a great option for those pursuing a career in nursing.
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Best Student Loan Consolidation
Posted on | July 5, 2010 | 4 Comments
Going to college is very essential. Thus, Americans, even married once still continue to go to college. This really is because you have much better future if you are able to finish college; this really is true in American and even in the other parts of the world.
To assist you with this important factor inside your life, student loans are obtainable to help you go through college education. However, students end up with knee-deep in student loans.
If you’re one of these students, you need not despair; you might shop around to find the greatest student loan consolidation entities to help you within the process of obtaining out of debt.
Best college student bank loan consolidation will help decrease your monthly payment of up to 50%.
You can’t find any better deal than that. Reducing your monthly payment will mean that you are able to have some spare cash for other purposes. Greatest college student loan consolidation will thus help you have some cash to meet other expenses like car payments, household needs, and childcare.
Furthermore, simply because from the best student loan consolidation program, your credit rating will improve and you can even extend your paying period from the usual ten years to as long as thirty years.
You might also discover the best college student loan consolidation company which will give an extra percentage of interest on top from the savings from the consolidation. This will be great to lessen your monthly burden.
Furthermore, if your student loan is below the federal direct college student loans, you may qualify for the greatest federal direct bank loan consolidation program.
In this program, in addition to the 50% or much more reduction inside your monthly payments, there’s a lock in lower interest rate obtainable for you.
This lock in lower interest rate is greatest for your college student loan consolidation program simply because it will shield you against inflation rates.
This will mean that you’ll not need to worry about extra charges due towards the inflation rate fluctuations.
To top is all off, the greatest student loan consolidation deal below the federal direct plan is simple to apply, and you will find no fees, credit checks, application, or original charges.
Therefore, it’s a clean way through paying your student loans and can even spare you some cash for other purposes. Is this not the greatest student loan consolidation plan you will ever discover?
If you’re not sure if your student loans are below the federal direct college student loans plan, you may check out the internet. Match your college student loans if they will qualify for the greatest student bank loan consolidation plan.
You can also discover in the web additional info that you are able to use to assist you get out of that knee-deep debt.
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What You Need To Know About UK Boarding Schools
Posted on | May 21, 2010 | 20 Comments
UK boarding schools are known all over the world for their excellence. Academic success rates are high, and nearly all pupils go on to study at university afterwards. There is a huge choice of boarding schools in the UK, who take pupils from all countries, from ages five to eighteen. After going through the UK boarding school system, a child will not only have benefited from a first class educational experience, but will be a fluent speaker of English, which is the global language of business and commerce.
All boarding schools in the UK have to be registered with UK government education department, and are subject to minimum standards of facilities and teaching. These minimum standards are above and beyond those typically enforced in many other countries. You can find out particulars relating to a boarding school’s past results by visiting their website, and you can also find league tables on independent websites that rank schools on a range of performance factors.
Boarding schools in the UK educate pupils by following the standard British curriculum, which is revered and copied by lots of other countries. At eighteen, pupils gain their A-levels, which are, according to Cambridge University and Oxford University, the highest form of pre-university qualifications available. Having achieved good A-levels grades, pupils can attend the best universities anywhere in the world. The grades that pupils at boarding schools achieve for their A-levels are well above the national average, with lots of pupils achieving straight As.
Though some boarding schools educate children as young as five, it is more common for them to focus on just secondary education, which is for children between the ages of eleven and eighteen. The standard procedure is for children to take an entrance test for a boarding school when they are eleven, and to then stay at that school until they pass their A-levels at the age of eighteen. Pupils are accepted at any stage during that time, but the transition process is easier for them if they start at the school at the same time as most of their peers.
What follows is a brief overview of what you should do before making a final decision on which boarding school to send your child to…
- Thoroughly look through each school’s prospectus.
- Visit two to five schools if it is possible to do so.
- Ask your child if they have any particular preferences.
- Find out what is included within a schools fees, and what is excluded.
- Ask whether your child qualifies for any grants or scholarships.
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