Since the Middle Ages, fractional reserve
banking has been the greatest scam in the history of Mankind. The system can
also be considered to have played a significant role in the plundering and
waste of Earth’s natural and environmental resources. However, we must admit that
fractional reserve banking has benefitted everyone in the Western countries, giving
rise to faster progress in living standards, especially for the last 300 years,
compared to the other continents.
Since most of the money stock is debt, where do we
find the money needed to pay off both the capital... and the interest ???
We therefore suggest using globalized trade and
communication means to develop “outsourced”
resources banking. The idea is to pool the reserves for clearly defined
economic aims, emphasizing the need for them to develop local skills. Linking
capital and know-how is the key to sustainable economic activity. Capital
cannot be hoarded and must circulate to keep its value, a little like water in
an aquarium filter. By pooling assets, it will be possible to issue money and
credit with the sole aim of perpetuating reserves. The money and credit must be
used for entrepreneurial action focusing on preservation and mitigation. An
expert analysis of the feasibility of projects will therefore be done. We will
forget the “Production / Consumption” paradigm. Available resources will
increase by finding new partners and pooling new assets. Capital holders will
thus be certain of not making a profit from speculation, or sustaining any
inflation-induced loss, and will indirectly benefit in their everyday lives
from the projects undertaken.
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