THE KEY MISTAKE !!!!

Go back in History !!!!

A State must be mainly responsible for Security, Law and some Infrastructures … A State receives incomes from tax and from public companies. !!!

 How a State can create a currency ??? many tribes or native people have created  some proto-moneys with their local resources ….. However, Precious metal is one of the most  universal value. So, establish a realistic weight for a currency is the first challenge….. 

Secondly, Establish a conversion between the main national currency and the private currencies that could be created by people / Banks / companies who own assets ….. In this way, there is no depreciation of the main currency.

It was a true mistake to let Banks create the same currency with only paper and credits ….. It was impossible to find enough physical  gold and silver supply to back all the money created …..   If Banks had created some different private currencies backed by tangible assets, the competition could be effective for innovation and productivity ….. 

 The main mission for this kind of  banks : increase their assets, so in this scheme, increase the State Wealth and the monetary base.

What to do now ??

 Austerity is massive in many western countries and many cuts on savings are still expected  !!!  As an emergency manager and a Geographer, I think it’s stupid to loan money in a disaster stricken area, it’s a financial slavery ….. Why not  loan only assets ??? And let people create their own ad hoc unit of account, like explained in this research blog,  to  recover as fast as possible with positive exchanges and interactions