[GJM] [gang8] Transfinancial Economics Project.......Revealing Comments 2.

[robert searle]

--- GEOFFREY GARDINER

> With regard to TFE
> 
> Anyhow, the aim of monetary reform itself here is to
> have loans created without interest. This could put
> a complete end to the business cycle of "boom", or
> "bust" just described. Interest free loans would be
> highly beneficial for the economy, society, and
> politics.It would also mean that the banking system
> itself would no longer be a massive commercial
> enterprise. Instead, an independent public authority
> would issue interest-free credit.
> 
> The result would be total bust. The source of all
> money is debtors, and if the state is the only
> source then no-one else can borrow at all. Interest
> free credit supplied by a state bank is Soviet
> economics; not a good recommendation. Potential
> demand for it would be infinite, and the results
> catastrophic, exactly as happened in the Soviet
> Union where capital was grossly wasted as it was not
> charged for.
> 
> Banks are only intermediaries. They do not create
> money for themselves but for their depositors.
> 
> 'Fractional Reserve Banking' is a concept, not a
> reality. It does not exist in the British monetary
> system. The reserves a UK bank keeps are not a
> fraction of its deposits but its estimated liquidity
> requirements in the next few days. The supply of
> liquidity is totally under the combined control of
> the Central Bank, the FSA, and the Treasury. The
> liquid reserves consist of Bank of England debt and
> no other bank can force the Bank of England to go
> into debt.
> 
> As a good rule of advice, if you find a 'monetary
> reformer' talking about 'fractional reserve
> banking', you can take that he does not understand
> the system and should be ignored.
> 
> 
> 
> GWG
> 
>   ----- Original Message ----- 
>   From: dharao4 
>   To: gang8 at yahoogroups.com 
>   Sent: Thursday, September 27, 2007 10:13 AM
>   Subject: [gang8] Transfinancial Economics Project.
> 
> 
> 
>   Dear All,
> 
>   Some of you may like to comment about my research,
> and 
>   development project which offers a radical, but
> possible solution to 
>   many of the worlds problems. It is called
> Transfinancial Economics, or 
>   TFE.
> 
>  
>
http://kheper.net/essays/Transfinancial_Economics.html
> 
>   Regards,
> 
>   Robert Searle
> 
> 
> 
>    





      ___________________________________________________________
Yahoo! Answers - Got a question? Someone out there knows the answer. Try it
now.
http://uk.answers.yahoo.com/