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“QE”=”QE”,BE IT “People’s QE or BERNANKE “QE”,WORTHY OF TWO NOBLES ? PEACE & ECONOMICS?

October 31, 2015

PCES Event: Can People’s QE Fix Britain?

by admin

Last week, PCES hosted a panel debate on Jeremy Corybn’s proposed ‘People’s QE’ (PQE), which would see the Bank of England (BoE) create money electronically and use it to fund public projects such as infrastructure spending, or possibly send cheques to peoples’ homes, in an effort to stimulate the economy. Speaking on the panel were Frances Coppola, former financier and well-known blogger; James Meadway of the New Economics Foundation (NEF); and Chris Giles of the Financial Times (FT). The full talk is available in the embedded video below:
Giles opened with a brief but interesting discussion of PCES in general, saying that he believes orthodoxy should always be open to challenges – even if the alternatives aren’t necessarily better. Leading on from this he said he welcomed these kinds of debates about ‘unorthodox’ monetary policy, but thought that PQE was not a good proposal.
(1)…..
He argued that Corbyn and other PQE adherents such as Richard Murphy had not made it clear exactly when PQE would be needed – in recessions or as a permanent policy – and
(2)……
(a)…
he argued that they PQE conflated a number of different issues such as the need for stimulus in a recession;
(b)…. the need for improvement in Britain’s infrastructure;
(c)…. BoE independence; and the debate over unorthodox monetary policy.
(d)….He finished by pointing out that in many ways conventional QE had achieved many of the goals of PQE,   
allowing the government to finance its deficits with BoE-created money.
Coppola agreed with many of Giles’ points, although she stressed that conventional QE hadn’t been benign and could have been carried out better, since the BoE admitted that it has benefited the wealthiest, asset-owning groups of society the most. She argued PQE had been presented as a panacea and expressed frustration with the Labour government not simply endorsing more borrowing to fund public projects.
Meadway began by arguing that ‘the economy’ should always be the subject of public discussion, rather than seen a an esoteric, technical area in which only experts can have a say. Like Giles he therefore welcomed this debate. He pointed out that both private and central banks continually create money and so money creation should not be seen a cause for panic, disagreeing partly with Giles about whether something like PQE might turn the UK into hyperinflationary Zimbabwe. Nevertheless, he agreed with the past two speakers that PQE should not be seen as a panacea that solves a wide number of issues, and that each issue it had claimed to solve should be debated on its own merits.

It was clear that the panel members agreed on many aspects of this question, which meant that there wasn’t as much of a clash as might have been expected from their different backgrounds. But the consensus – that People’s QE was incoherent as a package, but raised important questions – from 3 well-known experts was a good sign.

But the consensus – that People’s QE was incoherent“……..is not acceptable !

Following the introductory presentations, several related questions were raised, such as the possibility of negative interest rates and the issue of whether conventional QE had increased inequality. These made for some interesting and informative discussion which is well worth a watch, so take a look at the full video above!

When a honest Central Bank uses “QE” for the betterment of the community in a capitalistic economy, it will be the greatest system ever devised by mankind.

TAXATION IS TAXATION.How To Lower Personal Federal Income Taxes and Lower National Debt at the same time !

How To Lower Personal Federal Income Taxes and Lower National Debt at the same time !
A simple understanding of -TAXATION.
As Frederick Soddy said,
So elaborately has the real nature of 
this ridiculous proceeding been surrounded with 
confusion by some of the cleverest and most 
skillful advocates the world has ever known, that 
it still is something of a mystery to ordinary 
people, who hold their heads and confess they 
are " unable to understand finance ". It is not 
intended that they should.


“In four books written from 1921 to 1934, Soddy carried on a “quixotic campaign for a radical restructuring of global monetary relationships”[this quote needs a citation], offering a perspective on economics rooted in physics—the laws of thermodynamics, in particular—and was “roundly dismissed as a crank”[this quote needs a citation]. While most of his proposals – “to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort” – are now conventional practice, his critique of fractional-reserve banking still “remains outside the bounds of conventional wisdom”[this quote needs a citation]. Soddy wrote that financial debts grew exponentially at compound interest…”
http://archive.org/…/role…/roleofmoney032861mbp_djvu.txt
THE
ROLE OF MONEY
WHAT IT SHOULD BE, CONTRASTED WITH WHAT IT HAS BECOME By
FREDERICK SODDY
M.A. (Oxon) ; LL.D. (Glasgow) ; F.R.S. ; Nobel Laureate in Chemistry, 1921 ; Author of ” Science and Life ” ; ” Wealth, Virtual Wealth , and Debt ” ; ” Money versus Man ” ; etc.
PREFACE …
This book attempts to clear up the mystery of money in its social aspect. With the monetary
system of the whole world in chaos, this mystery has never been so carefully fostered as it is to-day.
And this is all the more curious inasmuch as there is not the slightest reason for this mystery.
This book will show what money now is, what it does, and what it should do. From this will
emerge the recognition of what has always been the true role of money. The standpoint from
which most books on modern money are written has been reversed. In this book the subject is not
treated from the point of view of the bankers as those are called who create by far the greater
proportion of money but from that of the PUBLIC, who at present have to give up valuable
goods and services to the bankers in return for the money that they have so cleverly created
and create. This, surely, is what the public really wants to know about money.
It was recognized in Athens and Sparta ten centuries before the birth of Christ that one
of the most vital prerogatives of the State was the sole right to issue money. How curious that
the unique quality of this prerogative is only now being re-discovered. The” money-power ” which
has been able to overshadow ostensibly responsible government, is not the power of the merely ultra-
rich, but is nothing more nor less than a new technique designed to create and destroy money
by adding and withdrawing figures in bank ledgers, without the slightest concern for the interests of
the community or the real role that money ought to perform therein.
… It is concerned less with the details of particular schemes of monetary reform that have been advocated than with the general principles to which, in the author’s opinion, every monetary system must at long last conform, if it is to fulfil its proper role as the distributive mechanism of society. To allow it to become a source of revenue to private issuers is to create, first, a secret and illicit arm of the
government and, last, a rival power strong enough ultimately to overthrow all other forms of
government. ”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism would be the best ways and means to help “form a more perfect union….”, Pontifical Council.

SOLUTION.
“LEGISLATE FOR “We the People” WHAT WE HAD LEGISLATED THE CENTRAL BANK TO DO FOR THE Private For Profit Banks (PFPB) ! ISSUE OUR OWN MONEY AS LOANS AND CHARGE A TAX CALLED INTEREST ! ! ! ”
Create an honest Central Bank that shall fund-
““We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…””
There is a solution. Reverse what is causing the problems.
As Einstein said,”Make it simple.”
DISCOVER THE REAL CAUSE.
READ ( http://michael-hudson.com/…/the-mathematical-economics…/
By Michael Hudson
“…. The Mathematics of Compound Interest
A syndicate of less than one hundred American capitalists, if allowed to collect interest on their capital at a low rate and re-invest for 150 years or less, would at the end of that time own the earth and all real and personal property thereon. This is a simple mathematical proposition, capable of exact demonstration, and any one who doubts the truth of this statement may set all doubts at rest by computing compound interest on one and one-half billions of dollars for one hundred and fifty years, at five per cent per annum.
…Flürscheim elaborated that “All exertions, all improvements in the methods and tools of labor, the strictest economy, the severest self-denial, are powerless to compete with the rapidity of self-increase possessed by capital placed at compound interest, and they cannot keep up with its demands.” To illustrate the dynamic at work, he composed an allegory (pp. 327ff.). Many ages after man was driven from Paradise and told “to earn his bread by the sweat of his brow, mercy began to prevail. A loving angel was sent down by the Great Master, charged with the task of lightening the burden. The angel’s name was Spirit of Invention. He began his work by teaching man to make useful tools” and tame animals, and in time to mobilize water power, air and wind power, fire and steam power to drive machinery.
“It seemed that at last the golden era had come of which men had dreamed for ages past,” but “that envious spirit, that fallen angel, Satan,” was jealous that his own empire would soon be over for ever. Among the follies of man, one little imp, called Interest, managed to attract his attention. “‘What is the matter with you, Interest?’ he asked the saucy imp. ‘You don’t seem to be so dejected as your comrades are?’”
“‘Why should I be dejected, master?’ replied the spirit, ‘Am I not one of your favorite soldiers? Haven’t I always been victorious under your august guidance?’”
But Satan answered sadly, “Alas, You are no match for the Spirit of Invention.” The Interest imp, however, volunteered to demonstrate his prowess in a dual, helped by his son, Compound Interest.
At this point, Flürscheim introduced an image that Napier had suggested at the outset of his second book on logarithms in 1617, the Robdologia, likening the principle of geometric increase to that of a chess-board on which each square doubled the number assigned to the preceding one. An old Persian proverb told of a Shah who wished to reward the inventor of chess, a subject, and asked what he would like. To the Shah’s surprise, the man asked “as his only reward that the Shah would give him a single grain of corn, which was to be put on the first square of the chess-board, and to be doubled on each successive square; which, to the surprise of the king, produced an amount larger than the treasures of his whole kingdom could buy. It is this kind of chess-game which capital is continually playing with labor.” The remarkable growth of compound interest soon swallowed “products, capital, the earth and even the workers.” This was in essence the ploy that Flürscheim’s Compound Interest demon used. “Look at this chess-board,” he told the angel against whom Satan had pitted him. “It seems just like any other chess-board, with sixty-four squares,” but it “had the peculiar quality of extending the dimensions of the squares, so as always to be large enough” to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. “Now, listen well to what I propose,” he said to the angel, pointing to the latter’s huge army. I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors – and so on every succeeding square.was in essence the ploy that Flürscheim’s Compound Interest demon used. “Look at this chess-board,” he told the angel against whom Satan had pitted him. “It seems just like any other chess-board, with sixty-four squares,” but it “had the peculiar quality of extending the dimensions of the squares, so as always to be large enough” to hold whatever was placed on them. Instead of asking for grains of wheat to be placed on them, the Interest Imp asked for soldiers. “Now, listen well to what I propose,” he said to the angel, pointing to the latter’s huge army. I enter the first square with my son, and you match one of your warriors against us. We enter the second square doubled in number; you send two more warriors – and so on every succeeding square. .
. . . . When we arrive at the last square, and you have a single soldier left after occupying the same, we shall declare ourselves vanquished, and Satan with all his troops will leave this world for ever. If I win, you and your army are to be at the commands of my master. Are you agreed?
The angel agreed, expecting his horde of soldiers to easily exceed the number that the Interest Imp and his son, Compound Interest, seemed likely to accrue.
In the beginning the angel laughed, for, though twenty squares were passed, no noticeable diminution of his forces was perceptible. Demon Interest said nothing, but attended to business, quietly doubling his army on every succeeding square. At the thirtieth square the angel ceased to laugh, and soon saw he was lost.
‘I despised you, little fellow,’ he signed despairingly, ‘and I am punished for my vanity. I see there is no use fighting against you. Demon Interest is more powerful than the Spirit of Invention. I am your slave. Command your servant!’”
THIS IS THE TIPPING POINT ! WHERE WE WENT WRONG.
(Justaluckyfool’s comment )
‘I am the only servant of my great master,’ dryly replied the demon.
“Here I see him coming. He will give you his orders.’
And Satan gave his orders. He commanded that the angel was to continue in his work with all his troops, which were to be increased with all possible exertion, so that humanity – which did not know the nature of the antagonist it had to fight against – would always keep in fresh hope of final success when the new troops were forthcoming. But as fast as they appeared, Demon Interest was to send forth a larger army to capture the new forces, to enslave them, and – instead of their benefiting man – make them increase the slave-chains which weigh him down.
HOW WE COULD FIX IT !!! WHAT IF DEMON INTEREST WERE TO ANSWER?
“I will now be the servant of a new master,one that will pursue happiness for all mankind.”
(Justaluckyfool’s comment )
The answer lies in how you redistribute the wealth, not in how you make it.
As for the worlds wealth, there is the possibility of total accumulation through compound interest (the most powerful force in the universe) which then begs the question, “How would that wealth be redistributed ? Who will be the master?
We must go back to “In God We Trust” and use that ‘most powerful force’(compounding) to fund
“…a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
Why do all the head politicians all agree that “Entitlements and Debt Service” are killing us and are unsustainable. Then never attack the cost of the debt service or even why we have to pay interest on our own money, instead just attack any attempts to…” establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,

A simple understanding of -TAXATION.
************************ It should always be “TAX and SPEND”, trillions if properly and justly done.When will we learn, A HONEST CENTRAL BANK using a Capitalistic system can and should allow a monetary sovereign government to form a more perfect community.
 
WHY WOULD YOU NOT WANT PROSPERITY FOR YOURSELF AND YOUR CHILDREN ?
When a bank charges interest, it may be usury.
When the government  charges interest it is taxation.
When  a government has a mandate .. “to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
What better way is there than:Taxation !
DO FOR OURSELVES WHAT WE HAD ALLOWED THE CENTRAL BANK TO DO
FOR THE Private For Profit Banks (PFPB) !
LOAN OUR own MONEY and CHARGE (interest) A TAX ON IT.
AMEND THE FEDERAL RESERVE CHARTER; TURN THE FED RESERVE INTO THE FEDERAL RESERVE BANK OF AMERICA (FRBA),RESTORE MONETARY POWER BACK TO THE PEOPLE ,OPERATE THE FRBA WITH ABSOLUTE TRANSPARENCY, OPERATE AS A HONEST BANK.
(“GLINDA,the Good Witch, owns a Great Book of Records that allows her to track everything that goes on in the world from the instant it happens.”_The Road to Oz)
Form a more perfect “capitalistic “monetary circle: $100 trillion issued as loans to come back as $200 trillion as payment while at the same time as it returns creates a revenue stream for  $100 trillion in new loans while spending $100 trillion as Congressional appropriations for the benefit of the people.
Isn’t this what has been done to us by the Private For Profit Banks since we have allowed the FED to work for them ?
What if they say this solution is ,
““Inflation! Hyperinflation!!”
“Income Inequality & Unemployment Are Cheaper to Solve”
“Everybody says Climate Protection Will be Cheap”
“We Need to Support Dominant Carbon Pricing Framework & Political Consensus”
“Government is Always Inefficient and/or Ineffective”
“We are Comfortable Right Now, Thank You”
“Advocacy Will Endanger My Stance as a Critic”
“Civilization is Not Worth Saving; It’s not Worth the Effort”
ANSWER:
The greatest challenge to over come will be slung at you in a million ways, with millions of cries, “It can’t be done.”,
“You will put us in unbearable debt.”
“We will no longer be able to sustain our  sovereignty.”
So how will you create enough government revenue to create 3-5 million new jobs,
reduce Federal Personal Income Taxes, increase Social Security, have Medicare for all
and decrease the National Debt?
THERE IS A WAY .
While adhering to the basic principle-“The way and means for a ‘capitalistic sovereignty’ is to RAISE TAXES should they wish to increase spending.”
Yet no one explains that there are “other ways” of taxation. There is a method available to us that is no only fair but also of such a magnitude that it could fund this great union
to become…“…a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…
Simply a better, fairer taxation.
No inflation or deflation for there is zero change in the capital value of the sovereignty.
There is zero change on the balance sheet of the Central Bank; a true zero net change.
For any nation to be a Monetary Sovereignty….
.. it must be the sole creator of its sovereign currency.
…it must have the ways and means to control its sovereign currency for quality and quantity.
…it must under modern money systems be fiat since its money is transferable “thru thin air”.
…it must understand that it is the guardian of the value of the currency , if it wishes to be capitalistic; otherwise that nation will be totalitarian. As a guardian (recording and exchanging) it does not own the value of the currency it creates.
…it must use that currency knowing that it must also return it back to the community (the rightful owners).
…all transactions using sovereign currency must be “REAL”, meaning backed by 100% of issued sovereign currency. All that has been issued backed by “reserves” must over time be converted to loans from the Central Bank, the sole issuer of the currency.In order to prevent “systemic failure” it must make available the currency as loans at a fixed rate and duration in amounts deemed necessary to allow the private banking system to be solvent.
Based upon an opinion by “Justaluckyfool” of the concepts of Noble Laureate  Frederick Soddy, “The Role Of Money” (1926,1933)
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.Use them as your own.)
Read and challenge:
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download…) http://archive.org/details/roleofmoney032861mbp
ANY “QE” PLAN COULD BE USED AS A “PEOPLE’S ” QE”  PLAN.
Increase…. net wages,
Increase.. Jobs,
Decrease.. Federal Debt,
Decrease… Poverty
Decrease .. Inequality.

ALL AT THE SAME TIME:

” QE4JOBS”-a plan to create millions of jobs that will pay for themselves while decreasing federal debt, poverty,  as well as the income gap….or stated another way, “How does this capitalistic government create an INCOME stream over and above its budget, while decreasing its present debt, while  having complete control over the quality and quantity of its currency?
“QE 4 JOBS”
Have the American financial system rush to the rescue with a generous and flexible legal funding that no other country could match.
Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet, (Bernanke should get Noble for this).

QE!

A simple change in direction of doing something for the common bettering of all the people. Especially those in need now.
The FEDS did in fact QE for the Private For Profit Banks.
The FEDS made direct purchase of bank assets.

Why not have the FEDS do for the States exactly that-purchase from each state $20 billion of State improvement bonds w/ terms of 2% for 36 years.
Thereby creating 3-5 million jobs while at the same time producing an income stream (tax revenue)or a banks call Net Interest Income, (money that by law is to be turned over to Congress for appropriations).
***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC),
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
( “You are always welcome to share, copy, plagiarize, improve, etc..any comments.)
WHY WOULD YOU NOT WANT PROSPERITY FOR YOURSELF AND YOUR CHILDREN?
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