How much interest-free money issued? 
>Date: Sat Apr 10 20:03:30 1999
>From: (baron fowler)
>Subject: Interest free money, etc
>To: (John Turmel)
>Hi John:
>I have read your webpage with great interest (not a pun). I am 
>indebted to you for the formulas of the odds of surviving the debt 
>game. And your chart explaning the Shift B in regard to inflation. I 
>thought so myself. I got your email address from John Courtneige, who 
>sends his love and best regards.
>I have just completed an article on the Guernsey Island interest free
>currency which began in 1816. It is a remarkable story. I will attach
>the short version (2 pages). I have the long version (6 pages) if 
>you are interested.
     JCT: I'd be interested in the your condensed version. Though I 
think I already have the small pamphlet called "The Guernsey 
Experiment," do send the longer version along too. It can't hurt to 
have it transcribed and I'll probably post it on my web page. 
>I believe that we (Canada) can do the same thing. My question is how
>much interest-free money can or needs to be issued per year?? 
     JCT: There is a natural limit set by the amount of collateral 
produced. Just like a casino bank can never issue more chips than 
there is collateral pledged, a LETS bank operates on the same one-to-
one principle. Today, how much we produce is linked to how much money 
we issue but with a Bank of Canada LETS, how much is issued will be 
related to how much we produce, not the wrong way around. See Socred 
Louis Even's example of the stationary engineer at It's brilliant. 
>My current answer is an amount equal to the total interest on all 
>debt (government + corporate + personal). 
     JCT: This makes sense and is the amount of new money the Social 
Crediters would have issued to balance the equation. But since LETS 
doesn't have any interest, no balancing is now necessary. 
>The total debt in Canada is about $4 trillion (estimated). If the 
>average interest rate is, say 10%. Then the total interest free 
>money needed would be $400 billion. 
     JCT: True, this represents about how much debt service Canadians 
pay and get nothing for. It also represents the amount of dividend we 
could pay ourselves if we managed to get the plates back from the 
bank. Check the Plates section of my poem at:  
>This is about 2.5 times the Federal budget!!! A huge amount.
     JCT: Yes, isn't it. Over $10,000 per person per year in dividend 
if we can recapture the license to create money away from the banks. 
>Is this inflationary??? 
     JCT: Such Social Credit balancing wouldn't be inflationary as 
long as the amount is less than or equal to the amount of missing 
money to pay component of price caused by the interest. 
>We could eliminate almost all taxes at this rate over time once the 
>debt was rapidly paid off at say, $100 billion per year. Any comment 
>on this John?
     JCT: We'll always have to pay tax for army, health care, road 
repairs, social servants and government employees, taxes I don't mind 
paying if you find that section in the poem. It's only paying tax for 
interest which gives me nothing that I complain about. 
>Keep up the good work. And I did not know that you an in 'THE Book'. 
>The Guiness Book that is... Best regards, Baron Fowler, Quebec
     JCT: I've heard that there is a Rouyn-Noranda LETS and that they 
started up a Montreal LETS recently. Have you heard anything about  
this? And what part of Quebec are you from? 
     Why don't you join our newsgroup by sending any 
email to:
     You will receive notification with a password which you can 
change if you visit the User Center at 
     Or simply visit:
     To view the archives, see:
     You might also seek out old Social Crediters in your area who 
really enjoy being told about how LETS interest-free social credits 
are sweeping the world. 

Send a comment to John Turmel