How much interest-free money issued?
>Date: Sat Apr 10 20:03:30 1999
>From: bfowler@netrevolution.com (baron fowler)
>Subject: Interest free money, etc
>To: johnturmel@yahoo.com (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
http://turmelpress.com/watch80.htm. 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:
http://turmelpress.com/pomlizas.htm
>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?
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