My issue with this is where does the interest come from (no.7)?davedan wrote:1. The problem with current economics is that money has been gold or oil-backed or fiat. The problem is that not all countries have gold or oil or "we say so".
2. Next, fractional reserve lending lets the big banks create money from nothing and lets the little banks fail if there is a bank run, stock market crash or housing default. Banks lose fractional reserves and become insolvent.
Solution = (Constitutional) Safety Society System
1. Congress via US Treasury coins/prints/creates all money
2. Every country creates its own currency
3. Full reserve lending
4. Local banks (safety societies) lend only for real assets like land and houses and building etc
5. The land, houses, buildings, developement is the backing for the money creation
6. Since every country has land and every country can build buildings, every country has full control of their own credit and currency.
7. Treasury charges a simple prime interest rate.
8. Non-profit local Safety Society charge loan origination fee
9. Missed payment is deducted from equity (built-in reverse mortgage mortgage insurance)
10. default occurs when all equity is lost and SSS repossesses real asset.
11. prices of everything based on quantity and quality of labor required to produce and deliver priduct or service and not scarcity.
12. apprentice, journeyman, mastercraftsman pay scale
If the money is based on the real value of a created asset (a building for example), how can interest be conjured up? Where does it come from if nobody is creating any money other than that which is fixed to real assets?
