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Though I see you're talking about the UK now (something you may want to make clear on the site), just to provide a cite on #2 with respect to the US, I find tha

by Natsu 11y ago

Though I see you're talking about the UK now (something you may want to make clear on the site), just to provide a cite on #2 with respect to the US, I find that's explicitly the case for the US Federal Reserve: "The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: Maximum employment, stable prices, and moderate long-term interest rates.[10] The first two objectives are sometimes referred to as the Federal Reserve's dual mandate." Given that it seems you want to recreate something like the Federal Reserve for the UK, I'm curious about which parts of the system you want to reuse vs. change. [1] https://en.wikipedia.org/wiki/Federal_Reserve_System https://en.wikipedia.org/wiki/Federal_Reserve_System

ZenoArrow 11y ago
> "Though I see you're talking about the UK now" There are similar monetary reform movements in the US, the one I linked to just happened to be driving for change in the UK. With regards to recreating the Federal Reserve, you could argue that any central bank has a similar role to play, and the UK already has a central bank (the Bank of England). In some ways, you're right, that is similar to what is being proposed, but there are some key differences. Let's use the US system as an example again. The money in the new system would be debt-free. This is a very important part of the system. Central banks like the Federal Reserve would not be accruing more debt just to do their job (for those that may be thinking having that debt is good, a decent chunk of US taxes goes into servicing that debt, effectively paying off the interest on a loan you didn't need to take out in the first place). Not only does it take the debt burden away, it also allows greater flexibility with economic strategy. For example, in the current global economic system we go through cycles of activity. When the economy is booming, more money is created, facilitating easier trades. However, in times of recession, the money supply shrinks (or rather the flow of available currency shrinks), making trades harder just at the time when more money would be useful to help the economy recover. Instead what you want is a money supply that can expand even during a recession, and that's easier to arrange by using debt-free money guided by a central authority. Transparency is another key difference. It should be possible to follow most/all of the debates shaping monetary policy. Correct me of I'm wrong, but we don't seem to have this level of insight into the inner workings of the Federal Reserve.
- Natsu 11y ago
  What does "debt free" mean exactly? I see a few options, but I'm not sure what you're trying to forbid: * I can never promise to pay someone back in the future? * I can never draw on more resources than I have? * I can borrow money and never pay it back? This first is doubtful, because you mentioned loans earlier. The last is the case currently, via bankruptcy, but there are serious limits on it. Otherwise no one would ever want to lend money--someone could always just abscond with it. [Edits: better formatting]
  - ZenoArrow 11y ago
    To understand what debt-free money is (and to address how the US money system currently works), I'd recommend this video: http://youtu.be/iFDe5kUUyT0 http://youtu.be/iFDe5kUUyT0 Please note that although there are a couple of subtle hints in the video about returning to the gold standard, the video can still be of use as a general introduction into the US money system even if you don't think that's a good idea (I don't think it's a good idea to go back to the gold standard). Hope the video can be useful for you, I know I found it useful. Feel free to ask me any questions about debt-free money (and how it could be implemented) after watching the video.

by Natsu 11y ago

ZenoArrow 11y ago

> "Though I see you're talking about the UK now" There are similar monetary reform movements in the US, the one I linked to just happened to be driving for change in the UK. With regards to recreating the Federal Reserve, you could argue that any central bank has a similar role to play, and the UK already has a central bank (the Bank of England). In some ways, you're right, that is similar to what is being proposed, but there are some key differences. Let's use the US system as an example again. The money in the new system would be debt-free. This is a very important part of the system. Central banks like the Federal Reserve would not be accruing more debt just to do their job (for those that may be thinking having that debt is good, a decent chunk of US taxes goes into servicing that debt, effectively paying off the interest on a loan you didn't need to take out in the first place). Not only does it take the debt burden away, it also allows greater flexibility with economic strategy. For example, in the current global economic system we go through cycles of activity. When the economy is booming, more money is created, facilitating easier trades. However, in times of recession, the money supply shrinks (or rather the flow of available currency shrinks), making trades harder just at the time when more money would be useful to help the economy recover. Instead what you want is a money supply that can expand even during a recession, and that's easier to arrange by using debt-free money guided by a central authority. Transparency is another key difference. It should be possible to follow most/all of the debates shaping monetary policy. Correct me of I'm wrong, but we don't seem to have this level of insight into the inner workings of the Federal Reserve.

Natsu 11y ago
What does "debt free" mean exactly? I see a few options, but I'm not sure what you're trying to forbid: * I can never promise to pay someone back in the future? * I can never draw on more resources than I have? * I can borrow money and never pay it back? This first is doubtful, because you mentioned loans earlier. The last is the case currently, via bankruptcy, but there are serious limits on it. Otherwise no one would ever want to lend money--someone could always just abscond with it. [Edits: better formatting]
- ZenoArrow 11y ago
  To understand what debt-free money is (and to address how the US money system currently works), I'd recommend this video: http://youtu.be/iFDe5kUUyT0 http://youtu.be/iFDe5kUUyT0 Please note that although there are a couple of subtle hints in the video about returning to the gold standard, the video can still be of use as a general introduction into the US money system even if you don't think that's a good idea (I don't think it's a good idea to go back to the gold standard). Hope the video can be useful for you, I know I found it useful. Feel free to ask me any questions about debt-free money (and how it could be implemented) after watching the video.