Consume Product

I suppose most people won't watch a 2hr video of Richard Werner, although maybe they should. Here is the 15min version.

understanding that your paycheck bank deposit is not actually a deposit. It is a loan to the bank that they are legally allowed to default on.

understanding that when you take out a loan from a bank that is when money is created out of thin air. No money is transferred into your account from some higher bank. No money held in deposits at the bank (these don't actually exist) are transferred into your account. The bank simply creates new money and hands it to you in exchange for loan contract; an asset, probably collateralized by a real thing.

this means we must be very careful and strict about what banks make loans for if we would like stable economy.

problem: the central bankers do not want a stable economy. they want boom-bust cycles they can use to pressure nations to hand more power over to the central banks. this is the "shock doctrine" they used to take control and financialize most nations of the world.

Notes:

* banks do not secure your deposits. They claim it as an asset and give you a promissory note.
* banks use your deposits to buy assets that generate money.
* this increases the price of assets.
* banks issue credit when they give out loans.
* consumer credit creates inflation without growth.
* financial credit is used to buy assets. This creates bubbles as it does not create growth but the price of assets increase.
* business credit creates growth with no inflation, even if the economy is at full employment. That is, the increase in wages does not cause inflation as it corresponds with increased economic growth.
* OBVIOUSLY countries should ONLY issue credit for businesses trying to grow, not consumer credit or financial credit.
* central banks / regulators are not telling the banks to only issue business credit. Hence, inflation and bubbles.
* the ussr did not allow banks to issue any credit. This doesn't work. China changed to allow it, and it did work.
* the UK has only 5 banks that matter. This fails. 90% is for financial credit.
* the EU centralized credit creation, and got bubbles.
* Japan did the same. They are trying hard not to pop the bubble.
* decentralized credit creation seems better. Germany and China are examples. They tend to issue business credit more often than consumer or financial credit. Small banks lend to small businesses.
* centralized banking systems want to further centralize banking in light of this evidence. They further want to restrict freedom.

Proposal:
* decentralized money creation by small, local, nonprofit banks issuing credit.
* get rid of "too big to fail" banks
* deprioritize financial and consumer credit.

Conpro recommendation:

* banks can only loan to businesses and only to grow businesses.
* no consumer credit. That means no home loans, no car loans, no credit cards, no medical loans, etc... pay with cash or not at all.
* no financial credit. That means you cannot borrow money to buy stocks, bonds, or other financial devices.
* millions of small banks, not a few big banks. If a bank is too big, bust it up. Allow people to create banks, especially nonprofit or coop banks.
* separate out banks that accept deposits vs. Banks that issue loans. Depository banks only allow deposits and withdrawals. Loan banks create loans only.
* only congress can print new money, which is either spent directly or made available to loan banks at interest.