I really like what you're doing, and your site.
I'm not quite clear about the following paragraphs on your Farm-a-Nomics
page, and I know they're crucial.
(Probably if I can't understand it, others will be the same. I have
"seen" this wealth creation story explained before, and the
light went on, but then went out again. I think it's really hard to
think in a new way or get your head around a colossal idea.)
Anyway, here's the paragraphs:
"So, with a 10% reserve, if the country needed
100 billion in new money each year, the country could create 10 billion
by just spending money newly credited to its account by the central
bank. As this money was spent and wound up in peoples hands, it
would be
deposited in banks, credit unions etc. The institution would
withhold the required 10% and lend the balance. When that money
was spent the cycle would repeat itself. 100-10=90, 90-9=81
and so on.
In theory, the country would eventually wind up with
the required 100 billion.... 10 billion from government and 90
from the expansion process."
In the first sentence, the gov't spends 100 billion
credited to it by the central bank, is that right? In the second
sentence, why does the money end up in banks etc., rather than in
circulation. I'm just not getting this clearly. (Good thing my wife does
our books!)
DNPP is indeed that. I think there's a massive re-education effort
required in this country, and you're an important part of it.
Best wishes,
Andrew MacDonald
Lanark, ON
Thanks for the criticism. You are
right. It is important and it was badly written. I'm trying
to improve it and would welcome any further advice.
Thank you,
John
See
the new and improved Farm-a-nomics by clicking here
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