Summary Diagram

A Visual Summary of the Main Binary Mechanisms and Solution to the Global Financial and Environmental Crisis

Below is a visual summary of the main binary mechanism which can be used to provide a gentle but powerful solution to the global financial and environmental crisis. It will prove helpful to study the diagram for a few minutes.

NB The banking system is gradually stopped (by a gradual rise to 100% banking reserves) from continually creating money out of nothing. Instead it lends its own capital and (with permission) the deposits of customer, and such lending may be at interest. As the banking system’s money creation is stopped, a supply of national bank-issued interest-free loans (administered by the banking system) is opened up with the supply being directed at the development and spreading of productive (and the associated consuming) capacity. In effect, there will be two interest rates – a zero rate for binary purposes (plus administration cost) and the other for the rest of the economy.

Please also notice that, by using the banking reserves mechanism, the national bank has a macro tool in addition to that of interest rates to control the total volume of money in the economy.

New Monetary Reform Diagram

Economics Words

Next page: Links