In German:       HOME      www.parkfach.de

 

Last Change: 2016-07-23

BACK TO CHAPTER C

Proposal Money

 

Table of Contents (Rough Draft of an Improvement Proposal)

a) Introduction

b) Repayment Assistance for Loans using Park-Shelf Accounts of Type I (no Bonds)

c) Some Details on Park-Shelf Accounts of Type I and Ladle Accounts of Type I

d) Partial Purchases of Bonds (fixed-interest) using Park-Shelf Accounts of Type II

e) The Evil and the Good

 

a) Introduction

We certainly have a very good and optimized financial system because, like nature, it is built symmetrically and in a two-ply manner (Σ money = Σ debt). But it has a small beauty bug: the financial system only works as long as Σ money and Σ debt grow rapidly (exponentially). In the meantime, the debt is so high that our good financial system has almost stuck with the fact that the banks and savings banks (not quite unfounded) are afraid of high credit indebtedness and are therefore only reluctant to increase indebtedness through their credit allocation want to leave.

The only sustainable way out of this system-driven dilemma is a clear debt reduction in all areas.

One possibility would be a gentle currency reform, with all credit balances and debts halved.

Another option would be the path outlined below, which would be considerably more complex, like a gentle monetary reform.

 

b) Repayment Assistance for Loans using Park-Shelf Accounts of Type I (no Bonds)

First, every month change ALL debt levels with bank-created money are reduced, for example, by only 1 per thousand. ALL debt balances are those of private households, company households and public budgets (each without bonds). ALL LOAN STAGES also include disposition credits and tolerated over drafting of current accounts. 1 per thousand of 30 billion euros are still 30 million.

Debt reduction with bank-created money, however, balances the bank balance sheets if the credit balances are not reduced at the same time. At the same time, a simultaneous reduction in credit balances would then be a monetary reform which must be avoided.

 

As an alternative to the credit reduction, there is the possibility of the credit conversion. In this case, ALL existing credit balances, which appear in the bank balances, are PARTLY converted into park-shelf credits of type I which NO longer appear in the bank balances. The proposal therefore proposes a "half-currency reform" = partial repayment of the credit debt and, at the same time, a partial withdrawal of credit from the balance sheets.

Borderline Consideration: If ALL credit debts were settled with bank dumped money, there should be only park-shelf credits of type I, that are NOT in the banking balances. This limit is, however, not desirable, because the financial institutions would no longer have any income from loans.

 

First, not only are ALL debts with bank-created money reduced by 1 per thousand,

but all balances are reduced by 1 per thousand by balancing money from the

credit balances-costs is automatically and compulsorily transferred

to the park-shelf accounts of type I to be created.

 

For EACH credit account, a separate park-shelf account of type I would be opened automatically. The customers would only be informed about this. The availability and payment conditions for the park-shelf account of type I are IDENTICAL with the credit account from which the park-shelf account of type I is located. The only two differences are that type I park-shelf space accounts do not appear in the bank balance sheets, and the type I deposit accounts are paid with the money they generate.

 

Depositing or transferring funds to a credit account results in the incoming money being automatically split into the normal credit account and the corresponding park-shelf account of type I. The allocation is the same for all credit accounts. After the first month, the distribution would be, for example, 1 per thousand for the park-shelf account of type I and 999 per thousand for the normal credit account. Thus, transfers in both directions always affect both accounts, which could also be called account pairs. Equal treatment is not possible due to the equal treatment of all credit balances.

 

Also for ALL debt accounts a second account is opened. These second accounts are referred to as type I ladder accounts, and are not part of the banking balances, or alternatively, part of a shadow balance, as is the type I park-shelf account accounts.

If debt accounts are partly repaid with created money, the repaid amount is also transferred to the account accounts. The reimbursement rates for the borrower are not reduced by the rebooking’s. However, since the repayment rates continue to refer only to the debt account, the loan is more easily repaid. Depending on the use intensity of created money, either only the last repayment rate is lower or the loan term is reduced. Once the debt account has been repaid by the borrower (and the bank-created money), the ladder account is transferred to a collection-ladder account, which serves only the shadow balance. For EVERY debt account, a separate type I ladle account must be opened.

 

c) Some Details on Park-Shelf Accounts of Type I and Ladle Accounts of Type I

 

(1) At the latest following the introduction of type I ladle accounts and type I park-shelf accounts, there are NO reimbursement assistance for newly concluded loan, credit and mortgage contracts. For new credit agreements, there is therefore no reimbursement aid available from a certain key date, which could already be before the introduction of the type I deposit accounts. However, every newly opened credit account will also automatically be assigned a type I park-shelf account after the end of the day.

(2) The sum of all type I park-shelf account balances should be the same as the sum of all type I account balances. In practice, however, a perfect agreement between the two sums will never be achieved. However, a consensus of the two sums of 90% would be sufficient. Type I account accounts can only be influenced by the use of additional bank drawer money.

(3) Due to the partial automatic transfer of funds invested to type I park-shelf space accounts, investors may not be exposed to any loss of income. Investors should not be allowed to ban the automatic transfers between the credit master account and the associated type I park-shelf account.

(4) Due to the partial transfer of funds owed to type I ladle accounts, the banks and savings banks may not incur any interest-bearing income losses. In order to compensate for the debt-interest-income losses by the premature redemptions, the banks themselves can pay themselves with further bank-scooping money. To the same extent, type II park-shelf space capacity is to be created. Type II see d) Partial Purchases.

(5) The characteristics of a type I park-shelf account are completely identical to the properties of the associated credit account, which could also be referred to as a source account. Thus, if a credit account is, for example, a bank account, the associated type I park-shelf account has the character of the bank account.

Money on park-shelf accounts of type I and II is book money in private virtual bank lockers.

(6) The introduction of a compensation factor I for the park-shelf compartment capacity of the type I could be useful. The compensation factor I for the park-shelf compartment capacity of type I is initially at exactly 1. The ECB can, for example, change the compensation factor I to 0.93 or 1.08. This means that the type I park-shelf space capacity sum would drop or rise by 10 per cent. Any change to the compensation factor I results in an automatic money transfer between all credit master accounts and associated park-shelf accounts of type I.

(7) The ECB restricts the monthly rebate reduction per month change per month.

 

If the system works with 1 per milliliters per month change, can be cautiously increased to, for example, 2 per thousand per month change to perhaps 1 per cent change per month.

Alternative: Without advance notice, ALL debt levels could be reduced by 25 or even 50 percent with a single month change. In the latter case, ALL debts would be halved in one fell swoop, and half of the balances would be in type I park-shelf accounts.

 

If the debt continues to decline and the type I park-shelf space is built up further, banks 'and savings banks' willingness to make loans will increase again, and the interest rate will also rise again as the debt volume has declined. It is also likely that inflation will again rise.             

Park-shelf accounts of Type I and II are private virtual bank lockers for book money.

 

d) Partial Purchases of Bonds (fixed-interest) using Type II Park-shelf accounts

When the ECB buys bond issues, ECB draws money for which there is NO credit debt. This creates a skewed situation in the banking balance sheets. As a result, the banks will be forced to park money in the amount of the ECB dump money at the ECB. The "wild" ECB dump money is therefore to be transferred to type II park-shelf space accounts. The opening of the type II park-shelf accounts is automatically made by those who previously had loans. Subsequently, the transfer of the ECB dumping money (for the purchase of the bond) is compulsory, the previously automatically opened type II park-shelf space account, the holder of which is the former bond holder.

A Type II ladle account must be created for each newly opened Type II park-shelf account, how much money was spent. Type II ladle accounts can only be influenced by the use of additional ECB dump funds.

Corporate bonds and government bonds should be purchased in the same proportion. No purchases should be made for shares.

 

The ECB re-calculates interest rates on type II park-shelf accounts, for example, on a monthly basis.

Existing park-shelf space capacities of type II must not be destroyed. However, they may be split and / or relocated. Heredity should also be possible. The Finance Institute collects park-shelf space capacities of type II, which are freed by park-shelf spaces. If park-shelf space capacity of type II is not used for an extended period (eg 1 year), an expropriation can be carried out after an early warning.

The financial institute also collects the dispensed park-shelf space capacity of type II. Once a month, for example, the park-shelf lot capacity of type II is triggered, distributed on a random basis, placed on the waiting list, sold or auctioned.

 

The money on the type II park-shelf accounts for interest in the money earned. The interest rate increases the upper limit for type II park-shelf slots accounts. In order to make it as unattractive for investors as possible to withdraw money from type II park-shelf accounts, a high interest rate is applied. At present, an annual return of, for example, 0.5% on park-shelf space accounts would probably be sufficient to ensure that almost all funds remain in the super-secure park-shelf space accounts.

 

The owner of park-shelf account capacity type II can transfer his capacity partly or entirely to his bank. However, he would be quite stupid to do so, because it is quite difficult to get type II park-shelf space capacity.

 

The sum of all type II park-shelf space CAPACITIES must be larger in practice than the ECB bond purchase volume for bonds because the existing type II park-shelf space CAPACITIES will often not be fully utilized. Park-shelf space capacities of type II are capped.

 

The introduction of a compensation factor II for the park-shelf compartment capacity of type II might be useful. The compensation factor II for the park-shelf compartment capacity of type II is initially at exactly 1. The ECB can, for example, change the compensation factor II to 0.94 or 1.07.

 

A type II ladle account has to be added to each newly opened type II park-shelf area account so that it remains recognizable how much money has been spent. Type II accounts are not affected by either investors or borrowers. Corporate bonds and government bonds should be purchased in the same proportion. No purchases should be made for shares.

The intended utilization of park-shelf space capacities up to the maximum limit is promoted not only by an attractive rate but also by the following:

- The interest paid with money earned for type I and II park-shelf deposits is not taxed.

  (Park-shelf deposits of type I and II, however, are part of the hereditary estate and are subject to inheritance tax.)

- This type of investment is completely risk-free, because the money is nowhere invested.

 

BANKS total shadow balance: The sum of all park-shelf account balances of type I + the sum of all park-shelf account balances of type II should ideally be the same as the sum of all account balances of type I + Of the sum of all type II drawer account balances. Type I + II park-shelf counter money, however, remains in the COMPANY balance sheets.

 

e) The Evil and the Good

What we have only for an interesting financial system, in which the savers are the bad, and the debtors the good, although the long-term opinion is exactly the opposite. Reasons:

Those who spend money on the high edge are the bad guys, because they do not feed all money back into the money cycle and thereby with their behavior the business certainly NOT crank. Instead, the savers save money from the ACTIVE cycle. Permanently too little money in the active cycle, the financially weakest households is the new debt. Apart from the private households, this affects in particular company households and public households. In practice, the active part of the money cycle can only be replenished by the financial institutions gaining fresh money by granting new loans.

Those who make debts are the good ones, because they are sure to boost the economy, because who lends money usually does not. Our financial and economic system unfortunately only works well if new debts continue to be made. Considering that the debtors are good, they should also be rewarded by paying them part

of the debt made by financial institutions with their money.

Liabilities with credit sharks are therefore not issued in part.

 

If all credit debts were settled with dumped money and all bonds had been bought up by the ECB, there would be about twice as much money on park-shelf accounts of type I and II as there is currently money. On park-shelf accounts would then be about 20 trillion euros, while the money volume is currently around 10 trillion euros.

 

A third money type should be introduced:

1. Money type = Cash

2. Money type = Book Money

3. Money type = Park Money

Park money is mostly parked. It is money the owners do not really need. Park money can be handled like book money. It is, however, like the cash, not listed in any banking balance and could therefore also be referred to as balance-free book money. Nevertheless, park money is collected on a regular basis, as is cash.

 

1.) The purchase of government bonds does NOT lead to the hoped for additional investment in the economy because those who invested money in government bonds are not risky and, in some cases, cannot be risky, such as life insurance. And therefore, the liberated money prefers with, for example, 0.05% interest on secure money accounts park.

2.) The (mostly private) savers are to blame for the high public debt and the company's debt, because the savers withdraw money from the money circulation, which must be replaced by new debts.

 

-------------------------------------------------------------------------------------

 

Operator of the internet site               www.parkfach.de        is Reiner Zabel.

E-Mail: parkfach@freenet.de

 

Page name: Proposal Money

 

HOME      www.parkfach.de