I vote we establish a uniform substance that is not used for anything in particular and is fairly rare and hard to produce. The average cost of production including all infrastructure, labour development and business failure at attempts to produce must be factored in. This would be called the worth. The reason that its use is a negative factor is that uses are temporary and dependant on social mores, politics and changing technology. The worth itself would be calculated in hours to build the products. Worth of an hour would be factored by years of trade, education or experience or rarity of comparable personal accreditation. Worth of some equipment would be factored by years in use, scrap and used value in all markets by hours to build, acquire and maintain. No currency would be used, just factored time.
It is strange that reason alone will not establish worth. Demand must be educated. Utility or necessity does not establish market value. But in the end market value is market value. The mistake is to try to establish a market value with our index of that same value. This makes "demand" king.!
Now that we have a worth of the index agree we would then equate a debt of equal value to the index to such and such a unit. Notes or coin would be issued of so many units of the index stuff. This could by equation be compared to man hours etc.. for the sought material to arrive at a fair market price at least in theory. In the end it is a complex formula. A man would demand fair unit note value in comparison to the worth stuff producer. With no argument prejudicial lets say he is fairly paid and accedes to that rate. Then he may judge himself according to his needs and wants what he may pay for a good. The interralationships of worth are bewildering indeed. For each purchase the fairness of its worth is factored back almost endlessly. The cost of a pound of butter is tied to the cost of implementing agricultural policy and town planning and electrical distribution costs as well.
In the end to create fair markets, no unfair manipulation of the basic demand market need be allowed. But necessities and fair luxuries of life such as penicillin and coast to coast mail service must be implemented by means that will guarantee their availability. A technique that does not exploit markets for products but guarantees some social justice and a best a healthiest society must come down from on high as short term demands for necessities not market perceived or supplied may outstrip real need of the "collective" and ultimately and most strongly the individual.
The chiefest evil to avoid is a freebooting capital raiding of the means of providing money into the system by forces that have no end other than multiplying value. This is the danger. Banks and other financial manipulators under the guise of service and good have become the major impediment to orderly business by monoply of capital. A lending institution should not in itself be government mandated to dictate the course of all business. Business should dictate its course
not the money market. What we have in monetary crashes is the supply and demand of money itself being the force that dictates consumption, not the demand for the products themselves, which rarely changes so drastically. For a productive society with real needs and the ordinary ability to serve them, to be starved because of the manipulation of currency and the overwriting of non payable debt is a fundamental crime.
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One interim solution is to not allow banks to write debt freely to cronies and political causes. It is transparently obvious that the IMF and other banks are being used politically to make loans to non viable causes and areas where markets cannot be guaranteed. Once a country misperforms and and reneges on a debt they should be permanently cut off further loans! It is a total waste of time and money to loan equipment, services, money and aid of any kind to foreign countries like Russia, Brazil, Korea, Japan and others. What have they ever done for us? What would they do? Their markets are not open. Their cash is worthless because it cannot be spent in their country to further business, only buy product at their advantage.
We did not get one cent's wealth by reneging on debts. The wealth of North America and Europe is in its laboriously built infrastructure that was over a span of a 1000 years. It was not done one borrowed money from other countries for the most part. Where borrowing was done it was paid back.
Banks today are taking our money and wasting it without our consent. Since it is our money we should get a say in how it is spent. There should be a veto put on cash deposits that are used to leverage overseas loans and IMF loans by vote. We need laws to make banks invest in our country and pay interest on deposits and stop screwing hundreds of small customers to make billions. If we let the CDN banks merge it will the coup de grace for the middle class. We need to turf out the politicians who have allowed the banks to build loan structures based on no reserves at all. The should all be brought back to maximum 4 times the loans allowed of the asset base (fractional reserve), and no overseas loans without depositor's permission. Unsecured loans are necessary for business growth but they should be subject to legal civil review by the shareholders, the depositors. Banks should be forced to allow brokers to borrow money at reasonable rates as they have alway been totally secured loans. No loan stock should be marginable. Either that or a chartered banks should be not allowed to trade securities at all or sell insurance as it is blatant conflict of interest and with the CDN mergers it will be final business monopoly of the financial sector over production. We might as well all sell our businesses to the bank of Canada. It would be a magnificent victory for oligarchical communism.
mailto:echarter@vianet.on.ca
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