The Abolishment of Banks
The abolishment of central banks and the establishment of equal and virtually free credit is a realistic solution to both homelessness and the end of the obscene profits and effective command of the economy that central banks enjoy. If credit were equally available to all, either through spontaneous or democratic facilities, its cost need only be equivalent to the small cost of its labour.
For example, consider the paperwork involved in lending someone £10,000. If labour took quarter of an hour to process this, the cost of this amount of credit could be as little as £2. If this cost, and nothing more, counted as the monthly interest, the interest rate would be 0.02%. If the interest were not compounded, the yearly rate would be no more than 0.24%.
A similar process could be undertaken to take out a small loan of, say, £100-200. There could be ATM machines specially developed to achieve this for people who need to take out a small loan very quickly. If someone has a monthly wage they could enter their address and place of work into an ATM, they would be given the amount required and this would be deducted from their wages on the day they would receive them.
Again, like the two examples given above, a cheap loan of around £2000 would pay for a deposit and six months rent on most properties. Similarly, a higher amount would pay enough to install heating, water and electricity in an abandoned property. In a society where equal credit was available, a £20,000 loan would be available to everyone. With the squatting example described, this would work out as a very cheap mortgage, because even if the debt took ten years to pay off, the extra interest would only add up to £480.
Of course, once you take the possible effects of inflation into account, there is a higher cost to credit. However, it is no good blaming the poor for this as, currently, higher earners, the rich and consumer addicts generally are more to blame currently for inflation due to the excessive loans that they are prepared to take out. It also has to be stated that high interest rates actually help to increase inflation. In an era of cheap and equal credit, the winging of the rich would be because they can’t spend more than they can earn. A high inflation rate combined with a high unemployment rate could act as a kind of socialism as debts decrease in real terms
The abolishment of central banks and the establishment of equal and virtually free credit is a realistic solution to both homelessness and the end of the obscene profits and effective command of the economy that central banks enjoy. If credit were equally available to all, either through spontaneous or democratic facilities, its cost need only be equivalent to the small cost of its labour.
For example, consider the paperwork involved in lending someone £10,000. If labour took quarter of an hour to process this, the cost of this amount of credit could be as little as £2. If this cost, and nothing more, counted as the monthly interest, the interest rate would be 0.02%. If the interest were not compounded, the yearly rate would be no more than 0.24%.
A similar process could be undertaken to take out a small loan of, say, £100-200. There could be ATM machines specially developed to achieve this for people who need to take out a small loan very quickly. If someone has a monthly wage they could enter their address and place of work into an ATM, they would be given the amount required and this would be deducted from their wages on the day they would receive them.
Again, like the two examples given above, a cheap loan of around £2000 would pay for a deposit and six months rent on most properties. Similarly, a higher amount would pay enough to install heating, water and electricity in an abandoned property. In a society where equal credit was available, a £20,000 loan would be available to everyone. With the squatting example described, this would work out as a very cheap mortgage, because even if the debt took ten years to pay off, the extra interest would only add up to £480.
Of course, once you take the possible effects of inflation into account, there is a higher cost to credit. However, it is no good blaming the poor for this as, currently, higher earners, the rich and consumer addicts generally are more to blame currently for inflation due to the excessive loans that they are prepared to take out. It also has to be stated that high interest rates actually help to increase inflation. In an era of cheap and equal credit, the winging of the rich would be because they can’t spend more than they can earn. A high inflation rate combined with a high unemployment rate could act as a kind of socialism as debts decrease in real terms
posted by Legal Smeagol at 4:26 AM
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