So I am always asked to lay out my proposals for moving out of the financial crisis.
Well here it is -three simple things I would do from my book â€˜Bank To The Future: Protect Your Future Before Governments Go Bustâ€™.
If I was appointed to advise the new Greek parliament tomorrow, here is what I would advise them…
Firstly, get out of the Euro and default on any foreign debt. It is beyond control and the ECB (EG Big Germany) will take all your sovereignty and tell you how to run your country while stripping up all yourÂ countriesÂ assets and advise further austerity.
Once you have done this, time to re-build.
The Greeks are now faced with the perfect opportunity to be a pioneer for sustainable banking.
So second thing is, replace all the toxic debt based money created by banks, with debt free money.
Simply put, a newly appointed independent monetary authority creates debt free number money on a server.
I would use this to pay down the domestic national debt and this will pour a load of money into the economy without inflating the total money supply. You are simply replacing one form of money with another form, but without the interest.
This cannot be used to pay foreign debt, as the money will leave the country and not cause the necessary stimulus.
Now time to reform the banks by using some of this debt free money and lend it (once off) to all the Greek banks, equal to the amount of money they have created through loans.
This is followed by a legal Act that makes it illegal for banks to create money and they are forced to hold 100% reserves.
As bondholders money starts to reach the economy aa the government does not need to borrow anymore, people pay down their debts and the banksÂ graduallyÂ repay this money back to the Greek treasury and this makes it’s way back into the country as the country reducing taxes for everybody.
Now we foresee banks to separate current accounts and investment accounts for their customers as described in the video and their is no liability on Greek taxpayers to bailout the banks again.
Society decides where they are going to direct their savings and the economy rebuilds itself sustainably based on the values of the Greek people, not on the values of the banks.
The Greeks are now more sustainable, more stable and more equal.
Love to hear your comments.Simon Dixon