Economic Proverbs for a sustainable future
Only lend money if you have it to lend.
Only create new money once it is backed by an asset
Reward people for consuming less
Require Rewards to be invested to create new resources
Measure economic success by the productive assets we possess
These proverbs contrast with the way the world’s economic system is currently [...]
The total amount of money in Australia is $1,200 Billion dollars. In the previous 12 months the money supply increased by 12% by banks loaning more money than they had on deposit. The system is called fractional reserve banking and requires banks to have 10% of their money on deposit with the Reserve Bank to guarantee [...]
We get liquidity (spending) in the economy when banks lend money. The modern economy generates money through lending. In other words money is only created when someone borrows. Banks only lend money if they are likely to get it back and they are the main source of loans. The Reserve Bank dropping the interest rate [...]
