Comments for A Blog by Kevin Cox http://cscoxk.wordpress.com The implications of giving individuals control over their online information Thu, 15 Oct 2009 13:26:09 +0000 http://wordpress.com/ hourly 1 Comment on Financing the National Broadband Network by James http://cscoxk.wordpress.com/2009/06/11/financing-the-national-broadband-network/#comment-10678 James Thu, 15 Oct 2009 13:26:09 +0000 http://cscoxk.wordpress.com/2009/06/11/financing-the-national-broadband-network/#comment-10678 Very interesting piece. I had to do some research on broadband networks just to get a good idea of what they actually are. This article helped me out a lot and is a good supplement to the above one. life123.com/technology/internet/broadband/disadvantages-of-broadband-network.shtml Very interesting piece. I had to do some research on broadband networks just to get a good idea of what they actually are. This article helped me out a lot and is a good supplement to the above one.

life123.com/technology/internet/broadband/disadvantages-of-broadband-network.shtml

]]> Comment on The Democratisation of Government Spending by Kevin Cox http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10665 Kevin Cox Fri, 11 Sep 2009 22:00:32 +0000 http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10665 Almost 100% will take up the right to a zero interest loan and it will be invested in renewables. People and organisations are simply NOT making the investments needed - that is the whole point of the exercise and is why we have schemes such as Emissions trading being introduced as a way to get investments in renewables. As a society (90%+) we agree that we want to do something about climate change but it the cost of money and the fact that we do not have $1500 that prevents us investing. Your statement that people will make investments in renewables is demonstrably untrue as it is not happening. For the minority that may have made the investment anyway the fact is that they tend NOT to do it even if they could because they see everyone else as "free loading" so they do not make the investment and they go on their trip to Fiji instead. Almost 100% will take up the right to a zero interest loan and it will be invested in renewables. People and organisations are simply NOT making the investments needed – that is the whole point of the exercise and is why we have schemes such as Emissions trading being introduced as a way to get investments in renewables.

As a society (90%+) we agree that we want to do something about climate change but it the cost of money and the fact that we do not have $1500 that prevents us investing. Your statement that people will make investments in renewables is demonstrably untrue as it is not happening. For the minority that may have made the investment anyway the fact is that they tend NOT to do it even if they could because they see everyone else as “free loading” so they do not make the investment and they go on their trip to Fiji instead.

]]> Comment on The Democratisation of Government Spending by Andrew (not Potter or Coyne) http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10664 Andrew (not Potter or Coyne) Fri, 11 Sep 2009 21:31:34 +0000 http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10664 Money is a fungible commodity. Greatest update will be among those who would make such investments anyway. They take the free money for this investment, and take the $1500 they would have spent on energy upgrades otherwise and go to Fiji. Money is a fungible commodity. Greatest update will be among those who would make such investments anyway. They take the free money for this investment, and take the $1500 they would have spent on energy upgrades otherwise and go to Fiji.

]]> Comment on The Democratisation of Government Spending by Kevin Cox http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10658 Kevin Cox Tue, 08 Sep 2009 21:03:22 +0000 http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10658 The $30Billion comes from the banks creating credit money. At the moment the banks have to now "cover" this money they create by setting up loan facilities - but they do NOT have to do that if the government guarantees the money. As from late last year the government guarantees ALL bank deposits. That is they guarantee the money that has been created by the banks. They can do the same with money created from the issuing of zero interest loans. The government does not have to borrow any money to guarantee the bank deposits as they have illustrated. The critical part of the system is making sure the money from the loans is spent on productive purposes. That is the real issue and the system proposed will ensure that that happens. The $30Billion comes from the banks creating credit money. At the moment the banks have to now “cover” this money they create by setting up loan facilities – but they do NOT have to do that if the government guarantees the money.

As from late last year the government guarantees ALL bank deposits. That is they guarantee the money that has been created by the banks. They can do the same with money created from the issuing of zero interest loans. The government does not have to borrow any money to guarantee the bank deposits as they have illustrated.

The critical part of the system is making sure the money from the loans is spent on productive purposes. That is the real issue and the system proposed will ensure that that happens.

]]> Comment on The Democratisation of Government Spending by Andrew (not Potter or Coyne) http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10656 Andrew (not Potter or Coyne) Tue, 08 Sep 2009 19:44:23 +0000 http://cscoxk.wordpress.com/2009/08/22/the-democratisation-of-government-spending/#comment-10656 Um, where does the $30 billion come from? If the government borrows and lends at 0% to individuals, then the interest rate spread is a cost to government (probably ~5%, or $1.5 billion/yr). If the government prints money and lends, there there is the opportunity cost. The government could print and buy treasuries of other nations, corporate bonds, common equity, etc. and potentially earn more than 0%. So lending at 0% has an opportunity cost. Um, where does the $30 billion come from? If the government borrows and lends at 0% to individuals, then the interest rate spread is a cost to government (probably ~5%, or $1.5 billion/yr).

If the government prints money and lends, there there is the opportunity cost. The government could print and buy treasuries of other nations, corporate bonds, common equity, etc. and potentially earn more than 0%. So lending at 0% has an opportunity cost.

]]> Comment on System problems with Emissions Permits Trading by Bill Bartmann http://cscoxk.wordpress.com/2008/03/12/system-problems-with-emissions-permits-trading/#comment-10649 Bill Bartmann Fri, 04 Sep 2009 01:58:04 +0000 http://cscoxk.wordpress.com/2008/03/12/system-problems-with-emissions-permits-trading/#comment-10649 Excellent site, keep up the good work Excellent site, keep up the good work

]]> Comment on Comment in the Economist by Lillian Lawson Gedde http://cscoxk.wordpress.com/2008/08/09/comment-in-the-economist/#comment-10646 Lillian Lawson Gedde Tue, 01 Sep 2009 22:10:28 +0000 http://cscoxk.wordpress.com/2008/08/09/comment-in-the-economist/#comment-10646 Came across your work thanks to Online Opinion. I'm doing some serious microeconomics of my own, and proving it in my own life. I don't find many people who are actually doing "money & stuff" in a personal radical demonstrative manner. Lots of words and opinions. If you are personally doing some of what your articles suggest I would love to hear from you. Came across your work thanks to Online Opinion. I’m doing some serious microeconomics of my own, and proving it in my own life. I don’t find many people who are actually doing “money & stuff” in a personal radical demonstrative manner. Lots of words and opinions. If you are personally doing some of what your articles suggest I would love to hear from you.

]]> Comment on Banks not the cause of the GFC but the solution by stojan nenadovic http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10641 stojan nenadovic Sun, 30 Aug 2009 08:46:46 +0000 http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10641 Dear Mr. Cox, I have website http://www.noncredit-money.org and e-mail stojan.nenadovic@gmail.com Dear Mr. Cox, I have website http://www.noncredit-money.org and e-mail stojan.nenadovic@gmail.com

]]> Comment on Banks not the cause of the GFC but the solution by Kevin Cox http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10640 Kevin Cox Sat, 29 Aug 2009 18:42:48 +0000 http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10640 stojan, I agree with you that non credit money is a good idea. It is the aim of all my proposals to gradually eliminate the need for credit money. We still need credit but we want to have plenty of money available to service our credit needs. The issue is how to create non credit money. All my proposals are fundamentally ways to increase the money supply without having credit. A zero interest loan with repayments when the asset created earns money will create non credit money when the loan is not repaid and when the asset earns more than it cost. You will find in other parts of my work places where we pay people "Rewards" just for not consuming very much. This money would be printed not created as a loan. Zero interest loans is the idea that is most likely to gain acceptance but it is critical to make sure that the zero interest loans are used to create new productive assets which ultimately create the non credit money. The reason that zero interest loans is a good idea is that they will become the preferred method of funding new asset creation and it will become more profitable to use zero interest loans for creation of assets than to use credit money. If we do this then we will see credit money rapidly replaced by non credit money and we will see the pyramid loan positions rapidly unwind and most credit money disappear. It is my belief that once speculators in money see that governments have a way of increasing the supply of non credit money they will realise that the odds in the gamble of currency and bond trading will be against them whereas at the moment the odds are in their favour. It is a rule of "evolution" that you change a system be it a species by changing one of the characteristics of the system in a small way and that will lead to big changes. If you try to change a system too quickly then the mutation is likely to die out. If you change the system in a very small way but it has big effect then it will work. Introducing zero interest loans as proposed is a "small" mutation of the existing system but it will have a major impact. stojan,

I agree with you that non credit money is a good idea. It is the aim of all my proposals to gradually eliminate the need for credit money. We still need credit but we want to have plenty of money available to service our credit needs.

The issue is how to create non credit money. All my proposals are fundamentally ways to increase the money supply without having credit. A zero interest loan with repayments when the asset created earns money will create non credit money when the loan is not repaid and when the asset earns more than it cost. You will find in other parts of my work places where we pay people “Rewards” just for not consuming very much. This money would be printed not created as a loan.

Zero interest loans is the idea that is most likely to gain acceptance but it is critical to make sure that the zero interest loans are used to create new productive assets which ultimately create the non credit money.

The reason that zero interest loans is a good idea is that they will become the preferred method of funding new asset creation and it will become more profitable to use zero interest loans for creation of assets than to use credit money. If we do this then we will see credit money rapidly replaced by non credit money and we will see the pyramid loan positions rapidly unwind and most credit money disappear. It is my belief that once speculators in money see that governments have a way of increasing the supply of non credit money they will realise that the odds in the gamble of currency and bond trading will be against them whereas at the moment the odds are in their favour.

It is a rule of “evolution” that you change a system be it a species by changing one of the characteristics of the system in a small way and that will lead to big changes. If you try to change a system too quickly then the mutation is likely to die out.

If you change the system in a very small way but it has big effect then it will work. Introducing zero interest loans as proposed is a “small” mutation of the existing system but it will have a major impact.

]]> Comment on Banks not the cause of the GFC but the solution by stojan nenadovic http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10639 stojan nenadovic Sat, 29 Aug 2009 16:06:38 +0000 http://cscoxk.wordpress.com/2009/08/13/banks-not-the-cause-of-the-gfc-but-the-solution/#comment-10639 Non-credit money is the best idea of the world which can solve both national and world economic crisis. Non-credit money is not debt than gift which is created from the growth of economic rationality. Non-credit money is the necessary additional quantity of money in circulation (dM) as percentage (k) of existing quantity of money in circulation (M). dM = kM ; k = (supply - demand)/demand ; If non-credit money is emitted according to the cited formula, inflation cannot exist. Also, taxes are annulled for the amount of non-credit money. The consumers pay less and producers get more than today, in the order of credit money. All get the gift from non-credit money. Non-credit money is the best idea of the world which can solve both national and world economic crisis. Non-credit money is not debt than gift which is created from the growth of economic rationality. Non-credit money is the necessary additional quantity of money in circulation (dM) as percentage (k) of existing quantity of money in circulation (M). dM = kM ;
k = (supply – demand)/demand ; If non-credit money is emitted according to the cited formula, inflation cannot exist. Also, taxes are annulled for the amount of non-credit money. The consumers pay less and producers get more than today, in the order of credit money. All get the gift from non-credit money.

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