Debt Free Money (Academic Research)

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Debt Free Money

Debt Free Money (Academic Research)

When drafting the ASP Monetary Policy - we looked not only at history and at what has worked in the past, but also at our current financial system and why it seems to be failing so many people all over the world. Our policy is articulated by numerous organizations such as the American Monetary Institute, and also by at least 2 prestigious universities:

Professor Yamaguchi at the Doshisha Business School in Japan.
Professor Werner, DPhil (Oxon), BSc (Economics, LSE) - chair of International Banking at the University of Southampton School of Management.

The report by Professor Yamaguchi states that a "debt free money system" will result in:

Higher GDP.
Lower price inflation.
Lower taxes.
Elimination of government debt.
More fair distribution of income.
An ecologically friendly environment.

The report by Professor Werner details very accurately the malaise of our current financial system, and also the remedy which is within easy reach. Copies of these reports are below:

		Submission by Professor Werner to the Independent Commission on Banking.
		Report on Debt Free Money from Professor Yamaguchi.
		Interview with Professor Yamaguchi.

Extracts from Report

Below are highlights of the report drafted by Professor Yamaguchi:

Page	Extract
1	The government debt could be liquidated without cost under an alternative macroeconomic system of debt-free money that is proposed by the American Monetary Act.
1	[A] debt-free macroeconomic system is far superior to the debt-burden current macroeconomic system in a sense that it can not only liquidate government debt but also attain higher economic growth.
3	[Our] macroeconomic system of money as a debt seems to have fallen into the dead-end trap.
4	Under a debt-free money system, this fractional reserve banking system is abolished; that is, a fractional reserve ratio has to be 100%.
20	Commercial banks then create credits under a fractional reserve banking system by making loans to producers and consumers. These credits constitute a major portion of money supply.
22	[A debt based money system] continues to create unfair income distribution in favor of bankers and financial elite, causing inefficient allocation of resources and economic performances, and eventually social turmoils by the poor.
22	In short, system of money as debt is unsustainable as an economic system.
28	Under the system of debt-free money, a higher GDP is attained .... than the one under the system of money as debt.
28	[A] system of debt-free money can be said to be a far better system because of the accomplishment of higher economic growth without [price] inflation.
29	Persistent objection to the system of debt-free money has been that government, once a free-hand power of issuing money is being endowed, tends to issue more money than necessary, which tends to bring about [price] inflation eventually, though history shows the opposite.
31	Recent financial crises and runaway accumulation of government debt are caused ...... by the independence of the central bank under the system of money as debt.
32	The only tool to stabilize the monetary value is through the public management of the amount of money in circulation. This could be carried out through the control of lending money to the banks and through the fiscal policy.
32	[The] system of debt-free money is ecologically friendly to the environment, because forced payment of interest will be replaced with interest-free money, and borrowers of money, mainly producers, need not be driven into forced economic growth at the cost of environmental destruction. [A] system of debt-free money is indeed a system of sustainability.

Attachments:
Debt Free Money - Prof Yamaguchi	[The necessary academic research that show that the ASP Monetary Policy is vastly superior to our current Keynesian system. Download and distribute. This document is what you need to win arguments. Download and read.]	360 Kb
University of Southampton	[Submission to the Independent Commission on Banking - Towards a 21st Century Banking and Monetary System.]	504 Kb