Thursday, December 17, 2009

Clarifying the Peoples Equity Union Concept


Thank you for writing.

As you know, the banks not only charge interest, but most often issue a lien (i.e. they want collateral for the loan).

The entire Capitalist paradigm, whether it be in credit relations or equity relations, however inequitable the latter and former usually are, is based on the self-fulfilling, inflationary, and wasteful assumption called the time value of money, sometimes referred to as "the discount rate", which assumes that money will be worth less in the future. And, as we can see by the housing market, as the most burdensome example, eventually worthless.

Such a system sets off furious, irrational competition for businesses and institutions (I make the distinction because business can be productive and institutions tend to be exploitative) who set as their objective a "hurdle rate", "internal rate of return", "return on equity" rather than the meeting of peoples needs.

I have read Greco's book. I did not finish it. It started out good when he explained his personal history and intentions but deteriorated soon.

I am in favor of keeping the Treasury and eventually evolving to a world currency. The Federal Reserve should be abolished, although I am uncertain about the concept and role of "reserve notes". Thinking it through, it is an extension of the inflationary paradigm that I referred to earlier in this note. We must proceed very cautiously in phasing out or down such a system.

I strongly believe that we should redefine the credo word to be equity sharing, only because of the bad connotation that that credit has evolved to date. Equity sharing should replace "lending", equity trading, and equity investing.

I hope you comprehend and can appreciate and share this communication.

Please feel free to continue the conversation.

In Peace, Friendwalkin', Community, Cooperation, and Solidarity,

Mike Morin

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