Creating Wealth

WT wrote:

>Money can't be created simply by printing it.

My response (to this and other points he made in his letter):

Of course it can, and is... Are you of the propagandized ilk that believes that issuance of credit creates money? That is not creation, that is usury, that is robbery, that is expropriation of wealth from workers.

Equity = Assets - Liabilities. You may be right, because of the historical and particularly recent abuses of Banks, Investment Banks, Equity Traders, Corporations, and Insurance Firms, collective liabilities most likely exceed the value of assets, particularly since the lack of effective demand for the low quality and of questionable utility assets that have flooded the market in the era of supply-side economics have reduced the value of those assets to salvage value at best.


Families, individuals, cooperatives, etc. would have direct access, with no usury, to financial capital. There would exist a profit-sharing arrangement between the Equity Union and the client. All wealth is derived from natural assets, including labor. The profit-sharing arrangement between an equity union and a client would make the assumption that the equity invested and shared was the product of previous natural assets.

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Mortgage lenders are not doing borrowers any favors. Not by a long shot. They are no better than landlords. The following is the way that housing needs to be handled:


Housing and Property Ownership


Concurrent with financial systems reform, discussed in a previous essay where equity sharing and not-for-profit equity investing would replace the current financial paradigm of for-profit equity investing and usurious credit arrangements, we need to evolve to a different system with respect to residential and other real property occupation arrangements.In lieu of rent or leases, people should be allowed to acquire equity in their abodes and business properties. For example, in the case of an apartment, if one paid $500 per month to a property management firm, let's say $50 per month would go to property maintenance, and another $40 to administration fees, insurance, etc. This would leave the resident with $410 of accumulated equity added to their account each month. If we had a large cooperative housing organization (preferably world-wide, and preferably the only form of property ownership) then when someone had to move or wanted to move, they could take their equity with them to the new property.

With regards to mortgages, they are horribly usurious and should be banned. The scenario related above would also replace the current system of financing "home ownership loans". A huge problem that we are facing now is the terrible inflation in the market values of real property (and capital assets, for that matter). If we pooled our equity, pooled our assets, and collectively wrote off our liabilities, then we could significantly write down the market values of real and capital assets.