Q2
Q&A
Where are you going to get the money from?
From the same process as today, creation by the banking system. But it will first be issued by the Reserve Bank for the benefit of the community, not by private institutions claiming it as their own.
Money for essential non profit, national and community projects, such as roads, hospitals, schools, power saving, water and sewage systems, will be funded in the first place with an interest free overdraft from our Reserve Bank. This is the basis of our Community Credit Programme.
Practically all money is now created by the banking system. Notes and coins represent only about 1.67 percent of the total. Under Social Credit, new money would be issued by the Reserve Bank debt free instead of by the commercial banks as a debt. The amount in circulation will be monitored to ensure the industrial capacity and the ingenuity of the workforce is fully utilized for the benefit of the community as a whole.
Comments:
The overdraft to be repaid over the expected lifetime of the asset by way of rates or taxes. If one million dollars is borrowed then one million dollars is repaid without the burden of paying for the compounding effects of interest.
A small service charge will apply to cover the cost of the overdraft facility.
Projects would need to meet environmental conditions and be subject to the availability to resources and manpower.
A small service charge will apply to cover the cost of the overdraft facility.
Projects would need to meet environmental conditions and be subject to the availability to resources and manpower.
