Banks Should Not Be Able To Create Money At Will

laitman_2009-03_4166News Commentary (from The Guardian): “Money for nothing” Banks should be repositories for our wealth – and not be free to create money at will. We should take monetary reform seriously.

Nothing in that lengthy communiqué suggests the G20 is prepared to engage with the underlying causes of the financial crisis. Chief among these is the deeply flawed mechanism by which money is created.

Herman Daly wrote recently: “I would certainly advocate 100% reserve requirements for banks (approached gradually). All banks should be financial intermediaries that lend depositors’ money, not engines for creating money out of nothing and lending it at interest.”

Daly’s argument for movement towards a just and sustainable steady-state economy offers a comprehensive solution to the current crisis.

Cash comprises just 3% of the money supply. The rest exists only as entries in banks’ electronic ledgers.

If banks can create electronic money at will through the process of fractional reserve banking, why shouldn’t a democratically accountable central authority do the same? … central banks should determine the quantity of new non-cash money. Under their scheme, the central bank would credit new money to the government as public revenue which would then be spent into circulation.

Bryan Gould said, “Only governments have the capability and the duty to act in the wider interest” in respect of the money issue.

The objective of monetary policy should be to ensure that the money supply accurately reflects the quantity of real wealth being created in the economy, and is sufficient to provide funds for new investment in real businesses to keep the economy ticking over.

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Am I A Mystic Or A Prophet?

save1Two questions I received about myself:

Question: Are you a mystic?

My Answer: I am a rational, down-to-earth man. Mysticism has never appealed to me. Even if I have feelings that seem “mystical,” I feel them because I attained them for myself. This is a sensation of the Creator, a sensation of crossing over, a sensation of commonality, of a single force and a field of love. All of this is mine. This is my reality because I live it and breathe it. Therefore, it is not mysticism for me, but an unfolding wider world. So, call me a “mystic” if you wish, but to me this means the attainment of a higher, wider range of vision, where attainment is not mysticism.

Question: Are you a prophet?

My Answer: People often ask me this question. To me, a spiritual sensation is not prophesy, but the reality in which I live. And if you will ask me, “What will happen tomorrow?” I will tell you unequivocally, “I don’t know.” And none of the prophets knew it. They were simply saying, “If you don’t do what you’re supposed to, then things will be very bad for you.” And they could describe the “bad things” that would happen because they knew the laws of Nature and what will happen if people don’t comply with them. This is what they described.

“But if you behave well,” they explained, “then all of this evil will transform to goodness. We, the prophets, do not know what will actually happen. We are telling you about Nature’s (or the Creator’s) plan, and the rest depends on you.” I also don’t know what will actually happen in the future. It depends on our choice: what path will we choose to get to the originally set goal – equivalence to the Creator.

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Why Now Is The Time To Implement The Principle, “Love Your Neighbor”

connectA letter I received from my student, Michael Chernikovsky, about the present state of humanity:

I finally got Kabbalah’s general idea:

1. The difference between man and animals is man’s ability to absorb desires from the society around him. These desires become his, and he in turn transfers his desires to the society.

2. This creates a system with positive feedback, which is initially unstable. In lower-level systems, such as biological ones, this kind of mutual influence does not exist, which is why these systems are stable.

3. Until today, human society was “open.” Therefore, disturbances exited out to the external environment and faded out in it.

4. We have reached a stage where society has become “closed.” Closed systems with positive feedback become chaotic. This is what we see today.

5. However, along with the disease, Nature has given us the medicine. If we begin to exhibit love and care for each other, instead of unrestrained consumption, then the same positive feedback mechanism will stabilize the system, bringing it from chaos to harmony. This is, in fact, the only solution, because any external regulator will become ineffective since desires grow mutually.

6. “Love your neighbor” is not a new idea. From time to time, humanity had tried to build societies based on this principle. But due to the “openness” of society, it was always possible to escape the positive example. Today, however, we have reached a point where we have no place to run. Therefore, this is the time to implement the principle, “love your neighbor.”

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We Have Gone Through Thousands Of Years Of Suffering To Reach Just One Conclusion

aboveHumanity has existed in this world for many thousands of years, and all the reincarnations we have gone through were necessary in order for us to finally realize just one thing – that the egoistic desire we always strive to satisfy, to which we devote every moment of our lives, reincarnating over and over, can never be fulfilled.

Human beings have been coming closer and closer to this discovery over the course of their lives, from one generation to the next, just to be disappointed every time, to realize, “Every time I pursue something, I enjoy it for a mere second, and then the pleasure fades.” This experience builds up in every person, and in our generation we have reached the conclusion that there is nothing left for us to pursue! This is why people are depressed, there is terrorism, divorce, and general disillusionment. All of this comes from people’s inability to fulfill themselves.

And today we are discovering something else in addition – that we cannot be fulfilled through our connections with each other. The improper connections between us do not allow us to engage in trade or business. In fact, they make it impossible for us to satisfy even our basic material needs. Today the problem is not even a lack of pleasure, but a lack of the essentials necessary for survival, for life. This is where our development has brought us.

All of this forces us to conclude that it is not worthwhile for us to work for the sake of our egoism. It only leads a person to disappointment, in order to make him ask, “What is the meaning of my life?” And if this doesn’t do the job, then greater suffering, such as famine, will help people reach the right conclusion.

In any case, the emptiness a person feels inside his desire to receive pleasure is the initial point from which he can begin his spiritual development.

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