I deserve a Nobel Prize for this idea.
Gold backed local currencies.
I have created a whole new economic system that can solve the present problems of the global economic system.
At the moment those with capital in our nations have no choice but to place their capital, such as wages, in High Street banks who operate and invest capital in the global market. The individual places their capital in the bank, and then under the rules of Fractional Reserve Banking the bank can then issue credit to allow it to invest ten times the amount deposited in its account to speculate on the international money markets.
There is no mechanism whereby individuals can put their money into a commodity backed currency that rejects fractional reserve banking.
I have created a whole new system to do this.
We require not one banking system but two.
The first is the global banking system and the High street banks that operate in the global market place.
The second is a series of local economies with Credit Unions who issue gold backed local currencies.
The government creates a new National Gold Standard solely for Local Economies whereby it buys gold reserves with the pound and then issues credit notes to credit unions to release local currencies based on those gold reserves.
As the government buys more gold reserves more credit notes are issued to credit unions to release in the form of local currencies.
The government does nothing but hold and store the gold for the credit unions. Government is not allowed to borrow credit from the international credit markets on the basis of gold reserves set aside for credit unions.
The credit unions are only allowed to release capital in the form of local currencies relating to the value of the gold reserves held for them by the government. The more gold is bought and stored by the government for credit unions, the more capital in the form of local currencies are allowed to be released into local economies.
This will end Fractional Reserve Banking in the local economies system.
As the government amasses more gold reserves by buying gold on the international markets, more capital is released into local economies in the form of local currencies which is then ‘locked into’ those communities, as that capital circulates in just those communities and cannot be exported out of them.
This will produce internal economic stability, allow local economies to be stable and guarantee deposits of customers.
Each year government buys a set amount of gold to be set aside for the use of credit unions - say 5 billion pounds a year.
This will then allow credit unions to issue local currencies to invest that money into local communities, such as in the form of loans to local businesses.
The interest rates on these loans will be less than the market rate for other loans, so will allow local businesses to be more competitive than international corporations when investing in local communities.
Such loans would be predicated on local businesses employing local people.
It would also allow Credit Unions to issue low cost loans with low interest rates to their members, such as poor families in local communities.
This will allow the credit unions to increase economic activity in local areas that benefit local businesses.
Local people could also deposit their national currency into their credit union accounts which will allow credit unions to then use brokers to buy gold deposits to be stored to ’back up’ those new deposits, thereby moving national currency from the globalist high street banks and global economic system and into local economies.
This would create an autonomous, stable, commodity backed network of local currencies that will offer the stability and economic security that the High Street banks cannot offer.
It will also ensure that any future global economic crash will not devastate local economies, as their currencies will still function as commodity backed micro-economies regardless of any systemic crash of the macro-economic global market.
It will also allow nation states to work together on developing the international economic system to facilitate global free trade, whilst ensuring the internal economic stability of nation states as they undertake the creation of an integrated and efficient global economic trading system.
There is no need to create a new International Gold Standard, just local economies with Credit Unions whose local currencies are based on gold reserves and whose currencies can only be used within those local economies.