National Integrated Sovering Money System
- Gradual transition of debt money ratio and switching from debt money to public money -
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Summary
- Outline (Abstract)
The purpose of this system is to review the current monetary and fiscal structure that depends on debt money, gradually reduce the debt-money ratio, and finally move to public money.
The background is that the suppression of local grants and the collection of excessive tax increases and social insurance premiums due to financial resource problems are expanding, which has a serious impact on the living base of the low-income group in particular.
In order to structurally solve these problems, the system redesigns the roles of central banks and governments and restructures the way currencies are issued.
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- Basic philosophy
Redefinition of financial resource constraints
Institutional redesign of the right to issue currency
Securing social stability
Minimizing the shock to the economy
Change only the structure without changing the value
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- The overall structure of the system
This system consists of three stages.
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Stage 1: Debt compression phase
■ Purpose
Structural compression of government debt
■ Contents
The central bank assumes 50% of government bonds
Issuing central bank bonds as a support
■ Essence
Reducing the burden of accounting offset
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Stage 2: Gradual reduction of the debt-money ratio
■ Purpose
Breaking away from dependence on debt money
■ Contents
Debt-debting part of the supply of new currencies
The coexistence of debt money and quasi-public money
■ Essence
Gradually change the ratio of currency composition
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Stage 3: Complete transition to public money
■ Conditions
Reminshment of government debt (including central bank underwriting)
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■ Contents
Full introduction of national integrated sovereign money
Abolition of debt money
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- National Integrated Sovereign Money
■ Definition
Non-debt currency jointly issued by the government and the central bank
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■ Features
Not backed by government bonds
Based on central bank bonds
There is no obligation to repay
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■ Essence
Convert the source of credit from “debt” to “national integration”
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- Governance design (fixed ratio)
■ Voting rights structure
Fixed based on the system of each country:
United States: Central Bank 100%/Government 0%
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■ Significance
Elimination of the risk of system change
Suppression of political arbitrariness
Securing long-term trust
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- Currency transfer process
■ Start time
The next year of debt repayment
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■ Transition method
The coexistence of old and new currencies
Replace with new banknotes in stages
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■ Exchange rate
Completely fixed (1:1)
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■ Effect
Maintaining the continuity of value
Avoiding market chaos
Inflation control
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- Redefinition of financial management
■ Current
Expenditure → Government Bonds → Future Burden
■ This system
Expenditure → Currency issuance → Economic cycle
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Taxes are not financial resources, but a means of adjustment
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- Social purpose
Control of excessive tax increases
Optimization of the social insurance premium burden
Stabilization of local finances
Welfare for low-income people
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- Risk and control
■ Risk
Inflation due to over-issuance
■ Control
Issuing rules
Adjustment by taxation
Cooperation with the central bank
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- Conclusion
This system is
It is a realistic and progressive institutional design that gradually reduces the debt-money ratio and eventually transitions to public money.
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And the essence is one thing:
It is to institutionally redefine the premise of the financial problem itself.
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