The Worm in the Apple by Stephen Cook
WHOSE JOB IS MONEY SUPPLY?
Before we assign the job, we must establish the basic principles against which such an assignment will be made. Those principles, in summary, are: Money is supplied as a service to and support of the activities of the economy and for no other purpose or agenda. Whoever creates and supplies money to the economy should not have the right to spend or lend the money he has created for personal advantage or gain. In order to calculate the economy's money requirement the economy must be monitored so as to assess, with a view to correcting, any rise or fall in money's purchasing power. The aim of money supply must be to correct fluctuations in value and attain the maximum stability of value possible. The body which calculates the economy's money requirement and the body which actually creates and issues money in accordance with those calculations need not be one and the same. In fact it they should be two distinct bodies. It is essential that money supply calculation be impartial and in accordance with a consistent formula. Its sole purpose should be to ensure the correct level of supply and so whoever is responsible for the task must be aloof from and protected from any political or other extraneous influences. That protection must be uncompromisingly enshrined in law. The amount of money created and supplied to the economy must be solely in accordance with those calculations. No government should have the power to create and issue money in accordance with any other criteria whatsoever. It is self-evident that whoever has the power to decide how much or how little money will be supplied to the economy has the power to regulate the fortunes of all the people in that economy. He has in fact absolute dominion over those people. However, those calculations only govern how much new money is to be created or by how much the volume of circulating money exceeds the economy's requirements. In the case of spending new money into circulation, how government will spend the money must be bound by the mandate it has received from the people. In the case of a surplus of circulating money, whether government's method of dealing with the problem will be to increase production (and how) or remove excess money from circulation (and how) or some combination of the two, will again be bound by the mandate it has received from the people. These conditions absolutely must be in place and there is no room for compromise: - 26 -