신화폐금융 원론(영문)

[영감]

근래에 올렸던 돈에 관한 글들을 나름대로 영문으로 재구성하였습니다.

반박이나 보충설명요구, 무슨 내용이든 환영합니다.

Proposing a new way of Currency Control

We are told that current monetary system in every major economy is about to collapse.

Yet nobody knows exactly when it will happen and what it will be like, the aftermath of the event.

Should we, the people, simply accept what happen in the near future and should not make any

practical contribution to the repair or rebuilding of the system?

Time to Open Public Debate on New Monetary System

The most important issue about money is:

1) What is money and what is not money?

Is gold money? No. Gold bullion is a sort of commodity you and/or I can buy with money.

Money is legal tender. The face value is respected as it is. No negotiations, no discount, no refusal of acceptance

is allowed as long as the payment is made within common business practice.

Therefore, foreign currency is not money in a different country.

2) How much is the total amount of money at this moment? US Dollar, Euro, Canadian Dollar, Chinese Yuan, Korean Won ....., respectively?

In current system, nobody knows. This is one of the major causes of crisis we are facing now.

So, it is extremly urgent and important for us, the people, to establish a clear guideline to determine who owns how much money at a specific moment. Money kept in a safety box leased from a commercial bank belongs to the leasee, not to the bank.

Also, money deposited into a bank account which bears no interest or at marginal rate(lower than central bank rate) is owned by the depositor, not by the bank!! Let's call this "Money in Cash Account"

Think about this:

Your application for a mortgage is approved and now the money is put into your checking account. This is your money.

You can pay tax with this money by cutting a check or electronic transfer from your iphone.

However, in some cases you cannot use that money freely. There can be various kind of conditions you have to follow.

Your bank can withhold the money for several days or you can only use that money as a payment for previous loan its due date is coming soon.

Is this money yours or bank's?

We must have a clear answer to this question too.

My answer to this question is that: If this money cannot be used freely, it's not "Money in a cash account". It's not yours yet.

There should be no delay or time gap between payment and receiving.

When you buy a meal at a fine restaurant and pay with a credit card which you lost the previlege of grace period already, interest is calculated from the day you enjoy the meal, even though that money is posted into the account of reataurant 3 days later. or sometimes a week later! This is the arrangement among credit card holder and card issuer and the payee(the restaurant).

However, when you pay the card bill from your cash account by on-line banking, the money subtracted from your account should be posted to the card company account on the same day. Never on the next business day!

If the settlement takes time, the status of the transaction is same as payment by cheque. Settlement should be simultaneous and money is transferred instantly.

Once the ownership of the money in bank accounts is determined, we can calculated the total amount of money in circulation:

To whomever it conserns, his or her money total is cash on hand(including cash in the safety box) plus the balance of cash account.

Cash on hand means 100% ownweship. Therefore not all the money in posession is considered as cash on hand.

Especially money held by banks for their customers belongs to the customers, not to the banks.

Therefore, now it comes to a symple math. Just summing up the amount of each and every stake holders in the economy!

Now, we need to know how much cash is actually working as intermediary for transactions and how much of it is dead as stockpile in a private vault waiting for a big chance to speculate the market.

Why? cash can be used for any purposes, good or evil. At least we must have a system to keep the price stabilty in the market.

My suggestion:

Recently Bank of Canada issued new Bank Notes of $100 and $50.

I think Canadian government could have used this opportunity as getting to know the reality of Canadian Dollar - who owns how much of it.

I believe that Canadian Banking system has enough information about where this new bill is gone roughly.

I suggesst that Bank of Canada make a new announcement regarding this new bills immediately.

[ Old Bank Notes shall go out of circulation from January 1, 2015.

So, whoever posesses these old money is advised to bring it to his or her bank for deposit or exchange with new money.

From Jan. 1, 2015 old money shall be nullified completely. And Bank of Canada will establish a new monetary statistics for the pubilc.]

And I suggest every nation to adopt this policy in the near future.

Money must stay in the system flowing and should not allowed to be drawn out of the system.

And most importantly, make it sure that nobody is able to threat the whole system by hoarding the currency.

In case that somebody is accumulating currency for extended period so much enough as to threaten the monetary stability, the central bank or government authority should be able to resolve this hoarding: Government and central bank is the sole authority to issue new money to replace current money. Money is a kind of social utility.

3) Make sure that total amount of money in circulation never change unless the authority officially input new money into or take out some from the system. Also this official procedure must be clear and acceptable to the public.

Money you pay to others does not disappear. It is hiding somewhere under someone's control. Even a natural disaster like flood or fire cannot deprive a person of it. You can provide evidence showing how much you lost and restore it!.

Therefore, theoretically there is no reason or necessity to print more money to pay the interst on debt. Some creditors will loose their principle as some winners collect interest plus principle. It's a zero sum game.

The only reason or necessity to print more money is the actual growth in physical economy if there were no hoarding of the money.

Now, we come to a new horizen whether print new money or issue treasury bond.

Bond coupon rate should be the same as central bank basic rate - the target rate in terms of inflation or C. P. I.

When a government is in necessity of huge amount of budget, it can propose to issue government bond to the nation.

Then the central bank announce that this bond shall be sold to the public at par value. If public investors do not purchase this bond up to its planned amount, the remaining portion shall be bought by the central bank with newly created currency just enough to buy the remnants.

(In current accounting standard, central banks are not allowed to keep cash as its own asset.)

So, the revenue from bond issue goes to the government, not only the money paid from the original bid but also the new money created by the central bank.

This results in official net incease of the money in circulation.

This is a reasonable scheme to keep the value of the currency.

Government bond held by the central bank can be sold out to the public any time later if the market price of that bond is above par.

Money paid to the central bank from this bond sale or maturity should be cash asset of the central bank.

This means we should change the cash accounting of the central bank.

Current banking system takes a different rule regarding cash held by the central bank. This is not well known to the public yet.

We need to uncover this secret and set a fair and justifiable new accounting rule to be published and educated to the public.

[영감]

몇군데 메일로 보내봤습니다만, 통 반응이 없습니다.
긁어 부스럼 될까봐 아얘 무시하기로 방침을 정한 것이 아닌가 생각됩니다.
부스럼 차원이 아니라, 이판사판 뒤집기가 가능할 정도로 이 아이디어가 널리 퍼져야만 정의로운 밝은 세상이 올텐데요.

[시간]

의지를 갖고 도전하시는 영감님의 실천력에 제가 부끄럽네요.
명절 잘 보내시구요 건강하십시요.

[영감]

고맙습니다. 16시간의 시차 덕분에 저희는 이제사 차례상 준비를 합니다.
송편을 만든다해서 솔잎을 좀 구하려 했는데, 바늘이 짧은 것들 뿐이라 향이 어떨지 모르겠습니다.