© Drs. W.T.M. Berendsen, Lichtenvoorde, 26 september 2021.
The excellent monetary system was created by Wilfred Berendsen , Drs. W.T.M. Berendsen, around the years of 2010. Already in 2011 it was described in an ebook Published on Amazon Kindle. Later in 2016 a dutch language book about the excellent monetary system and insights about money and monetary system was Published. In that book, a better alternative for UBI is also proposed. This alternative being conditional additional income (CAI).
The excellent monetary system EMS is different from the Modern Monetary Theory MMT. It is also different from any other monetary reform proposal till now 2021 and already back then around 2010 when the EMS was created.
EMS is more integral and manifold and not based on current monetary system but aimed at creating a new monetary system called the excellent monetary system. EMS is also much more fitting the requirements of current and future society. This system is created by adding the EMS addition for the monetary system to the current monetary system and by paying for certain governmental, organizational or private person expenditures with the money created through this monetary innovation. The EMS consists of the addition for the monetary system but also out of the monetary policies for governments that are enabled by the excellent monetary system.
While MMT is based on the current monetary system and situation, EMS is based on and is a new and the next monetary system for the whole world. As soon as the excellent monetary system (EMS) becomes a reality, this means the end of the European monetary system (EMS).
For getting to understand why and how the EMS will be succesful, It is be needed to understand a lot about real life economics and about inflation and a lot more but also it is very much important to realize that the EMS is based on a whole new and different economy and society.
The current monetary system has only two ways of money Creation. This two ways have different aims and purposes but also the features have different consequences in our economies and society. Besides that, this two types of money Creation are considered to be money Creation but according to my own understandings and terminology they are not. Not real true money Creation. According to MMT they are but according to me and EMS they are not.
According to the central bankers and economists the current ways of money Creation are :
1) Creation of money by central Banks when governments take a loan from the central Banks. At the moment of this so called money Creation, a debt is created and in exchange the government Gets money from the central bank.
2) Money lendings from private Banks by private persons or organizations. This is called fractional reserve banking and it is estimated that about 95 per cent of the current money in our society originates from the private Banks thought fractional reserve banking.
MMT only takes notice of the first ways of money Creation and considers IT as being money Creation. But for me this kinds of money inflows into the economy are not real money Creation. Because of the fact that against this money inflows debts are created. Plus and minus is still zero for me so according to me only real additional money inflows without debts created can and should be considered as real new money Creation.
MMT theorists incorrectly state that with the first way of money Creation the Sole limitation is inflation risks. Taxes are also a huge and a true limitation while MMT incorrectly and falsely state It is not. MMT totally disregards the extra burdens and huge problems of additional taxes for the taxpaying entities. Apart from that it should also be understood that the current monetary system is a win loose system. Meaning that generally if one entity in society Gets more money IT means that this money needs to come from other parties.
Superfical money Creation, resulting from banking and our current monetary system, is not real money Creation. It helps a lot of entities in our society to make a living but there is a high price paid for that. Many financial And unsustainable disadvantages result from the current monetary system and the resulting dependencies in our society.
What is the EMS addition/ innovation?
EMS is based on the understanding that real money Creation is needed. But also and foremost EMS is based on the understandings that another structure and nature of our economy Will lead to far better results. And that the combination of this other structure and nature of our economies but also the characteristics of a combination of current society and economy results in a whole different proces and dynamics of the notion of inflation. And a completely different structure and nature of our financial And economic realities.
The EMS money Creation addition is a third way of banking which is called EMS banking. This EMS banking is firstly only to be created and arranged by the central Banks but later EMS banking might also involve other organizations.
The aim of EMS banking is to create really additional money in the right ways. Money Creation without debts Creation. This money should then be allocated and used in the right most optimal ways. Resulting in a win win situation for all the entities in our economies
For that
1) a server for the EMS banking system should be created and placed at a central bank of another suitable organization
2) on that EMS banking server, the banking software similar to the ones used by private Banks need to be installed
3) then on the EMS banking system all the accounts should be made changeable in the specific way that the amount field before the valuta sign becomes An input field. At any time the quantity or amount field before the valuta sign should be changeable in any number required by persons and institutions having the permissions to do so
4) The number money on the EMS banking accounts within the EMS banking system can then be used to make payments as this EMS banking account is linked with the worldwide banking networks and Banks and accounts
Those who think that this addition of a third way of monetary banking, the EMS banking system and way, Will not work and lead to problems. Problems like inflation. Fail to understand and see that inflation or better the lack of it at current Times work out completely different from what economists and others think to understand about the phenomenon. But foremost they Just Fail to understand yet that the EMS monetary system not only consists of the EMS banking system and innovation, but foremost also out of the monetary policies proposed by me Wilfred Berendsen. And the fact that this monetary policies are based on and are the tools to realize a whole new economy that works even a lot more different and manifold than the current one.
The main characteristics from the EMS monetary system and policies is the fact that it is based on the realization that the current fact that governmental expenditures always need to be paid by other entities in our society by Means of taxes and fines. Is not that logical and great as commonly thought. That there is a better way and that this better way Will work out great for our societies if the monetary policies and allocation and amount of EMS banking Will sufficiently match current society and possibilities.
EMS banking creates real additional money without any debt Creation. The aim of this debtless money Creation is to enable governments to spend money while this money is by no Means whatsover paid by other entities in our society. For all the expenditures based on and paid though the EMS banking system, no taxes are required. Meaning that organizations do not need to earn more money or possibly raise their prices to pay for the additional money and additional expenses of governments. In that way, at least part of or Maybe even all of government expenses can be fine without taxations.
Monetary policies fitting the possibilities created with the EMS system are for instance the policies i already proposed in other writings about my excellent monetary system EMS. This monetary policies are all aimed at allocating debtless created money on the right best ways. In the beginning this should solely be done by governments but with the right legislation and financial infraatructure and the right possibilities in our economies IT might well be that also organizations OR even individuals in society are allowed to practise and use EMS banking.
The monetary policies that i propose are monetary policies in my understanding of monetary but they are not in the sense of central bank definition of monetary policies. Their definition differs from mine because according to economists there are fiscal policies by governments. And monetary policies by central Banks.
The monetary EMS policies are aimed at restoring balances in our economies. The proposed monetary policies are :
1) paying governmental expenses with tax and debt free money.
2) reducing OR eliminating income taxes for increasing vrij besteedbaar inkomen
3) on top of that Maybe also An addition to the wages OR Social benefits for certain persons or families
4) payment of all health care Costs for lower income groups
5) payment of most OR all of education Costs for individuals
6) creating unlimited OR partly Limited budgets for usefull OR required science and research.
This are all Just proposed monetary policies but depending on features of specific economies of course debt AMD tax free real new money can be allocated towards other entities in other ways when required.
Nowadays most economists and non economists think to understand that more money into our economies per definition Will lead to inflation. OR at least the central bank economists think that they should and can control inflation by controlling the amount of money into our economies. While they seem to forget and grasp that about 95 percent so most of the money inflows into our economies is realized by private Banks through fractional reserve banking and that this kind of money inflows is in no ways really controlled by the Banks but dependent on other factors. Leading to generally more money inflows into our economies which is generally good....
The biggest problem of current economies and therefore of entities in our society is more the current monetary system and the restrictions of it because of non logical monetary habits and economic dependencies.
The EMS is a new monetary system that is not existing yet. Therefore its real working can not be Proven yet. But QE could also not be Proven before applied. And while more money through QE did indeed postpone a next financial crisis, the combination of QE with low interest rates induced investments entities to create a housing bubble.
EMS can be applied in relatively small ways reducing and eliminating risks for our economy but at the same time proofing that and how well It Will work.
