Banks need Boundaries! Banken in die Schranken!

Banks need Boundaries!

Part one: BAD unemployment
Economic crises are nothing new. Expansions and recessions are closely linked to money creation. The money that is created vanishes again, just when we'd need it most.[1] Lower-paid and temporary jobs are usually the first to go, see Inequality.[lnk] Obvious solution: create your own money! Banks just play God over our money supply because they get cheap backing from the central bank – no reason we shouldn't be able to!

The 'Miracle of Wörgl' is a famous example of crisis-proof local currency.[2]

However, local currencies are no longer any good when our taxes are due. It's time to pay the piper. In bank-made 'official' currency. This must change. We need a 'local currency for the country'.[3]

Part two: GOOD unemployment
Unemployment is the aim of economics, like it or not: "careful management of available resources" (OE Dictionary). In other words: Unemployment is a success! And boy are we successful: "[Half] of total US employment is at risk" (Oxford Martin School). Corporations have been very effective at making production more efficient. But sharing the riches is against their nature.

- Decoupling growth from resource use (see Environment)
- Remember: work is a resource, too! (human resources)
- Decouple wages from basic income

"The securities market must become a zero-sum game, not a tool to siphon off assets from useful businesses." (From our petition.) ...And neither a universal weapon to ensure every gain in productivity is reaped by those now calling the shots, with redundancy and retraining costs externalised.

The trick to a more positive framework is to abandon set definitions of what is or isn't useful (to employ = to use). Let people work it out naturally. We all want to work and be perceived as useful – it's in our genes, see The first currency ... and the LAST? It's unlikely this will happen without getting past (a) corporations liking unemployment, and (b) externalisation of costs, (c) unhealthy exploitation of workers and the planet in general.

Change is hard to deal with, even if it's positive. People are social creatures, like chimps (sometimes lemmings). Good ideas might be resisted at first, but once good ideas reach critical mass, usually the alpha males pretend it was their idea all along.
"There is nothing more powerful than an idea whose time has come." (Victor Hugo)

by Michael K for Banks need Boundaries!


  1. "During any business cycle, whether ending in a financial crisis recession or just a normal recession, there is a very strong relationship between the growth of credit (relative to GDP) on the upswing, and the depth of the subsequent collapse in GDP on the downswing." Taylor, A. M. (2012), "The Great Leveraging", National Bureau of Economic Research; quoted at Positive Money, Jobs & business
  2. From Wikipedia: «Wörgl was the site of the "Miracle of Wörgl" during the Great Depression. It was started on July 31, 1932, with the issuing of "Certified Compensation Bills", a form of currency commonly known as Stamp Scrip, or Freigeld. This was an application of the monetary theories of the economist Silvio Gesell by the town's then-mayor, Michael Unterguggenberger.
    The experiment resulted in a growth in employment and meant that local government projects such as new houses, a reservoir, a ski jump and a bridge could all be completed, seeming to defy the depression in the rest of the country. Inflation and deflation are also reputed to have been non-existent for the duration of the experiment.
    Despite attracting great interest at the time, including from French Premier Edouard Daladier and the economist Irving Fisher, the "experiment" was terminated by the Austrian National Bank on the September 1, 1933.»
    Our friends will recognise the name Irving Fischer from The Chicago Plan. For more on Wörgl and depreciative currencies, read Is interest the problem?
  3. Or a local currency for the EU. That part really doesn't matter. The main thing: avoid pro-cyclical 'alien' private bank money. This text was written in Switzerland, where an initiative for Sovereign Money Creation is scheduled to begin in 2014.
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