Surely we are way over due for a re-work on the business model and system known as Finance. As David Graeber has most adequately shown us Finance has been problematic for over 5000 years. Even over on the Social Credit Google group I feel they have a bit too much of an orthodox stance on Finance and Banking. They are completely correct of course to chastise the cranky advocates of “interest is the be all and end all of our monetary problems”, however, considering the length of time that Finance/Banking/the paradigm of Debt has afflicted us and also its hiding in plain sight monopolistic dominance of every other business model and every individual in their respective nation….it’s time we kicked it in the ass, cut it off at the knees and drove a stake through its vampiric heart.

Hence my Trinitarian model for Finance. Ellen Brown, who is probably the most open monetary reformer out there both personally and theoretically has been fighting a difficult battle to institute Public Banking as a competitor to private finance. I suggested this model to her and like a couple of other things I’ve suggested to her she seems as if she’s amenable to it. Here is the model:

1. A true central bank that was truly independent of political and economic influence/coercion first by having concrete and specific policy mandates and eventually by full constitutional separation of powers. The first of these mandates would be that it and it alone distributed money for the economic system.  In other words all loans would go through a review process by the central bank before any loan was approved. Two of its other mandates would be the computation and distribution of both a universal dividend payment directly to the individual and computation of  a discount percentage used to reduce prices below their cost at retail sale to an individual. A discount that was then fully rebated back to merchants participating in that discount program. This central bank would of course not distribute any money/reserves for economic vices like the recent de-stabilizing derivative products we have seen.
2. Private banking,then to be referred to as private speculative banking, would henceforth consist of only the aggregation (not the leveraging) of priorly created profits and savings.
3. Public Interest Banking would get its reserves from the central bank after appropriate review. Public Interest Banks would lend to commercial enterprises, the government and the individual. Private speculative banks would no longer have that right.  The Public Banking interest rate to commercial enterprise and individual would be somewhere between 0 and 2% (all money distributed to the Public Banks by the central bank would of course be at 0%)  Loans distributed to state and local governments as well as to the federal government would be at 0%. All profits after the payment of staff would go back to the government adding to their pool of revenue and reducing their need to tax. With the vastly increased stability, likely increased profitability and longevity of businesses that the universal dividend and discount mechanisms would create interest rates could be maintained at these low levels and the economy ought to hum along on all of its trillions of cylinders.