Non Credit Money

Today money is put into circulation in the form of credits.

Such credit money is always in short supply.

An increase in money supply is necessary both because of increase in production and for making up for the money lost due to slowing down of velocity of money circulation.

The required additional quantity of money in circulation is definitive (final), because it is intended to stay in circulation permanently. It cannot be credit money, which is in circulation temporarily, because credits must be returned.

If the rate of increase in quantity of credit money in circulation is such that it creates such an inflation where the rate of increase in quantity of credit money in circulation is greater than the price increase rate, then the difference in these rates is really a non-credit money, which functions as the required additional quantity of money in circulation.

If all the necessary additional quantity of circulation money were immediately emitted as non-credit money, i.e. gift, inflation would disappear.

Movement for non-credit money proposes that the National Parliament issues a Money Law, containing the following:

1. Banks can allow credits only up to the amount of collected savings.
2. The creation of new money by allowing credits above the amount of collected savings is prohibited.
3. Required additional quantity of money in circulation, which is printed in the Money Printing Institution, is deposited to the account of the Pension Fund.
4. Money is put into circulation by paying pensions from the account of the Pension Fund.

Such a mode of money emission secures endless price stability, without inflation and deflation.

Contributions for pensions are thus cancelled and economy is less burdened.

By selling goods to pension beneficiaries, producers secure profits, as pure accumulation for production increase (without having to take credits).