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                                                                                    01. E-course : Diploma in Integrated Development  (Dip. Int. Dev.)

 

Edition 01: 14 November, 2009

Tekstvak:          Quarter 2.

 

 

 

 

Tekstvak: SECTION B : SOLUTIONS TO THE PROBLEMS.

 

 

 

 

Value: 06 points out of 18 .

Expected work load: 186 hours out of 504.

 

The points are finally awarded only on passing the consolidated exam for Section B : Solutions to the Problems.

 


 

Fourth block: The structures to be created.

 

Value : 03 points out of 18

Expected work load: 96 hours out of 504

 

The points are finally awarded only on passing the consolidated exam for Section B : Solutions to the Problems.

 


 

Fourth block: The structures to be created.

 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures.

04.00 hours : Preparation report.

 


 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures : analysis.

 

1. The basic concepts  - introduction. [ 2.5 hours]

2. The basic concepts – more details. [ 2.5 hours]

3. The local money systems  - introduction [ 2.5 hours]

4. The local money systems – more details. [ 2.5 hours]

5. The interest-free micro-credit systems  - introduction.[2.5 hours]

6. The interest-free micro-credit systems  - more details.[2.5 hours]

7. The cooperative purchasing  groups - introduction. [2.5 hours]

8. The cooperative purchasing groups – more details. [2.5 hours]

 

04.00 hours : Preparation report.

 


 

Section 3: Financial structures.[24 hours]

 

20.00 hours :Financial structures : analysis.

 

2. The basic concepts – more details. [ 2.5 hours]

 

This section provides an in-depth analysis of the mechanics of the world’s dominating  monetary system.

 

Read the short summary of  L.F.Manning’s work The Ripple Starts Here. It summarises the most important aspects of the paper Financial system mechanics explained for the first time.

 

Then, read Financial system mechanics explained for the first time.

 

Read it carefully. The reading and comprehension of this document are compulsory for the course. Questions on it are very likely to be included  in the consolidated  exam for passage to the fifth block.

 

1. Research.

 

On one  page, explain why the year 1694 is so important for the development of the world’s monetary system.

 

2. Research.

 

Give a one-page explanation of the concept of «non-earned interest »

 

3. Research.

 

Explain on one page why, today, practically all new money in industrialised countries is issued by private bankers in the form of debt.

 

4. Research.

 

Using the text of the document, give a two-page explanation of the  formula  PQ  = (Md-(Ms+Mv))Vp+ MoVo +EoVeo.

 

Read the following declaration of  President Lincoln of the United States in 1865 :

 

"The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers..... The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power."  [Abraham Lincoln Senate document 23, Page 91, 1865.]

 

Read Creating New Money, Huber J. and Robertson. J, New Economics Foundation, London, 2000.

 

A single one-line law would be enough to solve most of the world’s financial problems. It would read : «All new financial means are issued interest-free by the state and spent to cover social requirements of the population. » 

 

5. Opinion.

 

Give a one-page opinion on why such a law has not been passed. Who has an interest in the maintenance of the status-quo ? What are your conclusions ?

 



 Fourth block :  Section 3: Financial structures.

 Fourth  block : The structures to be created.


Main index  for the Diploma in Integrated  Development  (Dip. Int. Dev.)

 List of key words.

 List of references.

  Course chart.

 Technical aspects.


 Courses available.

Homepage Bakens Verzet


 

"Money is not the key that opens the gates of the market but the bolt that bars them."

Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228.

 

“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.

 


 

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