last update: 2019 04 22
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Why money.

Money has 3 useful functions:

Good money as basic income.

The money described on this page should be a new digital currency and not an existing currency.
This avoids many problems.
Related: How to introduce good money.

The good money system:

How much money as basic income.

As much as needed.

Regarding the European Union:
The basic income could be the equivalent of € 15 000 or more per year per capita (including children) in order to provide the economy with the appropriate amount of money.

The income levy determines how much good money is removed.

Why is this good money.

This money is good because:
Video: Theresa May: "There is no magic money tree" (2017-06-03).
Magic Money Tree.
How Banks Create Money.

The Web Of Debt.

Universal Basic Income Is Easier Than It Looks (2018-12-28).
Coping with crisis. Yanis Varoufakis. Plenary 11 at PLSA Investment Conference 2016 (2016-03-11) time 13.

GAIM interview Yanis Varoufakis about democracy and investing (2016-08-12) time 39.

The Global Minotaur: The Crash of 2008 and the Euro-Zone Crisis in Historical Perspective (2011-11-12).
Yanis Varoufakis - Europe's Crisis and America's Economic Future (2016-05-03).
Taibbi: Is LIBOR, Benchmark for Trillions of Dollars in Transactions, a Lie? (2015-08-11).

Ten Years After the Crash, We’ve Learned Nothing (2018-09-13).
Yanis Varoufakis: Live at Politics and Prose (2018-01-01).

Price control.

The value of money as medium of exchange is very important.

The value of money is reflected by prices:
Prices are determined on markets:
IMO inflation happens when the general offer of money for goods and services grows faster than the general offer of goods and services for money.

The amount of money offered for goods and services is controlled by:
Yanis Varoufakis with Ruth Wishart at the Edinburgh Book Festival, August 18, 2018 | DiEM25 (2018-09-24).
Time 1117: Space for democracy. Control and freedom.

Income levy.

An income levy on all received money in order to remove money that was distributed as basic income.

The income levy is applied automatically on all money accounts.
The levy depends on accounts and not on persons with control of the account.

The levy should be used to control inflation.
The levy should not be used to limit good activities of the government.
It is called a levy and not a tax because the purpose is not to collect money to pay for something.

Rich persons are not the problem.
Poor persons are the problem.
Abolition of modern poverty ASAP.
Related: Good money as basic income.
Every second matters.

No creation of new money by debt.

Instead:
The current debt money system must be replaced ASAP.

Debt is bad.

Banks must not create money.
Banks must invest only existing money.

Because:
Video: Theresa May: "There is no magic money tree" (2017-06-03).

Magic Money Tree.

How Banks Create Money.

The Web Of Debt.

Examples of problems related to the current debt money system:

Perfect knowledge.

No secrets related to commerce and trade and (money) ownership.
All transactions with money are registered by computers and accessible to all for free.

There must be no bad privacy.

There must be no intellectual property.

Therefore a digital currency.

Perfect markets require perfect knowledge.

It must be obvious to all:
Good money is implemented in a useful efficient open way.

Unlike harmful secretive wasteful inefficient currencies like cash money.

Unlike harmful secretive wasteful inefficient currencies like Bitcoin.
Bitcoin can be profitable for early adopters because the amount of Bitcoins is almost limited by design.
Bitcoin is not fair.
Bitcoin is not useful for an economy because Bitcoin is a limited deflationary currency that is not under benevolent control. It is technically not possible to create arbitrary Bitcoins for good purposes.
Bitcoin is technically slow and wasteful.
Bitcoin Energy Consumption Index.
reuters.com: China wants to ban bitcoin mining, traders say move not a surprise (2019-04-09).
HN: EU charges eight banks over alleged government bond cartel (2019-02-01).
Article: EU charges eight banks over alleged government bond cartel (2019-01-31).

How to introduce good money.

There are 2 ways to introduce the good money as basic income.

As part of the price.

Money of the new currency is used as part of the price to pay for a good or service.

For the buyer: The good money is distributed as basic income.

For the seller: Adding the good money as price constraint is rather easy and cheap. The problem is not that goods and services are sold for worthless good money. The problem is that buyers might not have the good money to pay the price.

The lustysociety could create good digital money for only the cost of the digital trade system.

As legal tender.

The government enforces the good money as legal tender so that prices must also be declared in good money units.

About minimum wage.

A good modern rich society has abolished poverty by science and technology and good management.
Related: Why is this good money.
Related: Why rights of freedom must be granted.

Furthermore:
The benefits of a minimum wage:
The disadvantages of a minimum wage:
Reddit: Basic Income, Not Basic Jobs: Against Hijacking Utopia (2019-04-18).
Article: Basic Income, Not Basic Jobs: Against Hijacking Utopia (2018-05-16).
Reddit: Five Star ‘citizenship income’ will create a poverty trap, Van Parijs says, recommending UBI instead (2019-04-02).
Article: Five Star ‘citizenship income’ will create a poverty trap, Van Parijs says (2019-03-29).

About job guarantee.

A job guarantee might be used as label for different job programs.

Related: Work.

No bad currency union.

A good currency union can be very useful to introduce and enforce good money.

IMO the eurozone is bad because:
Bad currency unions can be harmful because of 2 important related problems that might be the 2 important reasons why some experts promote currency unions:
In a way, Greece suffers from the dutch disease.
Not oil and bad politicians but debt and bad politicians were the problem.
Related: No creation of new money by debt.

Debt is particularly bad if the currency of the debt is not under control of the debitor.

A stable healthy wealthy self-determined autarkic industry is necessary as protection against economic war including sanctions by competing organizations (states, societies).
Examples:
A competing organization (state, society):

Other opinions about money.

Yanis Varoufakis - The Universal Dividend and Basic Income.

Video: Yanis Varoufakis: Basic Income is a Necessity (2016-05-07).

Video: Yanis Varoufakis - The Universal Dividend and Basic Income (2017-10-22).

Video: DiEM25 presents The Real State of the Union - Brussels Sept 2017 (2019-03-23).

Video (original): DiEM25: The Real State of the Union, Brussels (2017-09-09) time 6204.

Text: DiEM25's European New Deal (2017-02-17).
Text: New Deal for Europe (2019-01)
IMO:

I like that the state buys shares of companies for investment and ownership and for later dividends to redistribute money.

Still, there are important problems and choices regarding the Universal Dividend:
  1. Is the Universal Dividend enough? And when?
    Besides: Will Amazon Ever Pay A Dividend? (2019-03-21).
    No proposal is good enough if it does not propose the abolition of wage slavery and modern poverty ASAP.
    Besides:
    How to know what part of the profits is realized by machines?
    Are there special computations to determine the Universal Dividend?
    These questions matter because, according to the video Yanis Varoufakis - The Universal Dividend and Basic Income, Yanis Varoufakis might want to redistribute only the profits generated by machines and not by humans.
    When should the sane morality and culture begin that a human is welcome even without paid work?
    When should the sane morality and culture begin that a human works for fun or for the society and not only for selfish personal economic wealth and superiority and for social pride and superiority?
  2. I am against intellectual property.
    Related: No intellectual property (IP).
  3. There is no initial public offering (IPO) for the current giant companies that most likely remain the dominating giant companies in the future. At least this century.
    The Universal Dividend does not retrieve money from these companies.
    Should the European Central Bank (ECB) create money to buy shares of existing giant companies?
  4. Buying shares means investment in the company.
    What companies are invested in?
    Is there potential for corruption?
    How is decided what companies are supported with how much money?
    Will investments depend on buzzwords, personal relations, geo-political power concerns, marketing and isegoria?
    Yanis Varoufakis with Ruth Wishart at the Edinburgh Book Festival, August 18, 2018 | DiEM25 (2018-09-24).
    Time 420: Isegoria in politics.
    Time 1117: Space for democracy. Control and freedom.
  5. Do citizens of the EU want investment in and owning of private companies by the Universal Dividend manager?
    Do citizens of the EU want investment in foreign companies instead of national companies?
    Does the rest of the world tolerate investment in and owning of private companies by the Universal Dividend manager?
    Does the USA tolerate US companies to be owned (partially) by the Universal Dividend manager?
    Does China tolerate Chinese companies to be owned (partially) by the Universal Dividend manager?
    Should a company be owned by many governments?

Winds of Change: The Case for New Digital Currency.

Winds of Change: The Case for New Digital Currency (2018-11-14).
By Christine Lagarde, IMF Managing Director, Singapore Fintech Festival.

Quotes:
  1. Christine Lagarde:
    A state-backed token, or perhaps an account held directly at the central bank, available to people and firms for retail payments? True, your deposits in commercial banks are already digital. But a digital currency would be a liability of the state, like cash today, not of a private firm.

    IMO:
    Debt is bad. Good money is wealth and not a liability.
    But debt and money owned by a benevolent organization is still better than:
    • Debt and money owned by harmful organizations like e.g. the ECB of the Eurozone or certain member states of the Eurozone.
      The destruction of Greece – the slow-burn decline of a nation (2018-10-09).
      • Quote:
        In the case of Greece, the Troika inflicted such harsh policies that, not only has the material prosperity of the nation been trashed, but now, evidence is emerging that the underlying physical and mental health of the people has been significantly damaged. One step short of genocide. The slow-burn destruction of Greece and its people continues.
    • Debt and money owned by a merciless purely profit oriented bank that is in competition with other banks and thus without full market control and thus without motivation to increase the wealth and prosperity of everyone.
  2. Christine Lagarde:
    Let me start with financial inclusion, where digital currency offers great promise, through its ability to reach people and businesses in remote and marginalized regions. We know that banks are not exactly rushing to serve poor and rural populations.

    IMO:
    I agree. No initial distribution of public money as debt owned by private banks.
  3. Christine Lagarde:
    Without cash, too much power could fall into the hands of a small number of outsized private payment providers. Payments, after all, naturally lean toward monopolies—the more people you serve, the cheaper and more useful the service.

    IMO:
    This is silly and false and misleading.
    Cash money can be abused more easily by harmful governments and companies.
    Example: Greek debt crisis: the key points of Athens bank controls (2015-06-29).
    Online payment providers and users want trades but are limited by harmful governments.
    Examples:
  4. Christine Lagarde:
    Consider a simple example. Imagine that people purchasing beer and frozen pizza have higher mortgage defaults than citizens purchasing organic broccoli and spring water. What can you do if you have a craving for beer and pizza but do not want your credit score to drop? Today, you pull out cash. And tomorrow? Would a privately-owned payment system push you to the broccoli aisle?

    IMO:
    No initial distribution of public money as debt owned by private banks.
    Instead money should flow to producers of healthy wanted products by markets regulated by beneficial entities.
    Related: Good money as basic income.
    Related: Talk - Howard Lyman - Plain Truth from the Cattle Rancher Who Won't Eat Meat (2010-03-12) time 432.
  5. Christine Lagarde:
    Would central banks jump to the rescue and offer a fully anonymous digital currency? Certainly not. Doing so would be a bonanza for criminals.

    IMO:
    I agree.
    Good money allows perfect knowledge for all for free.
    No bad privacy.
    Of course this "extreme stand" is not what Christine Lagarde had in mind.
  6. Christine Lagarde:
    This brings me to my third area—the potential downsides of digital currency. The obvious ones are risks to financial integrity and financial stability. But I would also like to highlight risks of stifling innovation—the last thing you want.

    IMO:
    Abolition of modern poverty ASAP.
    Of course Christine Lagarde addressed the financial industry present at the Singapore Fintech Festival.
  7. Christine Lagarde:
    Let’s return to the tradeoff between privacy and financial integrity. Could we find a middle ground?

    IMO:
    There is no good middle ground.
    Good money allows perfect knowledge for all for free.
    No bad privacy.
  8. Christine Lagarde:
    The second risk relates to financial stability. Digital currencies could exacerbate the pressure on bank deposits we discussed earlier.

    IMO:
    Good money should be accepted by persons because the money and the money provider serves them well.
  9. Christine Lagarde:
    If digital currency became too popular, it might ironically stifle innovation. Where is your role if the central bank offers a full-service solution, from digital wallet, to token, to back-end settlement services?
    What if, instead, central banks entered a partnership with the private sector—banks and other financial institutions—and said: you interface with the customer, you store their wealth, you offer interest, advice, loans. But when it comes time to transact, we take over.

    IMO:
    The role and profit of the financial industry present at the Singapore Fintech Festival should have no importance at all.
    Only the benefit of money for the society should matter.