How to pay for Universal Basic Income

The merits of UBI are obvious, so this essay will focus on how to pay for it.



A public central bank will provide UBI for everyone. Here is the proof…


While welfare penalises participation in the economy, with UBI one is free to take a job or create your own products or services without having your UBI clawed back.

This has proven to lead to a renaissance of ingenuity and creativity, rather than the disgrace and discouragement of welfare.




OK, here are the numbers !!

Taking the Canadian population of 30 million as the example, then if every adult received $12,000 per year that would amount to 360 billion.

Since private banks create Canadian dollars out of nothing, then so can the government as was the case prior to 1973 by the Banque du Canada, saving interest payments of 60 billion.

The public Banque du Canada would need to introduce new currency as the economy grows to maintain price stability. Assuming a growth rate of 2% on a GDP of 1.5 trillion that amounts to 300 billion.

To sum up (in billions)
(360) – Universal Basic Income
60 – Interest payments
300 – Price stabilisation

This $360 billion is created by the country anyway.
It is up to us to decide whether it

• goes to private banks (the very mechanism by which the rich become richer at our expense) or
• comes to the people (who produce it).

Please support COMER and IMMR and to return to a democratically managed currency as it was prior to 1973.

Basic income is a necessity



How to pay for Universal Basic Income

Invisible tax

Inflation is an invisible tax on wages and savings.

The purchasing power of new currency comes from the dilution of our wages and savings.

But the inflation of the currency supply is far greater than we think.

We all understand that the increase in consumer prices on the shelves (CPI) erodes our purchasing power, but the real inflation rate is much higher. It is the rate at which the currency is actually increasing.



This real rate of erosion is hidden by our productivity (more work, more throughput, more production, with that same inputs) that makes the difference between CPI and M2/3. We work harder and smarter to keep inflation down, but the benefits do not accrue to us, but rather to the currency creators.

This tax accrues to banks.

The inflation of currency also explains the long term increase in stock prices, since that is where much of it ends up, buying up control of listed companies with created currency.



The Network of Global Corporate Control clearly shows the beneficiaries of this bounty of invisible tax on our savings and wages. This currency is created out of nothing, issued as debt at interest.
Note that these loans are claims on our assets, and that bankruptcies lead to the expropriation of those assets.

Also note that the interest to be paid is not also created, thus interest payments come out of the existing currency supply (loans). This inevitably leads to reduction in currency supply, busts, and bankruptcies.

Governments have to keep borrowing more and more just to make those interest payments, eventually forfeiting pensions, gold reserves, land, and infrastructure to restructuring and austerity. The largest single expenditure at all levels of all governments is interest payments. Governments tax us to pay banks.

Governments are simply another type of organisation such as the Vatican, or General Motors. While GM sells motorcars and the Vatican sells hope for their income, governments extort their income through tax agencies, courts, police, and incarceration, ie., the largest government agencies exist for coercion. (If government services were valuable, they could sell them)

Likewise, corporations have to keep growing, churning, and externalising costs onto labour and the environment to pay for financing. This system needs new wars (another large government agency) or corporate capitalism dies. Government- and corporate machinery is devastating us and the earth in service of banks and bureaucracies.

It is access to this volcano of currency that empowers a small group to run corporations, bribe politicians, grease bureaucrats, influence courts, pollute our planet, dispossess and enslave humanity, and cause wars (the grandest of thefts).

They suck the life out of governments, corporations, and individuals through interest and dispossession, while taking control of them through equity, bribery, and destitution.

While we cannot fight them, we will make them obsolete and irrelevant.

Invisible tax

Free money alternatives

We have been trained to accept that capital comes from savings. Savers are paid interest, and lenders are charged a little higher rate to cover expenses, and hopefully make a small profit in the end.
Well, we now know this is not the case...

Removing the constraint of currency for full employment

It is common knowledge that banks do not lend out savings, but rather create money out of nothing when a contract is signed.

For example, the currency (account balances) for a mortgage does not exist until the contract is signed. Then a bookkeeping entry gives the bank an asset and the borrower a liability.

This newly created currency can then be used to purchase a house, materials, contractors, etc.
But there's a catch ...

The magic of money

The magic of money

Once upon a time a little village had merchants such as the baker and brewer who provided bread and beer to the carpenter and farmer, knowing that in exchange the carpenter kept the furniture and fittings in order, while the farmer supplied grain at harvest time.

Friday afternoons in the pub they often pondered on how to trade with the village up the slope for grapes and wine, and the village downstream for beef and milk. The dilemma was coinciding the availability of products to barter, for eg., milk was available daily while wheat could be offered only at harvest time.

It would be difficult to establish the required trust to settle what is owed with strangers, or even neighbours who were not friends or family. So trade was stalled.

One Friday afternoon (in the pub again), a smartly-dressed sorcerer entered and offered a solution to the trade impasse. He opened his hand to reveal gems so attractive that everyone desired some. He said they were made from moonlight through a sacred process only sorcerers possessed, and called them moondrops.

He explained that since moondrops were universally sought after, they could be used purchase wine milk from neighbours at any time. The villagers immediately saw the utility of moondrops and agreed to secure a supply to trade with, by pledging their common land as collateral.

Trade expanded rapidly. The villagers enjoyed exotic foreign products such as milk, beef, grapes, and wine, while neighbours acquired a taste for bread and beer.

Almost unnoticeable, moondrops seemed to evaporate slowly. In order to maintain the level of trade, the supply of moondrops needed to be maintained by further pledges of assets and produce, and eventually even labour.

Inevitably, the sorcerers ended up with everything, reducing proud, skilled craftsmen and merchants to employees in their previous businesses earning just enough to feed themselves, and to keep coming back, indistinguishable from slaves.

A variation on the theme …

Instead of going to the pub, the sorcerer went to the king with promises of vast wealth through the purchasing power of moondrops secured with crown land, that the king could continue to use. What a deal eh?

Citizens could be paid with moondrops, and then use them to trade among each other, and pay taxes.
However, moondrops were hexed, and slowly drained the vitality of citizens, and production from crown lands. The citizens found themselves working harder and harder, for less and less, while being taxed more and more to maintain the strained government trying to maintain crown lands, and law-and-order among a continually impoverished citizenry.

Eventually, rundown businesses were ripe for take-overs, and undefendable land vulnerable to invasion.

Of course the drained energy accrued to the sorcerers who used this power to create floods moondrops used to buy up land and businesses, and to foment wars against those who resisted. Eventually all assets were owned by the sorcerers, and all people relegated to slavery on the lands and businesses of their parents.

Lucrative arms industries to supply law enforcement and wars, and pharmaceutical industries to supply chemicals that temporarily relieved the energy drain of moondrops arose. Owned by sorcerers these industries soon became the dominant industries on the planet.

But of course, this is all make belief …

The laughing lion and the doves

The laughing lion and the doves




Perhaps the ashes of the labour guilds will be the phoenix that will form the nucleus of an alternative to bureaucracies, both corporate and government.

There is a thin layer of capable, productive people preyed upon by pyramids of parasites, whose livelihood depends on subjugation and exploitation of those capable of wealth creation.
Parasites who live for the accolades, scraping, and homage in contempt of subordinates grovelling for leave.


This is a world where human rights and freedoms do not exist. Indeed humans are considered resources and HR departments there to enforce corporate policy on those subjects.
However, the system won’t fix itself; it will have to be replaced.

Politicians are as ineffectual as board members in bringing about change, so we will have to build institutions outside of the bureaucracies by means of cyber-market mechanisms, and even low-tech coinage, where people can participate as it suits them in competition with corporations and governments.


Consider that governments and corporations were supposed to compete for skills and capital, but since people are trapped like cattle behind fences, capital alone has distorted both government and corporations to such an extent that cabinets are seeded with banksters, and CEOs, earning 100s of times the average wage, are appointed from that layer of capital.


Who cares about voters, taxpayers, savers, and shareholders.





We will have to not only make our own markets for our survival, but make them efficient enough to compete against the establishment.


But that will be easier than it might appear due to the burden of bureaucracies, that will crumble under their own incompetence once capable people have alternatives.


It’s time for the end of the reign (Ragnarök). Let the capable people (übermensch) be the lions scattering the flocks of bureaucrats.

Financing

Once upon a time an entrepreneur envisaged a watermill in a village with all the resources and skills to construct one
The mill’s construction drew on forests and quarries for raw materials, and on carpenters and masons for skills, stimulating demand and thus economic activity


Once the mill was completed, the village could reduce costs of flour and products such as bread and pastries which could be sold beyond the town limits. Cereals from neighbouring towns were also milled, making the enterprise a success, and the town prosperous