3. Monetizes in a Debt, Interest & Tax Free Way
The way of Creation and Monetization in the Just Monetary System of JMS-Money is carried out without attaching the creation of any Debt or Interest to it, nor does it need the levy of ANY Tax to do so.
This is so because it is a matter of expressing and exchanging of REAL ASSETS, the Natural Resources and Goods and Services, into an amount of JMS-Currency. Thus, JMS-Money can be used as the purpose of money which is to facilitate Commerce and be of Service to the Economy
Therefore there is:
1. SIMPLY NO REASON FOR ANY TAXATION to create & monetize JMS-Currency;
2. NOR ANY REASON to monetize a Nations's Assets through the Sale of State Bonds/Treasury Bonds on the International Market to monetize a Nation assets for creating JMS-Currency.
This will ensure that there is not any unnecessary Debt or Interest created with which the Nation and its people would get burdened. Therefore the people using the JMS and its JMS-Currency remain sovereign and are not exposed or subjected to, nor enslaved by, any unnecessary (high) taxations that are attached to the enforcement of the present-day traditional monetary systems and which are used to pay off those unnecessary debts and their interest.
Therefore, the JMS-Currency can modify the negative consequences of being forced to only use fiat-currency while being subjected to impoverishments that are inflicted by insane austerity measures which are demanded and imposed by entities such as the IMF and the World Bank as a condition for them to loan out their fiat-currency, only for them to gain control of a Nation.
This 3rd Component of the JMS will allow for a structural solution of two Major Issues caused by the fiat-currency monetary systems: unemployment and poverty.
This Way of Monetization also brings forth The JMS-Banking Template in which:
1. JMS-Banks ONLY work with REAL ASSETS !
Banks in the JMS can only work with REAL ASSETS that they have as deposits. It therefore is only possible for them to work with a 100% backing of the loans and investments which they make. If they are Authorized by the JMS-MA to work with the RESERVE of 33% they have more options to do Investments.
2. NO FRACTIONAL RESERVE BANKING is ALLOWED or POSSIBLE for JMS-Banks!
Fractional Reserve Banking has been relentlessly abused in a mindless and reckless way in the current monetary system causing destruction beyond belief.
This "Fractional Reserve Banking" is a bookkeeping-trick by which a bank is able to multiply deposits of account holders with a factor of (at least) 33. A bank that opertes with this method can create and loan out 33 times as much money that it in actuality has on deposit and under its custody. This is the case while with such created and loaned out money:
1. the banks DO NOT RISK ANY ASSETS OF THEMSELVES AT ALL, but it is the person who signs off on the loan who does so, because they thereby contractually admit and acknowledge he/she is a debtor of the bank due to which the bank can either create the money itself or borrow it on the market;
2. there often IS NO underlying VALUE or BACKING AT ALL;
3. it is based on an underlying value that does not provide for its full backing at all -more far from it. The underlying backing is then fabricated on bubble-expectations, irresponsible, unjustified and unprofessional assumptions and specuations, greedy abuse of this competence by the banks and too liberate regulations.
These unlawful acts in backing have triggered the financial crisis in 2008.
In the sixties computers started to cause an enormous and ongoing easing up for applying this bookkeeping-trick, which jolted the relationship of real value and money for people into an ever increasing abstraction.
Therefore, the JMS does not allow fractional reserve banking. Not by the JMS-MA, nor by any banks operating within the JMS.