7. Constrains Investments, Loans & Debts
A Nation running on a JMS is ensured it does NOT need to borrow money from any bank to create & monetize its own Quantity of JMS-Currency, nor for financing its expenditures of its operations.
This means there is NO NEED for state-financing by means of the endless and unlawful creation of debt and interest via State Bonds by the government outsourced to the International Bankers. Its unjustified and disproportionate taxation and all its disastrous consequences enslave the people and cause poverty and unemployment.
A Nation and its Economy cannot move forward without parties who invest and loan out money to people and organizations who have new ideas, and to the inventors. These are the ones who can create advancement and benefit for all. Inevitably this means that debt will be created.
Debt in itself is not bad, as long as it is clearly constrained and managed, and not used to enslave people and be a parasite to the Economy, nor should it be loaned out on terms that are not sound and without any proper foundation, as this was one of the major reasons for the financial crisis in 2008 (sub-prime mortgages).
If money is not used it would be sitting around and that is not its purpose. "Money must circulate". Money should either be spent (gifted or to purchase) or used to create more Economic Value (invested or loaned out). Those with a lot of Equity, who otherwise might be clueless as to what to do with their money, can thus be able to enjoy the fulfillment of having invested and contributed to the coming about of new important inventions. This creates profit and therefore it is a good thing, and just simply necessary.
Necessary Constraints & Safeguards for Investments & Debt-Creation within a JMS
Responsible investing requires the following constraints and safeguards to be upheld:
1. Any Bank, which invests must: A) balance the liabilities with assets, and B) match the maturity of the liabilities with the maturity of the money they lend out.
2. Any Bank should work on 100% Asset-Backing and not loan out more money than it has on deposit. The only exception is when it is a licensed Bank by the JMS-MA that is entrusted to work with the RESERVE of 33%;
3. The investments should be well collateralized. Either the borrowing enterprise assigns part of its real estate, or part of its Gross-Profits.
4. The investments have to be based on Expert Business Plans, and will have to be well structured, projected and planned.
5. The investments should produce more Economic Value in output through the newly created and beneficial Goods or Services (which is also measurable via the growth of the GNP). The ratio of the debt created versus the output must not become negative; otherwise the exit-strategy might have to be applied to shut down the enterprise and any further debt-creation in its favor. This simply cannot always be prevented. Therefore a JMS will have to take this into account in its Total Quantity of Created JMS-Currency, reflected in its set RESERVE of 33%.
5. In a JMS the remuneration for the JMS-Bank for Investments are based on "Reasonable and Justifiable Fees" based on a actual work done by the JMS-Bank. These would rather be fixed fees, but can also be expressed in percentages as long as they are reasonable and justifiable.
This means there is NO room for the traditional Private Placement Platforms or any such Trade-Programs, which have been part of the traditional unjust monetary systems and that were supposedly geared towards funding humanitarian projects, but have appeared to be for the benefit of a select few.
It is known that other New and Just Trade-Platforms are being developed which are TRUTHFULLY geared towards funding Humanitarian Projects.
JMS-Banks can be funded out of the 33% RESERVE
A JMS-Bank working like this can also request to be funded through the Monetized Quantity of JMS-Currency out of the 33% RESERVE. A special department within the JMS-Bank handles such Investments. They will be authorized to do this when they have shown to comply with the required degree of specialization and that they can be entrusted with being a fiduciary of working with such funds.