We offer fundamental solutions for all crises
Abolish the use of interest worldwide and only pay/receive for real performance
On average interest accounts for 40% of all price levels.
Performance means value added in financial, social and ecological terms.
Support Small and Medium Sized Enterprises, the economic engine
Implement large scale cooperative factoring and leasing providing Small and Medium Sized Enterprises (SME) with working capital for production without the need for credit lines from banks.
Install the right to live and the right to work as the only legal foundation to create money (article 3 and article 23 of Universal Declaration of Human Rights) instead of debt.
Re-activate the Glass Steagall act (1933)
Separate general banks in traditional (bread and butter) banks and investment banks.
Traditional banks facilitate: payments, creation of money, saving, borrowing and lending.
Investment banks cannot create money and facilitate high(er) risk investments.
This contributes to prevent a repetition of the financial crisis.
And protects the real economy against problems caused by the financial (speculative) economy.
Options to solve national debts 1
Compensate debts that countries have bilaterally lent each other (shortens balances)(1).
This substantially reduces national debts instead of current continuous increase.
Options to solve national debts 2
Change the law that only the government creates money, not private banks.
Use amortizations by the private sector (meaning reduction of money in circulation) as available room to create new, inflation-free, money.
Use this newly created money as amortization of national debt.
Options to solve national debts 3
Execute the promised debt cancellations for the poorest countries who are and will be unable to pay.
Public budgets in balance - short term
Discard VAT and taxes on labor and implement a transaction tax of 10% instead. This stimulates the real economy and employment in the EU and US.
Maximize defense budget at 1% of GDP(2).
As long as interest has not been abolished, reduce interest costs by reducing national debt.
Close gaps and evasion routes in tax laws.
(Temporarily) undo a portion of the enormous tax relief measures given to corporations and the richest 2% of the population during the last 20 years in the US and EU. (prime cause of public budget shortages are implemented tax reliefs).
Public budgets in balance - longer term
Fundamentally heal the sick healthcare system and food chains, in order to make it financially sustainable for the coming years with vast aging populations. Focus on healthy people, food, water.
Fundamentally heal the pension system (also postponed) and start fixed prosperity pensions based on real performance.
The value and proportions of high risk derivative transactions and positions are far too large and pose a fundamental threat to the world(3).
In 1995 derivatives hardly existed, now it is more than 10 times the World economy.
For the real economy we (almost) do not need derivatives.
Declare as illegal by law all current and new derivatives and destroy all bilateral positions.
To prevent future financial-, economic-, debt- and social crises
- Advice by René Tissen, professor Nyenrode University (see various articles on RTLZ).
- According to the US constitution, the US is only allowed to protect herself. The US is not allowed to have army and camps (> 800) in foreign countries. The US should cut defense budgets with one trillion yearly.
- Nouriel Roubini calls the phenomena derivatives a ‘weapon of mass destruction’.