Review of Binary Economics

Hello, Janos.
We didn't have capitalism anymore, but an economy based upon debt. What seems to be needed is to go back to capitalism, which means people investing and be responsible with their own money, more than gambling with other people's money.

Peter,

"We don't have capitalism any more, but an economy based upon debt".

This is a good summing up.

We don't have capitalism because most people get their income in the form of wages or salaries. A capitalist derives most of his income from the earnings of assets owned.

Binary Economics is a response to this deficiency.

The economy is based on debt because "money" is created for the economy via borrowing from the banking system. In the US even notes and coins are created as debt. In the UK notes and coins (legal tender that circulates from hand to hand indefinitely) are issued by the government. The rest of the money supply is interest bearing debt that "cycles" in and out of existence in a borrow/repay cycle.

BE has a mechanism that bootstraps capitalism out of this debt trap.

Binary economics would create state money out of nothing, in the hand of politicians whose interest is to give illusive christmas present, which is worse. Btw, I encourage you to write a knol to explain your vision of economics and society with some convincing demonstration based on real human motivations.

<i>...write a knol to explain your vision of economics and society with some convincing demonstration based on real human motivations.</i> (why cannot these messages be formatted? :-(

Good idea... see http://knol.google.com/k/janos-abel/new-capitalism/2s3px2zsliud5/1
After all, my interest in Binary Economics comes from the realisation that the current form of capitalism is deeply flawed; and BE is not the only alternative on offer.

A year ago a statement like this would have been greeted by market fundamentalists with vociferous demands for proof. Now it is all too evident to every unbiased observer and victim.