Friday, January 22, 2010

Anti-Armageddon Paradigm Shift Monetary Policy Theory The Introduction.

"Dr James Hansen, Director of NASA’s Goddard Institute for Space Studies: “I think we have a very brief window of opportunity to deal with climate change ... no longer than a decade, at the most. This is why I am supporting the Virgin Earth Challenge as a judge – we must explore all means, both known and unknown, to help alleviate this crisis."

Dennis Tate
March 15, 2007

Sir Richard Branson
Virgin Earth Challenge
120 Campden Hill Road
London W8 7AR
United Kingdom

Dear Mr. Branson:

It is my firm belief that the number one technological device to reduce atmospheric greenhouse gases has already been invented. It is the tree.

What is desperately needed at this time is not necessarily a new mechanical device but instead a paradigm shift in economic theory regarding monetary policy. We require a readily understandable explanation on how leaders in business and government can direct not only millions, but actually trillions of dollars of investment into combating global warming.

One of the most effective practical methods that could be put into place in the least amount of time would be dozens of the largest possible desalinization plants all along the Mediterranean and Red Seas. Huge quantities of fresh water could be dripped onto the Sinai and Sahara deserts and voila, well chosen species of newly planted fast growing trees could soon change the color of these relatively desolate areas, significantly reduce atmospheric CO2, positively affect local weather patterns and at the same time significantly counterbalance the increases in worldwide ocean levels as the polar ice caps melt. This will buy us some extra time and thus expand the “very brief window of opportunity to deal with climate change.”

So who is going to finance the construction of all these massive installations not to mention the planting of all those seedling trees?

I believe that it is possible for you to do this yourself Mr. Branson. You have already created a Virgin currency unit/coupon which has astonishing long term potential. My wife Maria Jose just returned from a two week trip to the British VIRGIN Islands. It is theoretically possible to link your Virgin coupon with the national currency of a small nation and you could soon be playing around in macro-economics. Considering the volume of business being done through your Virgin Group I would submit that you already are.

Pope Benedict XVI may be in an even stronger position than you Mr. Branson to transform the world economy virtually overnight through the introduction of a new Vatican Currency Unit that could be linked with each and every national currency where the Vatican State is free to do business.

I plan to elaborate in great detail on these two major alternatives in a later writing but I felt that you and your staff should now see the simple explanation that I wrote up for applying this theory within a micro-economy to greatly reduce unemployment. Although combating global warming would seem to be a conflicting goal to job creation, there need be no dissonance when we all have a better grasp of the big picture.

I ran as an independent for the office of MLA in the most recent Nova Scotia provincial election.

Dennis Tate primary campaign writing for June 13/06 election

My name is Dennis Tate. I lived most of my forty seven years in West Lochiel Lake, Guysborough County. I am running for MLA as an independent in the area of Pictou Centre so that I can help as many people as possible become more aware of what I am sure is the real reason why our roads are in disrepair, why hospital beds are unused, why so many of the rural schools have been shut down, why our soldiers in Afghanistan are poorly equipped and why many if not most of our young people may have to leave Nova Scotia to find jobs.

When well trained workers have high quality technology to work with then the total of all wages and benefits paid out to employees is only a fraction of the retail value of the products they produce. As a result of this fact the only way to move products out of warehouses is to extend higher and higher levels of credit. One problem with an abundance of red ink is that compound interest on all this government, business and personal debt over a period of decades will grow to astronomical levels. At this time there is approximately TEN TIMES as much debt in Canada as there is money. A simple explanation for how this happened can be seen here:

In my opinion this rather simple mathematical problem is perhaps the number one cause of inflation in the Canadian economy over the past three decades. This is also perhaps the number one reason why our costs of production are so high and Canadian products cannot compete on the world markets as well as they could under better conditions.

From 1940 to 1970 the Government of Canada put roughly half of the total money supply into the economy through loans issued through the federally owned Bank of Canada. Provincial and municipal governments could borrow the money to build roads, schools, hospitals and sewage treatment facilities at zero or one percent interest. In 1970 we changed our system and since that time a higher and higher percentage of all government debt is financed through loans issued through privately owned banks. At this time it is ninety eight percent. This policy may be great for our banking sector but it was estimated that in the one year of 1995 alone our federal government could have saved roughly SIXTY FIVE BILLION DOLLARS in interest payments if we had gone back to creating half the total money supply through these low interest rate loans issued through the bank that is OWNED BY ALL CANADIANS.

Considering that our deficit was approximately thirty billion dollars for that year, simply by changing back to an already proven monetary and banking system, we could theoretically have had a FEDERAL BUDGET SURPLUS OF THIRTY FIVE BILLION DOLLARS in 1995.

The massive cutbacks in the Canadian military, in health care, highway construction, social programs and education were profoundly affected by these accounting practices?

So what can you and I do about this problem?
1. If we will do our homework and study this question we can put pressure on our provincial level politicians to create a provincially owned bank. A true Bank of Nova Scotia owned by all Nova Scotians could be used to finance town and municipal government projects at zero or one percent interest just as The Bank of Canada used to do.

2. Town and municipal government officials in New Glasgow, Stellarton and Trenton should seriously consider creating a local currency unit such as has been done in Ithaca, New York.
This is a great way to promote local businesses and help sustain rural economies.

3. It is also possible for groups of concerned individuals to get together and organize a local barter exchange as a cooperative. Mr. Rob Assels has been instrumental in just such an initiative in the Tatamagouche and River John area so surely we can get similar organizations up and running here in New Glasgow, Pictou, Stellarton, Trenton and Westville. Here is a link into the Halifax LETS system:

Let’s discuss the various options available on the Pictou County Portal Message board. If you have trouble using this technology maybe you could hire a young person to help you get started?

I just completed the first year of the Information Technology Program at Stellarton Campus of NSCC. I am running in Pictou Centre because I know that the towns of New Glasgow, Stellarton and Trenton have the people, the industrial base and the technological capability to become powerhouses of job creation not only for this area but also for all the surrounding regions.

“The wealth that is in the city comes from the countryside.”
Creating new jobs in New Glasgow, Stellarton, and Trenton will ultimately depend on job creation in the surrounding rural areas.

Thank you immensely for taking the time to consider these points. By deciding to vote for me on June 13 you will be sending a clear message to the various political parties that you want them to take a serious look at these flaws in our monetary system and at these possible remedies. From now on if a politician tells you that they have to close down a school because of budgetary restraints, you may know far more about what is really happening than they do.

Warmest regards,

Dennis Tate

p.s. I shall be back to you shortly Sir with an explanation of how your Virgin Group could implement this theory in a form that for all intents and purposes could be patented/copyrighted.

“And the LORD said, Behold, the people [is] one, and they have all one language; and this they begin to do: and now nothing will be restrained from them, which they have imagined to do.” (Genesis 11:6 KJV).

“A feast is made for laughter, and wine maketh merry: but money answereth all [things].” (Ecclesiastes 10: 19).

p.s. Here is a link to Part 2 co-authored by New Mexico biology teacher and coach, Carl Cantrell:

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