Michael Schemmann is a Professor of Accounting and Finance, a CPA, and a professional banker.
The plan relies on the Colm-Dodge-Goldsmith Plan for Germany's (1948) most successful monetary reform, and on Irving Fisher's (1935) 100% Money plan to reform the U.S. banking system, as well as the author's analysis.
The key elements of the plan herein are to (1) monetize the Eurozone's central governments' debts for conversion into equity capital of banks' ("Monetary Financial Institutions") equity capital, rendering the funds money-supply and inflation neutral; (2) raise the MFIs' minimum reserve requirements on deposits to an adequate level to prevent banks from creating quasi money through double-entry bookkeeping (explained in detail); (3) separate MFIs into deposit taking institutions, and into lending institutions; (4) disband deposit insurance corporations as superfluous.
Austerity programs, crippling the economy, are both unnecessary and misconceived to rectify an anomaly, namely the government's refusal to fund themselves by way of their constitutional money power, which they have ceded unlawfully to private commercial bankers for nothing in return. The anomaly can easily be corrected. The book outlines the process in detail.
advertisement