Monday, 17 October 2011

QE4ALL - Quantitative Easing For All

"Quantitative Easing for all" is a radical solution to the global financial crisis that will benefit everyone.

Summary proposal
Every major country in the world prints new money (creates money electronically in their own currency) to put into their economy.

They each do it at the same internationally agreed level of circa 5 X National GDP. Thus the EU and the USA will be creating circa 75 trillion $, for China it is $50 trillion. For the UK this is closer to $10 trillion.

This money will be used to pay off all national debts, and free all of their citizens from personal debt. All “non state owned” banks will sell their dubious debts to the Government's bank at book value, and the government will take these assets over. The banks will then become solvent again. In addition all citizens in these countries will receive an equally shared amount based on their county’s GDP.

The Theory of QE4ALL (Quantitative Easing for all)

No currency is tied to any standard. This means currency values are based on trust and openness between countries. This openness and trust allows for new thinking, and a radical flexibility that has not yet been utilised globally (it has been locally).

“Quantitative Easing for all” is a creative solution to a global problem created over the past 100 years, especially the last 50 years. The problem is a lack of money in the hands of the populations of the world, and global debt crises that mean it will be this way for some time to come.

“Quantitative Easing For All” will allow the repayment of all government and personal debts, and include the refinancing of the population of the world. This will allow for a major stimulation to growth in the global economy, and a fairer world for all (easier access to essentials for all).

There is only one assumption needed for “Quantitative Erasing for all” to be possible and successful.

The assumption is that all major countries can agree to make the agreed changes together at approximately the same time. Total Global GDP is circa $75 Trillion. If China ($11 Trillion), USA ($15 Trillion), Europe ($15 Trillion), India ($5 Trillion), Japan ($4 Trillion), all agree to the QE4ALL changes this represents $50 Trillion (ie 2/3rds) of Global GDP.

When all countries create new money at the same time, and to the same formula (based on a multiple of 5 x GDP), then nothing changes in terms of the value relationship of the various currencies. There is no inflation for any currency, just a greater supply of money available to do what needs to be done.

A proportion of this money is distributed to the population at large (all ages) in each country. This will create demand for products of all kinds, and may create a “supply and demand type inflationary pressure”, but this is not a concern. The real benefit will be new jobs, new demand created growth in national GDPs, and extraordinary opportunities for individuals to explore “following their dreams” in life. All of this will make for a dynamic global economy that we can all share fairly in.

The suggested distribution of monies to populations is based on 40% of the created monies (i.e. 2 x GDP) being distributed equally to all citizens of every country that participates in QE4ALL. In the case of the USA this means $29 trillion being shared equally amongst 312 million people, or just over $92,000 for each person. For the EU it is $30 Trillion shared amongst circa 500 million people, or $60,000 per person. For China it is $20 Trillion shared equally in $15,000 amounts amongst close to 1.35 billion people.

The remaining 60% of the total money created (3 x GDP) will be held by Governments in their national banks to further their social and economic programmes, as well as paying off all current national debt and refinancing all banks to an internationally agreed standard.

Other considerations

New Banking system reflecting lessons from the previous system

It is suggested in making these changes that the banks will be split into a) local banks, that work for the local population and will be well funded by QE monies, and b) speculative banks, that will not have access to local bank monies. Those who wish to speculate can do so within their own speculative banking controlled system. Local banks (similar to German local banks) will be there to serve the community in terms of local SME businesses, mortgages and personal loans.

National and global growth based on eco-friendly approaches

Stimulating fast growth through feeding money into the global economy needs to go hand in hand with a global focus on economic growth in the most planet friendly way possible. A high proportion of development monies from governments should be invested in ecologically sound projects. In the future, growth needs to be carefully created to benefit the individual, the nation and the planet.


If all countries do this together, then the relative values of country’s currencies remains the same. “Plus ca change, plus c'est la meme chose!” It simply means that all economies are more liquid and richer.

No one loses money through default, as all debts are paid.

The global population is freed from debt and receive monies to begin rebuilding and recreating their lives.

Even those currently with most of the money in the world do not lose anything. It is just that everyone else has a bigger share of the new larger total.

The world is set to grow again, and with a commitment to eco-friendly growth (funded by the extra funds available).

Everyone wins.

Those who may disagree

The very wealthy may disagree initially on principle. However a wealthier world will be able to afford more, and growth will bring an increase in the value of their current assets.

Inflation may be a concern, as more wealth will mean higher demand for certain areas of the economy. However, our experience of the debt creation years running from 1997 2007 will show that increased demand and higher inflation do not have to run hand in hand. Certain assets will increase in value, especially housing, but careful planning should not preclude everyone from being able to afford reasonable housing and other aspects of today’s essentials. Increased wealth will mean many more can benefit from what society produces.

If a country opts out of QE, then their currency may improve in value. However in the longer term this is not likely to be to their benefit (it will hinder exports etc.). All countries gain greater liquidity without loss in value of their currency.

A philosophical point of view

Society at its best shares its assets fairly with all people. Everyone should be able to fulfil their potential more effectively in a society where everyone has more to work with. QE4ALL will enable this.

The concept of oneness, that we are all in this together, needs to be reflected in the way we manage our economies. This will be a major step in this direction.

Countries will learn to work closer to together for the benefit of their citizens, AND the citizens of the world.

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