What does a progressive financial system look like?
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In the 1980s and 90s they called that set of conditions "a Structural Adjustment Programme" and it tends to take very similar forms wherever it happens. Indeed we can see structural adjustment programmes in essence happening today in countries like Greece and Portugal and Ireland, where countries are instructed to decrease the amount they spend on the public sector, they are instructed to liberalise their trade market and liberalise their capital market,

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As the money supply grows and there is more currency available, more money is available for investment, which can lead to growth, but more money is also available for purchases of goods and speculation, which leads to inflation.

Foreign exchange reserves cannot be directly used for domestic spending. The money can only be spent abroad or on imports. A country with a large balance of trade deficit relies on its creditors to spend the imbalances accrued in its own market.

Democratising the money supply means putting the power to issue and allocate money back into hands of people, and taking it away from private organisations and institutions that don't actually represent the people, that aren't democratically accountable to the people.

They're just going to find themselves having to work very hard just to keep to get a roof over their heads.

This kind of model doesn't make any sense either from an orthodox free-market perspective, because these banks are monopolists: effectively they monopolise credit creation, so they don't obey the rules of any free-market discipline.

This is the government's response to the bank bailouts and is necessary in a debt/based monetary system where increased purchasing power is the result of growing debt and where a diversification of debt provides overall stability and market confidence.