by zero-based I mean a money system that always resolves to zero – so yes, no debt, and no interest rates. A money

system that is issued by the state and that reflects our need for money as “a means of exchange” to facilitate trade and “a measure of value” and

nothing more.

The debt-based money system is so dsyfunctional that – re. measure of value – the poorest country in the world is the USA

with combined debts of $15 trillion or so. Gimme a break!

borrowed too much money. There is too much debt. It seems to be a failure of regulation. Where the regulators asleep lately to notice the housing

bubble and the debt bubble?

As for the BoE’s independence. I am not sure about that but doesn’t someone need to give a mandate to the

central bank? There decisions guided by that mandate, however, _are_ independent, aren’t they?

A 0.5% rate cut seem pretty significant.

Mortgage rates don’t seem that high. A lower rate wouldn’t help if you were unemployed (unless the rate was almost zero). The BoE has already cut

the cash rate to below CPI!! This seems mad to me but I guess it’s a sign of panic at all levels including the govt.

Not everyone is up to

their eyeballs in debt. I am a saver who chose not to buy into an already overblown housing market back in the late 1990′s and early 2000′s.

Frankly, I don’t want to see run away inflation decimate my hard earned savings.

I don’t know how things can “get right” again without a

great deal of pain. A new monetary system could be part of climbing out of the ditch.

Hi Martin, I’m not sure what a zero-based money

system is but I reckon that people will certainly be thinking about changing the monetary system. If you are interested, I would recommend reading

about Austrian Economics. A good place to start is the Mises Institute. Perhaps you mean a zero-debt

system? That would be similar to a fixed fiat system. Perhaps we will return to the gold standard. We certainly need some natural or imposed limits

of the expansion of money.

Some people have seen this crisis coming for a long time. I just watched the “Nov 2006 Peter Schiff Mortgage

Bankers Speech” on YouTube. It’s very useful listening. He is a strong believer in sound money.

I would really love to understand why the

govt, regulators and bankers etc ignored these signs. Who is to gain for the current calamity?

I wish I could say for sure but a sound

monetary system looks pretty attractive to help prevent these kinds of blow ups in the future.

Why have we created a debt-based money system?
Why can’t we have a zero-based money

system instead?

Thanks,
martin