The money supply is the real subject worthy of investigation, but completely ignored by normal economists.
The key is that all money in circulation consists of two kinds of ‘money’:
- the cash printed and minted by a Government
- the credit issued by banks.
Cash is interest-free and the Government gets an income from the difference between the costs of producing it and the face value.
Credit is interest-bearing and banks not only charge interest but also service charges and fees and penalties.
In addition to GDP and inflation as the current indicators of a ‘growing economy’, the Cash : Credit ratio in the money supply indicates a much more sustainable way of growing.
By using historic data and proprietary forecasting software, we will illustrate what the Cash : Credit ratio was like in the past and how it should develop in the future so that no environmental project would have to suffer from lack of funding.
In the meantime, we have produced two reports that investigate the money supply, by using the data base of the Bank of England:
