The Central Bank for the People - A Descriptive Approach - Salutations to China in Africa!

The original formulation as written to Twitter:

The #Greenspanism is the following: you increase flow of money to the banks by lower ECB rates and allow deeper deficits while controlling the inflation. And inflation needs to be stable and this is done by keeping people working with "substantial/valuable" work, that is, the inflation. And inflation needs to be stable and this is done by keeping people working with "substantial/valuable" work, that is, NOT filling gas tanks with air just to release it again... No, they are to provide wanted/needed services and products and this is monitored by engineers and various other pollers, "signal people" while "having food on the table and housing is secured"! That should make the trick as we go to the work OF ALL THAT MAKES US HUMAN, regardless of what USA does! Because they want to do all, but we do it smarter and more generously/democratic, perhaps...! We'll see! Cheers!


Additional comment:

Of course, Greenspanism hinges on evaluation of market values and contribution to these ends. But this is not so complex as it may first seem, starting with the dairy businesses, and food making businesses, and TV and banking, and construction, other infrastructure, like telephone/IT... and so on... so you see that from merely /being/ a society A LOT of value comes into being "almost" by itself! It's just for you to fill up, fashion too, entertainment and the rest!

Additional comments, 2 and 3:

So as the inflation needs to be tolerable (starting highest, depending on development level and need for input of "liquids" into the currency system): inflation can thus be allowed every year to be 0,1 % - 10%, I suggest for a healthy system, but no higher and stable because there are supposed to be _no_ year over 10% (non-dogmatically, /can/ exceed if necessary). Deflation is by this a luxury problem, you just have that fine surplus to start thinking about!!!

Greenspanism: holding a currency policy active so that the necessary initiative is produced for banks and investors to invest or loan with (the appropriate/low) risk so that unemployment is most effectively combatted! All in all, the slogan is: the money is supposed to work for the people!!! (At least, this is the strategy I expect Alan Greenspan is going to be mostly remembered for in leaving a legacy to the World!)

All in all, nr. 2, Greenspanism is an investor aggressive central bank policy and should be managed carefully, i.e., the considerations of evaluating the suggestion on the table, that the investment opportunity holds enough "substance"/value!!!

A normal year, thereof, by empirical findings, fx. EU annual accounts of its members' budget deficits, and given full development, i.e., typically OECD countries, is something like 1-4% inflation, which is stable enough for companies and citizens alike! Cheers!

Note: First written to Twitter on 31. Jan, 2012 (CET) and additional words added firstly to Facebook today, about 3 AM CEST, 21. May, 2012!

Note: Add. comments added today, 5. May, 2012 (CEST-zone-wise).
Note: The Central Bank for the People is new header to this blog posting. You may also consider "Interest Rate Policy for the People".