A plan B for Greece ?

A monetary approach towards an unconditional basic income in Grece

Stanislas Jourdan - BIEN Congress, September 14th 2012, Munich

What is the Greece crisis all about?A self-destruction process

Austerity

Recession

Banking insolvency

Deposit flight Euro exit?

More deficits

Unemployment & poverty

Informal economy

Credit crunch

Debt service on the rise

Don't push here !

A little debt service problem

Find the mistake in this chart...

Banks...

Capital Flight

Tax evasion...

Insolvent banking sector

Shrinking money supply

Towards a moneyless economy

Some basic conclusions & issues

● Austerity is not working● Shortage of money in Greece● Banks are uselessly dangerous● An exit would benefit to the richests● Unsustainable public debt● The central bank is already printing money● Confidence is key to recover

● An efficient safety net● Downsizing the public

administration ● A huge stimulus for the

economy● More power to people● Confidence

Sure a basic income would help...

Where is the brilliant politician who would do

that?

Can we afford?

Too good to be true!

This won't happen

[Again]

What if...

A promising signal:● The central banks 20bn new drachmas

yearly...● During 3 years● Distributed to people through a basic income

Two complementary measures:● Banking sector reforms● Tax on cash inflows of money

Exiting the eurozone: an opportunity

Inflation ?

Why inflation is not the problem

● Greece is under a shortage of money● An important part of the production is now

outside of the official economy● Inflation effect on purchase power is

compensated by the basic income● The central bank may increase its reserves

requirements to control inflation

Effects on the banking system

● Bring new deposits into the greek banks● Enable the central bank to progressively

withdraw its support● Enable people to repay their debts● New (local & ethical) banks competition● Less moral hazard than conventional QE● Banks can start financing again the economy● People have more power on the orientation

of their savings

Social Justice

● Safety net for everyone - in addition to current schemes

● The 'poor workers' are supported as well● Tax evasion is finally discouraged● Dilution of the richest's share of money

Politics & Society

● No need for reforms to implement the plan● More power to citizens● Social activities, entrepreneurship are

encouraged● Confidence in the outlook of the country● Give time and room for longer-term reforms● Incentive for emigrates to go back home

But i'm not the only one:

● Clifford Hugh Douglas (social credit)● Milton Friedman (Helicopter drop)● Anatole Kaletsky (reuters)● Stéphane Laborde (Relative Theory of Money)● Steve Waldman (interfluidity.com)● Peter Frase (sociologist)● Neo-chartalism

« The truth is not on the side of the majority, because we do not want it to be so. The day the majority will be able, thanks to its culture and

knowledge, to choose its own truth, there is little chance that it is mistaken. »

Boris Vian

Stanislas Jourdan, Journalist & activistcontact@stanislasjourdan.fr

Read the full paper here