1. Public vs Private Money Supply Current situation Currently the money supply fluctuates cyclically every decade or so causing havoc to businesses, jobs and savings. Large fractions of government and private expenditures are spent on interest payments for the money supply. The money supply typically inflates at 8-10% per year, diminishing the value of money held and wages earned.

2. Public vs Private Money Supply Private money supply Except for 3-5% of the money supply in the form of coins and paper, all money is created (and destroyed) by private institutions. This means that the money supply is not constant and fluctuates regularly causing boom and bust cycles. This 95%, privately created money is debt, therefore interest is owed that needs to be continually serviced.

3. Public vs Private Money Supply Usury and interest Paying interest on the money supply from the money supply inevitably leads to defaults, foreclosures and the transfer of wealth (value of property has not declined only the price, a function of the money, has) Wealth created during the last cycle is concentrated during the bust, debt written off and a new boom cycle of effort and wealth creation started.

4. Public vs Private Money Supply Public money supply A public money supply is the responsibility of an elected politician. The money supply is managed to maintain price stability. New money is introduced into government budgets as the economy grows. No interest is owed on the money supply.

5. Public vs Private Money Supply Advantages of public money No cyclic busts, recessions or depressions wreaking havoc on peoples' livelihoods, jobs, businesses, savings and assets. No progressive impoverishment where more members have to work harder for what was affordable on one salary two generations ago despite technology and productivity. Massive tax savings on interest payments.

6. Public vs Private Money Supply Banks in a public system Banks perform the role that most people perceive them to be performing today, ie. accepting deposits and lending out loans. The only difference being that they can only lend out the money they have (100% reserve requirement).

7. Public vs Private Money Supply Transition Transitioning from a private to a public system is simply an amended accounting entry. Currently banks create money when loaning out and destroy money when the principal is paid. In a public system banks loan only the money they have (deposits and borrowings) and return it to the asset account on payment.