Rethinking Bank Accounting and the State Budget

Rethinking Bank Accounting and its Impact on the State Budget

This document proposes a radical accounting change: banks would record newly created money as a liability to the state treasury. This would reflect the state's monetary sovereignty, significantly increasing state assets and providing greater transparency. The author details the necessary accounting modifications for both banks and the state, along with a phased implementation plan involving legislative changes, IT updates, and pilot programs. While bank profits remain unaffected, the proposal aims to clarify the creation and management of money, ultimately making banks true financial intermediaries. The long-term goal is for the state to directly control money creation.