10.4 Public borrowing by means of a passbook alone with interest at a rate lower than the TMNP encourages a high rate of interest.

NMCR : National Average Capitalization Rate NPT : National Average Rate of Profit

1. Let us call this method of financing a public treasury passbook.

The administration of this passbook is the exclusive responsibility of the Public Treasury. With the latter, individuals and private non-commercial associations create, increase, reduce and settle their deposits.

2. The rate of return on these deposits is kept below the NPRT, the national average rate of profit.

• Neither they nor their remuneration provide a tax exemption.
• Interest transfers to Interest the account are weekly.
• The annual rate is always mentioned next to the amount of interest paid.
• This rate remains variable at all times depending on whether the total deposits tend to be insufficient or excessive in relation to the borrowing needs of the public finances.

3. Investing in permanent enterprise financing is generally much more profitable.

This is in application of the collective will of a strong NMCT, in order to shorten the duration of the return to full employment.

4. The Treasury adjusts the total savings it mobilizes by varying the interest rate and the ceiling of the passbook.

By these variations and on the orders of the electorate through the intermediary of the legislature, the public treasury limits the savings it mobilizes to the financing by borrowing a fraction of public expenditure.

5. No money creation is used in this method of financing public borrowing.

Capital investments, in the unequivocal sense used here, also provide financing without creating money when they come from the equity of those who make them.