Michael Hudson in his book - Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global economy gives good evidence that the financial system is killing the real economy. Envesting Loans replace bank debt and remove the interest charges taken by Financial Parasites. We do not need to create money to transfer value over a period of time. That is what Envesting loans do and in so doing change the study of economics. Envesting Loans or variations on them will prevail because they reduce the cost of transferring value by 98%.
From the business directory:
A loan is a written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who promises to return it according to the terms of the agreement, usually with interest for its use. If the loan is repayable on the demand of the lender, it is called a demand loan.
Envestment Loans are:
An electronic agreement for a temporary transfer of value from a lender to a borrower who promises to return value in form of goods and services. The borrower may return extra value according to the terms of the agreement.
Envestment loans are independent of each other. This means any change to any loan has no built in dependencies relating it to any other loan.
Cash Loans have strong dependencies across loans. Inflation of money value impacts all loans. Interest on one loan, particularly government loans, impact the interest on all other loans. Interest paid on Cash Loans increases the amount of money exchanged. This in turn impacts other loans. Banks create cash (money) when they lend it. They destroy it when it is repaid. The creation and destruction of cash impacts all other cash loans. Promise Theory tells us that the cost of coordinating "agents (loans)" increases exponentially when the agents have strong connections.
Cash Loans are high cost to operate. Envestment Loans are 2% the cost of Cash Loans. The cost of Cash Loans is the cost of interest paid to the bank. This cost comes in higher borrowing costs and lower savings returns for the same amount of money lent.
Envestment Loans use the same Welcomer technology that Welcomer Identities use. The sum of the loans of which an individual is part becomes their net money worth. That is, each individual has a distributed ledger that combines all their loans.
To see examples of how Envestment Loans can work visit