The crooks (the banks) and liars (the politicians) should be beaten by the elderly with their canes and oxygen tanks for cutting their benefits. Better, we should be promoting that the crooks and liars to be taxed rather than the few productive Americans who haven’t had their jobs outsourced and their money handed to offshore banks. The politicians and banks caused this mess, they should have to pay for it.
We are in the middle of a deflationary depression in the face of rising commodity prices on international markets. In economics this is typically called stagflation. We have a lack of money supply in the domestic economy. The Federal Reserve is sending our money to offshore banks where it gets dumped on money markets as foreign nationals buy up commodities with our money. This results in rising commodity prices while prices in the domestic economy fall. Housing prices fall. Employment and wages fall.
It is a common myth that the government prints money. It does not. Government collects taxes and borrows money. Private banks create money whenever they make a loan. Private banks also destroy money whenever a loan is paid, as the banks pocket the interest. The interest is not put into the system until another loan is made. This is called fractional reserve banking and is how our banking system has worked since 1935. Between 1873 and 1935, our monetary and banking system was a fractional reserve banking system, except the money was partially backed by gold and the rest was just interest-bearing debt issued by the banks. Before 1873, you also had various other currency in circulation, including silver and the Greenback.
Our banking and monetary system is a giant Ponzi scheme and has always been a Ponzi scheme except before the American Revolution when colonies issued their own currency, during the American Revolution when the government printed Continentals, and during the Civil War when the government issued Greenbacks. Money has always been created and destroyed by the private banks, creating booms and busts. When the banks stop loaning money, the money supply is reduced, and the economy crashes. The banks make huge profits on the interest during booms and confiscates land and businesses when it busts.
The problem:
1. Fractional Reserve Banking (money issued as debt to benefit the usurer)
2. National Debt (see #1)
3. Taxation of labor and capital. Leads to outsourcing and offshoring.
Feasible Keynesian Solutions:
1. Stop bailing out banks. Use the public money to create real jobs to build infrastructure.
2. Implement a sin tax on usury like the Robin Hood Tax.
3. Tax the crooks (banks) and liars (politicians).
4. Implement trade tariffs on imports, outsourcing, and offshoring to bring the jobs back home.
5. Use credit unions and community banks more willing to make loans to individuals and small business.
6. Implement state banks like North Dakota.
Ideal Georgist / Biblical / Classical Liberal / Classical Progressive Solutions:
1. End fractional reserve banking with something like the Zarlenga plan or scale it back to something like a 1:5 to 1:3 reserve ratio which Lincoln suggested. As reserve ratios are scaled back, the government should print debt-free Greenbacks to pay off the national debt and create public sector jobs in order to prevent the deflation that scaling back reserve ratios would cause. Money should be issued debt-free by the government to benefit the tax payer rather than issued as debt by banks to benefit the usurer. Thomas Edison said the same thing in a newspaper. Paying off the national debt would end the need for income taxation and force the aristocrats around the world to make productive investments to earn interest.
2. End income taxes, capital gains, and payroll taxes, which act as a negative trade tariff, sending jobs overseas.
3. Use sales taxes, which act as a uniform trade tariff, taxing domestic and foreign production equally. They also tax consumption, making natural resources more affordable since excessive demand is reduced by the taxation. Make the sales tax progressive with a citizen dividend, like the Fair Tax, which is promoted by people like Thomas Paine and MLK.
4. Use land value taxes or property taxes. These taxes encourage efficient use of land and makes land more affordable to citizens. Make these taxes progressive with a citizen dividend. Property taxes are supported by most all classical liberals, including people like Thomas Jefferson, and modern day conservatives like Milton Friedman and David Nolan. States like New Hampshire are funded strictly on property taxes. The Bible even promotes the 50-year land lease, which is a form of property taxes paid to the government.
5. Implement progressive taxes on the monopolization of capital and usury. Small business and small corporations should not be taxed. Large corporations should be taxed. Banks should also be taxed.
6. Citizen dividends can be reduced to fund public option health insurance. The sales taxes should fund Social Security, SSDI, and Medicare/Medicaid.
If you don’t think this is important, you haven’t been following the news.
Excellent on every point. A new system must be established. It is written on the wall and obvious to anyone that does any thinking about this crazy scheme we call a money system. Our current system is a con game run by crooks that take us for fools they steal from. If their system is a crazy scheme then I have no hesitation in presenting an alternate crazy idea.
Banks leverage the money they create out of nothing with the fractional reserve system. They get more out of their money that way. They have leveraged fractional reserve requirements to zero or almost zero.
Sovereign money, real money created by the government out of nothing is a right of the government. Government has the authority and responsibility to create money out of nothing and spend it into the economy as well as to pay down the debt. At the same time, the government must manage the system by raising the bank reserve ratio to balance the money supply and avoid inflation.
Money should be created by our government and spent into the economy for infrastructure and to pay debt as the reserve ratio raised to maintain balance until the reserve ratio is 100%. Then we have real money.
It is all just digital money but it must be real money, not debt money. What we define as money should be currency denominated in thousand(s) dollars amounts. Serialized digital “dollar bills” that cannot be duplicated. Call it the “Big Money” system designed and maintained by the government. The denominated serialized digital dollar bills would be held in a Fort Knox Cloud. Money used in a single transaction below a denominated thousand digital dollars would be a “Little Money” system established and controlled by the government as the domain of free private enterprise to operate. Anyone that chose to introduce a money system in this domain would simply have to have reserves in the Big Money system equal to the amount in circulation in the Little Money system.
The Little Money system would be restricted to all transaction amounts below a designated maximum Little Money amount equal to the minimum Big Money threshold. Purchases greater than the designated threshold amount would be made from the Big Money system with any amount below the Big Money denomination minimum being paid out of the Little Money system.
This digital Big and Little money system is analogous to dollars and coins used today. We still sometimes pay for things with a combination of dollar bills and coins. We aggregate coins and change them into dollars. In digital transactions for Big Money items, the combination of Big and Little money equal to the transaction amount would be transparent to the buyer. Consolidation and migration of aggregate amounts above the threshold level to Big Money would be equally transparent to the seller. Most transactions would simply be in the Little Money domain.
Coins are the only real money now produced by the government. The Big Money system (meaning the monetary operating system, analogous to a computer operating system, not the unlimited applications that use it) is owned and operated by private enterprise banksters. The only real money the government creates is literally small change. The proposed operating system of Big and Little Money reverses this role and returns Big Money creation to a government operating system and a Little Money system to private enterprise operation. It also sets a new arbitrary level of what is Big and Little Money.
The proposed Little Money system gives authority and responsibility within government guidelines to the creativity of free private enterprise. Google or Facebook dollars. Anyone could compete in the Little Money system world including Banksters.
In the Big Money system, a denominated, serialized digital dollar bill, a minimum of $1,000 for example, remains a fixed record. The name of the owner changes as transactions are made. The principal record therefore becomes the denominated, serialized bill, not the owner associated with it. In the Little Money system the principal fixed record is the owner, money is associated to the owner as it changes ownership
In this new Big Money system all the money in the system is uniquely identified to ownership and can be totaled to the penny at any given time. Where it is, who has it, and (by transaction history) how and when they took ownership can be known and used in an information system.
A unique aspect of this system is that once money is created it never leaves the system. It becomes eternal. Money moves from use to reserve as required. It is like gold. As good as gold. It is not created as debt.
Object oriented system analysis, design and programming implementation is the state of the art in the computer problem domain. The problem domain of money is no different. In the computer domain there are a couple operating systems and millions of application programs that run on them to do things. Operating systems are centrally maintained. Application programs that use it are open for anyone to create and use. Do you see a model here? If so, extend it to the internet. Money is really just a social media with decision making utility.
Banks own the current money operating system as well as controlling major critical money application programs. They designed the operating system to serve the objectives of their own application programs which serve themselves. They did it very well at the expense of everyone else that wants to use the bank’s money in their applications but are under the constraint of an operating system that was not designed to primarily facilitate their objectives, but bank objectives at the price the bank extracts.
Where are the designers, builders and maintainers of our money operating system? Where is the operating system design program? It must be a neutral operating system designed and maintained by the government for the benefit and fair use of all that use it in applications. We have already established the model in the computer world. Where are our founding fathers when we need them? They are us.
Debt and scarcity of money is the foundation and business model objective of the bankster’s system. Abundance for all in freedom is the model of our system of government. Some say that that model is even based on a higher model of life. Banksters don’t want to destroy our society like terrorists, just suck the blood out of it without killing the host. There is a black harmony in that relationship that gives new meaning to being our brother’s keeper. Some people see the world as eat or be eaten in cruel world competition. They are few, I hope, and should not be allowed to design the operating system that facilitates this view. They are however free to use a fair and neutral operating system, if they can, to implement their predatory view of the world. If they can. Players don’ make the rules of football and are obvious to all when they violate fair rules by cheating and stealing. They are also not the refs.
Old systems that we created have been replaced by better systems that operated closer to the established universal model operating system of reason, logic and purpose. The only way to kill the bank debt money system is to replace it with a better system.
The better system starts with the question: Who has the power to create money and who do we chose to maintain the money operating system? We contracted out that power to the banksters just like we are now contracting out the power to run our own country (or the country that was once owned by us) to corporate interests.
We the people must own, or must reclaim the basic operating system for the problem domain of money. Those individuals and institutions that understand the difference between an operating system and an application program, how the structure of computing technology works are equipped to redesign the money system. The incentive is that they can implement a new model that can make the old bank model obsolete and capture market share of the new money system. Institutions that stand to benefit should be lobbying and buying politicians who support return of money creation power to the government and the establishment of a real money system.
Paying down debt with government created and injected money to create real value in real things will mean a ton of money to be made by big business that deals in creating real things of value that make our lives better. Things that cannot be outsourced. What business would like to get the contract for design and implementation of the new money operating system? What businesses would profit from operating under a new money system? Let the competition begin. Those that only make money by manipulating money without creating anything of value should and will be losers. Their loss will be our gain.
The USA can establish the new world standard money model operating system. We will own it, not the world banksters. The world will become a better place.
i don’t agree completely with your proposed system. your little money, big money, serialized money, and private money idea is making things more complicated than it needs to be. private money doesn’t have to be integrated into public money. people can use the free market to convert currency and use private currency as they do now. the security constraints of serializing money doesn’t need to be split in little money and big money other than how it is already done, with the already serialization of bills and other digital protections. digital serialization of all digital transactions can be added without having to separate it into little and small money.
also, coin and cash are still based on debt. it is just debt money converted from digital form to physical form. you points against debt money and fractional reserve banking and points in favor of public and debt-free money and paying off national debt and associated taxation are good. it is true there is always room for improvement and technology can be used to aid in that effort. i just hope they don’t use technology to chip us and turn off our ability to use cash and coin where economic transactions are more private.
In response to the comments at
http://wakeupfromyourslumber.com/blog/fester/liberty-revival-tax-crooks-and-liars
(My email address is banned from the site. I suppose it wasn’t the first time I had something to say against the cointelpro anti-semites at that site. I must have said something wrong in my article to be posted on that site. I should question the content of my own writing.)
First, Eustace Mullins is known as an anti-semite, as many of the people from wakupfromyourslumber.com are. Being Jewish does not automatically make them a banker. Being an anti-semite does not help any valid points which you may have. In fact, it does the opposite.
Second, I consider myself agnostic. I am a man of science before I’m a man of blind faith. Perhaps if it were the opposite, my road in life would have been easier to travel. I come from the Age of Reason. The world is complex. I know enough to know that having a simple solution often means that the solution is incorrect. That is why understanding must always be questioned.
Third, the Old Testament is valid for Christians except where the New Testament indicates otherwise. That is why the New Testament is usually sold with the Old Testament to Christians. The New Testament did not change the quoted scripture from the Old Testament. I’ve also includes quotes from the New Testament.
Fourth, when Chief Seattle, the Bible, Thomas Jefferson, Einstein, Thomas Edison, Thomas Paine, etc., all agree on something, I’m going to point it out because it probably means there is thread of universal truth to the statements.
Finally, I don’t care about offers. I write for truth, not for funding or popularity. I’ll assume there are others who do care for truth, understanding the complexities, and who seek better solutions as I do and who will reject corrupting the truth with such things as anti-semitism and false libertarianism who want to corrupt free markets by the act of government declaring a commodity to be legal tender or who want to grant titles of nobility, or title to land to private individuals and corporations to monopolize the common wealth. I might be wrong in statements I made, but I’ve made statements in honesty. If I’m wrong in the solution, at minimum I did my part in raising the questions.