Forum Post: 2 Step Reform

1. Campaign Reform Constitutional Amendment

2. Banking Reform:

100% Reserve lending only (no more bailouts, no need for the fed, no manipulation of interest rates).

Government issued bank account for every citizen with an amount deposited yearly reflecting a per capita percentage of the desired yearly growth of the overall money supply (probably will be a few thousand a year for every citizen over 18). The reason you need to do this is because with 100% reserves banking, you need to replace the old mechanism of using fractional-reserve lending for the overall money supply to grow.

The account will be split in two, one part for spending and the other part for saving. Deposits to the spending side would increase when unemployment is high, decrease when there is too much inflation. Money placed in the spending part of the account cannot be used for saving; we need to do this because of the paradox of thrift. The yearly total amount credited to both the spending and saving sections of our accounts will always equal the per capita percentage of desired growth of the overall money supply. If the government runs a deficit and needs to borrow, the first place it would borrow would be from our savings in the government bank accounts, with the appropriate interest paid to us.