Forum Post: Is monetary policy reform the answer?
Posted 13 years ago on Oct. 25, 2011, 2:21 a.m. EST by jbruso
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This documentary argues that it is. Is it?
http://topdocumentaryfilms.com/the-secret-of-oz/
"Though most people don’t realize it the government can’t just issue it’s own money anymore. It used to be that way. The King could just issue stuff called money. Abraham Lincoln did it to win the Civil War. No, today, in our crazy money system, the government has to borrow our money into existence and then pay interest on it. That’s why they call it the National Debt. All our money is created out of debt. Politicians who focus on reducing the National Debt as an answer probably don’t know what the National Debt really is. To reduce the National Debt would be to reduce our money – and there’s already too little of that.
The economy of the U.S. is in a deflationary spiral. Nothing can stop it — except monetary reform.
No more national debt. Nations should not be allowed to borrow. If they want to spend, they have to take the political heat right away by taxing.
No more fractional reserve lending. Banks can only lend money they actually have.
Gold money is NOT the answer. Historically gold ALWAYS works against a thriving middle class and ALWAYS works to create a plutocracy.
The total quantity of money + credit in a national system must be fixed, varying only with the population."
If you remove fractional reserve lending you have to replace it with another way to get new money into the economy. I think you can safely fund government spending with newly created money matching the growth of GDP, then pay the rest with taxes. Taxes will be much lower for everybody. As long as you don't go over the amount of GDP increase their shouldn't be inflation.
we are not in a deflationary spiral, and in a fiat monetary system deflation vs. inflation is a policy decision and they will always choose the latter.