reply to post by HiAliens
In the end, all monetary system is going to be dependent on the people themselves to make sure it stays honest. If left unchecked, most any
monetary/economic system will go bad.
The most ideal form of currency and economic system is free markets, and something along the lines of colonial scripts.
Colonial scripts, or what the currency should be, is issued in direct proportion to the amount of trade being done. So that their is neither
inflation or deflation. Things should hold their value consistently with the currency, outside natural supply and demand changes. The amount of
trade is what should determine the amount of money that exists.
Any newly created money is #1 not a loan. It gets it's value only from the existing currency, it is the peoples money. No debt, no interest.
This money is either A. Given out to the people individually somehow. or B. Used for government things, like buildings and such.
Keep in mind, we are talking federal only here. What this means is that federal spending will have to be reduced significantly.
This is not without problem however. And that problem you can find in the words "Continental Dollar", and is why in the constitution they tied the
value of money to silver and gold. Because even though we have ridden ourself of the debt and interest, there is nothing to stop politicians from
creating more money for wars and things if they want.
Which is exactly what happened with the Continental Dollar. So they tried the gold and silver thing as a solution to that. If they had to keep
things in actual material value, then they could not inflate at will.
But then enter in fractional banking. Which is what lead us to the fiat money we have now. Banks(read the link in my sig) are allowed to loan
out/create wealth like 9 times what they really have. Well they still have to back that money in actual value - gold. That is the gold standard.
What happened is that because of this, it was impossible for them to pay back all the money to money - it was all loaned out. They call in
loans, and bankruptcy after bankruptcy. IE: Bank runs.
But rather than fix the problem of fractional banking and the fraud of it - they said no, lets create a reserve bank and they will back all the debts
of the bank. FDIC. But they keep the debt going, and so they keep the money funnel chugging.
So, the gold standard would help in some ways, but it is not the ultimate answer. Colonial scripts type system, or a fiat currency owned by the
people debt free is the most honest system - and what the fed actually claims to do(but doesn't - no excuse for the loans and interest).
Also, regulations. Regulations are bad many times. They are usually written by the very people who claim to be against them. What you do is
add regulations, and then you kill your competition with it. Then you make up for any losses yourself by having a virtual monopoly on the industry.
As well, many times they add these regulations at first, and then they put in "safetys" on it. Then after the damage is done, they go and remove
part of the regulations and reap the benefits. Many other things that are done with them.
Yet, you can't have everything unregulated, and so there is some valid things etc. But these are mostly things that should be handled on a
So in the end, the most important thing is a public who understands these things. Then they can start working towards better things, and with
technology where it is - who knows what is possible. The colonial scripts way is best - but is it the best for us right now? Probably not with the
way the people let politicians get away with things. The gold standard is best then - unless you can get it tied to the amount of trade directly.
But, the ideal system is to get rid of the loan and interest currency, in exchange for something that is honest. Get rid of fractional banking, it
is fraud and legalized counterfeit. Are you allowed to loan out $900 on every $100 you have? That would be illegal right? So why are some people
allowed to do that?
Then you need a limited government. One where the listed rights are not things the government can do, but is a list of things they are supposed to
promote and provide. Is it their job and function to protect those rights - not take them away. Most power is given to the individual, and we call
that choice and freedom. The states each have their constitution, they have a list of things they do. Then it goes down to the next level and so
forth. This is power to the people based on the % of the vote you make up on the local level, how often you vote, vs the % of the vote you make up
in the national election and how often you vote - you can even be a councilman for your town. This was the draw of "small town living" - having
a bigger say in how the local community is handled. If you didn't like it - no big deal, there are plenty of other communities out there.
Transition is a great question and one people don't generally talk about. That is one of the things I really like about Ron Paul - he understood
that. You can just go and cut off services to people who have become dependent on them. It's cruel, it's wrong and it shouldn't happen.
However, if we restore an honest monetary system and stop robbing the poor with the inflation tax, then we can start to get people where they don't
I don't really know anyone else who talks about it. Peter Schiff I guess - but I do not know exactly what he thinks is best etc, just that he is
someone who does at least know and acknowledge things. I just kind of figured a good bit of it out on my own, and then you know various movies and
talking to people etc. What got me looking into it more was just the loan part, I kind of wondered - if the US is the richest country in the world,
then who is so rich that we owe so many trillions of dollars to.
Basically I find the constitution is the best system - so long as it's followed properly. It's not a document of limited rights as people see and
use it today - it's a document of limited government. I can go into more detail on how it is meant to be used, and why it is so great when used
properly. Not sure if you wanted that because it's not economic, but it kind of is as it has to do with how much resources is going to what etc.