How to is easy. All it requires is that each state (or city) in any country create and print their own money. It's truely that simple. That is the only way to bail the entire world that is under debt out. What do you have to say about that? With new money should come a fresh new opened economy to be inner connected with other states (cities) like the world wide web, to bury debt of the old ways in the past, or at least alieviate it. Can go either way, but it would be most effective. So, whatever country you live in, tell it's states or cities to create their own secure and valueable legal tender bills and coins. Get the picture?

I'd like to see the state of Michican which I live in start creating and printing its own money seperate from the federal money. And it should be used under a brand spaking new, up and coming economy seperate from the one we only been knowing.

And what would this new currency be backed with?

Probably doesn't matter. It's not like the dollar has any backing anymore.

I will comment back on this thread later.

But for now, gold and silver were removed from the currency for a reason.

Paper is backed by credit, where does the credit come from?

Is borrowing from a foreign corporation(china) really a good idea?

More later.

That is a fine suggestion; I appreciate the thought that you put into it. Unfortunately, it is unworkable for a variety of reasons.

The basic problem is that for every debtor there is a creditor. Those debts may be denominated in dollars, euros, or some other form of money, but essentially the debtor owes some form of effort to the creditor for the effort that the debtor received previously. That is only fair. Unfortunately, the debts of many are currently held by a few that are well organized, very powerful, and not interested in losing their claims to the efforts of the masses. Additionally, there is disproportionate amount of debt compared to the current productive capacity of the planet because of the fractional reserve system.

There is also a specific flaw with your suggestion.

The essence of "money" is its function as a medium of exchange, thus, the basic problem with your suggestion is the convertibility of the currencies. This basic problem comprises two "sub-problems": 1) a currency market more complicated than the current one which will inhibit trade because of volatile exchange rates, and 2) an incentive to "cheat" as organizations create more money in the selfish interest of buying more goods while dispersing the inflationary pressures to the aggregate economy.

If you're genuinely interested in this topic I would suggest reading about monetary theory and thinking about it for yourself. The elements of it that don't seem fair are where you should concentrate your attention to ultimately devise a workable solution. I've spent many years thinking about the exact same issue and currently hold a B.S. and M.A. in Economics so I can say on full authority that much is wrong with the current monetary system, but your solution will not work.

If you have any further questions feel free to send me a personal message. I promise to respond thoughtfully.

Shane

I always thought the best solution was just to get rid of money. (VP style).
Change to resource based economy yep, long overdue for change.
Embrace our technological advances and get rid of division and poverty etc... but of course, a lot will disagree with this because they haven't done the research. Just my 2 cents, cheers.