The New Greenback

Interesting article on an proposed method of solving the money and economy problems. I don't agree with every point however it would be a few steps forward from the current system. The problem seems to be implementation. I thought I would bring it up here to get ATS thoughts on it.

At present the majority do not know enough about the principles of money to know what is the best money system to support. Most people do not think about it that much. They believe our money system is in danger but not sure of the cause. They vaguely think that overspending and bad management has a lot to do with it but not sure of the details so they defer to their political leaders.

There are a number of economic points that the majority understand and these must be the starting point for positive change which is to come.

(1) It is precarious for the State, business or individual to borrow more money than he has income to pay back.

(2) Much of our money we borrow and spend is wasted.

(3) It’s not a good idea to place our finances in the hands of a third party as we do with the Federal Reserve for instance. Unfortunately many think the Fed is a government entity.

(4) If we really could create our own money interest free then yes, the majority would support this over borrowing from private sources at interest. The public merely needs convinced that this could be done.

(5) Most understand that too much money in circulation causes inflation.

(6) The majority feel there are a number of things wrong with our economy and money system but not sure of all the causes or the best solution.

I can pretty much agree with the above...

The other fiat money is what is proposed here instead. We shall call this the New Greenback. This is money which creates no debt and adds no interest due by the government.

To create this money our government must do today what it did in the days of Lincoln and merely assume its constitutional authority to create its own debt free money. The new money could be more potent than the old Greenback, which had limited use. This new money could be used for all debts and payments foreign and domestic.

Not what I would propose however debt free money would still be better then what we have and a step in the right direction.

When one considers the possibilities it is amazing how simple the solution is to economic instability. Only three things need to be accomplished.

(1) Our government needs to take back its power to create interest and debt free money and issue New Greenbacks.

(2) The New Greenbacks must be issued, as much as possible, to support endeavors that create wealth.

(3) A reasonable balance must be attained so there is not a lack of money or too much money in circulation.

Even though items two and three are simple in theory they are difficult in execution because selfish interests want to overspend. Not only do powerful players seek to overspend but they care not where the money is spent as long as their pressure groups are happy. Thus we have the danger of the money being spent on projects that are frivolous and do not create wealth.

Fortunately, there is a solution to this problem and that rests with the final arbiter of power in this country as well as the world – the people.

Read the whole article here: The New Greenbacks

I certainly agree that the solutions rest with the people. So what do you think? Is this something enough people can understand to come together on and focus thier power to get it done? because even though I disagree with him on some points I am so sick of the current system If people could come together to at least move us forward a few steps I would consider it. I am interested in peoples opinions. This is part of a book the he is writing and there are links to the rest of the chapters there also.

Lots of folks are aware of the problem but few are putting forth viable solutions. Here is someone putting forth solutions while politicians are trying to band-aid the problems and continue the status quo until complete collapse. So just the fact he is proposing a solution gets points in my book even if I do not agree with every point.

Comments, thoughts?...

reply to post by hawkiye


I agree with OP that there are some good solid points there. However, there would be several pitfalls that would be associated with creating another fiat currency under control of the congress. I will highlight two of them that I can think of right off the bat:

1). Under our current political system, there could be tremendous pressure of Congress to pursue carless policy for political gain. For example, if there is a natual slowdown in the economy, Congress may feel pressure to up the presses and drop interest rates as election time rolled near. Essentially, kicking the can down the road a bit to avoid an economic correction, and maintain political viability.

2). Under a fiat currency system, currencies have a tendency to fail after a given period of time. Without it being tied to some viable asset, history shows that neglect is almost certain, again see point number one above. Need increased spending? Heck, just turn on the presses right?

Personally I would like to see a currency tied to some type of tangible asset. If you it is tied to say, gold, silver, oil, etc. You would only be able to increase the money supply by increasing your holdings in these assets or via trade with other nations (or other negative means).

Good post! Good to see that other people are thinking about these things.

reply to post by ParanoidMike


I tend to agree with you and I have a problem with the currency being centrally controlled by any body public or private as it lends it self to the points you bring up and corruption. I would prefer a free market in currency. It is nobodies business what forms of currency I use to trade or transact business but mine and those with whom I transact.

However having said that it is what the majority of people are used to and a debt free currency would be a few steps forward. He does make the point that the money needs to be created based on some assets like the bridge analogy so the money represent all the labor and materials that went into building the bridge that benefits the economy and society for decades to come. As I said if it would bring enough people together who could understand it I would consider it as a few steps forward from the current albatross hanging around our necks.

This is a tough one, but good to see more debate going on about it. As for financial policy control, the structure of a Bureau is one of the stronger options. Congress is responsible for keeping the Bureau operating and provides a very general direction, but it is the responsibility of the Economists and other employees of the Bureau to manage and implement economic policy. This does help limit conflicts of interest the political system can introduce into economic management and will improve the oversight that is currently lacking in the system.

The basic premise presented does sound a lot more reasonable and I will expect there will be a lot more discussion before any action is taken. When the foundations of a new money system can be presented in a way a 5 year old could understand then I give it hope. While it remains overtly complex and not even comprehensible to university graduates then it just remains open to abuse, mismanagement and corruption.

reply to post by kwakakev


It is definitely a discussion whose time has come! I am at the point that any steps forward would be welcome. We always end up having an all or nothing attitude and it usually ends up nothing and in the wrong direction.

Originally posted by hawkiye
reply to post by ParanoidMike

 

However having said that it is what the majority of people are used to and a debt free currency would be a few steps forward. He does make the point that the money needs to be created based on some assets like the bridge analogy so the money represent all the labor and materials that went into building the bridge that benefits the economy and society for decades to come. As I said if it would bring enough people together who could understand it I would consider it as a few steps forward from the current albatross hanging around our necks.

I also agree, but one thing the author does not consider (author of the article, not OP) is that by printing money you are increasing a money supply that is not directly backed by assets (the bridge is not considered an asset by the currency or financial sense of the term). I think the author of the article is dead wrong there.

Another thing the article does not discuss, but does need to address is the fractional reserve banking system as well. If a fractional reserve banking system (albeit regular banking) remains intact, you are still creating money out of thin air, even with a new greenback.

reply to post by ParanoidMike


Some of the other chapters deal with the points you bring up.

One way or another the Federal Reserve/ International banking cartel has to go.

Originally posted by VforVendettea
One way or another the Federal Reserve/ International banking cartel has to go.

Agreed. People will need to see something they can understand to replace it before they will rise in mass to do it. Although the dollar collapse will probably end the fed anyway.