I friend who disagrees with me asked me what my plan is for fixing the currency/debt crisis and I put together nine points of what needs to happen and
why. I am sure some things could be added but this should be the basis for reforming the system in my opinion
1. Free market currencies are interest free and eliminates the threat of
government over borrowing and spending.
2. A free market prevents run away credit by eliminating artificial credit
expansion and regulates the amount of currency in circulation relative to the
3. In a free market the money supply is determined by the amount of production
and demand not by some arbitrary central planners. If production out paces the
money supply prices fall naturally on goods and services however the economy is
still expanded as it did in the 19th century when we have a relative free market in currency.
4. A free market eliminates government spending bills into the economy
artificially inflating the economy on their whim while guessing at production and expansion
thus eliminating the threat of government induced inflation or depression.
5.A free market eliminates the need for legal tender laws which are the cause of
all fiat money and the devastation they have caused, effectively taking away the
power from government to intervene in the economy, markets, and lives of the
Note: [my friend] thinks we need a constitutional amendment to make the fiat money we
use legal. The founders knew the evils of fiat money first hand from their
forays into it in the colonies and then with the "interest free" continental
dollar. That is why they made gold and silver the only legal tender in the land
when they drafted the constitution. Sadly we have ignored their wisdom in this
and it has been the cause of great harm to us through out our history.
6. A free market eliminates the need for a central printing press and will allow
innovation in money transfers and exchanges and eliminates government tracking
of peoples money.
7. In a free market counterfeiting will be difficult as people will be more
mindful of their money and the private sector who is always more efficient then
government will develop technology to prevent counterfeiting as people gravitate
to sound money or hard money in a bi-metals standard, you can't counterfeit
precious metals. The area some fear is in electronic transfers of which there is
already good encryption and safe guards that can be used.
8. A free market in currency eliminates the need to lobby corrupt legislators
and officials to be honest and do the right things. It simply cuts them out of
the whole process and puts the control back in the hands of the people. If
someone does not provide a good service or product the people vote with their
feet and wallets and go where one is provided. This is true democracy i.e the
free market in action!
9. It would be the easiest least painful transition from the current system.
Just repeal the legal tender laws and allow people to choose. FRN's would still
be the money of choice for a while as that is what people are used to however
gradually people would move to more stable currencies.
edit on 12-8-2011 by hawkiye because: (no reason given)