posted on Mar, 1 2013 @ 04:30 PM
Originally posted by FortAnthem
No, we don't have infinite money, we have infinite CURRENCY.
The difference being that currency loses value as more and more is pumped into the system until it eventually becomes worthless, as every fiat
currency in the history of the world has eventually done in the past.
Printing out infinate amounts of currency, the way Bloomberg is suggesting, is a sure way to ensure that the currency becomes worthless in no time
You would think a rich guy would have a basic grasp of economic principals.
Take away fractional reserve banking and we could just print pure fiat based on the productive abilities of the country
1. Have the treasury print what the government needs to operate. No debt based money. Pay off current Treasuries with this cash. Make it law that
money supply can only be expanded a certian amount each year. Taxes would be levied to make up the difference. I.E. fight a big war..it would have to
be paid for with a special tax levy approved by Congress.
2. Eliminate fractional reserve banking. Have the government buy and refinance all current mortgages, credit cards, consumer debt and refinance on
terms that assures they get paid back. Same with anything else the banks couldn't keep on books and maintain the no leverage requirements. WAfter
that let the derivatives fall where they may.
3. Have social security fund the primary home mortgage business. Whatever they can't carry put onto the government pension system. Mortgage profits
would no longer flow to bankers but instead would serve to pay for the cost of these programs.
Banks could continue to do the same lines of business. They could still originate primary housing loans for SS and could service said loans. However,
without the leverage, they could no longer dominate our economy.