icebear
Muse
- Joined
- Sep 1, 2013
- Messages
- 524
The nature of money itself, who has the authority to coin it, what it consists of, how it gets put into circulation, was THE major political issue all during the 18'th and 19'th centuries. In particular, the combination of a gold standard and fractional reserve bankingcaused business cycles and unbridled grief all during those years. Plainly the interest on gold-based money lent out on a fractional basis at 9-1 or whatever could not come back in the form of ten times the amount of gold which actually existed; it came back in the form of assets and capital goods.
In 1913 they tried to implement Hamilton's idea of using govt. debt as a primary basis for money by creating the federal reserve and income tax at the same time. The idea was to use debt as a basis for money and the income tax to pay interest on the debt while rolling the principle over in perpetuity. At best it was a fragile system, at worst it was a time bomb with a 100-year fuse. Minus a guy like Obama walking in and adding ix or seven trillion to that debt in a space of four years, we might have had another decade or so to try to figure out what to do. At this point, that cushion is gone.
www.webofdebt.com
http://publicbankinginstitute.org
As I noted in the original post, things we need to do immediately are re-implement the Glass/Steagall act, and eliminate the so-called super-priority of derivatives.
In 1913 they tried to implement Hamilton's idea of using govt. debt as a primary basis for money by creating the federal reserve and income tax at the same time. The idea was to use debt as a basis for money and the income tax to pay interest on the debt while rolling the principle over in perpetuity. At best it was a fragile system, at worst it was a time bomb with a 100-year fuse. Minus a guy like Obama walking in and adding ix or seven trillion to that debt in a space of four years, we might have had another decade or so to try to figure out what to do. At this point, that cushion is gone.
www.webofdebt.com
http://publicbankinginstitute.org
As I noted in the original post, things we need to do immediately are re-implement the Glass/Steagall act, and eliminate the so-called super-priority of derivatives.
