We might take a lesson from the Chinese and put our own banks to work for the people, rather than making the people work for the banks. We need to get our dollars out of Wall Street and back on Main Street, and we can do that only by breaking up Wall Street's out-of-control private banking monopoly and returning control over money and credit to the people themselves.
We could also take a lesson from the Chinese and dispose of our debt with a little creative accounting: when the bonds come due, we could pay them with dollars issued by the Treasury, in the same way that the Federal Reserve has issued Federal Reserve Notes to save Wall Street with its "Quantitative Easing" program. The mechanics of that process were revealed in a remarkable segment on National Public Radio on August 26, 2010, describing how a team of Fed employees bought $1.25 trillion in mortgage bonds beginning in late 2008. According to NPR:
"The Fed was able to spend so much money so quickly because it has a unique power: It can create money out of thin air, whenever it decides to do so. So... the mortgage team would decide to buy a bond, they'd push a button on the computer -- "and voila, money is created."
If the Fed can do it to save the banks, the Treasury can do it to save the taxpayers. In a paper presented at the American Monetary Institute in September 2010, Prof. Kaoru Yamaguchi showed with sophisticated mathematical models that if done right, paying off the federal debt with debt-free Treasury notes would have a beneficial stimulatory effect on the economy without inflating prices.
The CAGW ad is correct: we have turned our backs on the principles that made us great. But those principles are not rooted in "fiscal austerity." The abundance that made the American colonies great stemmed from a monetary system in which the government had the power to issue its own money - unlike today, when the only money the government issues are coins. Dollar bills are issued by the Federal Reserve, a privately owned central bank; and the government has to borrow them like everyone else. But as Thomas Edison famously said:
"If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%... It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold."I'm not sure what in this post will work. I have not put the quotations altogether correctly in the above because I don't yet know how to. And I have not yet figured out how to make links active (I guess). And I am delighted to know that the Huffington Post is not as purblind on the realities of money as I have assumed. We have been mightily ripped off by the Bankers. The capitalized word stands for the gang who are consciously minions of the Rothschilds, who took over U.S. finances by establishing the Federal Reserve System ( a private enterprise) in 1913 and have been cheerfully wrecking us every since. Jolly fellows with many willing jolly helpers among our WASP and other ethnic leaders and more lately the Ashkenazim, who came here in droves after WWII, and are most familiar to us as the neoconservative warmongers who have convinced our recent sad presidents to go to war against the world.
Oh well, that's enough dreary stuff for today.
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