/sci/ - Science & Math

[Anonymous No.3653852]

Greetings economists of /sci/.

What do you think about the Monetary Reform initiative?

http://monetary.org/wp-content/uploads/2010/11/32pageexplanation.pdf

First, incorporate the Federal Reserve System into the U.S. Treasury where all new money would be created by
government as money, not interest-bearing debt; and be spent into circulation to promote the general welfare. The
monetary system would be monitored to be neither inflationary nor deflationary.
Second, halt the bank’s privilege to create money by ending the fractional reserve system in a gentle and elegant way.
All the past monetized private credit would be converted into U.S. government money. Banks would then act as
intermediaries accepting savings deposits and loaning them out to borrowers. They would do what people think they
3
do now. This Act nationalizes the money system, not the banking system. Banking is not a proper function of
government, but providing the nation’s money supply is a government prerogative!
Third, spend new money into circulation on 21st century eco-friendly infrastructure and energy sources, including the
education and healthcare needed for a growing and improving society, starting with the $2.2 trillion that the Civil
Engineers estimate is needed for infrastructure repair; creating good jobs across our nation, re-invigorating local
economies and re-funding local government at all levels.

Basically it returns the right to issue money from private banks and half-private FED back to the government, and most importantly, mandates that this new money is issued debt-free and interest-free.

[Anonymous No.3653868]

There is a mythology – a reigning error – that government always issues money irresponsibly. But this is
the result of centuries of propaganda sponsored by those benefiting from privately issued money. The Continental
Currency is attacked, without discussion that the British counterfeited untold $ billions. They did the same for the
French Assignats – the details became public when the counterfeiters sued each other in the English courts. The
German hyperinflation is cited by the private money promoters without pointing out that the German Reichsbank was privately owned and controlled, and that the hyperinflation began the month that all governmental influence over it was removed on the insistence of the allied occupiers. The hyperinflation ended when the German
government re-asserted its control over the money system. These and other cases are detailed in The Lost Science of Money book, which all statesmen must read.

[Anonymous No.3653897]

The Great Depression
By December 1932, it’s been only 20 years since the establishment of the Fed, but in that brief time the Federal
Reserve System had wrecked and taken America down to its knees:
*Farms were wrecked with huge debt and falling land prices; *factories were closed; *banks were closing;
*exchanges were destroyed; *the economy collapsed – people couldn’t find work and many were hungry.
From 1929 to 1932: National income dropped 52%. Industrial production fell 47%. Wholesale prices fell 32%.
The real value of debt rose 140%! Unemployment rose 329% from 3.5 million to 15 million people. Over a
quarter of our workforce was unemployed. All that destruction in less than 20 years! (Ch. 20)
The “Chicago Plan” Solution
Clearly changes in the monetary system were called for, but most economists were useless, and J. M. Keynes
merely entrenched the problem, advising that government must borrow money that they allow the banks to create
out of thin air, instead of doing the right thing and creating the money itself. What nonsense!
Then Henry Simons and Paul Douglas, great University of Chicago economists, correctly diagnosed the problem:
“The mistake lies in fearing money and trusting debt.”

[Anonymous No.3653914]

How about you preach your retarded fringe politics somewhere else? The 2000 char limit is there for a reason, it's an imageboard not a textwallboard.

[Anonymous No.3653921]

Reforming Our Monetary System *
Monetary reform is as old as money itself. And while Money plays such a crucial role in our lives
and civilization that we couldn’t function without it, how few of us have given it the attention it deserves!
Not just to make more – but to understand how the money system works; the institutions and regulations that
determine what is money; how it’s introduced or removed from circulation; who controls these decisions for
what purposes. Who benefits, who loses?

A century ago the great monetary historian Alexander Del Mar
wrote: “The money system is society’s greatest dispenser of justice or injustice.” A good system functions
fairly, helping to create values for life. A bad one, such as the present system, obstructs the creation of
values; gives special privileges to some and disadvantage to others; causes unfair concentrations of wealth
and power; leads to social strife and eventually warfare and a thousand unforeseen bad consequences.

[Anonymous No.3653923]

There's nothing wrong with fractional reserve. The banks must lend. The problem is when people treat certificates of deposit as legal tender

[Anonymous No.3653945]

>>3653914

I have not gone overlimit.

And this is not politics, its economics, which is SCIENCE.

[Anonymous No.3653951]

>>3653945
I'm sympathetic to your position and even I'm not gonna read all that shit, so you're wasting your time

[Anonymous No.3653954]

>>3653945
You know what it is? It's retarded. You know where it doesn't belong?

Yup. Door's on your left.

[Liberty !!nQrIRh+JHbs No.3653961]

>>3653852

"Promote the general welfare" is a phrase relating to defense and disaster response.

[Anonymous No.3653975]

>>3653923

yeah. The problem is you can simultaneously lend and withdraw deposited money. Multiplication, not FRS.

Everything besides terminated deposits should be forbidden, since you lend IOU, not money you have.

[Anonymous No.3653998]

>>3653975
No you lend the money, you trade the IOUs around

[Anonymous No.3654056]

>>3653998

If you bank lends the money, and the IOUs into another account, more money (and more debt!) is created. multiplication effect. And th original depositer still uses the IOUs as real money, not IOUs.

[Anonymous No.3654059]

>>3653852
I cant believe those fucking political compasses graphs are still around. If you want to make a graph sensible enough for interpretation the axis cannot be dependant on it each other.

As it stands there are imaginary regions where you can have maximum person freedom but also absolute capitalism or absolute socialism. Thats just retarded

[Anonymous No.3654069]

>>3654056
I know. Just saying that you've given possession of the money to the bank in exchange for IOUs. When it circulates around, the bank is still exchanging real money for IOUs. The reason this multiplies the money supply is that IOUs from the bank are seen as equal to real cash (or at least close)

[Liberty !!nQrIRh+JHbs No.3654075]

>>3654059

Social freedom is usually distinct from economic freedom.

[Anonymous No.3654079]

>>3654059
Absolute capitalism is the only system where you can have maximum personal freedom. All other systems restrict the abilities of the individual to associate and trade in some way. I'm not saying this is the best system, or even a good system, just saying what I said.

[Anonymous No.3654096]

>>3654059

Implying personal freedom issues (abortion, gay rights, drug policy, separation of church and state..) are somehow dependent on economic freedom (taxes, welfare etc)

[Liberty !!nQrIRh+JHbs No.3654105]

>>3654096

Those things can be greatly hindered by the theft of labor.

[Anonymous No.3655271]

>theft of labor
theft how?