Posted 2 years ago on April 17, 2012, 12:34 p.m. EST by EdiblePlanet
This content is user submitted and not an official statement
Is there anyone on here that is acutally trying to understand exactly what is going on in the economy and what solutions are available? Let's start an intelligent discussion. Here's my "two cents" -
How to get the American economy rolling again. The first thing is Americans need access to money, especially those who are in businesses that have identified needs and can create employment - preferably cooperative businesses.
Now let's all understand what exactly money is. Money is not capital - capital is tangible resources that can be transformed (through labor and ingenuity) into consumable products. Money is only a means of exchange which allows one to STORE THE VALUE of a product or service they have applied labor to in order to exchange that VALUE at a later time for some other product of service. So basically money is needed to facilitate and simplify exhanges of labor (services) and/or labor and capital (products). MONEY BEING TREATED AS CAPITAL IS THE PROBLEM! AND RETURNING MONEY TO IT"S RIGHTFUL FUNCTION IS THE SOLUTION!
Now that we know what money is (and is not), how do we get the economy rolling. When creativity (ingenuity + labor + capital) can't access money then progress (new job creation) begins to stagnate. It's impossible for legacy businesses (current large corporations) to maintain the employment levels because there are only so many cars that can be sold until the market is saturated and the drop in auto sales plummets to a sustainable level. This example uses cars but can be used for any product. When sales begin to plummet the big companies must start laying off to remain viable. So to get the economy rolling we need new products and/or services which have demand by the public. Currently sustainable technologies that save money and resources are increasing in demand. There are a lot of creative people out there with great ideas but no money. Solution -
First - get rid of the federal reserve
Second - get rid of the national credit union administration
Third - get rid of the office of thrift supervision
Fourth - get rid of all credit
Fifth - turn all oversight of banks/credit unions/thrifts over to the treasury
Sixth - get rid of money markets ( http://en.wikipedia.org/wiki/Money_markets )
Seventh - get rid of bond markets ( http://en.wikipedia.org/wiki/Bond_market ) - Hereafter the governemnt pays for it's expenses through a national sales tax on consumables other than staple (needed for life) consumables like food and shelter. Increases or decreases in the national sales tax is used to manage the supply of money (actual physical dollars in circulation)
Eighth - regulate capital markets ( http://en.wikipedia.org/wiki/Capital_markets )
Ninth - get rid of reserve requirements which are the current reason that banks/credit unions/thrifts are so thight on lending policies.
Tenth - the u.s. treasury makes no-interest loans directly to banks/credit unions/thrifts who then loan it out to individuals and businesses using a fee based system (in contrast to interest) and based on credit worthy-ness
Now, let's all remember who prints the money - not the federal reserve - the Bureau of Printing and Engraving which is part of the Treasury. Allowing banks/credit unions/thrifts to borrow money "actual dollars" directly from the Treasury - at cost - would facilitate competition among banks/credit unions and the cost to Americans to borrow money would go way down. The banks/credit unions would charge borrowing fees (in contrast to interest) based on what income they needed to stay in business (salaries, expenses, overhead, etc...). The market (competition) would decide what each bank/credit union charged as fees. What banks/credit unions/thrifts do you think would thrive in such a situation? The small local ones of course as they can do "business" much cheaper than the larger ones. Local credit unions (nonprofit, cooperative financial institutions owned and run by its members) who don't expect dividends and aren't beholden to stockholders hungry for dividends would do better than banks ( http://www.bankrate.com/brm/static/compare.asp ) and this would tend to keep money in the local economy. Leave the credit rating system as it is. The money system is now public and every default reflects on public debt and therefore only allow banks/credit unions/thrifts to loan money that is security (home, car, etc..) backed.
Now let's hear all of your views - pros or cons - so that we can get an intelligent discussion going please.