Commodity-based money is only as stable as the respective commodity market is. Furthermore, the money supply must grow as the economy grows. For these reasons, among others, a commodity-based money supply is a poor system.
The solution for a sound money supply is a self-regulating money supply based on my model of fiat money.
I've devised a model of fiat money that is as straightforward as my blank-check model of government income is, though, of necessity, it entails non-trivial complexity.
Employing the model, I show how the money supply can be self-regulating using the principles of market competition.
The Fed is retained to serve essential tasks, but it loses its monopolistic control of the money supply.
Bingo! Government is a monopoly. We the consumers, are caught between "private" monopolies and government monopolies and some people are still wondering why prices keep going up!
I like the idea of a spending ceiling for the government but I'm curious as to your position on returning to the constitutional monetary system using gold and silver? By using a stable monetary system where money can not be "created", the gold standard might limit the size of government alone.
If this amendment would also repeal the 16th amendment I will be all for it. I would let them keep the ability to tax imports though since high import taxes would keep jobs from going overseas.
Commodity-based money is only as stable as the respective commodity market is. Furthermore, the money supply must grow as the economy grows. For these reasons, among others, a commodity-based money supply is a poor system.
The solution for a sound money supply is a self-regulating money supply based on my model of fiat money.
PhilipBitar 2 years ago
I've devised a model of fiat money that is as straightforward as my blank-check model of government income is, though, of necessity, it entails non-trivial complexity.
Employing the model, I show how the money supply can be self-regulating using the principles of market competition.
The Fed is retained to serve essential tasks, but it loses its monopolistic control of the money supply.
PhilipBitar 2 years ago
Note that the ceiling is not on government spending. It's more fundamental: the ceiling is on government income!
PhilipBitar 2 years ago
Bingo! Government is a monopoly. We the consumers, are caught between "private" monopolies and government monopolies and some people are still wondering why prices keep going up!
I like the idea of a spending ceiling for the government but I'm curious as to your position on returning to the constitutional monetary system using gold and silver? By using a stable monetary system where money can not be "created", the gold standard might limit the size of government alone.
dlucas90 2 years ago
If this amendment would also repeal the 16th amendment I will be all for it. I would let them keep the ability to tax imports though since high import taxes would keep jobs from going overseas.
KenMacMillan 2 years ago