It's Not a Deficit, It's New Money

Joe takes to task a group of progressive Democrats for advancing the myth that what we call deficits are a burden to, rather than an advancement of, economic prosperity. Joe uses the words of Thomas Edison to show that by embracing the concept of monetary sovereignty we are capable of breaking the yoke of the debt-industrialists of fractional-reserve banking and their shadow-banking kin.

Category:

News & Politics

Tags:

• monetary reform act
• debt-free money
• chartalists
• the Chicago Plan
• the Kettle Pond Institute
• AMI
• monetary.org
• American Monetary Institute
• ecoomicstability.org

[UU361]

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts. (31 USC Sub IV Ch 51 Sub 1 Sec 5103)

there is nothing stopping the ability of Treasury to issue its own non-debt-bearing currency which is also legal tender, all it requires only an executive order to implement.

[EconomicStability]

Totally agree.

There is nothing to stop the Treasury from issuing "non-debt bearing currency".

Hopefully, by definition this includes debt-free bank-account credits, thus taking care of all the monies the country needs.

Then, we need to prevent the private bankers from ALSO creating new money by putting the banking industry on a full-reserve lending plan.

Restoring the money-creation privilege to Treasury and implementing full-reserve banking engages the concepts in the Money System Common.

[UU361]

Don't worry they are going to take a M-A-J-O-R haircut. It's called a collapse and along with that collapse will come a lot of starvation, homelessness, poverty and death, the instant implosion of the unfunded safety nets in a country who's biggest exports are military hardware and paper assert..

It may be coming but i don't think it will be pretty.

[joebhed]

First, the derivatives markets and bond markets NEED to take a M-A-J-O-R haircut.

Yes, cascading cross-defaults are coming when these markets recognize the true value of their holdings.

Either a toxic asset auction or return to MTM accounting will do it.

Nothing to do with monetary sovereignty, although the bankers WILL blame everything on monetary reform.

America is waking up to the bankers' control of the political power structure.

Likelihood of monetary revolution is > 0.

And growing.

[UU361]

The problem I see is if they did this they would instantly probably blow up the bond market which is about 52 trillion, that would cascade into the derivatives market which is about 450 trillion. Then if one looks at where the wealth is concentrated and the political structure the likelihood of them doing this is slim and none.