1.0... INTRODUCTION
(Continued)
1.2.1 -
Jacques S. Jaikaran, M.D., in his "Debt Virus" (ISBN: 0-944435-13-0)
says that we need a mathematically balanced system which injects money into the supply in amounts driven by the interest being paid on debt-money.
His system also requires a "special tax" to siphon off "excess" money to keep the system in balance.
His book contains the clearest and most, concise description of the problems with our money system.
His ideas for reform seem to make a lot of sense too, except the projects, which he would allow the government to fund, by spending new money into circulation, are much too inclusive and socialistic.
1.2.2 -
G. Edward Griffin, in his "The Creature from Jekyll Island" (ISBN: 0-912986-16-6)
offers a 16 step plan to abolish the Fed. It is detailed and, apparently, well thought out, eventually phasing in a Gold-Silver-based values, money system, without the all the features of a Gold Standard.
Read Griffin's 16 Step Plan
1.2.3 -
Byron Dale's "Money Reform Act" plans to eliminate the Fed by restoring the Constitutional role of Congress in the control of our money. They would be authorized by (new) law to create debt free money and spend it into circulation to pay for roads and bridges throughout the countries communities. Byron does not feel there is any need to worry about "excess" money being created. He says that money is "excessive" only if it is not "backed" (created) by tangible productivity (akin to the fact that we never worried about "too much money" when miners dug it out of the ground with their labor and had it freely minted into circulation directly).
1.2.4 -
SOVEREIGN CURRENCY described by
RBrown1776@uwsa.spk.wa.us, as part of
"THE FULL RESERVE MONETARY SYSTEM "
Basic ideas to implement:
* The supply of money should be based on the population and useful labor produced by workers in the PRIVATE SECTOR of the population. Do not consider the useful (?) labor of the PUBLIC sector because they are paid, in one way or another, from the earnings of the private sector. To count them would be double-counting compensation for that much labor.
* Money created would never be extinguished.
* Congress, through the Treasury Department would create all money. The Fed would be forbidden to do so. The amount of new money created in any year would be limited to the INCREASE in the amount of private sector production costs in the previous year. Money created would not count as receipts to the Treasury. It would be called TREASURY RESERVE money (T-Res funds).
* T-RES funds could not be spent by the government or Congress. They could only be lent to the FED, at an interest charge just under the FEDs discount rate.
* Various means would be devised to get T-RES funds into general circulation. For instance, the interest paid by the FED to use this money WOULD be counted as receipts to the Treasury.
Possibly we could let the Treasury use T-RES funds for one purpose other than lending to the FED --- they might be used to pay the interest on government securities held by government accounts (the various trust fund accounts), but could NOT be used to pay interest on government securities held by the public.
* The FED would continue to exist and function to safeguard deposits, clear checks in this country and clear international payments. But the FED could only set one interest rate -- its discount rate-- and that rate could not exceed 50% of the current market yield on the most distant outstanding 30-year government bond.
* Currency would look like the current FRN money we use except the words Federal Reserve Note would be replaced by the words SOVEREIGN CURRENCY.
* Transition period: as money on current outstanding commercial and consumer loans is repaid, it would be used to bring all deposit accounts up to full 100% reserve status.
* Banks would be allowed to borrow T-Res funds from the Treasury in amounts not to exceed net deposits in accounts (total deposits minus open loans to customers).
* Currency (bills and coins) will be purchased by the FED from the Treasury at full face value. This would be counted as receipts to the Treasury.