Comments on: Q. Are there other ways to create money?

By: Zev

Zev — Sun, 22 Jan 2012 22:33:00 +0000

Giving the private banks more power is the cause of the financial crises, and you suggest turning it up a notch by giving them their own currencies? I'm not entirely sure what exactly you mean by that, but an obligation in the private bank you refer to is going to be as stable as that currency. Apparently not very stable at all.

No single commodity can be tied to the currency, getting rid of the gold standard was absolutely necessary. Now money represents everything; houses, bread, computers, factories, everything. These things provide the world a lot more value than gold. King Midas wasn't all that happy after his wish came true.

By: sapphirespire

sapphirespire — Thu, 29 Dec 2011 01:30:00 +0000

Money is an artificial commodity. It is created to make it easier than bartering to trade goods. But money has no intrinsic value so it must be given value by establishing a fixed exchange rate (i.e. price fixing) with a real commodity. The gold standard is a good example but any commodity can be used to back a currency. No one currency has both the stability and elasticity to keep up with the growth fluctuations of entire economies so, it makes sense to allow for multiple private currencies. As long as private banks that publish private currencies are federally verified to posses 100% of the reserves needed to back their currencies, there is no arbitrary inflation; no boom and bust cycles. That is how money should work.

By: Edcunanan

Edcunanan — Wed, 28 Dec 2011 19:19:00 +0000

That's the problem with today's economic system, they try to create money not value. If economics is the satisfaction of human wants, all we need to do is: Manage the human resource to utilize the environmental resouce to produce the requirement of the human, scientifically!

By: Bukenyaandy

Bukenyaandy — Sat, 17 Dec 2011 18:15:00 +0000

well if thats what is caused the slump, how sure are we that the recreated money will be used in a much more sensible manner so as not to seek more avenues of creating more money. in my opinion we really need to start thinking about how we use the money at our disposal. because even if we were to create more money and its also miss used then we follow the earlier trend then when will we stop creating. i think people need to check their money usage o as to create more than misusing it in pretense of agitating for more money because if we do so we shall only create a cycle which we shall never stop

By: Ronald M. Harriman

Ronald M. Harriman — Sat, 13 Feb 2010 22:48:10 +0000

Where do we go from here? Well let us step into the future.
The National Debt now matches the GDP and there are over $100 Trillion in unfunded mandates which would require taking all of the commercial activity in the U. S. for the next 7.2 years. Economically, with our present monetary system the historical result will be inflation, but this wont work on the unfunded mandates as they will increase at the same rate as inflation, and banks will increase interest to offset their loss on long term loans.
If you analyze the monetary structure and the interaction of money to the market the result leads to a discovery that private money creation by banks is unnecessary and is the cause of all of our 20th Century financial crises. Banks are no longer the repositories for safeguarding wealth; they are the handlers of created credit. The simple solution is to remove the ability of a private bank or financial institution to use fractional banking in money expansion. Sounds like a nutty suggestion, but this will occur at sometime in the future and will be the future financial structure. Banks are no longer necessary; they are a detrimental factor to and a financial burden on the citizens. Banks create the principal they loan to borrowers using fractional banking which allows them to lend 90% more than they actually have on deposit. The borrower is charged interest on this nonexistent created money along with the bank charges. When the principal is repaid the created nonexistent money no longer exists. All of the money the borrower paid on the loan is now removed from the money supply. Creating money should be the duty of the Government and should use the returning payments of principal to pay the costs of Government. If this were the monetary structure at this time the financial crisis would never have occurred nor would income tax or interest exist.
If we would convert to this system the un-payable unfunded mandates could be easily covered with the surplus from the reduced cost of government. The excess wealth would now be in the hands of the citizen rather than the banks and the government.
Using this method the expendable income of the U. S. citizen would exceed $3.5 Trillion dollars a year. If we stay with the present system the debt will stop our progress.