Ce que les banques, les universitaires, les médias et les politiciens ne pas vous parler de l'argent

Wednesday, November 19th, 2008 Mercredi, Novembre 19, 2008

The privilege of creating and issuing money is not only the supreme prerogative of government, but is the government’s greatest creative opportunity. Le privilège de la création et la délivrance de l'argent n'est pas seulement la prérogative suprême de gouvernement, mais le gouvernement est le plus créatif possible. By the adoption of these principles, the taxpayers will be saved immense sums of interest. — Abraham Lincoln Par l'adoption de ces principes, les contribuables seront enregistrées immenses sommes d'intérêt. - Abraham Lincoln

Most of what follows is the work of the extraordinary and admirable Stephen Zarlenga of the La plupart de ce qui suit est l'œuvre de l'extraordinaire et admirable Stephen Zarlenga de la American Monetary Institute Institut monétaire américaine . We have taken excerpts from various of his writings - including a 2003 speech to US Treasury staff - and blended it into one piece. Nous avons pris des extraits de plusieurs de ses écrits - y compris les discours de 2003 au personnel du Trésor américain - et en mélange en une seule pièce. Also included is an article we ran 1994 by Bob Blain and an excerpt from Sam Smith’s Great American Political Repair Manual, published by WW Norton in 1997. On y trouve aussi un article, nous avons couru 1994 par Bob Blain et un extrait de Sam Smith's Great American Political manuel de réparation, publié par WW Norton & Company en 1997.

Some history Un peu d'histoire

Stephen Zarlenga, American Monetary Institute - The money system is society’s greatest dispenser of justice or injustice. Stephen Zarlenga, Institut monétaire américain - Le système d'argent est la plus grande société de distribution de la justice ou l'injustice. A good one functions fairly, helping create values for life. Une bonne fonctions de manière équitable, contribuant à créer des valeurs pour la vie. A bad, unjust one obstructs the creation of values; gives special privileges to some and disadvantage to others causing unfair concentrations of wealth and power; leading to social strife and eventually warfare and a thousand unforeseen bad consequences - physical and spiritual. Une mauvaise, injuste un obstacle à la création de valeurs; donne des privilèges spéciaux à certains et à d'autres désavantage injuste causant la concentration de la richesse et le pouvoir; conduisant à des troubles sociaux et finalement la guerre et un millier de mauvaises conséquences imprévues - physique et spirituelle. . .

One reason economists have failed mankind so badly is their poor methodology - an over-reliance on theoretical reasoning. Une des raisons les économistes n'ont pas l'humanité est si mal leur mauvaise méthode - une sur-dépendance à l'égard raisonnement théorique. Alexander Del Mar the world’s greatest monetary historian noted: “As a rule economists. Alexandre Del Mar dans le monde monétaire plus grand historien a noté: «En règle générale les économistes. . . don’t take the trouble to study the history of money; it is much easier to imagine it and to deduce the principles of this imaginary knowledge.”. ne prennent pas la peine d'étudier l'histoire de la monnaie, il est beaucoup plus facile d'imaginer et d'en déduire les principes de cette connaissance imaginaire. ". . .

In England the struggle became the goldsmiths vs the monarchy representing society. En Angleterre, la lutte est devenue la orfèvres contre la monarchie qui représente la société. Later it was the Bank of England vs. society. Plus tard, il a été de la Banque d'Angleterre contre la société. Until then England’s money power was in the monarch’s hands. Jusque-là Angleterre pouvoir de l'argent a été dans les mains du monarque. But from that point, Bank of England credits would be substituted in place of public money. Mais à partir de ce point, la Banque d'Angleterre crédits seraient substitués à la place de l'argent public. This promoted a confusion between credit and money to this day. Cela a permis le développement d'une confusion entre établissements de crédit et de l'argent à ce jour. But they are different things. Mais ils sont deux choses différentes. Credit depends on the creditor remaining solvent. De crédit dépend du créancier reste du solvant. Real money does not promise to pay something else. Pour gagner de l'argent ne constitue pas une promesse de payer quelque chose d'autre. Money is on a higher order than credit. L'argent est sur un ordre plus élevé que le crédit.

Those behind the Bank of England obscured the real source of the bank’s power - its legal privilege. Ces derrière la Banque d'Angleterre a obscurci la source réelle de la banque de pouvoir - son privilège juridique. Its notes were accepted in payments to the government. Ses notes ont été acceptés dans les paiements au gouvernement. Recovering the science of money for the private profit of a small group produced harmful results: 120 years of continuous warfare spawned an unpayable national debt leading to excessive taxation leading to horrors like the Irish potato famine. Récupération de la science de l'argent privé pour le bénéfice d'un petit groupe a produit des résultats néfastes: 120 ans de guerre engendré une dette impayable national conduisant à une imposition excessive conduit à des horreurs comme la famine irlandaise de pommes de terre.

Before then, when a nation’s money system was used for taxation, the revenue generally aided the society. Auparavant, quand une nation de l'argent a été utilisé pour la taxation, les recettes généralement assistée par ordinateur de la société. But the Bank of England concentrated society’s resources in the wrong hands, crippling the possibility for government to function properly, leading to a growing contempt of government. Mais la Banque d'Angleterre concentré ressources de la société dans de mauvaises mains, paralysant la possibilité pour le gouvernement de fonctionner correctement, ce qui conduit à de plus en plus le mépris du gouvernement.

Today it’s still the bankers versus the society. Aujourd'hui, c'est encore contre les banquiers de la société. At base, the battle remains private money vs. public money. À la base, la bataille reste l'argent privé vs argent public. The outcome determines whether the money system operates to serve the few in control, or the whole society. Le résultat détermine si le système fonctionne d'argent pour servir dans le peu de contrôle, ou l'ensemble de la société. . .

Mankind can live under various forms of government from dictatorship to republic, but the best systems are those in harmony with human nature. L'humanité peut vivre sous diverses formes de gouvernement de la dictature à la république, mais les meilleurs systèmes sont ceux qui sont en harmonie avec la nature humaine. Likewise many things can be made into money, but the best will be the ones in harmony with the nature of money. De même beaucoup de choses peuvent être faites en argent, mais les meilleurs seront ceux qui sont en harmonie avec la nature de l'argent.

Remember: don’t confuse money with tangible wealth. Rappelez-vous: ne pas confondre avec l'argent des richesses tangibles. Yes, commodities can be improperly monetized by law. Oui, les produits de base peut être mal monétisé par la loi. The result will make the money system hostage to the commodities situation; hostage to the people, companies, countries that control the commodity. Le résultat sera le système de l'argent en otage à la situation de base; otage de la population, les entreprises, les pays qui contrôle la marchandise. Ultimately it removes the monetary power from society and places it into the hands of the wealthy. En fin de compte, elle supprime le pouvoir monétaire de la société et le place dans les mains des riches.

And don’t confuse money with credit - either private or public credit. Et ne pas confondre avec l'argent de crédit - soit privé ou public de crédit. Yes private credits can be improperly monetized by law. Oui crédits privés peuvent être mal monétisé par la loi. But that gives great privilege to those whose credits have been monetized, to the detriment of the whole society. Mais ce grand privilège donne à ceux dont les crédits ont été monétisée, au détriment de l'ensemble de la société. The money system then becomes an engine of injustice - as it is now. Le système de l'argent devient alors un moteur de l'injustice - comme elle l'est maintenant. . .

How private central banking started in America Comment privé de banque centrale a commencé en Amérique

First Step: Our Constitutional Convention, considered two grand themes on humanity: First whether mankind could be self-governing. Première étape: Notre Convention constitutionnelle, a examiné deux grands thèmes sur l'humanité: d'abord si l'humanité pouvait être autonome. This American experiment is still in doubt because the Convention mishandled the other grand theme over the nature of money. Cette expérience américaine est toujours en doute parce que la Convention mal l'autre grand thème sur la nature de l'argent.

They met from May to September 1787 but the money subject didn’t came up til August 16. Ils ont rencontré de Mai à Septembre 1787, mais l'argent n'a pas soumis a eu jusqu'à 16 août. Jefferson and Paine weren’t there. Jefferson et Paine, n'étaient pas là. Franklin was too old to speak. Franklin était trop vieux pour parler.

A curious book on money appeared, written anonymously by Calvinist clergyman John Witherspoon. Un curieux livre sur l'argent est apparu, par écrit anonyme pasteur calviniste John Witherspoon. The book attacked government money and promoted Adam Smith’s primitive view that only gold and silver are money. Le livre attaqué l'argent du gouvernement et de promouvoir Adam Smith's primitive que seuls l'or et l'argent sont de l'argent. . . .

The power for government to create money, long considered a necessary part of sovereignty was already in the articles of Confederation, but the Federalists fought to exclude this crucial power from the new government, arguing that it could not be trusted with it. Le pouvoir de gouvernement de créer l'argent, longtemps considéré un élément nécessaire de la souveraineté était déjà dans les articles de la Confédération, mais les fédéralistes ont lutté pour exclure cette question cruciale du pouvoir du nouveau gouvernement, en faisant valoir qu'elle ne pouvait pas faire confiance avec lui. Some of them intended to get hold of the power privately as had been done in England. Certains d'entre eux visent à obtenir de la puissance en privé comme cela a été fait en Angleterre.

The supreme importance of understanding the nature of money now becomes evident: For if money obtains its value from “intrinsic” qualities, it could be viewed more as a creature of merchants and bankers than of governments. La plus haute importance de comprendre la nature de l'argent devient maintenant évident: Car si l'argent obtenu à partir de sa valeur "intrinsèque" des qualités, il pourrait être considérée plus comme une créature de marchands et de banquiers que des gouvernements.

But if money’s essence is an abstract social institution obtaining value through law, then its a creature of government and the Constitution had better deal with it adequately. Mais si l'argent de l'essence est un résumé institution sociale obtenir la valeur par le biais de la loi, puis sa créature du gouvernement et de la Constitution a de mieux composer avec elle de manière adéquate. Describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. Décrivant comment une monnaie unique doit être fournie, contrôlé et maintenu raisonnablement stable, d'une manière juste. The Constitutional Convention faltered on this crucial question. La Convention constitutionnelle échoué sur cette question cruciale.

The delegates accepted Smith’s primitive concept of money and didn’t firmly place the money power into government’s hands, leaving it ambiguous. Les délégués ont accepté Smith notion primitive de l'argent et n'a pas lieu fermement le pouvoir de l'argent dans les mains du gouvernement, en laissant ambiguë.

But the power would still exist. Mais la puissance existent toujours. What I’m suggesting is that human affairs require government to have four branches, not three; the fourth branch to administer the money power. Ce que je suggère, c'est que les affaires humaines exigent du gouvernement d'avoir quatre branches, non pas trois, la quatrième branche d'administrer les fonds pouvoir.

The Constitution left the money power up for grabs. La Constitution a quitté le pouvoir de l'argent disponibles. Alexander Hamilton wasted no time in grabbing. Alexander Hamilton n'a pas perdu de temps à attraper.

Second Step: The Constitution went into effect in late 1789. Deuxième étape: La Constitution est entrée en vigueur à la fin de 1789. Hamilton’s first move as Secretary of the Treasury, was to assume $15 million of the state debts. Hamilton, premier pas en tant que Secrétaire au Trésor, a été à assumer 15 millions de dollars de dettes de l'État. . . an extremely unpopular act. un acte impopulaire. Why? Pourquoi?

The worthless debt was held by the revolutionary soldiers, farmers, manufacturers and merchants who furnished its supplies. La valeur la dette a été organisée par les soldats révolutionnaires, les agriculteurs, les fabricants et les marchands qui meublé ses approvisionnements. As Congress secretly passed the bill behind closed doors, the country was overrun by speculators, buying up the certificates for pennies on the dollar. Secrètement que le Congrès a adopté le projet de loi à huis clos, le pays a été envahie par les spéculateurs, l'achat de certificats pour les pièces de un cent sur chaque dollar.

Third step: Next Hamilton and associates, having kept the monetary power out of government, moved to assume it themselves. Troisième étape: Next Hamilton et associés, ayant conservé le pouvoir monétaire de gouvernement, a déménagé à assumer eux-mêmes. . .

Hamilton’s Federalists quickly put through legislation chartering the First Bank of The United States, as a privately owned central bank on the Bank of England model. Hamilton fédéralistes rapidement mettre la législation par le biais de l'affrètement la première banque des États-Unis, comme une entreprise privée de la banque centrale à la Banque d'Angleterre modèle. The Bank would be issuing paper notes not really backed by metal, but pretending to be redeemable in coinage, on the one condition that not a lot of people asked for redemption. La Banque publiera document relève pas vraiment soutenu par le métal, mais prétendant être remboursables dans la monnaie, d'une condition que pas beaucoup de gens demandé pour le rachat. They never had enough coinage. Ils n'ont jamais eu assez de monnaie.

Thus the real question was whether it would be private banks or the government that would issue paper money. Ainsi, la véritable question est de savoir si il serait privé des banques ou le gouvernement qui serait question du papier-monnaie. Will the immense power and profit of issuing currency go to the benefit of the whole nation, or to the private bankers? L'immense pouvoir et le profit de l'émission de monnaie pour aller au profit de l'ensemble de la nation, ou pour les banquiers privés? That’s always been the real monetary question in America. Cela a toujours été la véritable question monétaire en Amérique.

Gold and silver served as a smoke-screen. L'or et l'argent a servi comme un écran de fumée. What the bankers counted on were the legal considerations of the money. Qu'est-ce que les banquiers ont été comptées sur les considérations juridiques de l'argent. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Ils savaient que tout ce qui était nécessaire pour donner à leur valeur de document note, a été pour le gouvernement de les accepter en paiement de taxes. That, and not issuing too excessive a quantity. Que, d'émission et de ne pas trop une quantité excessive. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. Dans ces conditions, le document relève ils ont imprimé par magie, serait une créance sur toute la richesse existant dans la société.

Just where did the money for first bank of the US came from? Là où l'argent a pour la première banque des États-Unis sont arrivés à partir de? . . . The $10 million subscription for the banks’ shares, was oversubscribed within two hours. 10 millions de dollars d'abonnement pour les banques de parts sociales, a été sursouscrite dans les deux heures. Only 1/10 of it was ever paid in gold. Seulement 1 / 10 de celui-ci n'a jamais été payé en or. The rest was accepted in the form of bonds - the government bonds that Hamilton had turned from pennies on the dollar to full value. Le reste a été accepté sous la forme d'obligations - le gouvernement des obligations que Hamilton avait tourné à partir de pièces de un cent du dollar à la pleine valeur. The money for the private bank actually came from the American people. L'argent de la banque privée en fait provenait de la population américaine.

Thanks to Jefferson’s efforts, the bank was liquidated in 1811. Merci pour les efforts de Jefferson, la banque a été liquidée en 1811. Three quarters of it was found to be owned by English and Dutch. Les trois quarts de celui-ci a été retrouvé à être détenu par les Anglais et les Hollandais.

AMI’s proposed reforms AMI réformes proposées

- Nationalize the Federal Reserve System. - Nationaliser le Système fédéral de réserve. Reconstitute it in the US Treasury, to evolve into a fourth branch of government. Reconstituer dans le Trésor américain, d'évoluer pour devenir un quatrième pouvoir de gouvernement. Only the government would create money. Seul le gouvernement créerait l'argent.

- Remove the privilege which banks presently have to create money. - Supprimer le privilège des banques qui ont actuellement à créer l'argent. This is done through an elegant and gentle process which automatically turns all the previously issued bank credit into real American money. Cela se fait par l'intermédiaire d'un élégant et doux qui se transforme automatiquement tous les antérieurement émis crédit bancaire américain en argent réel. 100% reserves are reached not by calling in loans but by increasing reserves. 100% des réserves sont pas atteint par appel à des prêts, mais en augmentant les réserves. This would be neither inflationary or deflationary. Ce ne serait ni tensions inflationnistes ou déflationnistes.

- Institute programs for automatic, constitutionally determined government money creation, starting with the $2 trillion which the civil engineers need to bring our infrastructure up to acceptable levels. - Institut pour programs automatique, constitutionnellement déterminé la création d'argent du gouvernement, à commencer par le $ 2 billion dont les ingénieurs civils de la nécessité de mettre en place notre infrastructure à des niveaux acceptables. From there we go forward carefully determining how to best run the monetary system. De là, nous allons de l'avant avec soin de déterminer la meilleure façon d'exécuter le système monétaire. . .

What difference would reconstituting the money power in government make? Quelle différence de la reconstitution de l'argent au gouvernement le pouvoir faire? Government money goes into infrastructure; better life; better jobs; education, safer roads, cleaner water; better health care; social security, etc. Society is empowered by being able to direct the money power to solve pressing problems rather than into useless speculation. Va l'argent du gouvernement dans l'infrastructure, l'amélioration de la vie, de meilleurs emplois, l'éducation, la sécurité routière, la qualité de l'eau, l'amélioration des soins de santé, la sécurité sociale, etc Société est habilitée par la possibilité de diriger l'argent pour pouvoir résoudre des problèmes urgents plutôt que dans la spéculation inutile. We no longer have to say we can’t afford it, when so many people and resources are unemployed!. Nous n'avons plus à dire nous ne pouvons pas nous permettre, alors que tant de gens et les ressources sont au chômage!.

These three reforms can be closer than we think; and in a crisis situation if only 5% of the citizenry has an awareness of the societal/legal nature of money, they could be enacted. Ces trois réformes peut être plus proche que nous le pensons, et dans une situation de crise si seulement 5% de la population a une conscience de la société / nature juridique de l'argent, ils pourraient être adoptées.

The need for monetary reform La nécessité d'une réforme monétaire

The power to create money is an awesome power - at times stronger than the executive, legislative or judicial powers combined. Le pouvoir de créer l'argent est une puissance inouïe - à la fois plus forte que les pouvoirs exécutif, législatif ou judiciaire combiné. It’s like having a “magic checkbook,” where checks can’t bounce. C'est comme avoir un "chéquier magique», où les contrôles ne peuvent pas rebondir. When controlled privately it can be used to gain riches, but more importantly it determines the direction of our society by deciding where the money goes - what gets funded and what does not. Lorsque le contrôle en privé, il peut être utilisé pour obtenir des richesses, mais, plus important, il détermine les orientations de notre société en décidant où va l'argent - ce qui est financé et ce qui ne fonctionne pas. Will it be used to build and repair vital infrastructure such as levees to protect major cities? Sera-t-il être utilisé pour la construction et la réparation d'infrastructures vitales telles que les digues pour protéger les grandes villes? Or will it go into warfare or real estate loans, creating asset price inflation - the real estate bubble. Ou va-t-il en guerre ou de prêts immobiliers, la création de l'inflation des prix des actifs - la bulle immobilière.

Thus the money issuing power should never be alienated from democratically elected government and placed ambiguously into private hands as it is in America in the Federal Reserve system today. Ainsi, la délivrance de l'argent ne devrait jamais pouvoir être aliénés de gouvernement démocratiquement élu et mis en ambiguë entre des mains privées comme c'est le cas en Amérique dans le système de la Réserve fédérale aujourd'hui.

Indeed most people would be surprised to learn that the bulk of our money supply is not created by our government, but by private banks when they make loans. En effet, la plupart des gens seraient surpris d'apprendre que la majeure partie de notre offre de monnaie n'est pas créé par notre gouvernement, mais par des banques privées quand ils font des prêts. Most of our money is issued as interest-bearing debt. La plupart de notre argent est publié sous la dette portant intérêt.

We are borrowing this money system from private banks when instead we should own the system, not rent it. Nous sommes d'argent d'emprunt ce système de banques privées au lieu où nous devrions le propre système, et non pas le louer. Our government has the sovereign power to issue money (Art.1, Sect.8) and spend it into circulation to promote the general welfare through the creation and repair of infrastructure, including human infrastructure - health and education - rather than misusing the money system for speculation as banking has historically done. Notre gouvernement a le pouvoir souverain de question d'argent (Art. 1, Sect.8) et de passer en circulation à promouvoir le bien-être général par le biais de la création et la réparation de l'infrastructure, y compris l'infrastructure de l'homme - la santé et l'éducation - plutôt que d'abuser de l'argent système de la spéculation que la banque a toujours fait. Our lawmakers must now reclaim that power. Nos législateurs doivent maintenant reprendre ce pouvoir. . .

Unhappily, mankind’s experience with private money creation has undeniably been a long history of fraud, mismanagement and even villainy. Malheureusement, l'humanité de l'expérience acquise par l'argent privé avec la création a été indéniablement une longue histoire de fraude, de mauvaise gestion et même de méchanceté. Banking abuses are pervasive and self-evident. Les abus bancaires sont omniprésents et de soi. Major companies focus on misusing the money system instead of production. De grandes entreprises se concentrer sur un usage abusif de l'argent au lieu du système de production. For example, in June 2005, Citibank and Merrill Lynch paid over $1.2 Billion to Enron pensioners to settle fraud charges. Par exemple, en Juin 2005, la Citibank et Merrill Lynch versé plus de 1,2 milliard de dollars à Enron retraités pour régler les frais de fraude.

Private money creation through fractional reserve banking fosters an unprecedented concentration of wealth which destroys the democratic process and ultimately promotes imperialism. L'argent privé par le biais de la création de fractionnement de réserve bancaire favorise une concentration sans précédent de la richesse qui détruit le processus démocratique et, finalement, la promotion de l'impérialisme. Less than 1% of the population claims ownership of almost 50% of the wealth, but vital infrastructure is ignored. Moins de 1% de la population revendique la propriété de près de 50% de la richesse, mais l'infrastructure vitale est ignoré. The American Society of Civil Engineers gives a D grade to our infrastructure and estimates that $1.6 trillion is needed to bring it to acceptable levels. La Société américaine des ingénieurs civils donne un grade D à notre infrastructure et estime que 1,6 billion $ est nécessaire pour la porter à des niveaux acceptables.

That fact alone shows the world’s dominant money system to be a major failure crying for reform. Ce seul fait montre au monde dominante du système de l'argent à un grand échec de la réforme de pleurer.

Infrastructure repair would provide quality employment throughout the nation. Remise en état des infrastructures de fournir des emplois de qualité dans l'ensemble de la nation. There is a pretense that government must either borrow or tax to get the money for such projects. Il est un prétexte que le gouvernement doit emprunter soit l'impôt ou pour obtenir de l'argent pour de tels projets. But the government can directly create the money needed and spend it into circulation for such projects, without inflationary results. Mais le gouvernement peut créer directement l'argent nécessaire et de passer en circulation pour de tels projets, sans tensions inflationnistes résultats.

The false specter of inflation is usually raised against suggestions that our government fulfill its responsibility to furnish the nation’s money supply. Le faux Specter de l'inflation est habituellement soulevées à l'encontre des suggestions que notre gouvernement s'acquitter de sa responsabilité de fournir la nation la masse monétaire. But that is a knee jerk reaction - the result of decades, even centuries of propaganda against government. Mais c'est une réaction réflexe du genou - le résultat de décennies, voire des siècles de propagande contre le gouvernement. When one actually examines the monetary record, it becomes clear that government has a superior record issuing and controlling money than the private issuers have. Lorsque l'on examine la réalité monétaire record, il devient clair que le gouvernement a un record supérieur de délivrance et de contrôle de l'argent que les émetteurs privés ont. Inflation is avoided because real material wealth has been created in the process. Éviter l'inflation est réel parce que la richesse matérielle a été créé dans le processus.

From Stephen Zarlenga’s 2003 speech at the US Treasury De Stephen Zarlenga de 2003 au discours du Trésor américain

Perhaps the chief failure of economics is its inability, from Adam Smith to the present, to define or discover a concept of money consistent with logic and history. Peut-être le principal échec de l'économie est son incapacité, d'Adam Smith à l'heure actuelle, de définir ou de découvrir un concept de l'argent compatible avec la logique et l'histoire. Economists rarely define money, assuming an understanding of it. Les économistes définissent rarement l'argent, l'hypothèse d'une compréhension de celui-ci. It’s still being argued whether the nature of money is a concrete power, embodied in a commodity like gold; or whether it’sa credit/debit issued by private banks. Il est encore en cours a fait valoir que la nature de l'argent est un pouvoir concret, inscrit dans une marchandise comme l'or, ou si c'est un crédit ou de débit émises par des banques privées. Does its value come from the material of which it’s made? Est-ce que sa valeur proviennent de la matière dont il est fait? Or is it, as we have concluded, an abstract social power - an institution of the law, having value because its accepted in exchanges due to the sponsorship of government? Ou est-ce, comme nous l'avons conclu, un résumé du pouvoir social - une institution de la loi, ayant valeur parce que ses accepté dans les échanges en raison de la commandite du gouvernement? The correct answer leads to conclusions on the proper monetary role of government; whether the power to create and control money should be lodged, as at present in a somewhat ambiguous private issuer - the Federal Reserve System and its member banks - or should be wholly reconstituted within government. La réponse correcte mène à des conclusions sur le rôle monétaire du gouvernement; si le pouvoir de créer et de contrôler l'argent doit être déposé, comme à l'heure actuelle dans une certaine ambiguïté émetteur privé - le Système fédéral de réserve et de ses banques membres - ou devrait être entièrement reconstitué au sein du gouvernement. An accurate concept of money will light the way to solving the present fiscal crisis. Un concept précis d'argent sera tenu de la façon de résoudre la crise financière actuelle.

We have two basic approaches to understanding money: A theoretical method based on logic; and an empirical approach based on experience or history. Nous avons deux approches de base à la compréhension de l'argent: une méthode théorique basée sur la logique et une approche empirique basée sur l'expérience ou l'histoire. Practitioners of the two methods arrive at very different conclusions. Les praticiens des deux méthodes très parvenir à des conclusions différentes. Theoreticians usually support private commodity money and private credit money. Les théoriciens de soutien habituellement l'argent privé et les établissements privés de crédit d'argent. Historians normally want a much larger role for government. Les historiens veulent normalement un plus grand rôle pour le gouvernement.

Let’s start with Aristotle who gave the culmination of Greek thought and experiment on money around 330 BC: “All goods must therefore be measured by some one thing. Permettez-nous de commencer avec Aristote qui a donné le point culminant de la pensée grecque et l'expérimentation sur l'argent environ 330 avant JC: "Toutes les marchandises doivent donc être mesurée par certains d'une chose. . . now this unit is in truth, demand, which holds all things together. maintenant cette unité est dans la vérité, la demande, qui détient toutes les choses ensemble. . . but money has become by convention a sort of representative of demand; and this is why it has the name nomisma - because it exists not by nature, but by law (which in Greek was nomos) and it is in our power to change it and make it useless.” So Aristotle calls money a creature of the law. mais l'argent est devenu, par convention, une sorte de représentant de la demande, et c'est la raison pour laquelle il a le nom Nomisma - car il existe pas, par nature, mais par la loi (qui a été en grec nomos), et il est en notre pouvoir de le modifier et de le rendre inutile. "Aristote appelle donc l'argent une créature de la loi. Not a commodity from nature but an abstract social institution. Pas un produit de la nature, mais un résumé institution sociale. Its essence is not tangible wealth in itself, but a power to obtain wealth. Son essence n'est pas tangible richesse en soi, mais un pouvoir d'obtenir la richesse.

Plato agreed with Aristotle and advocated fiat money for his Republic: “The law enjoins that no private individual shall possess or hoard gold or silver bullion, but have money only fit for domestic use. D'accord avec Platon et Aristote préconise la monnaie fiduciaire de sa République: "La loi enjoint qu'aucune personne privée doit posséder ou stocker l'or ou l'argent métal, mais ont de l'argent seulement bon pour l'usage domestique. . . . wherefore our citizens should have a money current among themselves but not acceptable to the rest of mankind. c'est pourquoi les citoyens devraient avoir un courant d'argent entre eux, mais pas acceptable pour le reste de l'humanité. . . ” And: “Then they will need a market place, and a money-token for purposes of exchange.” »Et:« Ensuite, ils auront besoin d'un marché, et un jeton d'argent à des fins d'échange. "

So both Aristotle and Plato noted the paramount principle - that the nature of money is a fiat of the law, an invention or creation of mankind. Ainsi, les deux Aristote et Platon a noté le principe suprême - que la nature de l'argent est une fiat de la loi, une invention ou la création de l'humanité. This principle, part of a lost science of money, must now be relearned in the Third Millennium in order to achieve the monetary reforms needed to move back from the brink of nuclear disaster, to move away from a future dominated by fraud and ugliness, toward a world of justice and beauty. Ce principe, une partie de la science a perdu de l'argent, doit maintenant être relearned dans le troisième millénaire en vue de réaliser les réformes nécessaires monétaire de retourner de bord de la catastrophe nucléaire, de passer d'un avenir dominé par la fraude et la laideur, vers un monde de justice et de la beauté.

This “private vs. public” battle for the control of the money power is part of a great ongoing social battle recurring throughout history to this day. Ce "privé vs public" bataille pour le contrôle de la puissance d'argent fait partie d'une grande bataille en cours sociaux récurrents tout au long de l'histoire à ce jour. This factor shapes the most important outcomes determining how well a money system works. Ce facteur formes résultats les plus importants de déterminer comment un système fonctionne argent. A good system functions fairly; helping the society create values for living. Un bon système fonctionne de façon équitable; aider la société de créer des valeurs pour la vie. A bad one obstructs the creation of values; places special privileges in the hands of some to the disadvantage of others, and promotes unfair concentrations of wealth and power, and disharmony and social strife. Une mauvaise obstacle à la création de valeurs; lieux de privilèges spéciaux dans les mains de certains au détriment des autres, et favorise la concentration injuste des richesses et du pouvoir, et la mésentente et les conflits sociaux.

Now it may be surprising, but the historical record actually shows that publicly controlled systems function much better than private ones. Maintenant, il serait surprenant mai, mais l'histoire montre que les systèmes de contrôle public fonction beaucoup mieux que privés. Furthermore, it shows that the concept of money - how money is defined - usually determines whether the system will be publicly or privately controlled. En outre, il montre que la notion de l'argent - la manière dont l'argent est défini - en général détermine si le système sera publique ou privée contrôlée. . .

Our American experience contains many of the best case studies for understanding money. Notre expérience de l'Amérique contient de nombreuses des meilleures études de cas pour la compréhension de l'argent. We have been a great monetary laboratory - every conceivable solution was tried at some time, and we’ve been a paper money nation from colonial days. Nous avons été un grand laboratoire monétaire - chaque solution a été jugé à un moment donné, et nous avons été une nation du papier-monnaie de la période coloniale. Our development was inseparable from it - without it there’d be no United States. Notre développement est indissociable de celui-ci - sans qu'il n'y aurait pas des États-Unis.

English and Dutch laws forbade sending coinage to the colonies, placing them in continual distress. L'anglais et le néerlandais lois interdit l'envoi de pièces de monnaie dans les colonies, les placer dans la détresse continue. The intent was to extract raw materials, not for the colonists to trade with each other. L'intention était d'extraire des matières premières, pas pour les colons de commerce les uns avec les autres. An early form of globalization. Une forme précoce de la mondialisation. The colonies had to devise monetary innovations. Les colonies de mettre au point des innovations monétaire.

In the period 1632 - 92, seventeen different commodities were monetized by law at specified prices. Au cours de la période 1632 - 92, dix-sept différents produits de base ont été monétisé par la loi à des prix. It didn’t work - everyone wanted to pay with the least desirable commodity, in the worst condition. Il n'a pas de travail - tout le monde voulait payer avec le moins souhaitable de base, dans les pires conditions. . .

Private land banks were set up but were shunned by the colonists, who considered money a prerogative of government, as it was in England until 1694. Banques de terrains privés ont été mis en place mais ont été rejetés par les colons, qui considèrent l'argent une prérogative du gouvernement, comme il l'a été en Angleterre jusqu'en 1694.

Then in 1690, four years before the Bank of England, Massachusetts embarked on a radical course and issued paper bills of credit, spending them into circulation. Puis, en 1690, quatre ans avant de la Banque d'Angleterre, le Massachusetts a entrepris un radical cours et a émis des factures papier de crédit, les dépenses en circulation. Rather than a promise to pay anything, they were a promise to receive them back for all payments to the commonwealth. Plutôt que d'une promesse de payer quoi que ce soit, ils ont été une promesse de les recevoir de retour pour tous les paiements à la Communauté. The colony thrived. La colonie a prospéré. Other colonies copied them and infrastructure arose. Autres copié les colonies et d'infrastructures se pose.

In 1723 Pennsylvania’s system loaned the bills into circulation, charging interest on them and using it to pay colonial expenses. En 1723 en Pennsylvanie le système de prêt les projets de loi en circulation, des intérêts sur ceux-ci et l'utiliser pour payer les frais coloniale. Ben Franklin wrote: Ben Franklin a écrit:

“Experience, more prevalent than all the logic in the World, has fully convinced us all, that paper money has been, and is now of the greatest advantages to the country.” . "L'expérience, plus répandue que toute la logique dans le monde, a pleinement convaincu de nous tous, que la monnaie de papier a été et est maintenant de plus grands avantages pour le pays.". . .

Some long lost principles of the science of money quickly resurfaced: Certains depuis longtemps perdu principes de la science de l'argent rapidement ressurgi:

- Money need not have intrinsic value; its nature is more of an abstract legal power than a commodity. - Pas besoin d'argent ont une valeur intrinsèque, sa nature est plus un résumé de pouvoir juridique d'un produit.

- Accepting the government paper back in taxes was the key feature needed to give it circulating value. - Accepter le gouvernement papier d'impôts a été l'élément clé nécessaire pour lui donner la valeur en circulation.

- The quantity of money in circulation had to be regulated to maintain its value. - La quantité de monnaie en circulation a dû être réglée pour maintenir la valeur.

- They observed that paper money helped build real infrastructure. - Ils ont fait observer que la monnaie de papier à la construction d'infrastructures réelles.

- Most importantly, the colonies did not issue more money than their legislatures authorized. - Plus important encore, les colonies n'a pas donné plus d'argent que leurs assemblées législatives autorisé. They have an outstanding record issuing currency. Ils ont un bilan remarquable émettre de la monnaie. Of over a hundred colonial issues I found only one case of fraud. De plus d'une centaine de questions coloniales J'ai trouvé un seul cas de fraude. In Virginia, a Mr. Robertson who was supposed to be burning the old notes as new ones were printed, was giving them to friends instead. En Virginie, M. Robertson, qui était censé être de brûler les vieux note que de nouveaux ont été imprimés, a été de leur donner lieu à des amis.

But in the battle for monetary dominance, the colonial monetary experience has been miscast as irresponsible inflation money. Mais dans la bataille pour la domination monétaire, l'expérience coloniale monétaire a été miscast irresponsable que l'inflation l'argent. This was the result of 18th century Boston’s medical Dr. William Douglas’ inaccurate writings. Cela a été le résultat du 18e siècle Boston médical du Dr William Douglas écrits inexacts. The error was corrected by Alexander Del Mar in 1900 in The History of Money in America, but was ignored. L'erreur a été corrigée par Alexandre Del Mar en 1900 dans l'histoire de la monnaie en Amérique, mais a été ignorée. It was authoritatively cleared up again by Professor Leslie Brock in 1976 and again ignored. Il a été autorisée de nouveau autorisé par le professeur Leslie Brock en 1976 et de nouveau ignoré. Many economists, and especially the libertarians, still haven’t got the message that colonial government paper money was crucial in building the colonies. Beaucoup d'économistes, et en particulier les libertaires, n'ont toujours pas reçu le message que l'administration coloniale du papier-monnaie a été crucial dans la construction de colonies.

In 1764, England’s Lords of Trade and Plantations prohibited all colonial legal tender issues, and that became the underlying cause of the American Revolution, not some tax on tea. En 1764, l'Angleterre Lords du commerce et de plantations coloniales interdit toutes les questions juridiques d'appel d'offres, et qui est devenu la cause sous-jacente de la Révolution américaine, pas une taxe sur le thé.

The continental currency became the lifeblood of the revolution. La monnaie continentale est devenue le moteur de la révolution. $200 million was authorized and $200 million issued. $ 200 millions a été autorisé et de 200 $ millions émis. The currency functioned well. La devise bien fonctionné. In late 1776 the notes were only at a 5% discount against coinage, when General Howe took over New York City and made it a center for British counterfeiting. À la fin de 1776 les notes ont été seulement à une réduction de 5% contre la monnaie, lorsque le général Howe a pris la ville de New York et en a fait un pôle de la contrefaçon britannique. The Brits counterfeited billions; newspaper ads openly offered the forgeries. Les Britanniques contrefaits milliards; d'annonces dans les journaux ouvertement offert le faux. . . In March 1778 after 3 years of war, it was $2.01 Continental for $1 of coinage. En Mars 1778 après 3 années de guerre, il a été Continental 2,01 $ pour 1 $ de monnaie.

The continentals carried us over 5 1/2 years of Revolution to within 6 months of its final victory. Le procédé nous Continentals plus de 5 1 / 2 ans de la Révolution à un délai de 6 mois de sa victoire finale. Thomas Paine wrote: “Every stone in the Bridge, that has carried us over, seems to have a claim upon our esteem. Thomas Paine a écrit: "Chaque pierre dans le Pont, qui a réalisé plus de nous, semble avoir une réclamation à notre estime. But this was a corner stone, and its usefulness cannot be forgotten.” Mais ce fut une pierre angulaire, et son utilité ne peut pas être oublié. "

Our constitutional convention considered two grand themes of humanity: First whether mankind could be self-governing or had to be ruled by authority. Notre convention constitutionnelle a examiné deux grands thèmes de l'humanité: d'abord si l'humanité peut être autonome ou ont dû être jugé par les autorités. Often referred to as the American experiment. Souvent dénommé expérience américaine. We are still learning the outcome, and one of the reasons it’s still in doubt is because of the way the convention mishandled the other grand theme - the nature of money. Nous sommes toujours en train d'apprendre le résultat, et une des raisons pour lesquelles il est toujours en doute à cause de la façon dont la convention mal l'autre grand thème - la nature de l'argent. By the time of the convention, the great benefits of the continentals was nearly ignored; along with much of the rest of our hard won monetary experiences. Au moment de la convention, les grands avantages de la Continentals a été presque ignoré; avec une grande partie du reste de notre durement monétaire expériences. Some wanted to emphasize that the continentals became worthless and rejected the idea of paper money altogether. Certains voulaient à souligner que la Continentals est devenu inutile et rejeté l'idée de tout papier-monnaie.

They ignored that paper money was crucial in giving us a nation; that abstract money requires an advanced legal system in place; that the normal method of assuring its acceptability is to allow the taxes to be paid in it. Ils n'ont pas tenu compte que du papier-monnaie est crucial de donner de nous une nation; résumé que l'argent avancé nécessite un système juridique en place, que la méthode normale d'assurer son acceptabilité est de permettre à l'impôt à payer en elle. . .

The convention met from May to September 1787 but the money subject didn’t come up until August 16. La Convention s'est réunie de Mai à Septembre 1787, mais sous réserve de l'argent ne vient pas jusqu'au 16 août. Remember, Jefferson and Paine were not there. Rappelez-vous, Jefferson et Paine, n'étaient pas là. Franklin was too old to speak. Franklin était trop vieux pour parler.

A curious book on money appeared just then, written anonymously by Calvinist Minister John Witherspoon, - the only clergyman signer of the declaration of Independence. Un curieux livre sur l'argent semble juste alors, par écrit anonyme calviniste ministre John Witherspoon, - le seul pasteur signataire de la déclaration de l'indépendance. The book attacked government money and promoted Adam Smith’s view that only gold and silver are money. Le livre attaqué l'argent du gouvernement et de promouvoir Adam Smith est d'avis que seul l'or et l'argent sont de l'argent. . .

The power for government to properly create money, long considered as a necessary part of sovereignty, was contained in five magic words - to emit bills of credit. Le pouvoir pour le gouvernement de créer correctement l'argent, longtemps considéré comme un élément nécessaire de la souveraineté, figure dans cinq mots magiques - à émettre des lettres de crédit. This provision was already in the Articles of Confederation, but the Federalists - the merchant/commercial interest, largely responsible for calling the Constitutional Convention in order to strengthen the national government, fought to exclude this monetary power from the new government, arguing that it could not be trusted with it. Cette disposition a été déjà dans les articles de la Confédération, mais les fédéralistes - le marchand / commercial, en grande partie responsable pour appeler la Convention constitutionnelle en vue de renforcer le gouvernement national, ont lutté pour exclure ce pouvoir monétaire du nouveau gouvernement, en faisant valoir qu'elle pourrait ne pas être digne de confiance avec lui. Some of them intended to get hold of the power privately as had been done in England. Certains d'entre eux visent à obtenir de la puissance en privé comme cela a été fait en Angleterre.

The supreme importance of the concept of money now becomes evident: For if money is primarily a commodity, convenient for making trades, which obtains its value out of “intrinsic” qualities, then it could be viewed more as a creature of merchants and bankers than of governments. La plus haute importance de la notion de l'argent devient maintenant évident: Car si l'argent est avant tout un produit de base, pratique pour faire des métiers, qui tire sa valeur de «intrinsèque» des qualités, il pourrait alors être considéré plus comme une créature de marchands et de banquiers que des gouvernements.

But if the true nature of money is an abstract social institution embodied in law - obtaining its value largely through legal sanctions, then its more a creature of governments, and the Constitution had better deal with it adequately - describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. Mais si la vraie nature de l'argent est un résumé institution sociale inscrit dans la loi - l'obtention de sa valeur en grande partie par le biais de sanctions légales, sa plus une créature des gouvernements, et la Constitution a de mieux composer avec elle de manière adéquate - en décrivant de quelle façon uniforme monnaie est à à condition, contrôlé et maintenu raisonnablement stable, d'une manière juste. It was on this crucial question that the Constitutional Convention faltered. C'est sur cette question cruciale que la Convention constitutionnelle échoué.

The delegates accepted Adam Smith’s primitive commodity definition of money as gold and silver and didn’t firmly place the monetary power into government, leaving it ambiguous. Les délégués ont accepté de Adam Smith définition des primitives de l'argent que l'or et l'argent et n'a pas lieu fermement le pouvoir monétaire dans le gouvernement, en laissant ambiguë. Later they’d argue over what they had done. Plus tard, ils vous soutiennent plus de ce qu'ils avaient fait. But the power would still exist, since it is as important as the legislative, judicial and executive powers. Mais le pouvoir existent encore, car il est aussi important que les mesures législatives, judiciaires et exécutives.

I am suggesting that the nature of human affairs requires government to have four branches, not three; the fourth branch to embody and administer the monetary power. Je suggère que la nature des affaires humaines nécessite gouvernement d'avoir quatre branches, non pas trois, la quatrième branche d'incarner et d'administrer le pouvoir monétaire.

The Constitution trusted the people with the political power; but didn’t firmly place the monetary power in their government. La Constitution de confiance avec le peuple le pouvoir politique, mais n'a pas lieu fermement le pouvoir monétaire en leur gouvernement. This (along with slavery) is the original sin of American politics. Cette (avec l'esclavage) est le péché originel de la politique américaine. As a result the power was left up for grabs. En conséquence, le pouvoir a été laissée disponibles. Alexander Hamilton wasted no time in “grabbing.” Alexander Hamilton n'a pas perdu de temps dans "illicite".

The Constitution went into effect in late 1789; Van Buren described Hamilton’s first move as Secretary of the Treasury, in 1790: “Hamilton assumed some $15 million of the state debts. La Constitution est entrée en vigueur à la fin de 1789; Van Buren décrit Hamilton, premier pas en tant que secrétaire du Trésor, en 1790: "Hamilton a assumé environ 15 millions de dollars de dettes de l'État. . . an act. un acte. . . neither asked nor desired by the states, unconstitutional and inexpedient. n'a ni demandé ni souhaité par les Etats, inconstitutionnelle et inopportun. . . ” "

What was so bad about it? Ce qui a été si mal à ce sujet? “A large proportion of the domestic debt (was held by) the soldiers who fought our battles, and the farmers, manufacturers and merchants who furnished supplies for their support. "Une grande proportion de la dette intérieure (a été organisé par) les soldats qui ont combattu nos batailles, et les agriculteurs, les fabricants et les marchands qui meublées de fournitures pour leur soutien. . . .When it became known to members of Congress, which sat behind closed doors, that the bill would pass. . Quand il est devenu connu aux membres du Congrès, qui assis derrière des portes closes, que le projet de loi passe. . . every part of the country was overrun by speculators, by horse, and boat, buying up large portions of the certificates for (pennies on the dollar).” Madison, attempted to have the law pay speculators less than the original holders, but was voted down. chaque partie du pays a été envahie par les spéculateurs, à cheval et en bateau, l'achat de grandes portions des certificats pour (cents sur le dollar). "Madison, ont tenté de la loi des spéculateurs payer moins que les détenteurs originels, mais a été voté vers le bas.

Next Hamilton and associates, having kept the monetary power out of government hands, moved to assume it themselves. Suivant Hamilton et associés, ayant conservé le pouvoir monétaire des mains du gouvernement, propose d'assumer eux-mêmes. The Bank of North America was the only bank in the US, formed in Pennsylvania on Tom Paine’s initiative to assist the revolution. La Banque de l'Amérique du Nord a été la seule banque aux États-Unis, formé en Pennsylvanie, Tom Paine, sur l'initiative d'aider la révolution. Arguing that it was only a state bank, Hamilton suggested it come forward if it wanted to alter itself for the national purpose. Faisant valoir qu'il ne s'agissait que d'une banque d'Etat, Hamilton a suggéré qu'il se présenter si elle voulait elle-même pour modifier l'objectif national. Curiously, the bank took no steps toward this obvious increase in profit and power. Curieusement, la banque n'a pas pris de mesures en vue cette évidence en augmentation de profits et pouvoir.

Hamilton’s Federalists quickly put through legislation to charter the First Bank of The United States, as a privately owned central bank on the Bank of England model. Hamilton fédéralistes rapidement mis par la législation de la charte de la First Bank des États-Unis, comme une entreprise privée de la banque centrale à la Banque d'Angleterre modèle. The Bank would be issuing paper notes not really backed by metal, but pretending to be redeemable in coinage, on the one condition that not a lot of people asked for redemption. La Banque publiera document relève pas vraiment soutenu par le métal, mais prétendant être remboursables dans la monnaie, d'une condition que pas beaucoup de gens demandé pour le rachat. They really did not have the coinage. Ils n'ont pas la monnaie. The bank would do what they had blocked the government from doing. La banque ferait ce qu'ils avaient bloqué le gouvernement de faire. Print paper money. Imprimer du papier-monnaie.

While gold and silver served as a smoke-screen what the bankers really counted on, were the legal considerations of the money. Alors que l'or et l'argent a servi comme un écran de fumée-ce que les banquiers vraiment compter sur, ont été les considérations juridiques de l'argent. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Ils savaient que tout ce qui était nécessaire pour donner à leur valeur de document note, a été pour le gouvernement de les accepter en paiement de taxes. That, and not issuing too excessive a quantity of them. Que, d'émission et de ne pas trop une quantité excessive d'entre eux. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. Dans ces conditions, le document relève ils ont imprimé par magie, serait une créance sur toute la richesse existant dans la société.

And we see why the Bank of North America was not put forward for this purpose: the US government had owned 60% of it. Et nous voyons la raison pour laquelle la Banque de l'Amérique du Nord n'a pas été avancé à cet effet: le gouvernement américain était propriétaire de 60% de celui-ci. . . . The government would only own 20% of the new bank. Le gouvernement ne propres de 20% de la nouvelle banque.

Just where did the money for first Bank of the US came from? Là où l'argent a pour la première Banque des États-Unis sont arrivés à partir de? The $10 million share subscription for the banks shares, was oversubscribed within 2 hours. 10 millions de dollars souscription d'actions pour les banques d'actions, a été sursouscrite dans les 2 heures. Less than 1/10 of it was ever paid in gold. Moins de 1 / 10 de celui-ci n'a jamais été payé en or. The rest of the payment was accepted in the form of bonds - the very government bonds that Hamilton had turned from pennies on the dollar to full value. Le reste du paiement a été acceptée sous la forme d'obligations - les très bons de l'administration que Hamilton avait tourné à partir de pièces de un cent du dollar à la pleine valeur. So you see where the money for the bank actually came from - from the American people. Donc, vous voyez où l'argent de la banque est venue en fait de - de la population américaine. That’s how private central banking started in America. C'est la manière dont les banques centrales ont commencé en Amérique.

Thanks in large part to Jefferson’s efforts, the bank was liquidated in 1811. Merci en grande partie aux efforts de Jefferson, la banque a été liquidée en 1811. Three quarters of it was found to be owned by Europeans - English and Dutch. Les trois quarts de celui-ci a été retrouvé à être détenu par des Européens - l'anglais et le néerlandais.

The 2nd Bank of the US - the bank from hell - operated illegally from inception, accepting IOU’s instead of the required gold in payment for its shares. La 2e banque des États-Unis - la banque de l'enfer - exploité illégalement depuis le début, d'accepter IOU du lieu de l'exigence de l'or en paiement de ses actions. So again the banker’s gold “requirement” turned out to be a masquerade. Ainsi, le nouveau banquier de l'or "exigence" s'est avéré être une mascarade.

This private central bank immediately embarked on a wild monetary expansion. Cette banque centrale privée immédiatement entrepris une expansion monétaire sauvages. Beginning operations in April 1817, by July it had 19 branch offices and had created $52 million in loans on its books and an additional 9 million in circulating currency, based on gold and silver coin reserves of only $2.5 million. Début des opérations en avril 1817, par Juillet il avait 19 bureaux et a créé 52 millions de dollars en prêts sur ses livres et une supplémentaire de 9 millions de dollars en circulation la monnaie, basée sur l'or et pièce d'argent que les réserves de 2,5 millions de dollars. This tremendous expansion caused a wild speculative boom. Cette expansion a provoqué un boom spéculatif sauvage. Then in August 1818, the bank turned abruptly and began an insane contraction, causing the panic of 1819. Puis, en août 1818, la banque s'est brusquement et a commencé une contraction fou, provoquant la panique de 1819. It cut its outstanding loans and advances from a high of $52 million, down to $12 million in I819. Il a réduit son encours de prêts et avances d'un maximum de 52 millions de dollars, à 12 millions de dollars en I819. Its circulating notes dropped from $10 million to $3.5 million in 1820. Ses notes en circulation a diminué de 10 millions de dollars à 3,5 millions de dollars en 1820. A massive wave of bankruptcies swept the nation. Une vague massive de faillites a balayé la nation.

The subsequent history of this bank and its fight to the death with President Jackson reads like a financial soap opera. Par la suite, l'histoire de cette banque et sa lutte pour la mort avec le Président Jackson se lit comme un feuilleton financier. The story of various state chartered banks is similar. L'histoire de diverses banques à charte d'État est similaire.

Meanwhile the US government acted responsibly In the aftermath of liquidation of the first and second bank; US Treasury notes were substituted in place of banknotes. Pendant ce temps, le gouvernement des États-Unis a agi de manière responsable À la suite de la liquidation de la première et la deuxième banque du Trésor des États-Unis ont été remplacées en place des billets de banque. About $65 million were authorized and only $37 million actually issued. A propos de $ 65 millions ont été autorisées et seulement 37 millions $ effectivement émis. The US Treasury spent them into circulation. Le Trésor américain a passé en circulation. Initially they were all large denomination, paid interest; were redeemable in gold and required formalities to transfer. Au départ, elles étaient toutes grosses coupures, payé des intérêts, sont remboursables en or et formalités de transfert. By 1815 they became bearer certificates with no redemption date, paid no interest and were in smaller denominations. En 1815 ils sont devenus des certificats au porteur, sans date de rachat, payé aucun intérêt et étaient en petites coupures. Thus they were nearly a true money form. Ainsi, ils ont été près d'une véritable forme d'argent. The fact is that the US government has always acted responsibly in creating money. Le fait est que le gouvernement américain a toujours agi de façon responsable dans la création de l'argent. Not so the private banks. Pas si les banques privées.

Greenbacks were on balance our best money system to date Thanks to 100 years of misreporting, the image of the greenbacks coming down to us is as inflated or worthless paper money. Verts ont été sur la balance de notre mieux l'argent à l'heure actuelle Merci à 100 ans de fausses déclarations, l'image des verts à venir jusqu'à nous est gonflé ou en tant que valeur du papier-monnaie. In fact, $450 million were authorized and $450 million were printed. En fait, 450 millions de dollars ont été autorisés et $ 450 millions ont été imprimés. Counterfeiters couldn’t duplicate the Greenbacks. Contrefacteurs ne pouvait pas faire double emploi avec les verts. Every Greenback was eventually exchangeable one for one with gold coin. Chaque Greenback a finalement été échangés l'un pour l'autre médaille d'or.

But greenbacks were not promises to pay money later - they were the money. Mais verts ne sont pas des promesses de verser de l'argent plus tard - ils ont l'argent. Since they were not borrowed, they did not give rise to interest payments and did not add to any national debt. Comme ils n'ont pas été empruntés, ils n'ont pas donné lieu à des paiements d'intérêts et ne pas ajouter à la dette nationale tout. The US Treasury printed them and spent them into circulation. Le Trésor américain imprimé leur passé et en circulation.

Economists usually harp on the Greenbacks dropping to 36 cents in gold, and they leave it at that. Les économistes en général sur la harpe verts de tomber à 36 cents en or, et ils en rester là. While that happened, its highly misleading. Tout ce qui s'est passé, son extrêmement trompeuse. . .

What did happen was that in June 1864, Congress limited the amount of Greenbacks to $450 million. Qu'est-ce que c'est que se produire en Juin 1864, le Congrès a limité le montant des verts à $ 450 millions.

There was inflation, but remember 13% of the population was fighting a terrible war. Il a été l'inflation, mais n'oubliez pas que 13% de la population a été la lutte contre une terrible guerre. 625,000 died. 625.000 morts. Greenbacks performed well despite being spent on destruction. Verts bien malgré consacrés à la destruction. They were also being abused by the bankers. Ils ont également été victimes de mauvais traitements par les banquiers. For every greenback created by Congress, the banking system created $1.49 in bank notes. Pour chaque dollar créée par le Congrès, le système bancaire 1,49 $ créé en billets de banque.

What if instead of being spent on destruction, they went into building infrastructure, and canals and roads? Et si au lieu d'être dépensé sur la destruction, ils sont allés dans la construction d'infrastructures, et des canaux et des routes? Spending such money on infrastructure need not be inflationary. Dépenses de tels fonds sur l'infrastructure ne doit pas être inflationniste. For example the Erie Canal lowered freight prices from $114 a ton down to $9 a ton. Par exemple, le canal Érié abaissé les prix du fret à partir de $ 114 a tonne $ à 9, un ton.

The great lesson of greenbacks is that in times of crisis - and other times too - our nation has power to do what is financially necessary, through our government. La grande leçon de verts est que, en période de crise - et d'autres fois trop - de notre nation a le pouvoir de faire ce qui est nécessaire financièrement, par l'intermédiaire de notre gouvernement. We don’t have to beg or borrow money from the wealthy and, create an astronomical national debt. We don’t have to tax the middle class into oblivion, or cancel necessary programs. We can carefully use the nations’ sovereign money power far more than we presently have been allowed to realize.

At the time of the greenbacks there were those who fully understood. Senator Howe said: “We must rely mainly upon a paper circulation; and . . . that the paper, whoever issues it, must be irredeemable. All paper currencies have been and ever will be irredeemable. It is a pleasant fiction to call them redeemable. . . I would not expose that fiction only that the great emergency which is upon us seems to me to render it more than usually proper that the nation should begin to speak the truth to itself; to have done with shams, and to deal with realities.”

The struggle between private versus public control of money continued throughout the 19th century. The greenbacks continued to constitute about a third of our money supply. Generally the private money power dominated. But in periods when the government exercised control, an excellent record was established- superior to that of private control. The bankers continued their pretense that gold was the basis of the system, and even the Federal Reserve in 1913 appeared to be a gold-based system. But immediately upon inception, we were pushed into warfare. Within 20 years Americas farms, cities, exchanges and money system were all wrecked, ending in the great depression. It was again left to our government to rescue the nation.

It’s forgotten today, but the Thomas Amendment passed with legislation in 1933, gave the President the power to create $3 billion in greenbacks if the banking system didn’t co-operate. . .

The de-funding of government at the local, state and federal levels, arises out of this disease of attacking government as the enemy.

This attack on government starts with Adam Smith. His purpose in smearing the English government was to keep the monetary power in the hands of the privately owned Bank of England. . .

To summarize the argument: The nature of the money power is societally derived, not one originating in the activities of private corporations. Because of its great importance to all, control over the process belongs under public authority. Both logic and history show that its not safe to delegate this power, and certainly not acceptable to allow its usurpation.

The current bailout

The demand for immediate action to avoid a meltdown is misplaced. Immediate and wrong action will accelerate the meltdown. There is only one thing Congress can do to inspire confidence and avoid a meltdown - that is to take deliberate and careful and good workable action to help resolve the crisis. In other words to fulfill its congressional duty to America. . .

Getting it right means requiring several conditions to protect the American people from the gang that’s been financially raping the nation; that gave us the unnecessary Iraqi war. It means facing the facts on where the banking crisis is and how it got there. It means examining the monetary and economic reforms of the Federal Reserve System that will assure that such thievery or foolishness won’t happen again; and taking back from those who improperly benefited from the tragedy and prosecuting them.

At the heart of the problem is that our money system has been privatized. Naturally it’s being run for the benefit of the “privates” in control, with minimal concern for the public interest. . .

Rather than borrowing the $700 billion being demanded, and ending up paying back about 3 times that amount after interest charges, The US government could issue the money the same way the banks do, instead of borrowing it from them. But while the banks issue credit that substitutes for money, the US would issue actual money. Our government has the power to create the money, in an account, or by simply printing it as greenbacks.

There would not be inflationary effects, because it was already believed that those moneys existed in the form of the real estate values and loans. In effect this would stop a deflation which would follow from writing down those assets and loans to their present market values. Some conditions would be needed to assure that the banking system did not use those greenback dollars for further credit creation, as that would be inflationary. In essence the greenbacks would not be “re-discountable” by the banking system to create more loans, but would be legal tender for all debts public and private. . .

What the administrations proposal is doing is almost identical to what Keynes did during the Great Depression. He insisted that the bailout be in terms of government going into more debt to the banking system, whereas the Chicago Plan by the greatest economists in the nation at that time, was promoting the government to create money (greenback equivalents) instead of debt. . .

Keynes won the argument but his program did not work and it was only WW2 and [with] wartime employment, creating tanks to be blown up, airplanes to be shot out of the sky, and ships to be sunk, that Americans went back to work and we worked our way out of the depression, and into more debt. That’s where this proposal leads. Keynes answer was that “in the long run we are all dead,” but not our posterity. Based on what happened following his program before, our descendants, and society that survives become enslaved.

Unless monetary reform is in the mix now, it could take a tremendous worsening of the situation to come up again soon. One articulate friend, George Romero, summed it up for me: “The private sector has failed. The public sector is expected to rescue them, and it will. Therefore the public sector should be in control of the money system to benefit the country.”

The Chicago Plan of the 1930s

Henry Simons from the University of Chicago created the proposal and prominent economists from other universities joined him in what became known as the “Chicago Plan.”Economists like Paul Douglas of the U of C.; Frank Graham and Charles Whittlesley of Princeton; Irving Fisher of Yale; Earl Hamilton of Duke; and Willford King of NYU, to name a few. One version was sent to all the academic economists â€“ about a thousand total. Of those responding, 235 from 157 universities agreed with the proposal; another 40 approved it with reservations and only 45 disapproved. So the plan had broad professional support. Variants of the Chicago Plan usually started by condemning the banking structure as foolish and harmful: “If the purpose of money and credit were to discourage the exchange of goods and services, to destroy periodically the wealth produced, to frustrate and trip those who save, our present monetary system (does that) most effectively!”

They dispensed with the gold standard as not a real standard, because the value of gold had changed violently up and down against commodities. From 1914 to 1917 wholesale prices rose 65% and, then increased another 55% to May 1920, So Gold coins lost over 75 % of their value against wholesale prices in the Fed’s first six years. Then by June 1921wholesale prices fell 56% against gold. “Hard money” advocates who believe that gold money has been stable should study these facts. One version of the plan quoted Roosevelt’s referring to gold as an “old fetish of so-called international bankers.”

The main features of the Chicago Plan were:

- Only the government would create money. The Federal Reserve banks would be nationalized, but not the individual member banks. The power to create money was to be removed from private banks by abolishing fractional reserves â€“ the mechanism through which the banking system creates money. So the plan called for 100% reserves on checking accounts which simply meant banks would be warehousing and transferring the money and charging fees for their services.

- The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. Lending was still to be a private banking function, but by lending deposited long-term savings money, not created credits. In this way they’d restrict an unstable practice known as borrowing short and lending long â€“ making long term loans with short term deposits.

- The proposal recognized the distinction between money and credit, which had been confused through fractional reserves and what was called the “real bills doctrine.” The confusion was seen as one of the causes of the depression, because when businesses reduced their borrowings on commercial bills which occurs during any downturn, parts of the money supply had been automatically liquidated. The Chicago Plan saw the instability of this â€“ that it aggravates a downturn.

Simon made this grand observation: “The mistake. . . lies in fearing money and trusting debt. Money itself is highly amenable to democratic, legislative control, for no community wants a markedly appreciating or depreciating currency. . . but money is not easily manageable alongside a mass of private debt and private near-moneys. . . or alongside a mountain of public debt.”

Some variations of the plan had the US government lending banks all or part of newly printed cash needed to achieve 100% reserves. This was a crucial part of the plan, because depositors were going to the banks and withdrawing their accounts, deflating the system.

This loaning of reserves feature also elegantly converted all the previously monetized bank credits into real US money on which the banks paid interest to our government. It post facto made them intermediaries, earning some reasonable spread for their loaning work.

Paul Douglas wrote: “This proposal will of course be opposed by the bankers from whom it takes the lucrative privilege of creating purchasing power. It would however insure the safety of deposits, give large revenues to the government, provide complete social control over monetary matters and prevent abnormal fluctuations in the capital market. At the same time it would permit the allocation of productive resources. . . to remain primarily in private hands. All in all it seems the most promising program for the reform of our monetary and credit system. . . ”

Marinner Eccles, who became Fed Chairman under Roosevelt, testified that the best course would be for the government to nationalize the Federal Reserve banks.

Congressman Jerry Voorhis made the case for hundred percent reserves and putting money into circulation by paying pensions and disabled persons. As late as 1945 Voorhis introduced legislation for a US Monetary Authority as our sole creator of money.

Maurice Allais, the great French economist, backed the plan and published a book on it in 1948.

Irving Fisher of Yale, wrote on it extensively and popularly well into the 1940s. . .

There was no understanding or support for the proposal among the electorate. Only Irving Fisher seems to have understood the necessity for popularizing the matter.

Simons himself got cold feet and shied away from promoting the plan, desiring to remain on a level of professorial discussion. He even threw a wet towel on Fisher who was promoting the reform suggesting that Fisher avoid popularizing the idea!

The Plan was mishandled politically. . . The last attempt at 100% reserves was when Senator Nye of North Dakota tried to place it in part of the administration’s 1935 banking reform legislation, but his amendment was defeated.

The FDR administration had its own banking reform bill and remained ambiguous on the Chicago Plan, never commenting on it even though the political climate and professional support for the plan was sufficient to get it passed, had they made some effort. Instead his Treasury Secretary Morganthau was trying to make minor adjustments without fundamentally challenging the banking system. . .

Can we learn from what John Maynard Keynes was doing during all this? He was squarely behind the bankers and against such real reform. Yet he knew that he had to break out of orthodox economics or the whole system was in danger of being overturned. Keynesianism was a way to allow banks not government to keep control over the money-creation process, and while the more narrow minded economists fought Roosevelt’s attempts to create money and jobs as inflationary, during the nations worst deflation, Keynes knew better.

The New York Times in December 1933. . . got Keynes to write an open letter to Roosevelt, which they published. Keynes wisely advised Roosevelt that “Only the expenditures of public authority” could turn the tide of depression. . .

However, Keynes inappropriately warned Roosevelt not to create the money for this, but only to borrow it, and wrongly advised him that there was already enough money in circulation, and that: “increasing the quantity of money. . . is like trying to get fat by buying a larger belt.”

Keynes was therefore not “revolutionary” except in relation to the utter backwardness of the financial establishment. He didn’t come close to a real solution, but essentially protected his class. The real question has always been whether the nation’s money should be created under law, by government, or under the private caprice of bankers.

DEALING WITH THE NATIONAL DEBT

Bob Blain, Progressive Review, 1994 - From 1790 to 1993, taxpayers were charged $3.2 trillion in interest on federal debt. . . . The original debt at 5.53 percent interest compounded for 204 years equals $4.4 trillion. The present federal debt is arguably the original debt enlarged by 204 years of compounding interest.

According to the Federal Reserve Bulletin, the total money supply (currency, travelers checks, demand deposits, and savings accounts) in the US economy in March 1993 was $4 trillion. The total debt of the federal government, state and local governments, corporations, farmers, home buyers, and consumers was in excess of $15 trillion. If the total money supply is $4 trillion, where is the other $11 trillion of borrowed money?

Here is another curious fact. We have been told for years that government borrowing to cover hundreds of billions of dollars of deficits would drive interest rates through the roof. Instead, interest rates have fallen dramatically. In March, 1993 they were between 4.9 and 2.2 percent, far below what they were in the early 1980s when federal debt was a small fraction of what it is now.

The explanation for these anomalies is that the missing money never existed. We never borrowed it, in the normal sense that it was turned over to us and spent. Most debt is not the result of people borrowing money; it is the result of people not being able to repay what they owed at some earlier time. Instead of declaring them bankrupt, creditors just add more to their debt.

The federal government has been adding interest to its debt for 204 years. James Jackson, Congressman from Georgia, predicted that this would happen in a speech he made to the First Congress on February 9, 1790. Jackson warned that passing Alexander Hamilton’s plan to base the country’s money supply on the existing federal debt of $75 million would “settle upon our posterity a burden which they can neither bear nor relieve themselves from.” He predicted: “In the course of a single century it would be multiplied to an extent we dare not think of,” He clearly saw that Hamilton’s plan would put in place an exponential process of debt growth. To support his warning he cited the experience of Florence, Genoa, Venice, Spain, France, and England.

Hamilton’s plan was for Congress to commit the country to pay interest on the debt until the debt was paid. In the meantime the debt certificates would circulate as money. He argued that this would turn a $75 million debt into a $75 million money supply. The problem was that interest payments would have come out of the money supply. This would reduce the quantity of money that remained in circulation — and cause recession — until new loans returned the interest money back into circulation. The history of federal government finance shows such periodic swings between debt reduction and recession to debt increase and recovery.

The power to deal with this problem that Congress has neglected all these years is the power “to coin money and regulate the value thereof.” It has overused its power “to borrow money on the credit of the United States.” According to the Federal Reserve, 98 percent of the US money supply is borrowed. Only 2 percent is coined.

The First Congress set the wrong precedent. It should have created $75 million in money and paid off the debt. With a population of 4 million people and an economy starved for a medium of exchange, that would have increased the money supply by $18.75 per person.

Why did the First Congress borrow instead of coin money? Newspapers at the time accused members of Congress of acting to serve their own interests. They sent agents into the countryside to buy up debt certificates that the general public thought were worthless. They then passed the Funding Act knowing that it would give themselves and their heirs a source of income that would grow exponentially with the debt. For every debtor there is a creditor. What is a $4 trillion debt for debtors is $4 trillion in claims for creditors.

To get out of this trap Congress has a range of options:

First, it could stop paying interest on the debt. Interest is the fuel that is exploding the debt. Cut off the fuel; stop the explosion. Since 1790 over $3 trillion in interest has been added to the original $75 million. Cutting interest would immediately cut the annual deficit by about $300 billion. Experience shows that all other conventional actions, no matter how painful, do no more than slow slightly the rate of debt growth. Then Congress could begin the process of paying off the debt.

A political problem with stopping the payment of interest is that people with money control politics. And many of them would have their interest income stopped. Insurance companies and pension funds are invested in federal debt and foreign holders would also be upset. Economically, however, we cannot continue to add compounding interest to existing debt. The biggest debtor is not the federal government. It is business corporations. It is impossible for them to increase the physical production of goods and services in order to keep up with exponential debt growth that is limited by nothing but arithmetic. Unlike the debt, the physical economy has limits.

The question holders of federal debt must ask themselves is this: Do we want to insist on more interest that will add debt to existing debt until the only option is debt repudiation and we lose everything? Or are we willing to stop where we are while we may still be able to recover our original investment plus a reasonable profit?

A second option is for Congress to create the money necessary to fund public works. As a sovereign government, Congress’ power is unique. It can create money debt-free and interest-free. Congress needs to stop thinking of itself as the same as other organizations that must take money in before they can spend it. Money does not grow on trees. It must be created. The only choice is whether to have it created as loans at interest from private banks or to have it created by Congress debt-free and interest-free.

How can Congress create money without causing inflation? Congress must regulate its value. The power to create money includes this regulatory power.

A good way for Congress to regulate the value of money is by funding projects at the current national price level. The current national price level can be calculated by dividing the most recent gross domestic product by the number of hours of work that produced it. For example, in 1991 the total gross domestic product was $5.6 trillion. The employed labor force produced it with 237 billion hours of work. So the GDP was produced at the rate of $23.95 per hour of work. By now the price level per hour is probably $25.00. So let Congress fund projects at $25 per hour. How this amount is allocated among labor, land, and capital can be negotiated.

How much money should Congress create? How about enough to reach full employment? We have about 9.5 million people actively looking for work. That includes a million managers and professionals; two and a quarter million technical, sales, and clerical people; a million and a quarter precision production, craft and repair people; over two million operators, fabricators and laborers; and 305,000 framers, foresters and fishermen. That’sa skilled labor force as big as many nations — all now idle. Employed at an average $25 per hour, ($50,000 per year), they would add $475 billion to the nation’s gross domestic product and reduce spending for unemployment compensation. The pie would grow as unemployment went down. Congress could start by creating, say, $50 billion, or $200 per person, in debt-free interest-free money, then fund $50 billion worth of works projects, monitor the results, and make adjustments as needed. Meanwhile the Fed could raise bank reserve rates, not interest rates, to make checking accounts more secure.

A third more conservative option is being proposed by an organization called Sovereignty, which believes that a country that borrows money loses its sovereignty to its creditors. Their proposal is intended to restore US sovereignty by reducing our dependence on borrowed money.

The Guernsey experience. . .

Guernsey is an island state located among the British Channel Islands about 75 miles south of Great Britain. In 1816 its sea walls were crumbling, its roads were muddy and only 4 1/2 feet wide. Guernsey’s debt was 19,000 pounds. The island’s annual income was 3,000 pounds of which 2,400 had to be used to pay interest on its debt. Not surprisingly, people were leaving Guernsey and there was little employment.

Then the government created and loaned new, interest-free state notes worth 6,000 pounds. Some 4,000 pounds were used to start the repairs of the sea walls. In 1820, another 4,500 pounds was issued, again interest-free. In 1821, another 10,000; 1824, 5,000; 1826, 20,000. By 1837, 50,000 pounds had been issued interest free for the primary use of projects like sea walls, roads, the marketplace, churches, and colleges. This sum more than doubled the island’s money supply during this thirteen year period, but there was no inflation. In the year 1914, as the British restricted the expansion of their money supply due to World War I, the people of Guernsey commenced to issue another 142,000 pounds over the next four years and never looked back. By 1958, over 542,000 pounds had been issued, all without inflation.

In 1990 there was $13 million in interest-free state issued notes. A visitor to the island that year later wrote:

“I returned from Guernsey last weekend. It is a fascinating little island. There are about 60,000 permanent residents on the island. The average family owns 3.3 cars, their unemployment rate is zero and their standard of living is very high. There is no public debt. There is a surplus of public funds which earn interest. The Guernsey Treasury increased the Ml of the island by 40 percent in the last three-year period, and this increase did not do anything to inflation. The price for a gallon of gasoline in England translates to about $5US whereas, the price in Guernsey is about $2US. Contrary to the teachings of current economics in all higher institutions, inflation is not related to the volume of money but rather to the size of the commercial debt.”

Sovereignty proposes that Congress create money and lend it interest-free on a per capita formula to tax-supported bodies for capital projects and to convert existing debt to non-interest-bearing debt. Since first proposed in January 1989, the Sovereignty loan plan has been endorsed by over 1,814 city, town, and county governments and school boards, as well as by the US conference of Mayors, the Michigan state legislature and the Community Bankers Association of Illinois, which represents 515 banks.

As loans, the money would be repaid, so money injected into communities would fund projects, then be removed. Of the three methods for putting money into circulation available to Congress, giving, paying, and lending, lending is the most cautious.

Benjamin Franklin attributed the economic success of the colonies to their creation of all the money they needed. He said that the root cause of the Revolution was the act of Parliament that prohibited the colonies from continuing to issue their own money. The moneylenders of England thought it more profitable that the colonies borrow their money.

We hear from Washington that we need to sacrifice to bring the deficits under control — cut consumption, save, and invest. When that slows the economy, we will be told to spend more to stimulate the economy. We have heard it all before. Neither method works. We need debt-free interest-free money to fund the work that needs to be done. It’s not sacrifice we need; it’s productive employment. Let Congress use its unique power to coin money and regulate its value to fund that employment.

Money is no more than an accounting device, a system of notes certifying that the bearer has done a share of the work and deserves a share of the wealth. Money’s backing is the goods and services produced by the labor force. By creating money Congress can activate the idle productive power of our people. And what they produce will add real wealth to the US Treasury and add nothing to the federal debt.

Sam Smith’s Great American Political Repair Manual, 1997 - A report of Guernsey’s States Office in June 1946 notes that island leaders frequently commented that these public works could not have been carried out without the issues, that they had been accomplished without interest costs, and that as a result “the influx of visitors was increased, commerce was stimulated, and the prosperity of the Island vastly improved.” By 1943, nearly a half million pounds worth of notes belonged to the public and was so valued that much of it was being hoarded in people’s homes, awaiting the island’s liberation from the Germans. About the same time that Guernsey started to fix its sea walls the town of Glasgow, Scotland, borrowed 60,000 pounds to build a fruit market. The Guernsey sea walls were repaid in ten years, the fruit market loan took 139. In the first part of the the 20th century, Glasgow paid over a quarter million pounds in interest alone on this ancient project.

How did Guernsey avoid the fiscal disaster that conventional economics prescribed for it? First and foremost by understanding that when you build roads or sea walls or colleges or houses, you are not reducing your society’s wealth. In fact, if you do it right, you are creating something that will add to its wealth. The money that was created was simply backed by public works rather than gold or “full faith and credit.” It was, in fact, based on something more solid than the dollar bills in our wallets today. In contrast, tacking on an interest charge to public works — as we do in the US — creates no new wealth, but merely transfers claims on existing wealth from debtors to creditors.

Have Your Say: WHAT BANKS, ACADEMICS, THE MEDIA AND POLITICIANS DON’T TELL YOU ABOUT MONEY
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WHAT BANKS, ACADEMICS, THE MEDIA AND POLITICIANS DON’T TELL YOU ABOUT MONEY Ce que les banques, les universitaires, les médias et les politiciens ne pas vous parler de l'argent

Web Desing & Hosting UK , USA, Europe WOWEB - Web Design FAST GATEWAY - Web Hosting INFOTX - Web Hosting Guides and Resources ASHLEY GUEST HOUSE - Morecambe Guest House Skin up marijuana cannabis weed forum

Linux Web Hosting Never Be Lied To Again! Subliminal Secrets Exposed Holographic Creation: Your Own Reality Masonic Secrets Revealed What You Aren't Supposed To Know Conspiracy DVDs Cheap DVDs Debt Consolidation

Web Desing & Hosting UK , USA, Europe

WOWEB - Web Design

FAST GATEWAY - Web Hosting

INFOTX - Web Hosting Guides and Resources

ASHLEY GUEST HOUSE - Morecambe Guest House

Skin up marijuana cannabis weed forum

Linux Web Hosting

Never Be Lied To Again!

Subliminal Secrets Exposed

Holographic Creation: Your Own Reality

Masonic Secrets Revealed

What You Aren't Supposed To Know

Conspiracy DVDs Cheap DVDs
Debt Consolidation