Tuesday, December 6, 2011
I just got Bill's book and haven't had a chance to get into it yet, so he may address this theory there, I'm not sure....However, in this episode he says he's still not sure how to solve the problem of production leaving America.
I've been working on a theory that involves the money supply not being totally fiat, or backed by any certain metal or combination of metals, but backed by the production of all real goods and services within the country combined. Basically every hour of work, and every "thing" produced would create money into the system. This would take the power of money creation away from politicians, banks, and special interests, leaving it with those who actually produce real wealth. My theory is that this would create a money system that is directly in line with the needs of the population. As anyone who creates something, is creating real wealth backed by currency; this would encourage production within the country. I won't go on a long rant, that's the basic idea. I don't know how to implement it, what to say about investment capitol, or exactly how particular values are to be set and money circulated accordingly. I would theorize that values would be set by the market. But certainly it would run on a 100% reserve system for loans. Of course, an honest debate about public welfare programs needs to be had, but I think that production surpluses could be used to fund programs for those in need, if we at a local level feel it necessary (and that's the key of course, local control, not large centralized control). Anyway, that's my idea, I'm hoping to work it out into a working theory, and Bill's work has certainly been a catalyst for me to delve into this, the most pressing issue of all time. I hope we make it through long enough to have a real open debate in a mainstream format about the different theories of money creation, and move towards free humanity. As the different sides have valid points, but the debate being had in the mainstream, as we all know, is only about how to borrow more, or less, and what austerity is needed....it's sad to see really... hearing Bill always encourages me though. I put this theory to him, I will update if he responds.