Again, demonstrating how little they know about how the monetary system actually works, some elected "representative" has proposed a bill (HR 4646) that would charge a "fee" (read tax) on every single monetary transaction. Every single transaction - except for the ones that the bank does. They say that they would use the money to pay off the National Debt. The National debt is coming up in $14 Trillion - that's more than our entire money supply!! But wait. We use debt for money. Pay off all the debt and you will have NO MONEY in circulation! That is a fact.
You want to see a global financial meltdown? Then pass this crazy bill. They plan on paying off the National debt in seven years. This will literally vacuum the money out of the system in seven years. This proposed bill is a self destructive vortex of assured economic catastrophe the likes of which the world has never known.
Imagine sucking the entire U.S. money supply out of circulation in less than seven years. Imagine it! What does the world economy look like, then? You will never make it to the seven year mark. Food and energy production will stumble and then grind to a halt. I challenge you to think about what sorts of things would happen if food and energy production do that. Just think it over.
Pulling money out of circulation with this transaction fee and then zeroing that money out as it pays for the National debt would be like opening an artery on a dying patient - certain death. Money being the lifeblood of the economy, to drain it is to kill the economy. HR 4646 is an economy killer. Plain and simple.
BAD IDEA: HR 4646
GOOD IDEA: Monetize the Production of Infrastructure