What happens once money is already in the economy.
- housing starts
- durable goods
- sub-prime mortgages
- stocks, bonds, money markets
- rate of return, etc.
ALL of these things are secondary. ALL OF THEM.
How money gets into the economy.
This is the key to the solution.
There are only 3 ways money can get into the economy and all 3 have their own set of consequences. Those 3 ways are:
- Gift it in
- Lend it in
- Earn it in
Gift It In
This way promotes many problems, from financial to moral. If you place a flatbed trailer of $100 Federal Reserve Notes at every major intersection and invited people to come grab as much as they could hold in each hand, once per day, a few things would happen for sure.
First, it would lose its value, not so much because of any "economic rule" of formula, but because I would not want the money in your pocket when I can get my own - and more than I can spend - tomorrow! So if I were a merchant, why would I want your $100 Federal Reserve Notes (FRNs)? They are not hard to come by and they, in no way, represent production - past, present, or future.
Second, There would be few products to buy with your handfuls of FRNs. Why? Because who is going to go to work, when tomorrow they can go down to the corner and get 2 handfuls of $100 FRNs? No work? No products get made (production). No products get made? Nothing to buy with your fist full of FRNs - or with your electronic checkbook money either!
Lend It In
There is NO money created in this process to pay interest with - only principal is created when a loan is made. So, it's unworkable from the start. Looks OK at first - easy money! But, it's a Ponsi scheme. A Bernie Madoff heist. It institutionalises corruption and criminality and leaves the Nation without a permanent money system while guaranteeing its people eventual economic destruction.
Earn It In
First, this way, there's no debt. Government would create the money (same as the banks do now) and enter it on their books as an asset, instead of a debt. Contractors get paid for production that we need (infrastructure) and they pay their workers - who buy stuff. No debt, no borrowing, no bonding, no tax increase, no tolls, good modern roads, safe bridges and a huge debt-free stimulus. That means JOBS!
If You Do Nothing
The only reason not to learn how this works is either pride and hard-headedness in the face of pure logic, or that you like debt, borrowing, taxes, tolls, corruption, criminality, unpayable interest and ultimately, an economy in ruin. If you like those things and like the international bankers stealing your money by deceiving you, don't change a thing.
Make One Small Change
This could be implemented within 72 hours (maybe less) of passage. The bill is TWO PAGES! Congress could actually read it for a change.
Nothing but an accounting procedure needs to change. Oh, and your mind. You have to want the change. If you think you can't - you can't. If you think it can't be done - you're right.
Q: What does man do?
A: Pretty much what he decides to do.
Simply change your mind, get behind this idea and make it work.
It will work.
Don't let them side-track you by talking economics. It's about MONETARY POLICY. It's about how money gets into the economy that matters most.