Silver Lining - Levelling Off

Up to this point we have considered the steps necessary to restore our economy to full potential. First and foremost we have to get rid of the Federal Reserve; this move will erase trillions in debt that the US government owes in interest to this patently unconstitutional central bank. Next we looked at changing the accounting methods that banks use to eliminate the multiplication of the electronic money they create. Say we did these things; now what? For starters, what shall we do with all the Federal Reserve Notes floating around - trillions of them?

Nothing. What they are called is unimportant; what they are is all that matters. If they are debt free dollars it doesn't matter what they are called as long as they are accepted in exchange for goods and services - and they always will be. The proponents of a stable currency will have to go slowly; sudden changes in monetary policy would be as disastrous in the short run as the present situation. I have $12,000 in savings; I am told that the present dollar is worth only four cents; does that mean my savings would become $480.00 in sound money? That is a big downside correction and would put me on the verge of poverty unless prices were drastically scaled back as well and across the board. That's too much to think about, so let's leave things the way they are - for now. If we can't scale back the money supply to increase the value of the dollar then the only alternative is to raise the value of the existing currency. If by now we have a debt free money supply and have cut out the multiplier that banks have cranked out, then we are halfway home with a relatively stable money supply and dramatically reduced budget deficits.

By this time the collection service for the defunct Federal Reserve System, the Internal Revenue Service would also have been abolished. The Sixteenth Amendment was never properly ratified, the present tax on wages is a violation of the Thirteenth Amendment, and is further unconstitutional as it represents and un-apportioned direct tax. No more income tax. This will leave more money in the hands of the people where it belongs, and as we all know people will either spend it or save it. Either one helps the economy: spenders stimulate production and savers provide capital by way of bank loans on those savings; each has a place in a vibrant economy.

Our primary objective should not be with sound money but rather with a stable currency. Soundness is a subjective view: people have differing ideas about what constitutes sound money, usually respecting a precious metal backing but also art collections, rare coins, or anything that retains value. That defines sound money but doesn't address the matter of distribution. A stable currency, on the other hand, is all about distribution: supply and demand, full employment, fair wages and prices, and a currency that enjoys and intrinsic value of its own without regard to any other standard. This leads to the question of a managed economy.

All economies are managed. The true questions are; who's managing it? How is it being managed, and who benefits from this management? For five hundred years the economies of Europe and the Americas have been managed by central bankers, the wealthy self-interested power brokers whose only aim was to enrich themselves. A stable currency in the hands of the people and governed by sound economic principles is the wave of the future. Government plays an important role in this transformation, and its participation must be made accountable to the people. A government that regulates business must itself be run like a business, not, like at present, a drunken sailor on shore leave after months at sea.

Next: The Role of Government.