Monetary Reform!

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Offline Geolibertarian

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Still Report # 227 - Step #1 to National Monetary Reform
« Reply #160 on: March 26, 2014, 11:18:44 AM »
Still Report # 227 - Step #1 to National Monetary Reform

     http://www.youtube.com/watch?v=6QIdYOnG7L8
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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The "Fed" Takes Our Money, Gives It to Banks Who Loan It Back to Us at 16%
« Reply #161 on: April 08, 2014, 12:47:13 PM »
http://www.prisonplanet.com/fed-to-the-sharks-part-1-the-fed-takes-our-money-gives-it-to-banks-who-loan-it-back-to-us-at-16.html

Fed to the Sharks, Part 1: The Fed Takes Our Money, Gives It to Banks Who Loan It Back to Us at 16%

Charles Hugh Smith
Washington’s Blog
April 8, 2014

We’re being Fed to the sharks, every day, one morsel at a time. What a way to go....

What can we say about the Federal Reserve’s policies that hasn’t been said a million times? How about simplifying the two primary purposes of Fed policies? I will cover one today and the second one tomorrow. Both involve feeding the 99.5% to the financier/ Wall Street/bank sharks.

Longtime readers are familiar with Harun I.’s incisive analysis. Two of his recent commentaries can be found in Resolution #1: Let’s Call Things What They Really Are in 2014 (January 15, 2014) and Doomed If We Do, Doomed If We Don’t (February 12, 2014)

In the above entries, Harun explained how the Fed’s money creation has leveraged a global bubble in assets. At 72-to-1 leverage, the Fed’s $3.3 trillion money expansion has generated inflation as well as asset bubbles, though the Fed and its cronies deny both asset bubbles and inflation.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Just to clarify for relative newcomers: contrary to Austrian School propaganda, "inflation" is driven primarily in many if not most cases not by too much "money" but rather by too much unpayable interest debt.

If that's news to you, then please see the following for details...

     http://www.wealthmoney.org/articles/truth_inflation/
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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The Biggest Secret About Banking Has Just Gone Mainstream
« Reply #163 on: April 28, 2014, 11:52:37 AM »
http://www.prisonplanet.com/the-biggest-secret-about-banking-has-just-gone-mainstream.html

The Biggest Secret About Banking Has Just Gone Mainstream

Washington’s Blog
April 28, 2014

We’ve pointed out for 4 1/2 years that banks create money out of thin air.

Specifically, it has now been conclusively proven that loans come first … and then deposits FOLLOW.

This is the most important secret about modern banking … because it debunks one of the biggest myths preventing a strong economy, challenges one of the main pork barrel profit centers for big banks … and opens up incredible opportunities for a prosperous economy.

This odd and counter-intuitive – but crucially important – truth has now gone mainstream …

Specifically, the Financial Times’ Martin Wolf – one of the world’s most influential mainstream financial writers - says that, since banks create money out of thin air, they should be stripped of this power, and limited to normal depository functions. Wolf indicates the centrality and importance of the issue with his subtitle:

    The giant hole at the heart of our market economies needs to be plugged.

And Business Insider – the world’s most popular financial news blog – is currently running this as its top two front page stories:

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Prominent Economists Call for End of Fractional Reserve Banking
« Reply #164 on: April 30, 2014, 10:21:11 AM »
http://www.prisonplanet.com/prominent-economists-call-for-end-of-fractional-reserve-banking.html

Prominent Economists Call for End of Fractional Reserve Banking

Washington’s Blog
April 30, 2014

Excessive leverage by the banks was one of the main causes of the Great Depression and of the 2008 financial crisis.

As such, lower levels of “fractional reserve banking” – i.e. how many dollars a bank lends out compared to the amount of deposits it has on hand – the more stable the economy will be.

But economist Steve Keen notes (citing Table 10 in Yueh-Yun C. OBrien, 2007. “Reserve Requirement Systems in OECD Countries”, Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board):
    The US Federal Reserve sets a Required Reserve Ratio of 10%, but applies this only to deposits by individuals; banks have no reserve requirement at all for deposits by companies.
So huge swaths of loans are not subject to any reserve requirements.

Indeed, Ben Bernanke proposed the elimination of all reserve requirements for banks:
    The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.
Economist Keen informs Washington’s Blog that about 6 OECD countries have already done away with reserve requirements altogether (Australia, Mexico,  Canada, New Zealand, Sweden and the UK).

But there is a growing recognition that this is going in the wrong direction, because fractional reserve banking can destabilize the economy (and credit can easily be created by the government itself.)

It was big news this week when one of the world’s most prominent economics writers – liberal economist Martin Wolf – advocated doing away with fractional reserve banking altogether… i.e. requiring that banks only loan out as much money as they actually have on hand in the form of customer deposits:

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Still Report #270 - Attack on Cash
« Reply #165 on: June 04, 2014, 06:17:18 PM »
Yet another video presentation you won't see promoted at either msnbc.com OR campaignforliberty.org (because they're so "opposite" from one another)...

     http://www.youtube.com/watch?v=1DJKcqp7fbg (Still Report #270 - Attack on Cash)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Dude447

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Re: Monetary Reform!
« Reply #166 on: June 04, 2014, 06:47:18 PM »
I like to pay cash for as many things as I can .Why ? because i DON'T like big brother watching and poking about in my life . On a slightly different note a friend of mine saved £55.000 for a deposit on a house about 2years ago and then spent weeks proving to the mortgage company that the money was not from any form of crime related means .  ::)

Offline decemberfellow

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Re: Monetary Reform!
« Reply #167 on: June 04, 2014, 07:23:07 PM »
I like to pay cash for as many things as I can .Why ? because i DON'T like big brother watching and poking about in my life . On a slightly different note a friend of mine saved £55.000 for a deposit on a house about 2years ago and then spent weeks proving to the mortgage company that the money was not from any form of crime related means .  ::)

Good move Dude447,  I also only deal with cash,  and buy money orders to mail in the bills.  Fortunately still able to draw a live check at payday,
Quote
Why ? because i DON'T like big brother watching and poking about in my life .
me either.
Rev21:4
And God shall wipe away all tears from their eyes; and there shall be no more death, neither sorrow, nor crying, neither shall there be any more pain: for the former things are passed away.


Who am I
 https://www.youtube.com/watch?v=v7Fk6dt_uHo

Offline Geolibertarian

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http://www.latimes.com/local/political/la-me-pc-treasurer-race-will-feature-democrat-republican-20140602-story.html

Democrat Chiang, Republican Conlon will compete for treasurer

By CHRIS MEGERIAN
The Los Angeles Times
June 03, 2014

John Chiang, California’s Democratic state controller, and Greg Conlon, a Republican and retired accountant, will compete for the state treasurer’s office in November.

Ellen Brown, a Green Party candidate, finished third and will not advance to the general election.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Still Report #280 - Bitcoin Auction Dips Market
« Reply #169 on: June 15, 2014, 07:27:55 PM »
http://www.youtube.com/watch?v=NLcANoOzJ1w (Still Report #280 - Bitcoin Auction Dips Market)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Housing Ponzi Scheme Losses: American Homeowners Battling Wall Street
« Reply #170 on: July 18, 2014, 09:00:09 AM »
http://www.globalresearch.ca/housing-ponzi-scheme-losses-american-homeowners-battling-wall-street/5391538

Housing Ponzi Scheme Losses: American Homeowners Battling Wall Street

Did the Other Shoe Just Drop? Black Rock and PIMCO Sue Banks for $250 Billion

By Ellen Brown
Global Research
July 16, 2014



For years, homeowners have been battling Wall Street in an attempt to recover some portion of their massive losses from the housing Ponzi scheme. But progress has been slow, as they have been outgunned and out-spent by the banking titans.

In June, however, the banks may have met their match, as some equally powerful titans strode onto the stage.  Investors led by BlackRock, the world’s largest asset manager, and PIMCO, the world’s largest bond-fund manager, have sued some of the world’s largest banks for breach of fiduciary duty as trustees of their investment funds. The investors are seeking damages for losses surpassing $250 billion. That is the equivalent of one million homeowners with $250,000 in damages suing at one time.

The defendants are the so-called trust banks that oversee payments and enforce terms on more than $2 trillion in residential mortgage securities. They include units of Deutsche Bank AG, U.S. Bank, Wells Fargo, Citigroup, HSBC Holdings PLC, and Bank of New York Mellon Corp. Six nearly identical complaints charge the trust banks with breach of their duty to force lenders and sponsors of the mortgage-backed securities to repurchase defective loans.

Why the investors are only now suing is complicated, but it involves a recent court decision on the statute of limitations. Why the trust banks failed to sue the lenders evidently involves the cozy relationship between lenders and trustees. The trustees also securitized loans in pools where they were not trustees. If they had started filing suit demanding repurchases, they might wind up suedon other deals in retaliation. Better to ignore the repurchase provisions of the pooling and servicing agreements and let the investors take the losses—better, at least, until they sued.

Beyond the legal issues are the implications for the solvency of the banking system itself. Can even the largest banks withstand a $250 billion iceberg? The sum is more than 40 times the $6 billion “London Whale” that shook JPMorganChase to its foundations.

Who Will Pay – the Banks or the Depositors?

The world’s largest banks are considered “too big to fail” for a reason. The fractional reserve banking scheme is a form of shell game, which depends on “liquidity” borrowed at very low interest from other banks or the money market. When Lehman Brothers went bankrupt in 2008, triggering a run on the money market, the whole interconnected shadow banking system nearly went down with it.

Congress then came to the rescue with a taxpayer bailout, and the Federal Reserve followed with its quantitative easing fire hose. But in 2010, the Dodd Frank Act said there would be no more government bailouts. Instead, the banks were to save themselves with “bail ins,” meaning they were to recapitalize themselves by confiscating a portion of the funds of their creditors – including not only their shareholders and bondholders but the largest class of creditor of any bank, their depositors.

Theoretically, deposits under $250,000 are protected by FDIC deposit insurance. But the FDIC fund contains only about $47 billion – a mere 20% of the Black Rock/PIMCO damage claims. Before 2010, the FDIC could borrow from the Treasury if it ran short of money. But since the Dodd Frank Act eliminates government bailouts, the availability of Treasury funds for that purpose is now in doubt.

When depositors open their online accounts and see that their balances have shrunk or disappeared, a run on the banks is likely. And since banks rely on each other for liquidity, the banking system as we know it could collapse. The result could be drastic deleveraging, erasing trillions of dollars in national wealth.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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5 U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure To Derivatives
« Reply #171 on: September 25, 2014, 10:22:04 AM »
If I had the power, I would simultaneously

*  put all derivatives-infected mega-banks through Chapter 11 bankruptcy and, in the reorganization proceedings, legally void all of their derivatives contracts;

*  liquidate all of the ill-gotten assets of criminal scam artists such as Henry Paulson, Lloyd Blankfein and Jamie Dimon, and use the resultant proceeds to help replenish whatever retirement funds they raided;

http://www.prisonplanet.com/5-u-s-banks-each-have-more-than-40-trillion-dollars-in-exposure-to-derivatives.html

5 U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure To Derivatives

Michael Snyder
Economic Collapse
September 25, 2014

When is the U.S. banking system going to crash?  I can sum it up in three words.  Watch the derivatives.  It used to be only four, but now there are five “too big to fail” banks in the United States that each have more than 40 trillion dollars in exposure to derivatives.  Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars we are talking about an amount of money that is almost unimaginable.  And unlike stocks and bonds, these derivatives do not represent “investments” in anything.  They can be incredibly complex, but essentially they are just paper wagers about what will happen in the future.  The truth is that derivatives trading is not too different from betting on baseball or football games.  Trading in derivatives is basically just a form of legalized gambling, and the “too big to fail” banks have transformed Wall Street into the largest casino in the history of the planet.  When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will cause the global economy will be greater than words can describe.

If derivatives trading is so risky, then why do our big banks do it?

The answer to that question comes down to just one thing.

Greed.

The “too big to fail” banks run up enormous profits from their derivatives trading.  According to the New York Times, U.S. banks “have nearly $280 trillion of derivatives on their books” even though the financial crisis of 2008 demonstrated how dangerous they could be…
    American banks have nearly $280 trillion of derivatives on their books, and they earn some of their biggest profits from trading in them. But the 2008 crisis revealed how flaws in the market had allowed for dangerous buildups of risk at large Wall Street firms and worsened the run on the banking system.
The big banks have sophisticated computer models which are supposed to keep the system stable and help them manage these risks.

But all computer models are based on assumptions.

And all of those assumptions were originally made by flesh and blood people.

When a “black swan event” comes along such as a war, a major pandemic, an apocalyptic natural disaster or a collapse of a very large financial institution, these models can often break down very rapidly.

For example, the following is a brief excerpt from a Forbes article that describes what happened to the derivatives market when Lehman Brothers collapsed back in 2008…
    Fast forward to the financial meltdown of 2008 and what do we see? America again was celebrating. The economy was booming. Everyone seemed to be getting wealthier, even though the warning signs were everywhere: too much borrowing, foolish investments, greedy banks, regulators asleep at the wheel, politicians eager to promote home-ownership for those who couldn’t afford it, and distinguished analysts openly predicting this could only end badly. And then, when Lehman Bros fell, the financial system froze and world economy almost collapsed. Why?

    The root cause wasn’t just the reckless lending and the excessive risk taking. The problem at the core was a lack of transparency. After Lehman’s collapse, no one could understand any particular bank’s risks from derivative trading and so no bank wanted to lend to or trade with any other bank. Because all the big banks’ had been involved to an unknown degree in risky derivative trading, no one could tell whether any particular financial institution might suddenly implode.
After the last financial crisis, we were promised that this would be fixed.

But instead the problem has become much larger.

When the housing bubble burst back in 2007, the total notional value of derivatives contracts around the world had risen to about 500 trillion dollars.

According to the Bank for International Settlements, today the total notional value of derivatives contracts around the world has ballooned to a staggering 710 trillion dollars ($710,000,000,000,000).

And of course the heart of this derivatives bubble can be found on Wall Street.

What I am about to share with you is very troubling information.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Do you know what establishment Democrats, establishment Republicans and "Tea Party" Republicans all have in common -- despite their alleged "differences"?

Between now and the upcoming midterm election (November 4th), not a single one of them will so much as mention, let alone promote, the NEED Act: a bill that's been collecting dust in Congress for several years now; and which, if enacted, would put private banks in general, and derivatives-peddling Wall Street mega-banks in particular, out of the money-creation business -- and hence out of power.

-- https://www.govtrack.us/congress/bills/112/hr2990/text

-- http://www.monetary.org/wp-content/uploads/2013/01/HR-2990.pdf

-- http://www.monetary.org/occupying-the-need-act/2014/04

-- http://www.huffingtonpost.com/stephen-zarlenga/sequesters-shutdowns-and-_b_4086071.html
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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The Success of Public Banking: Bank of North Dakota Outperforms Wall Street
« Reply #173 on: November 20, 2014, 03:40:30 PM »
http://www.globalresearch.ca/the-success-of-public-banking-bank-of-north-dakota-outperforms-wall-street/5415100

The Success of Public Banking: Bank of North Dakota Outperforms Wall Street

By Ellen Brown
Global Research
November 20, 2014



While 49 state treasuries were submerged in red ink after the 2008 financial crash, one state’s bank outperformed all others and actually launched an economy-shifting new industry.  So reports the Wall Street Journal this week, discussing the Bank of North Dakota (BND) and its striking success in the midst of a national financial collapse led by the major banks. Chester Dawson begins his November 16th article:
    It is more profitable than Goldman Sachs Group Inc., has a better credit rating than J.P. Morgan Chase & Co. and hasn’t seen profit growth drop since 2003. Meet Bank of North Dakota, the U.S.’s lone state-owned bank, which has one branch, no automated teller machines and not a single investment banker.
He backs this up with comparative data on the BND’s performance:
    Its total assets have more than doubled, to $6.9 billion last year from $2.8 billion in 2007. By contrast, assets of the much bigger Bank of America Corp. have grown much more slowly, to $2.1 trillion from $1.7 trillion in that period.
. . . Return on equity, a measure of profitability, is 18.56%, about 70% higher than those at Goldman Sachs and J.P. Morgan. . . .

Standard & Poor’s Ratings Services last month reaffirmed its double-A-minus rating of the bank, whose deposits are guaranteed by the state of North Dakota. That is above the rating for both Goldman Sachs and J.P. Morgan and among U.S. financial institutions, second only to the Federal Home Loan Banks, rated double-A-plus.

Dawson goes on, however, to credit the BND’s remarkable performance to the Bakken oil boom. Giving his article the controversial title, “Shale Boom Helps North Dakota Bank Earn Returns Goldman Would Envy: U.S.’s Lone State-Owned Bank Is Beneficiary of Fracking,” he contends:

The reason for its success? As the sole repository of the state of North Dakota’s revenue, the bank has been one of the biggest beneficiaries of the boom in Bakken shale-oil production from hydraulic fracturing, or fracking. In fact, the bank played a crucial part in kick-starting the oil frenzy in the state in 2008 amid the financial crisis.

That is how the Wall Street-owned media routinely write off the exceptional record of this lone publicly-owned bank, crediting it to the success of the private oil industry. It would be more accurate to say that the bank made the boom.

Excess Deposits Do Not Explain the BND’s Record Profits

Dawson confirms that the BND played a crucial role in kickstarting the boom and the economy, at a time when other states were languishing in recession. It did this by lending for critical infrastructure (roads, housing, hospitals, hotels) when other states’ banks were curtailing local lending.

But while the state itself may have reaped increased taxes and fees from the oil boom, the BND got no more out of the deal than an increase in deposits, as Dawson also confirms. The BND is the sole repository of state revenues by law.

Having excess deposits can hardly be the reason the BND has outdistanced even JPMorganChase and Bank of America, which also have massive excess deposits and have not turned them into loans. Instead, they have invested their excess reserves in securities.

Interestingly, the BND has also followed this practice. According to Standard & Poor’s October 2014 credit report, it had a loan to deposit ratio in 2009 of 91%. This ratio dropped to 57.5% in 2014. The excess deposits have gone primarily into Treasuries, US government agency debt, and mortgage-backed securities. Thus the bank’s extraordinary profitability cannot be explained by an excess of deposits or an expanded loan portfolio.

Further eroding the official explanation is that the oil boom did not actually hit North Dakota until 2010. Yet it was the sole state to have escaped the credit crisis by the spring of 2009, when every other state’s budget had already dipped into negative territory. Montana, the runner-up, was in the black by the end of 2009; but it dropped into the red in March of that year and had to implement a pay freeze on state employees.

According to Standard & Poor’s, the BND’s return on equity was up to 23.4% in 2009 – substantially higher than in any of the years of the oil boom that began in 2010.

The Real Reasons for Its Stellar Success

To what, then, are the remarkable achievements of this lone public bank attributable?

The answer is something the privately-owned major media have tried to sweep under the rug: the public banking model is simply more profitable and efficient than the private model. Profits, rather than being siphoned into offshore tax havens, are recycled back into the bank, the state and the community.

The BND’s costs are extremely low: no exorbitantly-paid executives; no bonuses, fees, or commissions; only one branch office; very low borrowing costs; and no FDIC premiums (the state rather than the FDIC guarantees its deposits).

These are all features that set publicly-owned banks apart from privately-owned banks. Beyond that, they are safer for depositors, allow public infrastructure costs to be cut in half, and provide a non-criminal alternative to a Wall Street cartel caught in a laundry list of frauds.

Dawson describes some other unique aspects of the BND’s public banking model:

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline chris jones

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Re: Monetary Reform!
« Reply #174 on: December 02, 2014, 08:27:38 PM »
 Geo is a encylopedia, he has done research that amazes me. I'M_Not blowing smoke.
         Do I agree, in truth I'm a mutt when it come too finaces ,the remainder for ME (a financial Dummy wilth Limmited  capicity and serious understanding, as  to the old buceroo and the ture qansweres.its far beyond my comprhension.
   I  j ust say , where the muck is our hard earned money going, who dips the people, who blatantly feeds the wars, the mic, THE bs sukling supercops, banksters, elite ryolaty, their endless line of suckling riding the gracytrain reagrdless of those,who pays the price.  UNITEd, with one spear head of exposuring those who seek our blood, money and freedoms. Equality has not existed in some time, Maby the majority knows thisw, perhaps not.
A SREET GUY WILL TELL YA, MONEY TALKS, SHII* WALks.. OK , but togetHER we , no bullshit divisions, ff msm dISTRATIONS,, one AMERICA, ONE PEOPLE, AND WE WILL OVERcoME THE CREW ON HIGH. (and boy they know it)
tHIS IS MY HOPE FOR THE KIDS OR THIS NATION.                WE, THE ADULTS HAVE TO GIVE THEM A HEADS UP.
Many are young and are geting the drift, Bless their hearts.

Offline Geolibertarian

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Another Ponzi Roll Over of US Treasury Debt
« Reply #175 on: December 03, 2014, 06:16:26 PM »
http://www.globalresearch.ca/another-ponzi-roll-over-of-us-treasury-debt/5417672

Another Ponzi Roll Over of US Treasury Debt

By James Hall
Global Research
December 03, 2014



As the holiday season draws nearer, it is nice to know that a present for all Americans and future generations is building as the hordes of consumers’ storm the aisles of their favorite box store so that they can go further in debt. Much like maxing out your plastic limits and paying the monthly minimum, the U.S. Treasury just keeps rolling over their debt since their credit card has no ceiling. The banksters behind the Federal Reserve have no problem with monetizing the national debt, since the Treasury provides their stamp of guarantee. As the public sector continues their spending spree, few really know the extent and amount of their share of the obligation.

Terence P. Jeffrey writes in the CNS News article, Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt.
    “The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.”
Like food addicts at a cornucopia dinner, the indigestion that follows will pass, or so it is hoped. However, the pain and bloating intensifies and at some point, stapling the stomach becomes a necessary option.

U.S. Government Debt Is THE Biggest Ponzi Scheme In History sums up accordingly,
    “The reason this is a true Ponzi is because at every Treasury auction, held twice a month, the Government issues enough debt to repay the existing debt that is maturing and issues even more debt in order to fund Government overspending . . . In contrast, if the Chinese and Japanese decide they’d rather not keep putting an increasing amount of money into financing our Governmental spending juggernaut, the Fed can just print money under the orders of the President to keep the gerbil going on the wheel.”


So when the Treasury raises the national debt level and authorizes additional borrowing, in essence they are going to the Fed for a new loan. Think about this process and ponder at length the absurdity of going to shysters at a privately owned central bank for credit, which requires payment of interest.

This construct is not known or is dismissed by most of the public. Yet, it is the single most important element that explains the utter futility of establishing economic prosperity in the age of universal financial servitude.

Regular readers of BATR articles are well schooled in the prurient nature of debt bondage that tortures and rapes every taxpayer and consumer on the planet. The phenomenon of facilitating the enslavement of mankind has been uninterrupted since the passage of the 1913 Federal Reserve Act.

Illustrating this fact, Mr. Jeffrey continues with quoting current Treasury Secretary Jacob Lew.
    “In testimony before the Senate Finance Committee in October 2013, Lew explained why he wanted the Congress to agree to increase the federal debt limit—and why the Treasury has no choice but to constantly issue new debt.”

    “Every week we roll over approximately $100 billion in U.S. bills,” Lew told the committee. “If U.S. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance.”
It is incomprehensible to conceive a way out of this debt trap as long as the roll over practice continues. Moreover, the confession that Lew makes is actually an admission that the political will does not exist to scrap the interminable cycle of financial repression.

As long as the political establishment surrenders their professed legitimacy to the control of The Federal Reserve Cartel: The Eight Families, the entire system has no rightful authority to rule over the public. Researcher Dean Henderson documents:

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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Taxpayers Could Be on the Hook for Trillions in Oil Derivatives
« Reply #176 on: December 22, 2014, 10:53:06 AM »
http://www.globalresearch.ca/russian-roulette-taxpayers-could-be-on-the-hook-for-trillions-in-oil-derivatives/5420960

Russian Roulette: Taxpayers Could Be on the Hook for Trillions in Oil Derivatives

By Ellen Brown
Global Research
December 20, 2014

The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivative losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend.

Senator Elizabeth Warren charged Citigroup last week with “holding government funding hostage to ram through its government bailout provision.” At issue was a section in the omnibus budget bill repealing the Lincoln Amendment to the Dodd-Frank Act, which protected depositor funds by requiring the largest banks to push out a portion of their derivatives business into non-FDIC-insured subsidiaries.

Warren and Representative Maxine Waters came close to killing the spending bill because of this provision. But the tide turned, according to Waters, when not only Jamie Dimon, CEO of JPMorgan Chase, but President Obama himself lobbied lawmakers to vote for the bill.

It was not only a notable about-face for the president but represented an apparent shift in position for the banks. Before Jamie Dimon intervened, it had been reported that the bailout provision was not a big deal for the banks and that they were not lobbying heavily for it, because it covered only a small portion of their derivatives. As explained in Time:
    The best argument for not freaking out about the repeal of the Lincoln Amendment is that it wasn’t nearly as strong as its drafters intended it to be. . . . While the Lincoln Amendment was intended to lasso all risky instruments, by the time all was said and done, it really only applied to about 5% of the derivatives activity of banks like Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo, according to a 2012 Fitch report.
Quibbling over a mere 5% of the derivatives business sounds like much ado about nothing, but Jamie Dimon and the president evidently didn’t think so. Why?

A Closer Look at the Lincoln Amendment

The preamble to the Dodd-Frank Act claims “to protect the American taxpayer by ending bailouts.” But it does this through “bail-in”: authorizing “systemically important” too-big-to-fail banks to expropriate the assets of their creditors, including depositors. Under the Lincoln Amendment, however, FDIC-insured banks were not allowed to put depositor funds at risk for their bets on derivatives, with certain broad exceptions.

In an article posted on December 10th titled “Banks Get To Use Taxpayer Money For Derivative Speculation,” Chriss W. Street explained the amendment like this:

In an article posted on December 10th titled “Banks Get To Use Taxpayer Money For Derivative Speculation,” Chriss W. Street explained the amendment like this:
    Starting in 2013, federally insured banks would be prohibited from directly engaging in derivative transactions not specifically hedging (1) lending risks, (2) interest rate volatility, and (3) cushion against credit defaults. The “push-out rule” sought to force banks to move their speculative trading into non-federally insured subsidiaries.

    The Federal Reserve and Office of the Comptroller of the Currency in 2013 allowed a two-year delay on the condition that banks take steps to move swaps to subsidiaries that don’t benefit from federal deposit insurance or borrowing directly from the Fed.

    The rule would have impacted the $280 trillion in derivatives primarily held by the “too-big-to-fail (TBTF) banks that include JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. Although 95% of TBTF derivative holdings are exempt as legitimate lending hedges, leveraging cheap money from the U.S. Federal Reserve into $10 trillion of derivative speculation is one of the TBTF banks’ most profitable business activities.
What was and was not included in the exemption was explained by Steve Shaefer in a June 2012 article in Forbes. According to Fitch Ratings, interest rate, currency, gold/silver, credit derivatives referencing investment-grade securities, and hedges were permissible activities within an insured depositary institution. Those not permitted included “equity, some credit and most commodity derivatives.” Schaefer wrote:
    For Goldman Sachs and Morgan Stanley, the rule is almost a non-event, as they already conduct derivatives activity outside of their bank subsidiaries. (Which makes sense, since neither actually had commercial banking operations of any significant substance until converting into bank holding companies during the 2008 crisis).

    The impact on Bank of America, Citigroup, JPMorgan Chase, and to a lesser extent, Wells Fargo, would be greater, but still rather middling, as the size and scope of the restricted activities is but a fraction of these firms’ overall derivative operations.
A fraction, but a critical fraction, as it included the banks’ bets on commodities. Five percent of $280 trillion is $14 trillion in derivatives exposure – close to the size of the existing federal debt. And as financial blogger Michael Snyder points out, $3.9 trillion of this speculation is on the price of commodities.

Among the banks’ most important commodities bets are oil derivatives. An oil derivative typically involves an oil producer who wants to lock in the price at a future date, and a counterparty – typically a bank – willing to pay that price in exchange for the opportunity to earn additional profits if the price goes above the contract rate. The downside is that the bank has to make up the loss if the price drops.

As Snyder observes, the recent drop in the price of oil by over $50 a barrel – a drop of nearly 50% since June – was completely unanticipated and outside the predictions covered by the banks’ computer models. The drop could cost the big banks trillions of dollars in losses. And with the repeal of the Lincoln Amendment, taxpayers could be picking up the bill.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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Beyond Wall Street: the encouraging growth of new financial models
« Reply #177 on: January 15, 2015, 04:40:13 PM »
http://www.theguardian.com/sustainable-business/2015/jan/14/beyond-wall-street-growth-of-new-financial-models-circular-economy

Beyond Wall Street: the encouraging growth of new financial models

Where mainstream finance is failing local economies, circular economy schemes from local currencies to crowdfunding are appearing

Rosalinda Sanquiche
The Guardian
January 14, 2015

The term circular economy may be new to finance, but the concept is not. The circular economy has caught on in large part because of the need to eliminate waste, where the breakdown of one system leads to the creation of another.

Hazel Henderson, futurist, economist and president and founder of Ethical Markets Media, has been chronicling emerging systems of consensual decision-making, stakeholder feedback, collaborative consumption and co-operatives bypassing Wall Street for years. Finance has fed circular economies for decades through public banking, local currencies and microfinance schemes, with newer forms of funding including crowdfunding and green bonds.

Public banking

Public banks – those operated in the public interest at local and national levels – demonstrate an important principle of the circular economy. Public banking eschews short-term profit in favour of long-term prosperity, making and returning profits to a general fund for public good rather than moving wealth outside the public system.

Research conducted by Ellen Brown, author of The Public Bank Solution, shows how public banking systems are responsive to local needs, reduce interest rate costs of infrastructure projects and reduce taxes, while increasing the financial stability of the community served. Revenue circulates within the local, state or national economy, rather than being concentrated among the shareholders of a private entity. While the Bank of North Dakota is the only public bank in the US today, public banking has been around for centuries and models that can be replicated exist all around the world. In Costa Rica, public banking was instituted in 1949 and represents 80% of all retail deposits. These natural systems are stable: in Costa Rica, none of the four public banks have failed in three decades.

[Continued...]
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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Re: Monetary Reform!
« Reply #178 on: February 01, 2015, 04:52:11 AM »
Well great information, it will take me some time to give a more in depth reply. So I got some reading to do!
`Don´t focus on death, for you won´t live life.`

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Re: Monetary Reform!
« Reply #179 on: February 01, 2015, 05:42:53 AM »
Well great information, it will take me some time to give a more in depth reply. So I got some reading to do!

It is worth digesting.

Be careful when people offer solutions.

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Re: Monetary Reform!
« Reply #180 on: July 26, 2015, 03:45:34 PM »


"White privilege" is code for: Pay no attention to that banker privilege behind the curtain!

Right, Obama? Right, Hilldog? Right, MSNBC?

-- http://www.motherjones.com/politics/2014/06/hillary-clintons-goldman-sachs-problem

-- http://www.politico.com/magazine/story/2014/11/why-wall-street-loves-hillary-112782.html#.VbVPk_lViko

-- http://www.businessinsider.com/hillary-clinton-and-wall-street-2015-6

-- http://www.counterpunch.org/2008/05/05/obama-s-money-cartel/

-- http://www.globalresearch.ca/obama-s-big-sellout/16488

-- http://www.globalresearch.ca/how-obama-sold-the-presidency-to-wall-street/5331981

“In his People’s Party Paper, Tom Watson, the Populist congressman from Georgia, appealed to white and black farmers to meet on common ground: ‘You are kept apart that you may be fleeced separately of your earnings. You are made to hate each other because upon that hatred is rested the keystone of the arch of the financial despotism which enslaves you both. You are deceived and blinded that you may not see how this race antagonism perpetuates a monetary system which beggars both.’” 

-- Jack Beatty, Age of Betrayal, p. 214


“That’s the way the ruling class operates in any society: they try to divide the rest of the people. They keep the lower and the middle classes fighting with each other, so that they, the rich, can run off with all the f**king money.

"Fairly simple thing; happens to work.

"You know, anything different, that’s what they’re gonna talk about: race, religion, ethic and national backgrounds, jobs, income, education, social status, sexuality -- anything they can do [to] keep us fighting with each other, so that they can keep going to the bank."

"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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The evil essence of usury crystallized in one heart-breaking image
« Reply #181 on: August 27, 2015, 03:25:31 PM »



^^  And if he and countless others like him die as a result; and if people who aren't self-obsessed sociopaths start accusing the parasitic usurers who own and control the private banking system of engaging in economic terrorism -- and, even worse, begin calling both for the abolition of fractional reserve banking and for the public issuance of debt-free paper money (partly to finance public infrastructure, and partly to finance a Basic Income Guarantee) -- just whip out the old Austrian School handbook on euphemisms and call these deaths a "market correction," then whip out the Austrian School handbook on pejorative labels and accuse anyone calling for debt-free paper money of being a freedom-hating "collectivist," "socialist" and/or "wealth-redistributionist." 


“The Third World War has already started -- a silent war, not for that reason any less sinister. This war is tearing down Brazil, Latin America and practically all the Third World. Instead of soldiers dying there are children, instead of millions of wounded there are millions of unemployed; instead of destruction of bridges there is the tearing down of factories, schools, hospitals, and entire economies….It is a war over the foreign debt, one which has as its main weapon interest, a weapon more deadly than the atom bomb, more shattering than a laser beam.”

-- Luis Ignacio Silva, as quoted on page 238 of A Fate Worse Than Debt by Susan George

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money."

-- attributed to Sir Josiah Stamp, Director of the Bank of England (appointed 1928)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

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An Open Letter to President Elect Trump
« Reply #182 on: November 23, 2016, 02:27:08 PM »
http://www.monetary.org/wp-content/uploads/2009/11/Nicks-Open-Letter-to-Trump.pdf

An Open Letter to President Elect Trump

President Elect Trump, Drain the Monetary Swamp

End the deficit, pay off the national debt as it comes due, get rid of Obama Care by giving us real national healthcare, pay for education: it is all possible by draining the monetary swamp of the fraudulent debt money system. Guess what it also does? It unifies our country by addressing the very real concerns of all Americans.

The U.S. monetary system is so corrupt that almost nobody understands it. But it is really quite simple.

• Almost all of what we use for money is created out of thin air by banks when they make loans.

• This debt money exists only as debt, as the debts are repaid the money is extinguished from the bank's bookkeeping.

• We must therefore be in debt, individually and through our government, or there would be no money and society would grind to a halt.

• It gets worse, there is no money created with the loans for the significant interest that we must pay. This makes it even more impossible to reduce the level of indebtedness and insures that it must perpetually increase.

• The Federal Reserve is no more federal than Federal Express. All 12 Federal Reserve Banks are owned entirely by the private banks in their districts.

• Even our currency, which accounts for only about a tenth of the total money supply, is printed by the government and then given to the Federal Reserve for the cost of printing to be distributed to the banks. Our government is paid a nickel for a $1 bill and 14.3 cents for a $100 bill.

The only real money in this system are the coins in our pockets and piggy banks. Our government is paid face value by the Fed for every coin minted. Our government gets 30 cents for a quarter and a nickel and it only gets 28.6 cents for two $100 bills. This is not a misprint, the debt money banking system pays us more for a nickel and a quarter than they do for two $100 bills.

I used the word fraudulent to describe this system, because the monetary economists at the Fed, the politicians and the bankers have not told us that this is how the system works. Most of them probably don't ever know how it works, because the textbooks that they have learned from also misrepresent what the system is. For those that do know and haven't told us, shame on them. Our economists, politicians and bankers are either ignorant or supporters of fraud.

The Bank of England, the UK's central bank and the model for the Federal Reserve, unequivocally stated:

"In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money. The reality of how money is created today differs from the description found in some economics textbooks: Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits."

(Emphasis BoE), Money Creation in the Modern Economy, 2014


Some on the far left have said nationalize the banks. Wrong, nationalizing banks does nothing, we need to nationalize money creation. The Constitution says money creation belongs with our government. "The Congress shall have Power To... coin Money, regulate the Value thereof..." {Article I, Section 8} The phrase "coin Money" refers to the creation of money and was used because coins at the time were considered the real money.

Simple, straightforward, non partisan, monetary reform legislation was put into Congress in 2011 by Congressmen Dennis Kucinich and John Conyers: NEED Act (National Emergency Employment Defense Act). Its reforms are intuitively what one thinks the system already is.

• The Federal Reserve System, currently owned by the private banks, would be put into the federal government.

• Banks would no longer create our money and would only loan money that already exists.

• Money would be created, debt-free, in non inflation/deflationary amounts and spent into existence for the needs of the nation: jobs, infrastructure, healthcare, education, etc. The federal debt will be repaid as it comes due, an absolute impossibility under the present system and there will be no more deficits and debt circuses in Washington.

The NEED Act transforms our society from austerity to a productive, bountiful and sustainable democracy. More information is available at the American Monetary Institute (monetary.org).

President Elect Trump, unite our country and drain the monetary swamp by proposing the NEED Act on Day One.

Nick Egnatz
Munster, IN
occupynick@yahoo.com


References

Jamie Walton's 2 page paper explains how immediate, seamless and non-disruptive the overnight transition to a government money system would be, "How the N.E.E.D. Act gives an Immediate, Seamless and Non-Disruptive Overnight Transition from a Crisis-Prone Bank Debt System to a Stable Government Money System"
http://www.monetary.org/seamlesstransition/

NEED Act
http://www.monetary.org/wp-content/uploads/2013/01/HR-2990.pdf

"Money Creation in the Modern Economy", Bank of England
(Click here)

The following gentlemen are at your service to bring about monetary reform.

Stephen Zarlenga
Director American Monetary Institute

Jamie Walton
Senior Researcher American Monetary Institute

Dennis Kucinich
Former Congressman and sponsor of the NEED Act
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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The Gold Solution is a Lie, #1457
« Reply #183 on: January 29, 2017, 06:47:48 AM »
Bill Still explains once again why the gold standard is not the answer to our ongoing financial crisis:

       https://www.youtube.com/watch?v=ojkr0u7p5iA (The Gold Solution is a Lie, #1457)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline Geolibertarian

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Re: The Gold Solution is a Lie, #1457
« Reply #184 on: January 29, 2017, 11:11:49 AM »
Bill Still explains once again why the gold standard is not the answer to our ongoing financial crisis:

       https://www.youtube.com/watch?v=ojkr0u7p5iA (The Gold Solution is a Lie, #1457)

For the benefit of relative newcomers, I'd like to elaborate on the above.

For one thing, gold-backed currency is the very thing fractional reserve banking (FRB) grew out of in the first place. And FRB is, in turn, what ultimately gave birth to the quasi-private "Federal" Reserve.

For another, there is nowhere near enough gold to sustain the current level of commerce in the U.S. economy. And without commerce, our musical chairs economy collapses in on itself.

That's not a subjective opinion. As I explained several years ago in this thread, it's simple mathematics.

Let's assume that a 100% reserve gold-based money system is instituted (since that's what Austrian School icon Murray Rothbard advocated); and -- since gold standard apologists are fond of waxing nostalgic about pre-1913 America (particularly the Gilded Age) -- let's also assume that, in accordance with the Gold Standard Act of 1900, each paper dollar is made "redeemable" in 23.22 grains of gold.

To determine what effect this will have on the M2 money supply -- which is $13,249,200,000 at present -- let's further assume that the U.S. has all the gold that's ever been mined (even though it doesn't) -- 183,600 tonnes, or 2,833,381,000,000 grains, according to the World Gold Council. If we divide that figure by 23.22 grains, we have a maximum M2 money supply of $122 billion.

That's a minimum 99% decrease.

This would make the 1/3 money supply contraction that occurred between 1929-1933 -- and the magnitude of the resultant depression -- both look minuscule by comparison. The effect of such a severe contraction would be beyond devastating; it would be genocidal.

The gold standard is not the answer.

"Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold." -- William Jennings Bryan
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0