wkmac
Well-Known Member
[FONT=Times New Roman, Times, serif]Ground zero of the economic depression is the banking system – worldwide. The system is collapsed, exploded, demolished, gone, ruined, kaput. The global banking system was a house of cards, and it has fallen. Governments and central banks everywhere do not yet realize this. They are attempting to rebuild the house from the pieces and scraps scattered far and wide. Better to salvage the pieces that still work and use them in an entirely new system than attempt to rebuild this one on the same cracked foundation and along the same flawed lines that produced this wreck.[/FONT]
[FONT=Times New Roman, Times, serif]It was a flimsy and jerry-rigged house that regulation built – it was built on the government regulation of money and banking. This was the house built by central banks, forced currencies, inconvertible currencies, manipulated currencies, monopoly money, deposit insurance, the IMF, paper reserves, and inept regulation; all linked into government control of economies, welfare states, and managed trade. And now incredibly costly repairs are being attempted......[/FONT]
continuing:
[FONT=Times New Roman, Times, serif]The solution to the central banking system is free markets in money and banking. There is no quicker or more effective regulation than that of the market, which means the people who are using bank notes as currency and the banks that are competing to issue this currency.[/FONT]
[FONT=Times New Roman, Times, serif]The current U.S. Constitution gives Congress the power to regulate the gold content of the dollar. This means that Congress has power to control what is called the unit of account. In a true competitive system, there would be competing units of account. However, a system in which the dollar is fixed at a certain weight in gold is workable. It means that all prices that are in terms of dollars are actually in terms of a fixed weight of gold. Insofar as gold has a value that remains relatively stable, prices will remain relatively stable.[/FONT]
[FONT=Times New Roman, Times, serif]In a free money and banking system, there need not be a single medium of exchange. If individual banks issue their own notes, there can arise several media of exchange. If individual companies and persons can issue their own notes, there can arise even more possible media of exchange. Furthermore, there need not be a single medium of redemption. Notes can be redeemed in a great many things that have value. These are matters to be decided in free markets.[/FONT]
[FONT=Times New Roman, Times, serif]The path the U.S. is on is toward an ever-more centralized and government-controlled financial system in which capital is allocated by the government. This system leads inevitably to suppressed inflation. It leads to government attempts to control capital movements. It is a deadly step backwards to the fascism of the 1930s and the Nazi methods of economic control. Just as partial collapse encourages more authority being exercised at the center, complete collapse of the banking system and/or economy is likely to engender even more of such police state methods as long as people maintain their faith in government as savior and doer of all good. Militarism becomes more likely in such situations too.[/FONT]
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