Greenbacks for the win.

in economics •  6 years ago 

How money could work without the federal reserve.

The treasury creates money from nothing, just like the fed.

This money is loaned from the treasury at 5% to anybody with a good use for it.
If you need money to get a business started the treasury issues a loan.
If you want to buy a house, the treasury issues a loan.

The treasury then spends an amount equal to 5% of the loan into the economy, through infrastructure, social work programs, social security, whatever.
This creates money to repay the interest without forcing some loans into bankruptcy like today.

Today the fed doesn't create the money for interest, the only way to repay a loan is by forcing other loans into default.
This is what the bubbles are about.
The banksters buy at the fire sale and your kids go into the meat market.

To illustrate this concept let's imagine that GM loaned out 1000 cars to 10 people at 10%.
Those ten people have to pay back 1100 cars collectively.

Where do the cars come from if GM doesn't make them?
From the bankruptcy sale of at least one of those people.

To escape this inflationary cycle, hold gold, property, or crypto to avoid dilution.

You are thinking too hard if this is unfathomable to you.

Escaping the bankster dystopia is this simple.
We could have it on any given Tuesday.

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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
Henry Ford

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That's the catch 22 of the monetary system. The money for the interest doesn't exist. So the debt cycle will eventually spiral out of control.

Its all fiat money, it only has the value we assign to it.
Instead of paying jyst the banksters, this plan puts profits into everybody.
As much as crapitalism can, anyways.
The millionaires will still hire poor people to clean the toilets of the trillionaires, and the trillionaires will agree to pay the profits of the millionaires to not have to do it themselves.
Its just how crapitalism works.
Irregardless of the medium of exchange.

The banking system is one of my top topics, I could write a 1000 articles regarding it, and how "it" could be done better, 1 proposal I even forwarded the the houses of parliament, when they asked for a new system and citizens to submit proposals, I wrote a bank owned by the people, run by the people with all profits going back to the people.

They said it was a step tooooooo far from the current system meaning central (gangsters) banksters!.

That is what got PJ in trouble,...

Thanks for the information dear friend. Saludos desde Caracas, Venezuela.