Excellent!!! Banks should not exit at all, paper money should not exist at all, interest rate should not exist at all. Period. But exchange goods and services via gold and other precious metals (or barter) and inflation will disappear almost overnight. This is the stuff they will NEVER teach you in "Finance" classes at colleges and universities (or they will fired)...
Easy now Ucan'tEatBonds, I personally do appreciate your very clever remarks and comments here on ET but there is absolutely no need to be rude against other posters.
The thread died for a reason, Marty. The fact of the matter is that we will be printing deficit dollars and auctioning deficit bonds regardless of what name you wanted to call it - the US National Bank, or the Federal Reserve, or whatever. Semantics. You were spot-on being frank about the viability and naivety of the OP 's original premise. On a more serious note, porn production has plummeted in Los Angeles because apparently condoms aren't sexy.
Please do. Bone and yourself haven't mustered an argument beyond stating an opinion. Be more then happy to hear it.
Yes I did, you just refuse to acknowledge my point. So I'll repeat it for you and maybe you will receive instead of just shouting. The idea of nationalizing the banking system would never garner the votes required to make it law. US Politicians, regardless of party affiliation but most notably the "progressive" social program types, would not stand for nationalizing the banking system unless it allowed them to spend dollars on a deficit basis immediately for their own political purposes (buying votes and pandering to their core constituents). Which means you would be printing deficit dollars and auctioning deficit bonds regardless of what name you wanted to call it - the US National Bank, or the Federal Reserve, or whatever. Different name same essential function. In other words, simply not feasible because you have two political parties with genuinely and wildly different views on the purpose of servicing national debt. Oh, and the US Import-Export Bank is a money losing bureaucracy that doesn't come close to fulfilling its original charter and "that" National Bank is currently under scrutiny and criticism from both politicians and US Government Inspectors General.
Firstly, the people aren't loaning anything, it's your private capital we're talking about. And yes, for sure, you need to be compensated for the risk inherent in making the loan. Given all this, how do you know that in today's system, the 3% or whatever rate that the banking system "charges" the economy isn't "compensation for loan risk", which would work the same exact way with commodity money, as you have stated yourself? Moreover, as always, you seem to be forgetting the other side of the loan. Specifically, if I have obtained a loan and my widget-making project has generated more value-added than the total interest I have had to pay on the loan (net of depreciation, etc), I have actually added to the system's purchasing power. Firstly, if you think about it, you will see that the definition that I have given and the one you have are actually one and the same thing, when applied to the government. Secondly, even if we apply this definition to the money created by the banking system, you would have to calculate it accordingly, rather than using 3% annual applied to all credit, which is not consistent with your own formulation. Finally, no, the point is that commercial banks "create" money through making risky loans. Sure, you can call all the commercial bank profits "seigniorage", but I am pretty sure that even you'd agree that this would be plain wrong. You can call a fraction of the profits "seigniorage", but that's part and parcel of the fractional reserve system. Finally, it appears to me that what you want to create is a 100% government-managed and regulated full reserve banking system. I am, frankly, amazed by this, since I thought you're a proponent of capitalism and free markets. A system where the government decides how and where to allocate credit isn't my cup of tea, so I can't agree with your ideas.
Mumbo Jumbo DoubleSpeak, you are a magician. Let it be known, that I don't solely blame tricksters like u, I blame equally the sheeple who swallow it. Trick, requires energy, to pull it off well, it requires time, timing etc. TRUTH ON THE OTHER HAND.....is simple US DEBT ````````````````````````* ```````````````````````** ```````````````````````** `````````````````````**** ```````````````````****** `````````````````******** *********************** US DOLLAR ***** ******* ************ ***************** ******************* ******************** *********************** *************************** *******************************
See post just above this one. It doesn't matter that all of this is inconvenient to you, to your nice life, built up business, reputation etc When the straw breaks camel's back, no one is going to phone you on your cell and ask if this is inconvenient for ya.