Financial Crisis Solution

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Gregory K. Soderberg's picture
Gregory K. Soderberg
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Posts: 32
Financial Crisis Solution

 We cannot pay debt with debt and get rid of the debt. Our money has been switched overtime from an evidence of wealth 'owned' to an evidence of debt 'owed.' Why? for the benefit of a few who want to own and rule everything. All money is now created and placed into circulation as loans. Only the principal is created. The principal is uncreated when repaid. Because money is sterile and has no natural reproductive capacity, it does not grow. The unpayable interest on the money causes a growing spread between the money supply and prices or seen as loss of purchasing power and growing money shortages. Yes, Chris, this causes poor utilization of resources and  over-production in an effort to 'sell' to pay the debt wolf that we can never catch up with. The solution is to once again create the money and 'spend' it in for some form of production all society benefits from...the money supply increases with productivity gains...no inflation, no new debt or taxes and a debt-free medium of exchange to pay the debt with. This is what gold and silver coins represented...labor 'monetized' debt-free to the producer. The raw production was coined into money free of charge to the producer. The producer then traded or spent his production (now in a new form) into circulation for other production. The money supply increased with new productivity gain. No inflation. No new debt. No new taxes and a means to pay the old debt with. We could apply this principle to building and maintenance of public roads and bridges. Spend it into circulation in lieu of taxation or more debt (slavery). Federal  and State legislation is written to transition us from debt money back to money that represents debt free wealth. www.wealthmoney.org  (507) 440-1015 
 

Ray Hewitt's picture
Ray Hewitt
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Re: Financial Crisis Solution

Government isn't about reason and rationality. It's about money and power. Massive spending expands their power and contracts the private economy. We're in for a long downhill ride.

Gregory K. Soderberg's picture
Gregory K. Soderberg
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Posts: 32
Re: Financial Crisis Solution

Ray,

Is what you wrote in response to what I wrote?

DrKrbyLuv's picture
DrKrbyLuv
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Posts: 1995
Re: Financial Crisis Solution
Gregory K. wrote:

Our money has been switched overtime from an evidence of wealth owned' to an evidence of debt 'owed.' Why? for the benefit of a few who want to own and rule everything. All money is now created and placed into circulation as loans. Only the principal is created.

We are witnessing the greatest theft in the history of the world.

The money being poured into the economy is at the expense of the people but yet the people benefit the least.  The banks, both national and international, are stealing faster than it can be printed.  After the collapse the international bankers will seize collateral. They made the mess but watch and see, they will become more wealthy and powerful as a result.

The tyranny and poverty of the new world order is coming our way.  The most disheartening part is how complacent most people are. They don't seem to care and are more comfortable living a lie than confronting the harsh reality. 

Your mentioned the multiplication the of debt, which is the heart of the problem that we are still stoking.  Check out the following website for a really interesting plan to eradicate interest:

http://www.perfecteconomy.com/

Ray Hewitt's picture
Ray Hewitt
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Posts: 458
Re: Financial Crisis Solution

Yes, Greg. The point being that the powers-that-be are not interested in any solution that requires a mitigation of power.

bearing01's picture
bearing01
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Posts: 153
Re: Financial Crisis Solution

Are you suggesting we should just create more money instead of taking on debt and spend that new money to get our economy back on track?  Maybe the gov't should just give everyone a million dollars so they can liquidate their debt and just reset our economy?  I don't quite understand what you were implying above.  But if this is what you were trying to say then you should read some books on economics.

Printing money does not creating wealth.  It destroys it. If you print money to make a factory to produce something then yes you have productivity but it is with inflation.  The money created put demand to secure/buy finite resources.  This bids up the price of commodities in order to produce.  What you have suggested is a monetarist view.  The federal reserve has attempted to do this on a moderate basis over the past 37 years and the thing is that they don't really know how much is enough to expand the money supply to continuously stimulate the economy to produce but yet keep prices from rising too rapidly.  Because there is no recipe for how much inflation to create it results in boom & bust cycles.  It's like rather than having a continuous smooth traffic on the highway at 65mph you have speed up/ slow down stop/go traffic.  On the other hand, if you had a stable money supply with no inflation the factories would be created using savings/wealth that exists.  THis money would be spent on the factory rather than on particular commodities while it won't be available to be spend on something else.  This keeps prices under control while producing more products for purchase.  Also, because borrowed money was from someone elses savings it ensures that the future customers actually do have true wealth and will have the capacity to buy your new products.  Assuming future customers can take on more debt to buy your goods creates a false business plan.  Creating factories from existing savings may even cause prices to fall because of more goods are available for purchase while the money supply did not expand.  Falling prices are okay because what's of concern is profit margin, not the height of prices.  As long as producers expenses fall along with falling product prices than that's okay.  Even for wages to fall are okay as long as real purchasing power is maintained.  This means wages would have to fall with falling cost of living.  Even debt could be indexed to be paid back in fewer dollars if the future value of the dollar can buy more than today. 

You can't solve this financial crisis by any other means than let the recession occur.  Let those non-productive businesses that rely on cheap credit and currently not making profits to go bankrupt.  No bailouts.   The gov't needs to reduce in size and reduce its spending tax payers money.  They need to reduce the taxes they take from citizens while balancing their budget. They need to let the free market determine what products they want to spend their money on and let investors/capitalists use (risk) their own savings/wealth to invest in business opportunities which create jobs.  Raising taxes (taxing capital) and/or printing money reduces the amount of investment capital there is for producing such a healthy economy.

We don't need a gold standard if gov't stopped their printing press.  Doing this would immediately hault any future inflation.  Period.  The gold standard restricts the gov't from printing money.  The only way to increase the money supply is to produce more gold, which is an expensive and labor intensive task.

Gregory K. Soderberg's picture
Gregory K. Soderberg
Status: Bronze Member (Offline)
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Posts: 32
Re: Financial Crisis Solution

If that's what you want to believe, that's fine. I don't care what 'the powers to be' want.

Gregory K. Soderberg's picture
Gregory K. Soderberg
Status: Bronze Member (Offline)
Joined: Jan 8 2009
Posts: 32
Re: Financial Crisis Solution

Bearing01,

It's not free money. It's earned money. Just like your pay check. You did work and got paid. Your paycheck was not borrowed to you. We cannot pay debt with more debt and get rid of the debt. The only way to pat a debt is to pay it with something that is not a debt; money created and placed into circulation as a debt-free payment for production.  I did not nor would I advocate that we need to use gold and silver for money. Clearly, we have used book keeping entries for years.  Monetizing production dedbt-free is how Free Coinage worked. The people labored to extract a raw resource from the earth. They took it to the Mint. The Mint weighed it, assayed it and coined the raw metal into coins free-of-charge for the producer. The producer then exchanged or spent it into circulation for other debt-free production. The money supply grew with productivity and with no debt.

 The government does not 'print' money. 

Letting everything be destroyed is no solution and not worth going through if we are not willing to implement honest principles when we come out the other side.

I have tried to lay this whole thing out at the website www.wealthmoney.org

 Thank you

 Gregory K. Soderberg

507-440-1015

 

Gregory K. Soderberg's picture
Gregory K. Soderberg
Status: Bronze Member (Offline)
Joined: Jan 8 2009
Posts: 32
Re: Financial Crisis Solution

DrKrbyIuv

Thank you. I understand.

I am not complacent. I care. I am not comfortable living with it. I am confronting the 'harsh' reality. I don't want to hear about 'How powerful they are' or the Fed, the New World Order. I just want to hear about creating new money debt-free and spending into circulation debt-free as a payment. Federal and State legislation has been written on how to do this step-by-step.All we need to do is  pass a simple law that makes a simple change in the way new money is placed into circulation. We must not only have money that charges no interest but a medium of exchange that is not a loan period. Even without interest one is still slave to the lender. Land of the Free? Home of the Brave? Have people been kidding me?   

 Gregory K. Soderberg, Austin, MN. 507-440-1015 

   

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
Re: Financial Crisis Solution

This is a very interesting idea.  The has been a call for a "non debt-based" money system for a some time, unfortunately few people seem to be listening.  As you know, Chris Martenson's Crash Course spends a good part of its time discussing the problems inherent to an exponential debt-based money system.  Non debt-based money would be a great thing.

If I'm not mistaken, your suggestion to "spend" the money into circulation is very similar to the proposal made in the final parts of the excellent "Money as Debt" film by Paul Grignon.  http://video.google.com/videoplay?docid=-9050474362583451279

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