Re: Gubernatorial candidate’s revolutionary money plan …
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I fail to see how that could not be inflationary. It seems no different from what the Federal Government has done for years, beginning most noticeably with the “New Deal”. For Thomas and Larry, can you explain, clearly and succinctly, how the Davis Plan differs substantively from the WPA of the 1930s and 1940s, albeit on a smaller, state-sized, scale?
Let me take a stab at responding to your points. First, I agree that there is a similarity with the WPA and the “Davis Money Plan” (brainchild of Byron Dale and Greg Soderberg) in that both are intended to stave off great depressions. If something is not done, unemployment will continue increasing and our civilization may well collapse. The big difference is that we borrowed money from banks that had none under the WPA and defaulted while the Davis plan reasserts our sovereign authority to create our own debt free money.
If you go back to my Post #3 you will see that our money supply is contracting at an alarming rate. “The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.” The money supply contracted by around 1/3 between 1929 and 1933 which resulted in the not so “great depression.”
I think it is important to recognize that “we the people” solely back up every Federal Reserve “note” that the banks create for free. Their notes are “promises to pay” which we ignorantly accept as money and then we submit to theft by paying interest. So, we come to the million dollar question…if we are backing the money, why are we borrowing it as a nation?
We are committing national suicide by continuing their debt money system as it is a mathematical certainty that the debt is growing exponentially – it simply cannot be sustained. The terminally flawed private debt system is a monument to man’s stupidity.
You mentioned inflation as a concern but I suggest that deflation and default are the things that should worry us. The term inflation, as defined in neoclassical economics, “too much money chasing too few of goods” simply isn’t in the cards as we are fast approaching “peak debt.” Everyday banks destroy money (repayment of principal extinguishes money) making our debt money system inherently deflationary. There simply aren’t enough new willing and worthy borrowers to offset the growing rate of destruction.
It may well be that the price of many things will increase but I suggest that it will be the result of shortages and the debauching of our currency. It will not be because we have too much money. We use promissory notes as money and it is only as good as our finite ability to repay debt that is growing exponentially. The currency is being debauched as we are exceeding our ability to make good on our promise.
A common theme that I find troubling in this thread is that many people have given up hope that government can actually govern our finances. America was founded on the principle that people could govern themselves as a constitutional republic without a ruling monarch or dictatorship.
While I agree that Washington is rotten to the core I also recognize that this was inevitable under a private debt based monetary monopoly. Our federal government is subservient to the banking monopoly; we are totally dependent on them to rent us the means to conduct trade and commerce.
One of the great things about the “Davis Money Plan” is that it appears to actually be doable. We can start to take back our country and national sanity at the state level.
Note: Byron Dale’s Modern Money Secrets is a must read book in understanding money systems