Tuesday, December 20, 2011

Could the U.S. be Debt Free?

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After I read this article I thought it interesting to post. America once thrived under a debt-free monetary system, and this article says that we can do it again. The truth is that the United States is a sovereign nation and it does not need to borrow money from anyone.

The Economic Collapse says:
"That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wanted to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good."

What does the Finance Advisory Board think about this?

Read all about it at The Economic Collapse.

2 comments:

Anonymous said...

Ultimately, fractional reserve banking was designed to encourage risk while eliminating the potential consequences of risky behavior. The best we can hope for under this system is a two tiered society: People who work in the finance industry or in service to the finance industry and everyone else. Since bankers crafted the federal reserve act, going the route suggested by the article would obviously entail wrenching the established manner of doing business from their cold, dead hands. Maybe the first treatment prior to the necessary major surgery is establishing Congressional oversight over the fed.

If Paul wins the primary we have a great opportunity to begin the debate which is really, to me, inevitable given where we are headed: "Let's stop the half measures trying to fix something that can never work from a practical standpoint and go all in on either socialism or complete deregulation".

Anonymous said...

What about getting rid of the Federal reserve?