The Treasury must be the ONLY issuer of money, paper money, not “backed” by anything.
It must publish, publicly - publish - (have I said it enough) how many dollars it issues every time it issues dollars.
This money creation power, if given to private sector entities, gives them control over government - since government then must come to those private sector entities, hat in hand, to ASK for money.
Obviously, the private sector entities who are currently enjoying this privilege currently exert enormous control over government and politics inside the US.
Consequently, they have articles like this printed up ad nauseum to convince people that having their own government’s Treasury create money would be a problem.
What we’ve NEVER been taught in our so-called “history classes” is that the most powerful banking/finance institutions in America CAUSED all the panics we’ve experienced.
How ? By spreading a few rumors then selectively withholding credit. This creates liquidity problems for the institutions which then can’t borrow. The “power people” made sure institutions within their orbit were well-financed during the “panics”, and, in classic style, bought up assets at a large discount.
After the “panics”, they had their “experts” clamor for whatever new laws they want and spread the myth that government caused the panic.
It’s really logic 101: government must be the sole creator of money, and that money should be difficult to counterfeit. The private sector must then earn money instead of just creating it. The government will then NEVER need to borrow, it can simply create money if it needs it. Counterbalancing that - if as I said above the amounts created are published - is the perception on the part of the public that too much money creation will devalue all their assets that are held inside the nation, since they are denominated in the national currency. Too much money printing by the Treasury would result in the wealthy, powerful people of the nation getting very active politically and putting a stop to superfluous money creation (i.e., percentage growth in money supply higher than percentage growth in total private sector assets).
The only people in the private sector who support government borrowing are those who are IN the sovereign debt industry or in industries tightly linked to it.
This is why Wall Street and many people who work for those firms HATE the idea of ending the Fed.
That is why wealthy and powerful people in America today love the private-sector money-creation industry.
That is why wealthy and powerful people in America today love the idea of government deficit spending.
Amazingly - the wealthy and powerful of America today will not use their influence to stop the bankrupting of government and the dependency of the poor on government.
DUH ! The more borrowing the better to them.
The fallback position for the money-creation industry is to require the government to buy gold (a market they have thoroughly controlled for centuries) every time the government creates one of its own dollars. You can see how the citizenry is still, in that case, enslaved to the private sector money-creation industry via the government.
Nice post. Clearly explains the situation.
The Treasury must be the ONLY issuer of money, paper money, not “backed” by anything...
Transparency, accountability, responsibility. Debt reduction/elimination, less taxes, sound money/paper, stable free republic.
That's the way it should be. The people should have control over the government. What can you possibly be thinking?
The government will then NEVER need to borrow, it can simply create money if it needs it.
Do you even understand the concept of "inflation"? That printing money dilutes the value of what already exists? Your hatred of banks and love of government are driving you to some very, very bad conclusions.