Monetary Reform Act

[Mesogen]

What do you think about the Monetary Reform Act proposed by the producers of The Money Masters?

http://www.themoneymasters.com/mra.htm

It basically monetizes the national debt within a year and then replaces FRNs with USNs, in effect transferring the power to print money from the hands of criminal private bankers into the hands of criminal legislators. It also abolishes fractional reserve banking, which is the root of the whole problem.

It also has a built in arbitrary inflation rate of 3%. Is this necessary?

I mostly like the idea, but I think maybe it could be done a little less drastically than over a year, and after that, once the national debt had been monetized, open up a free currency market. People could use whatever they want for currency.

What are your opinions?

 

[Fox McCloud]

the money masters has an excellent historical perspective on money and how government's have manipulated it (or private bankers) via coercion to their advantage.

However, it stops being a "good" film there. If we take away the ability of the Fed to monetize the debt and instead give it to Congress and have them monetize the debt (oh boy...inflation anyone?) you still have one problem....Congress has no concept of how to properly allocate money or what it even is, so it's very likely that we've have inflation rates that are much higher than our current inflation rates.

I love the idea of abolishing fractional reserve banking, and, indeed, it's 100% necessary to do so....however, even if we abolished that but let Congress keep the power to print money (the Constitution calls it "emit bills of credit"), again, we'll still have inflation....not only that, but it's very likely that Congress will be just as bad if not worse at bailing out industries (and it won't just be big banks if it's up to Congress).

So, overall, bad idea, for sure.

What we really need a 100% classical gold-standard in addition to the complete elimination of fractional reserve banking (it would be criminalized)...once this is done the business cycle that we currently dread and put up with would be gone.

overall, let the market decide--I almost guarantee you it'll pick gold or silver (or both, just not a nasty form of governmental bimetallism).

the real issue we have now is--what do we do? Do we deflate until there's very little if any pain associate with going on a 1/20 of an ounce of gold = 1 dollar or 1/35 of an ounce of gold = 1 dollar....or do we take the current money supply and work with that....or somewhere in between?

I personally favor deflating to 1/20th of an ounce of gold...or just setting up that currency on the side and letting it compete against the dollar (if that happens it'll obliterate the Federal Reserve dollar).

edit: also under this system, it rewards those who actually produce something? Why? If someone finds a more efficient way of manufacturing something or creating something, it increases the value of the circulating currency for everyone who holds that currency (this is why, way back when, service-type jobs didn't pay nearly as well as jobs that involved the production of some item or was a service job that made production of an item more efficient).

 

[Mesogen]

If we take away the ability of the Fed to monetize the debt and instead give it to Congress and have them monetize the debt (oh boy...inflation anyone?)

But there would be 100% reserve requirements and inflation would be limited to 3% by statute.

you still have one problem....Congress has no concept of how to properly allocate money or what it even is, so it's very likely that we've have inflation rates that are much higher than our current inflation rates.

That's why we should only do it long enough to get rid of the national debt and then switch to a free currency market.

I love the idea of abolishing fractional reserve banking, and, indeed, it's 100% necessary to do so....however, even if we abolished that but let Congress keep the power to print money (the Constitution calls it "emit bills of credit"), again, we'll still have inflation....not only that, but it's very likely that Congress will be just as bad if not worse at bailing out industries (and it won't just be big banks if it's up to Congress).

True. And with our 2 party system "voting them out" is never really an option.

What we really need a 100% classical gold-standard in addition to the complete elimination of fractional reserve banking (it would be criminalized)...once this is done the business cycle that we currently dread and put up with would be gone.

But something like 80% of the gold is held by those evil evil bankers.

 

[Fox McCloud]

But there would be 100% reserve requirements and inflation would be limited to 3% by statute.

You actually trust Congress to keep the currency at or under 3% inflation? *chuckles* the current Central bank says inflation is only at 2.7%, which is obviously not true...what makes you think Congress would tell the truth? After all, they're part of the whole Central Banking fiasco as well.

That's why we should only do it long enough to get rid of the national debt and then switch to a free currency market.

The danger of this is that it would become permanent...there's been many taxes levied against the American people as a "temporary", but they ended up becoming permanent or they lasted way longer than was necessary.

But something like 80% of the gold is held by those evil evil bankers.

a lot of bankers aren't inherently evil, and I'd say the vast majority of them don't understand the system they're working for...though, no doubt, some understand it very well and relish the fact that their fraud is legal.

If fractional-reserve banking is illegal, and we're on a gold-standard, then what's there to worry about? Banks wouldn't be what they are today--they'd be Warehouses in which to store gold (for a fee) and offer checking services, etc. Since fractional reserve banking is now illegal..you're able to get your money at any time...so what's there to worry about?

and you wouldn't HAVE to keep it in the bank if didn't want to...though, as I said, what's the worry if banks merely are warehouses?

Now, perhaps I misunderstood your statement, and you mean that 80% of the gold in the world is currently held by banks. I'm not sure of that accuracy, but CENTRAL banks do hold a lot of gold....but, if they're stripped of their power, they'll have absolutely no reason to keep it and they'll liquidate it (they're already liquidating it).

I highly recommend Murray Rothbard's "What has the government done to our money? And the Case for a 100% Gold Dollar"....I think it'll remove any doubts you may have about a gold standard.