Ideas 3.0 (The Chicago Plan)

The IMF go back and have another look at the `Chicago Plan`.

This paper revisits the Chicago Plan, a proposal for fundamental monetary reform that was put forward by many leading U.S. economists at the height of the Great Depression.

In its conclusion, it says stuff like -

The critical feature of this model is that the economy’s money supply is created by banks,
through debt,
rather than being created debt-free by the government.

and -

This ability to generate and live with zero steady state inflation is an important result,
because it answers the somewhat confused claim of opponents of an exclusive government monopoly on money issuance,
namely that such a monetary system would be highly inflationary.
There is nothing in our theoretical framework to support this claim.

10:42 min.


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TINA #3 – The Secret of Oz – Winner, Best Documentary of 2010

 

If  an alternative  to our current financial system does exist … it appears that it is not a renewal of the gold standard ! 

This is an excellent documentary, by Bill Still, which supports debt free creation of money by governments.

http://www.youtube.com/watch?v=swkq2E8mswI

The historical background presented is amazing. 

US Greenbacks are actually consider in a positive light as opposed to being a fiat currency failure, as it is put into a different historical perspective.  

Even the Wizard of Oz story and the relevation that Dorothy had silver slippers (in the book) and not ruby (as per the movie) is of interest around the US movement to use monetary silver to free the government from the gold bankers plutocracy and their control of the money supply.  

The entire 2 hours is  an eye opener.  I remain amazed at what is on the internet and produced by such keenly motivated people. 

 We really do need to free ourselves of this serfdom.

The problem however is that there are many gold bugs who see a gold standard as the solution which this documentary clearly demonstrates is not the reform path.  So how can the Debt Free Money team gain the alliance of the gold standard bugs ?  Until that happens the resistance movement to the current financial system will remain divided !

 

 

 

 

#4 Social Credit – The Canadian Movement and the Michael Journal

 

Please find below the link to the Canadian site which had me reading alot on this Social Credit Movement.  I think you will find this movement in Canada has some surprising catholic religious links but the material really does  focus on the social, economic and political aspects of this movement so try not to be turned off by the site before you read a few of the key chapters of the book entitled “In This Age of Plenty”.    Here is the link

http://www.michaeljournal.org/plenty.htm

My key take aways.

They believe that a gold standard cannot work in this age of plenty, which I think we would all agree with on OTP ?  That’s not to say gold is not a great store of value ! 

They believe in horizontal and vertical money, but they call it private and public.  These guys therefore sound pretty MMT to me !

They believe that a dividend should be paid to every person out of the public funds, as opposed to the government spending the money into existence.  That makes these guys pretty libertarian.  I think most governments would like to determine how to spend the money into existence because spending money into existence is the power of being a politician and a government.

http://www.michaeljournal.org/noparty.htm

 All cartoons by Jude Potvin (VD)

http://michaeljournal.org/gallery.htm

#3 Social Credit – Give The Money To The Consumers !

 

This has to be one of the most powerful aspects of social credit. 

 We have heard all those reports out of the US that the economy will not get kick started until the consumers get spending.   But all these conventional economists look at it as if the consumer needs to start borrowing again.  We all know that with declining wages and declining real estate values that this is impossible. 

Social Credit says that vertical or public or government created money should be given directly to consumers to spend into the economy !!  Figure that ?  Directly ! 

Social Credit says all citizens should be equally given a national dividend which is the creation of the necessary amount of money to keep the economy moving forward…. every citizen an equal dividend !!  Big difference in approach.

As quoted from social credit sources …. soon to be shared.

 A Dividend To Everyone

“The periodic dividend to everyone, recommended by Social Credit, is also in conformity with the economic realities.” 

“The modern production, in fact, is more and more the result of applied science, of inventions, of improvements in production techniques, and of all these things that constitute a common good: an heritage transmitted and increased from one generation to the other. The modern production is less and less the result of individual labour. “

“Hoping to distribute the production only through the reward of human labour, is therefore contrary to the facts. It is at the same time impossible, for the money distributed as recompense for work can never buy the production that contains other elements in its prices. “

“Seeking salary increases with decreases in human labour, is also to change the meaning of the word salary. It is no more a recompense for work; it is the inclusion in the salary of the hired persons of what should be a dividend for all, since it is the fruit of progress and not of labour. This deviation is a hindrance to the desired goal, since in becoming a salary instead of remaining a dividend, these additional amounts go into the prices. “

“Social Credit would distribute the dividend to everyone, directly, without charging it to industry. It would truly raise everyone’s purchasing power. “

Wow .. the evolutionary component of all products on earth belongs to the greater community !  Do you remember those past posts on evolution on OTP ?  Of course we would need to be able to calculate at least on a quarterly basis what that number is !  There would be more stats to collect and dividend payments to be issued.  It would all be easier to accomplish in todays computer age.

The only problem I see is that it takes away alot of political power to distribute government money to pet projects, etc.  But social credit was also about living more freely of big government.

 

 

 

World Economic News (Thu 19th. May ’11)

Pump it up, put a stag on the barbi, Google bonds, Banks HUD thud, Euro stuff, Brazil, Inflation.
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/05/Thu19May.mp3|titles=Thu19May]


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World Economic News (Wed 20th. April ’11)

US government, US people, US households, CPI, CPI, Inflation, Mortgages and inflation.
[audio:http://overthepeak.com/wordpress/wp-content/uploads/2011/04/Wed20April.mp3|titles=Wed20April]


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