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,
rather than being created debt-free by the government.
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.
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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.
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 !
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
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.
All cartoons by Jude Potvin (VD)