Tue Sep 23rd, 2008 at 03:22:50 AM EST
There is another way to solve the banking problem on Wall Street and that is to abolish money as debt. Here is a movie, Money as Debt, from Canadian animator Paul Grignon from 2006. The film is 47 minutes long. Please give it a view.
The film has been around in a shorter form since at least 2002. I think it is important to at least view before we Americans sign $700 billion over to the Wall Street and international banks.
We have a systemically flawed monetary system. We cannot fix the fundamentally flawed system. The fundamentals of the American financial system is a bottomless pit of debt.
Frankly, I think we Americans should nationalize the banks and take away the ability to create money (through debt) from private hands and place in the hands of the people.
Since the banks have proven quite effectively that they are not profitable, we should buy out the banks and convert the American banking system into a not-for-profit service. The U.S. government should lend itself money without interest to create value for the public good such as improving and maintaining the nation's infrastructure, researching alternative, renewable energy, and protecting the environment.
Money lent to private individuals would have interest with the interest being used to fund other societal needs. If there is, by chance, a surplus, then we could play dividends to citizens.
Why should the U.S. federal government borrow its own money at all? The U.S. does not have a sustainable economic system and since debt = money, we are always at risk to this financial collapse again and again and again.
I believe we should move to a system where money = value.
To do this we first must abolish the private lending system. Banks should no longer be allowed to loan money it does not have.
Then, to replace our current system in the U.S., money would be created and added to the economy by the U.S. government by creating value. Investments made the public good -- such as durable infrastructure that helps the economy such as roads and bridges, or climate change / alternative energy research. Value must be placed on things that are priceless too, such as wilderness areas, clean water and clean air.
The key is money is created as value -- to pay for something, not as debt. The value is the thing or project the money was spent on.
Inflation becomes a way of taxation. The higher the inflation is the higher the tax rate is in effect. If this isn't palatable, then to reduce inflation the government taxes at a higher rate and removes the money from the system.
To control deflation, the government would simply create more money by creating more value for the people of this country.
A side benefit of this would be the eventual elimination of U.S. national debt. There would be no federal debt because the government would create the money it needed for its projects.
The key is to eliminate the private banking system -- the very same system that wants at least $700 billion of American tax money, which is money as debt, not value.
We need to think outside the bank. The bank is broken. The current financial system is not sustainable. It wasn't in 1929 it isn't today. Now is the time we the people take responsibility for the American's financial future and stop leaving it in the hands of bankers, traders, and money lenders.
Cross-posted from Docudharma.