This page has been archived and commenting is disabled.
Iceland Stuns Banks: Plans To Take Back The Power To Create Money
Submitted by Raul Ilargi Meijer via The Automatic Earth blog,
Who knew that the revolution would start with those radical Icelanders? It does, though. One Frosti Sigurjonsson, a lawmaker from the ruling Progress Party, issued a report today that suggests taking the power to create money away from commercial banks, and hand it to the central bank and, ultimately, Parliament.
Can’t see commercial banks in the western world be too happy with this. They must be contemplating wiping the island nation off the map. If accepted in the Iceland parliament , the plan would change the game in a very radical way. It would be successful too, because there is no bigger scourge on our economies than commercial banks creating money and then securitizing and selling off the loans they just created the money (credit) with.
Everyone, with the possible exception of Paul Krugman, understands why this is a very sound idea. Agence France Presse reports:
Iceland Looks At Ending Boom And Bust With Radical Money Plan
Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.
“The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.
According to a study by four central bankers, the country has had “over 20 instances of financial crises of different types” since 1875, with “six serious multiple financial crisis episodes occurring every 15 years on average”. Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle.
He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools.
Under the so-called Sovereign Money proposal, the country’s central bank would become the only creator of money. “Crucially, the power to create money is kept separate from the power to decide how that new money is used,” Mr Sigurjonsson wrote in the proposal. “As with the state budget, the parliament will debate the government’s proposal for allocation of new money,” he wrote.
Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland’s household debt relief programme launched in May 2014 and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis.
* * *
»
- 68513 reads
- Printer-friendly version
- Send to friend
- advertisements -
Cabal goons landing at Reykjavik International and linking up with nailguns in 10, 9, 8, 7 . . . . . . . . .
So instead of idiots in commercial banks creating money. We have idiots in parliment creating money. Forget going back to commodity money, that's just crazy!
Don't be so quick to naysay. Hitler did this, and it turned the German economy completely around. It also got his regime expunged from the face of the earth.
This is not sound money.
Central planning is the issue.
If they boot the central bank..ill be impressed.
If they back the currency fully with metals (silver and gold) ....then we are on to somthing.
RIPS
Who needs silver & gold when there's BITCOIN? ~ LOL
Bill Still Report
In the 6th segment of last November's Money Creation Debate in the British Parliament, we hear from Michael Meacher.
"The banks have too much power"
SR 366 Money Creation Debate 6
https://www.youtube.com/watch?v=tq51BT5SPWM&list=TLfoTG5YMxXpA
LOL.
100:1 we see al Qaeda pop up in Iceland, followed by a civil war and new government installed.
That would be rather telling.
Frosti...
From Iceland...
Really... ???
:-0
The Fed is owned by member banks. Who owns Iceland's central bank?
The Central bank in Iceland is state owned, it is a independent entity, not controlled by politicians
http://www.cb.is/
The bank in Iceland is state run but it belongs to Rothchild.
I love AU and AG as much as any conspiracy nutter, but just yanking back money creation from central banks is a huge step forward. Besides, I'd be very concerned if we started backing with gold and silver - two of the most heavily manipulated elements on the planet. Doing so at this early stage of revolution and you might as well as keep all value decisions on what your money is worth with the big banks.
"gold and silver - two of the most heavily manipulated elements on the planet"
Mine still has the same number of protons and neutrons as it always did.
Lordy lord...funny. Mine too....Cheers.
Exiled
"as much as any conspiracy nutter" Fuck you!
You still think people who claim the world is round are conspiracy nutters too?
Fuck wealth extracting Central Banks and Fuck Fiat.
How would these bankers control an object they own none of ...like silver? So you prophetize that they will be there telling me what i can and cant use for commerce ..when they are trying to figure out why no one wants their paper? They are impotent on a local level. Especially in countries with armed populaces.
You need to rethink your position before you are exiled even further. Fair warning.
There's maybe a quadrillion grains of sand on earth....maybe..... your dollar is worth less than sand when the music stops.
I don't remember saying to fractionalize anything... or to use paper promises? It is Wednesday..right?
RIPS
Given the price of metals is almost always quoted in US dollars and is, in fact, mostly paper, to back a currency with either of them would symbolic, but still tied to the US dollar because of the way it is 'valued'.
I think that was the point.
Holy shit you're funny. Come get me internet hero that doesn't grasp self depreciating humor or common logic. Its a shame you don't put that vitrol to good use rather than squander it on an internet forum for fake points.
So does mine. Too bad international trade isn't dependent on neutron counts, but on agreed upon international value of thing A vs thing B. If I can set the price of gold, I in effect control your economy if that is what your currency is linked to. 100 paper oz per 1 physical oz can just as easily become 200 putting your purchasing power in the toilet any time I want.
To run a ponzi you have to have something to hand out, now that is mostly dollars and paper commodities. The game of price controls ends when there is no physical asset to deliver in exchange for contract or dollar. See Venezuela toilet paper.
The point is that if a country backs they could buy up 50 or 100 Billion USD or other currency equivalent in metals, supply dries up. Imagine 3 or 4 countries doing the same and not selling reserves for dollars. Think about what that would do to the supply side.
Fuck Dollars, I know. The second people realize that grains of sand on earth are more rare than dollars it may change. Ultimately the decision lies with the people, not the banks.
Quit talking like the defeated and wipe your sandy pussy off.
RIPS
I think you have a good point exiled.
JPM still controls the price of many commodities.
JPM and Co control the price of everything as long as the people play their game.
Thats my point.
RIPS
"Central planning is the issue."
BS! The real issue is... Perpetual Control via Perpetual Debt.
Best done within a feudal system of Heritable Entitlement of Rent and Taxes in perpetuity, to allow for Income + Lifestyle in Perpetuity for its Masters. Period.
And THAT is why moneychangers LOVE the aristocracy and support dictatorial monarchs (Shah, The Queen, Saudis), but not a dictator who is a commoner (Castro, Gaddafi, Saddam Hussein...). The true "ruthlessness" of the latter group is in their ruthless opposition to Usury.
If you study history the closest humanity has come to sound money was the Tally system that operated in England for 500 years and took a bankster funded invasion to finish. The key to its success was not that was backed by a commodity but that it waas not debt and did not have interest attached. This is the same sort of money that has enabled China to become the world's biggest economy and it only works when it is issued by Governments as the banksters always want usury linked to loans.
luckylongshot, +1 for mentioning the tally system. nevertheless, a tally stick is an IOU. specifically, one part is the IOU and the other is the receipt
so it was "debt money". specifically, one of the oldest system, most probably older then all the others, including PMs
the key ingredient of the tally stick system was that people created debt without banking system assistance
You need to read a little further as what you have said is not correct. Sure everyone was working but not for their benefit.
"It also got his [Hitler's] regime expunged from the face of the earth."
Pretty sure that was because of the whole Arian race/blitzkrieg/world war thing.
You miss the point Bruce .. in a big way ...
Look the monetary freedom may have facilitated and empowered them to be able to war, but they chose to war and commit superior race crap crimes with that freedom. Let's try sound money again with some decent people this time, shall we?
You need to check your facts Bruce. Churchill went on record as saying the reason for WW2 was that Germany denied the (parasitic) private banksters the right to share in Germanys economic growth through issuing government money.
for christ sake. just check the amount of loans you americans made to germany and hitler. mystery solved!
"Don't be so quick to naysay. Hitler did this, and it turned the German economy completely around"
Here's something to read if you believe in real currency vs unicorn stories
Hitler’s Finances and the Myth of Nazi Anti-Usury Activismhttps://realcurrencies.wordpress.com/2013/09/16/hitlers-finances-and-the...
Damn straight - and you will not see this fact on MSM or in little Johnny 's history class in public school. Thanks to who?
Yeah. They failed at "money creation".
One things for sure - they'll start to offer much better rates for saver when they can't simply create it...
"Commodity based money" would not allow the people in charge to create new money on demand. It's just a power play between banks and gov. to see who gets to create more unbacked fiat.
Yes, and politicians are very reliable stewards of the paper money supply. Need to fund another war, or to buy some votes -- no prob; create some money !!
Mugabe was big on sovereign money too.
Yeah. Iceland is such a war focused nation.
Iceland my hero for contemplating step #2 (since they already took step 1).... but only if their Central Bank of Iceland is not privately owned or run by Goldman, the Morgue or any of that pedigree.
With a population of just over 300,000, Icelandic politics are bound to be kinda 'local' in nature.
The people know where the pols live, that's why the cahnges came about.
People surrunded the homes of the politicians and bankers and banged pots and pans through the night.
Nobody was hurt, but a very strong message was sent.
They also only have about 200 cops per 100,000 and are armed with pepper spray and a baton.
I think they had the first ever police killing a couple of years ago.
I was going to post something similar. One of the MAIN reasons that it will work is because Everybody Knows Everybody.
You points about banging pots and pans is exactly right. You won't hear that SWAT teams were called to disband the Rabble Rousers away from the 'Elite' neighborhood...
Everybody knows and lives in the Same neighborhood as everyone else.
Let me know last time Iceland went to war with anyone .. what is wrong with you naysayers. jealous of the fact that US does nothing . zip . zero . nada .. they can not even do tax reform let alone attempt currency reform .. must like the Fed system .. its a hag bitch but its your hag bitch..... dásamlegt dæmi um heim
"Habanger of shhh", re... "Commodity based money"
Not sure how you define this, but since goods and services come into existence via Resources/Commodities + Energy + Labor + Capital*, it is logical to have Money indexed (strongly coupled) to all of these. Perhaps a linkage of 20-50% to Resources+Energy makes sense, as it allows for limited elasticity that comes about with economic cycles (when money supply expands or shrinks with the biz cycle).
* I'd define Capital as "Equity stored as Money, from goods & services built from previous economic transactions"
The bank of North Dakota has the right idea, lend to sound people and companies and use the intrest to finance public works. No need for taxes.
Lemme see if I got this...
In N.Dakota the public works project are paid by successful workers and businesses, and everyone else gets a free ride?
Sounds like Communism.
Kirk, there is a problem with your definition. "Capital as "Equity stored as Money, from goods & services built from previous economic transactions"
true capital is not money. it's a machine, a factory, or a cow that produces milk, or even a husband that goes every day to work (for his family), or a bright idea being applied
true capital is productive. money is only potential capital. you are confusing production with wealth, the real economy with the financial side of it (not junked you, btw)
Theoretically, the politicians will still be accountable to the populace. Banks won't own the politicians. Couldn't be any worse than unaccountable creation/supply entities owning/bribing the politicians.
Bottom line is that, in the absense of trust, nothing will work. And trust ultimately requires agreed to subscription to moral standards.
Will interest be paid on the savings?
Is 4% too much to ask?
I understand there is a terrible threat from "the Greenlanders" and invasion could come at any moment...still, 4% on "free money" doesn't sound bad to me.
Morgan had the gold AND the interest back in the day.
Would appear we are all still stuck with "economics" here.
Bjork's been rockin it of late apparently.
All i know is someone is gonna get whacked
Iceland is proposing (on my very limited reading of this) much the same as the COMER lawsuit in Canada is claiming: They filed an amended claim that more or less says "throw out the private bankers"
Bear with me, as I think most formerly democratic nations have this enshrined somewhere (and ignored):
Tried to paste it in but failed. Amended claim regarding Bank of Canada.
http://www.comer.org/content/AmendedClaimStatement26Mar2015.pdf
And actually I am less than informative here. Reading through the amended claim there is the assertion that of all the G8 countries, Canada is the only one whose central bank is "public" in creation and not private. (read US, UK)
See amended statement item #6.
Canada wake up. In my limited view I am all behind COMER and Iceland. Iceland defied the private bankers and IMF once. They then made overtures to Canada regarding using the loonie as currency...wonder why? Maybe some smart kid there saw the constitutional establishment of Bank of Canada beyond private interests as desireable.
But I am an idiot so what do I know.
The central bank of Iceland must be suffering:
1) brain freeze
2) Lessons in logic from Jacob "showering after sex prevents HIV" Zuma
3) Banker Syndrome aka "We want MOAR!"
In a vacuum it seems like it might a good idea, ceteris paribus. But nothing is ever equal, and Iceland's finances doesn't exist in a vacuum. In a perfect world central banking would seek equilibrium pricing of their currency, with money supply and interest rates as the primary levers to manipulate the supply and demand curves respectively to maintain stability net of the balance of domestic and foreign trade... If the idea were to catch on in other countries AND central banks were to start acting in the best interests of their natural citizens, as opposed to corporate citizens, then there might be a risk to the banker world order. However, without the second caveat- all you have is the Dick Fisher "feel good" solution to the FED's evils, just as without actual countercyclicality one only has Krugmanism masquerading as Keynesianism...
+1
"If the idea were to catch on in other countries AND central banks were to start acting in the best interests of their natural citizens, as opposed to corporate citizens, then there might be a risk to the banker world order"
"...Krugmanism masquerading as Keynesianism..."
In general, corporate persons have no use for savings since they are focused on strictly on investment, when they aren't simply rerouting excess cash flow to investors, and they are wholey dependent upon the consumption of their customers to drive those cash flows. It leads to a really warped perspective on what a normal economy should be, hence Dick Fisher and his buddy the CEO of Southwest Airlines and their divergent perspectives and interests from Southwest's customers (as long as Southwest's customers keep buying MOAR tickets, even if they have to go into debt and obliterate their savings to do so, then unicorns are shitting skittles and everything is great).
+1 excellent add-on. at the end, it works like a subsidy. the first impact is "beneficial", and then it... ebbs. but if you keep "pumping it", you just create a dependency
this conundrum is real in many human matters, from monetary to fiscal to even the way people raise children
they'll be needing a good dose of FREEDOM!! if they go through with this.
Finally someone has the guts to do something (would be careful with airline tickets and nailguns though)...
It would be far easier to just focus HAARP on the Katla Volcano.
The Vikings will save us from the raping and pillaging!! Whodathunkit..
From Page 20 of the report:
"The process by which banks create money is so simple that the mind is repelled." Kenneth Galbraith
Agreed...with dangerous truth like this running around in Iceland, there is bound to be a regime change comming soon.
As the Icelanders would say: "jau jau jau, deesch young frrrootcakesch you know!"
THis is what Congress would do if they were not corrupt inside traders who stand to benefit from their particular combination of criminal incompetence laced with cleptocratic greed as they legislate over a hoard of drooling apathetic morons. The debt free greenback is the appropriate response to the Fed bankers.
Yeah sure, Just imagine our Congresscritters being able to create their own money supply. :)
Humorous but the fact is that by issuing Debt Free Greenbacks the Rothschild banks are not able to charge interest on public works projects that employ middle class Americans with money that is rapidly spent and circulated within the community rather than hoarded bt TBTF monstrosities that drive up asset values for the .001% making their balance sheets appear solvent.
Nothing is free. There is always a price. Otherwise it wouldn't have value.
Don't confuse money created be creating debt with that of creating new physical currency. They both have a price.
Greenbacks are not a new currency. Lincoln was the first to issue them and some say he was a crown agent. He of course must have gone off the rails to have been whacked. The next step for my fantasy congress would be to remove the income tax (that is taxes based on your labor, which I find unjust) and limit the fed gov to land based taxes. These classical libertarian ideas are lost on the new wave Royal Libertarians who can only talk about shiney metal in terms of it being real because they can hold it in their hands. I have a profound respect for private property rights, taxing labor is leading us into a feudalist society of haves and have nots.
If you had a profound respect for property rights, you would not be advocating state ownership of all land.
And advocating "public" spending is just failed Keynesian bullshit. Japan has paved the same roads repeatedly in order to fix it's economy, and has only accomplished massive inflation as a result, with no economic growth.
I am definitely not saying the that "state" or federal government would own all land, thanks for asking. We have land taxes now and if you are delinquent, you could lose your home and have it auctioned to pay that off. I'm sorry if this has happened to you or a loved one but the Federal government does perform vital tasks.
I am saying hat the fed should be very small. I am not saying that property taxes need to be raised 1000000% to make up for the difference from their loss of an income tax.
Talking about Public Works projects, It costs less to spend on the less fortunate and create opportunities and housing for them than to incarcerate them, think about that. The conservative state of Utah has figured that out. Don't get me going on the prison industrial complex. Do you think a boder fence is meant to keep Mexicans out or Americans in?
Income tax is just plain extortion.
The tax code is way too complex for Joe Average to even have time to read it, let alone understand it given he spends half his working life just to cover the tax he's forced, by threat of violence, to pay.
Only the rich can afford to pay for a pet bean-counter to find the deliberatedy included loopholes in it that enable them to avoid paying.
Land tax is similarly corrupt.
Excise taxes, on the other hand, are at least fairly reasonable.
Food, housing, heat, clothing - no tax
Everything on a sliding scale the fancier the item, the more the tax.
If you don't want to pay tax, do without things that are taxed and still have a comfortable life. If you need a Rolex to feel good about yourself, you pay through the nose. Only seems fair (which is why it won't happen).
Just a thought.
Gov spending is why Govs are broke, paying interest on borrowed money is the consequnce of borrowing. Gov spending on public works alone does not create any profit for the Nation, it's a net loss, Govs money comes from taxing the private sector, if there is no profit, there is no tax collected and no income for the gov. Countries around the world also have to accept your money. If it's just unbacked fiat, it will be worthless against foreign gold backed currencies.
You think that building infrastructure is not expansive. Your think hoarding gold, which does not circulate, will create growth? Pretty short sighted my friend.
Gold hoarders increase the value of gold in circulation, and do a service for those spending their gold.
Gold, when coupled with an electronic debit card, can be divided into as small of units as needed to continue circulation. Your argument fails.
I don't see 'growth' as being particularly desirable, given the finite nature of the planet.
A squirrel harvests more acorns than it can eat and stores them to survive through times when it can't find food out in the open.
Any sane human would find some way to store the fruits of his labours when he has surplus for those times when he is obtaining less than he needs.
Surely that's not hard to understand.
As of 1993 87% of Canadas debt was compounding interest alone! I wonder what it is today?
Let that sink in!
Why are we taxed to death, paying coumpound interest and no principal!
check out the court case in the Supreme court of Canada going on right now!
As the Bank of Canada is owned by the public " Canadians" and we have a constitutional right to create money and loan it to the three .govs ( fed, prov and municipal) for the purpose of building infrastructure at less than 1% interest.
As of 1973 Pierre Trudeau changed the policy and now the three gov's borrow the money from the major banks and add to the compounding debt problem. This helps us become debt slaves.
Now Pierre trudeau's son is running for Primeminister and he ignores the situation.
How do you spell being owned by the big banks?
update COMER VS BOC Jan 2015
Please share this info!
Have attended a few COMER meets.
Public Banking conference in Toronto was partcularly informative - met some interesting people.
Rocco seems like a good guy, but given he owes his living to his law license (leash) he has to tread a bit carefully.
Frustrating thing is they don't look at the BIG picture. just the Bank of Canada thing.
It's a start, though.
The more Iceland and COMER can spread the word about this FIAT CON the better chances we as debt slaves have to stop the fincial oppression.
Most people will not stand up or write letters to their public official, but the more people learn of this kind of opppression from paper and ink the better the odds.
Been doing my best in that regard for decades.
No point writing to politicians.
I try to get people to see through the bullshit - hard going, but I'm sure I've caused a few some 'lightbulb' moments.
Additionally if congress had to create money the wouldn't be able to blame the economy on the Fed's monetary policies. They would be directly responsible for how they spend money.
In Theory, they are responsible now for how money is spent. Always wondered why the "occupy" crowd didn't protest the WH or the Fed.
"If congress had to create money"
Obumner would pull out his paper and pen and create all the money the trilateral commision wanted, by passing congress altogether.
the "king's Printer"
If congress created money they would have a good reason to be on their best behavior, with no scape goat they could get voted out more quickly.
And this will work beacause politicians are to be trusted more than bankers?
If only there were some substance that money could be converted to. Something universally desired, easily divisible, and impossible to counterfeit. Any ideas?
Exactly.
Gold
Silver
Copper
If you want difficult transactions in a medium that is poorly divided and expensive to defend in large quantities. yeah lets go back to the dark ages, Royal Libertarian dupes.
That is one of the dumbest things I've ever read here. Difficult transactions and poorly divided?
WTF?
He rides the short bus. With a helmet.
RIPS
For safety.
Sorry to rain on your ditto parade. You gold bug dupes really haven't added much of substance to the conversation. "poorly divided" as in your gonna weigh grains of gold to buy a head fo lettuce or loaf of bread? Sounds like a neat way to transact if I were a feudal peasant slaving away on the masters land and being taxed on my labor. I have a respect for private property and if you believe your shiney rocks have value, and enough of you get together and agree, congrats. Following Congress taking control of the currency, I would remove the income tax (which is unjust) and return to a minimalist Federal tax system that derived all it's tax revenue from the commons. This would flip the current status quo on it's head. Land owners would need to do productive things to keep up with their tax liabilities or sell all their hoarded property. The next logical thing would be to advicate for a limited fed gov that can meet is basic obligations to maintian roads and infrastrucutre and basically stand out of the way of a dignified and free society. This would be the opposite of a cradle to grave debt saddled wage slave.
You're a modern day marxist and remnant of a failed past. Commodity back currency doesn't mean you walk around with a gallon of oil and silver. Gov and central planning has failed you and will continue to fail you until you see what the problem was to begin with.
I forgive you for missing th epoint completely. I am sorry that you have fallen for the Red Herring that because a person says "Commons" that they must be a maxist or communist. These are Geolibertarian principles, the way of Georgism and John Locke. http://en.wikipedia.org/wiki/Georgism
"Geolibertarianism" is just another collectivist retard group, one that doesn't like private property.
Fuck off, collectivist. Stop polluting the libertarian brand name. Get the hell of my lawn.
I'll bite, you fancy yourself an anarcho-capitalist gun toting moonbat? Once can believe in society and human rights and also maintain themselves as a free and independent dignified human being.
With land based taxes your lawn, that is likely strewn with junk cars, old washtubs and feral cats, would be a tremendous liabiity. It would encourage you to clean up the yard and do soemthing productive with it, such is the beauty of a that system.
Good grief man, less than 40 years ago when I was a kid we were using pennies to buy candy and nickels and dimes were a lot of money. Quarters and half dollars would buy gallons of gasoline and just one paper note (a $20) would buy sacks of groceries. It was always easy to transact in this fashion and was that way for decades and maybe hundreds of years before that.
Grains of gold? Feudal peasant? Do you have any idea what the fuck you are talking about when it comes to this topic (debt, inflation and debauchery of the currency via FRL)?
Apparently not....
I grasp fiat and debasing currency. I am advocating for taking that away from the creature from jekyll island. Not sure why your reading comprehension is so poor. I challenge the facility of transacting in gold, which is what the above Royal Lib dupes are defending. Gold is a historic tool of oppression and lending notes against gold holdings is exactly how the Banksters got started, becuase it's hard to defend so everyone got together and stored it in the same central defensible place that started issuing notes against their holdings....etc etc
Gold is just a metal. Private banks can ( and did ) issue notes based on it. A government that wants individuals to have faith in it's currency can make a point of only issuing receipts equal to the gold it holds.
There is no magic radioactivity that turns gold into the metal of evil. Stop confusing bad actions by collectivists with the metal itself. Gold is only hard to audit when Bankers are allowed to exclude auditors.
This is why I started by saying the The Congress needs to take back it's power to issue currency. The holding would be public knowledge and subject to audit. We have a sad state of affair when you can't recognize a fellow conservative.
Well my friend, I spent a good 20 years defending and supporting Ron Paul and his efforts to not only audit the FED, but to strip them of their monopoly and stranglehold on money creation as a private bank. Things have only gotten worse in my lifetime, so I can't say how this will turn out in the end. My gut feeling is that ultimately we will see revolution and the country break into many different pieces, much like the old Soviet Union and Yugoslavia did.
BTW, if you didn't know, the US Constitution still recognizes a "dollar" (or Spanish for "pieces of eight"), as 371 fine grains of silver. Article 1 Section 9.
http://fee.org/freeman/detail/what-is-a-dollar/
Everything in life is "expensive to defend". The only alternative is the guise of security by having the gubbermint defend you for you, but then you're not really free and you're actually a voluntary slave that has given your power away in exchange for some security and on blind hope that the government won't use that power to abuse you too violently.
I'm talking about portability and being a slave to your possessions and how your possessions own you. Ah, I can't believe this is lost on the Tyler Durden crowd.
Whether your possessions are in the form of gold or digits is not relevant. You're always a slave to them either way.
Currency is a tool, nothing more.
Gold is good currency, because it can't be counterfeited, and can be easily audited. When a government or a banker resists audits, they need to be hung from a lamp post for theivery.
+1 "Currency is a tool, nothing more"
Previous metals are much more convenient to deal and to defend than chickens. Paper money is only slightly more convenient than precious metals, but at a great cost. You're now placing blind trust in the government not to run off with or steal your money. Steal your money is exactly what they do. Electronic currency is even more convenient, but only in a very modern, technological area of the world. It comes at a greater cost than paper money as it can be more easily stolen, very easily traced and monitored.
Chikin defend is easy...get Alabai dog
you will not see a predator
Skills
Fitness
Food
We have to start somewhere and work our way up.
>> Something universally desired, easily divisible, and impossible to counterfeit. Any ideas?
-- And something that every country can create.
Electricity!
Freeze the retail price of electricity for eternity. And with that freeze the value of money.
The key to any system is to have persons of honor in leadership, as Franklin explained in his comments about the creation of a republic. One of the key faults of the new constitution was the failure to specify money supply.
As it stands in the US and globally: bankers control monies with which they buy politians; the arguement for congresscritters being put in this position is that popular sentiment would hold them responsible, the impacts of faulty monetary policy would be much more immediately felt. Kinda like going to war wihtout a congressionable declaration.
FWIW, the Merican empire is going down, not as fast as the twin towers, but fast. Especially as their appears to be an alternative as proposed by Russia/China. Most likely the bankers will do as much damage as they can. COnsider a global Sampson Option.
I would like to explore how the Byzantine Empire formed a successful structure to last one thousand years. This seems to be the road to which Russia is returning. China also has much from which the west might learn.
However, what remains of humankind will eventually crawl out from under the rubble and start makig the same mistakes. Dont matter to me - I wont be around. I never understood this concern about 'humanity', colibizing other planets. I'm mch more selfish. I wish to live as purposeful a life as I can, which as far as I can figure is that people generally suck. This breif expernce on Earth should be a lesson to all that you're not taking anything with you, come to terms with that as best you can.
Giving that power to the parliament brings one fundamental advantage; the state doesn't owe issued currency to outer entities and therefore cannot generate primary debt. Furthermore, the parliament has the highest legal credit to make decisions; one can hardly imagine any other more credible body. From the legal/legitimate point of view that's perfectly correct.
But can the parliament spoil the party much like private banks do? Of course, it can. But the overall transparency and subsequent remedy (even when enforced via elections or outright riots) offer substantially better prospects. At least we can say that financial collapse under such a system would be a national collective sin when all public excuses and wailing would be considered inherently childish and unacceptable. As regards fiscal discipline, that's quite a remarkable progress.
Ehm, something universally desired, easily divisible, and impossible to counterfeit... yes, gold at first glance. But A/F/F's Freegold is perhaps a better choice. If you like your fiat you can keep your fiat. BUT, you must let gold discover it's true market value. And then, if the parliament issues too much fiat the price of gold in that currency will go through the roof. Everyone will turn to it leaving worthless fiat behind. And this can pretty shake the economy and force/make the parliament rethink the whole policy. The concept is simple yet ingenious.
Yeah, Petroleum.
You can use it for its energy or convert it into hundreds of durable products.
Energy.
I smell regime change - coming to Iceland!
"Iceland? Sounds like ISIS-land if you ask me..."
Rejection of the fiat/fractional reserve nexus will be punished
Who's rejecting those?
The power to create money should not be in the hands of either the banks or the government. It should be in the hands of the people who in turn will decide what medium of transaction they wish to adopt.
To expect a better outcome from politicians is sheer fantasy.
Greece should learn. Nationalize central bank now!
How about nobody creates money, ya fuckin' retards?
Miners do.
Your name is apt.
Before i get too excited. ..
Is this Another april fools joke?
depends on your time zone.
with a name like "Frosti" how could it be?
Best be sure the Jackels will be paying Iceland a visit.
They need to be met at the airport, bent over and used as red road flare holders.
~ DC
There's historical precedent: Germany in the 1930s. It was spectacularly successful. Germany became wealthy while the rest of the Western world was mired in the depression. It's also the real reason the western powers felt compelled to expunge Hitler and his regime from the face of the Earth.
Who the fock is Raoul Enlargi Meijerr?
Him and Nicole Foss(aka Stoneliegh) are AutomaticEarth.com.
They both have been doing a great job(even before ZH) with these types of articles.
Try their Primers articles.
http://www.theautomaticearth.com/category/primers/
Before AutomaticEarth they ran http://canada.theoildrum.com/
They have been with us for quite a while.
They are some of the GOOD GUYS and should have ZH support. I am happy that Tylers have picked up on them the last year or so.
Visit their site if nothing more than for the GREAT black and white photo they have each day....
http://www.theautomaticearth.com
Bookmarked.
Thanks for the link.
Awesome photos.
As a former sign painter the one at the top of today's page - storefronts - is something special.
Perhaps if Alex Salmond in Scotland had been any good as an economist, he could have written this as Scotland's way of creating and managing their own independent currency, instead of using second-hand notes from the Bank of England.
Fail, Cap'n Fishy.
remember that the Scottish independence vote lost by 45% versus 55%... in part because some got scared about an independent Scottish Pound
'The cult did this by virtue of a very simple scam. It interjected itself between the state and its people by creating the medium of exchange (money) as an interest-bearing debt to itself. Money creation is something the State is perfectly capable of doing itself, without incurring any debt nor paying any interest.
This fundamental fraud is the explanation for almost everything that has gone wrong with the world.
In order to distract society from the real enemy gnawing at its heart, the central bankers have always created a series of phony enemies and unnecessary wars. '
''Debtmoney is a ponzi, and emerging recognition of that provokes the hostility. Fractional lending at compound interest has gotten people lynched because it really IS earning via parasitism.''
trav7777
The nature of their money changes from credit to wealth.
Banks will be forbidden from creating and emitting credit. If you take out a loan, you are borrowing from your neighbors savings. The interest you pay back, goes to your neighbors. Banks will be limited to earning money through service fees.... as it should be.
If you are a debtor and having difficulties, your neighbor creditors may give you an extension rather than harvesting your property or life.
In evolutionary terms, humans traded with each other. Banker's inserted themselves between us, as a third party. It is time to get rid of the parasite, we don't need them getting between us an intermediary.
If Iceland does it right, the monetary authority should be a fourth branch of government, surrounded by iron-clad, moral, consitituional law.
Ideally, the monetary authority will issue any new money into households. Everything they do should be open and transparent, and if they go against the law, they go to jail.
Besides, where is the profit motive by issuing money directly into households? Once money is released it circulates in the economy and can only be recalled by taxes. There is no debt instrument for wealth money.
Government has to appeal to the people before taxing them, and thus Government's power is checked.
Obviously I'm for it. Injecting into government first is probably not the best idea, but I'm not an enemy of perfection. A sane goverment will spend into the commons, and then the money goes on to become a transaction/wealth medium.
Iceland better get the Monetary Authority Constitiutional law right though, that is the weak point where the system can break down.
Yes, the Monetary Authority is named "Central Bank." But, since the nature of money changes, then it is no longer really a bank. It is issuing debt free money, not credit. Money housed at banks is something like wealth in a safety deposit box,
Think of it as an electron that now is a proton. It is a very big change to change the nature of money away from private credit.
www.sovereignmoney.eu
<< ...and if they go against the law, they go to jail. >>
Sorry, you lost me after that phrase. Ain't never gonna happen. Only the plebs and small fry businessmen go to prison.
Except Iceland has already put its bankers in jail.
http://www.bbc.com/news/business-25349240
So, now that the bankers are eliminated, they will put their fellow pols in jail? LOLOLOLOL
"Iceland is in such a turmoil it would eject itself from the planet if it could." #solution2015
Let the Icelanders experiment a bit and see if it works like history has shown.
Looks like Iceland needs some "Freedom". The same kind we administered in Iraq. Mission accomplished bitchez.
At least this plan reigns in their Bankers a bit.
Bjorkbux!
politicians cutting out the middle-man, what could possibly go wrong?
Iceland is the only country prosecuting it's banksters, if it can be done anywhere it's in that society.
Iran executed a Rottenshield banker last week I believe.
Consumers would go to thw CB for a loan?
Lower interest rates?
I'd like to borrow money at .25%
Why does money need to be loaned into existence? What a fucking stupid conecpt. It makes anyone not holding tangible assets into a debt slave.
It's not even money creation; it is only debt creation.
Money by the printing press enriches the printer
Agree entirely. The system needs completely rethinking.
If a basic house costs £50,000 and is initially affordable to the buyer. Borrowing £50,000 only brings £50,000 (fraudulently) into existence. When interest rates are added, the house now costs (for example) £200,000 (over a 25 year period) and may become unaffordable. The house does not cost anymore to build, the builder receives no more money and material costs don't rise. The only winner is the Bank.
Here is the crunch. Only £50,000 was created with the loan. Where does the other £150,000 (which was NOT created) come from to pay the interest? If all interest is paid, the money supply becomes heavily depleted. Someone, somewhere will default and the Banks enjoys ownership of a hard asset.
The game is totally rigged!
Best wishes Iceland.
"We need regime change in Iceland!" in 3.. 2.. 1..