This page has been archived and commenting is disabled.

Let's Talk About Solutions, Not Fake Fixes

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Since the status quo has no workable Plan B to "growth" in an economy in which household incomes have declined 8.5% in a supposedly expanding economy, real solutions must arise outside the status quo.

It's a lot easier to talk about what's wrong with the status quo and fake fixes than it is to talk about real solutions--for a number of reasons.

1. It's clear to virtually everyone who isn't being paid to make absurd claims that everything is peachy that the status quo is failing, so discussing the failings is like shooting fish in a barrel.

2. Grousing indignation (at all the failings) is an easy state to sustain; solving problems is an entirely different and not-so-easy state to sustain.

3. Emotional numbness brought on by financial distress and exhaustion reduces interest in solutions--there doesn't seem to be any when you're exhausted.

4. The predatory, parasitic status quo generates social fragmentation and an incoherence that breeds disassociation and alienation, neither of which are conducive to discussing solutions.

5. Since the status quo has no workable Plan B to "growth" in an economy in which household incomes have declined 8.5% in a supposedly expanding economy, real solutions must arise outside the status quo, which means the vested interests will lose their stranglehold on wealth and power. This is a no-no, so any solutions that lead to this are marginalized, ridiculed, labeled "impossible," etc.

6. To solve a problem we must first diagnose the problem correctly. The correct diagnosis of the current pathological status quo is: the problem is not X,Y or Z--the problem is the system itself.

I am indebted to correspondent Tom R. for extracting what might be the core diagnosis of our ills from my discussion with Max and Stacy: "We've been brainwashed into financializing the human experience." (at the 9:20 mark)

This is not a problem that can be fixed by tweaking state-cartel policies (Obamacare, banking, etc.) i.e. fake fixes. This is a problem that requires a complete rethinking of centralization, money creation, empire, wealth, prosperity, consumption and how we live.

We touch on many of these core problems and outline a few structural solutions in this 25-minute discussion:

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 08/09/2015 - 13:12 | 6407128 GMadScientist
GMadScientist's picture

Is it me or is Max one black robe away from being the Emperor from Star Wars?

Sun, 08/09/2015 - 13:14 | 6407134 CaptainAmerika
CaptainAmerika's picture

the solution is tick tock boom and a massive dose of steaming propaganda

http://www.philiacband.com/propaganda.html

 

Sun, 08/09/2015 - 13:21 | 6407143 Publicus
Publicus's picture

Just print money to fund startups/jobs + profit sharing. Then cancel excess money that pooled at the hands of the super rich.

 

It really is that simple.

Sun, 08/09/2015 - 13:50 | 6407214 w a l k - a w a y
w a l k - a w a y's picture

conscious vs. unconscious

 

 

 

 

 

 

procreation

Sun, 08/09/2015 - 13:59 | 6407224 Captain Debtcrash
Captain Debtcrash's picture

Here is a first step toward sound money without tipping over the fiat apple cart.    They have their plans to ban cash, and implement negative rates or the E dollar, but when they implement that mess in response to the next crisis there is no reason we can't sneak something tangible in under the radar. 

Sun, 08/09/2015 - 15:02 | 6407352 mliu_01
mliu_01's picture

Nonesens! We all know the true solution or the real fix IS: volutary jump or invluntary nail gun.

Sun, 08/09/2015 - 13:56 | 6407231 Money Counterfeiter
Money Counterfeiter's picture

"The central institution in almost every modern nation is its central bank. Here is where unofficial sovereignty lies (in both senses). Central bankers do not claim this authority; they merely exercise it. They let politicians take the hit for economic failures. They call the shots, because they control the central institution: money.

The mark of sovereignty never changes in history: coinage. There is usually a politician on a coin. This goes back to 600 B.C. Ethelbert Stauffer was a theologian, an historian, and an expert in numismatics. He wrote his great little book, Christ and the Caesars (1955), in terms of the history of the Roman Empire's coinage: the deterioration from precious metals to copper coins with fake silver. The coins had images of a god on one side and a Caesar on the other.

Today, we have paper money. Each nation's paper money has different politicians' pictures on the bills.

This is no longer so important, because most money is digital. We get our choice of credit cards. Here, there are bank logos, not politicians' pictures. The churches of America are MasterCard, Visa, and American Express. There is brand competition.

When politicians go to summits to do their deals, they always take the finance ministers. Their finance ministers are the liaisons between the politicians and the central banks. The politicians are on tight chains, not the other way around.

The public keeps its collective eye on the politicians. This is exactly what central bankers prefer.

The politicians are the Great and Powerful Oz. Central bankers are the little man behind the curtain."

Gary North 

Sun, 08/09/2015 - 13:21 | 6407147 Troy Ounce
Troy Ounce's picture

 

 

Will not happen

 

Forget about it.

 

Status quo will never let go of power. They will rather initiate a nuclear war.

Sun, 08/09/2015 - 13:34 | 6407178 KnuckleDragger-X
KnuckleDragger-X's picture

Solutions are determined by how you define the problem. Our leadership, such as it is and what there is of it, have no basic interest in fixing the problem's since they mostly don't even understand them. As is being demonstrated right now, we choose our leadership by a bizarre reality/game show system where the people who are best qualified are the least likely to win, so I say go ahead and let's elect Trump, since armageddon should be entertaining for the sheep.....

Sun, 08/09/2015 - 13:58 | 6407236 Redneck Hippy
Redneck Hippy's picture

The problem is that, for our leadership, there is no problem. Status quo fits them to a T.

Sun, 08/09/2015 - 14:15 | 6407285 KnuckleDragger-X
KnuckleDragger-X's picture

For them, it's keeping their cushy and perk rich jobs, that's why government bribery of the sheep is so important.....

Sun, 08/09/2015 - 13:21 | 6407144 MSimon
MSimon's picture

Money is not wealth. Wealth is life support. Money is a  means of exchange.

Sun, 08/09/2015 - 13:29 | 6407168 ATM
ATM's picture

You confuse money with currency. Money, first and foremost, is a store of value. It can also be a medium of exchange.

Currency is a meduim of exchange and is often confused with money.

 

Sun, 08/09/2015 - 13:48 | 6407209 Eeyores Enigma
Eeyores Enigma's picture

"Money is a  means of exchange." WRONG!

Remind me again what the 1%ers are exchanging for the billions funneled their way over the last 10 years or so?

Money is the thing that everyone needs or they die. Money is virtually given to a small percentage of the population who controle its creation. 

Ain't nothing darwinian about it, its just pure evil bull$hit.

Sun, 08/09/2015 - 13:23 | 6407156 brodix
brodix's picture

Money is really just an enormous voucher system and nothing is more destructive than lots of excess vouchers. Yet capitalism has mutated from a system for the efficient transfer of value to the creation of capital as an end in its own right. So the last forty years have been trying to store ever more excess capital. When it blows up, we will eventually have to learn that money is a social contract and as such is a replacement for all the other forms of reciprocal mediation that make a society function. As such, it is designed to extract as much value as possible from the community, while making this communal organization global in nature. The solution will be to go back to more localized currencies and to respect them as a public medium, much like roads. It doesn't matter how expensive you car is, you still don't get more road than necessary. That way, those in control can't drain the blood out of the rest of the community. Then we can create larger networks of relations, not based on extraction of rent for the service.

Sun, 08/09/2015 - 13:26 | 6407161 MSimon
MSimon's picture

Endocannabinoid and cannabinoid medicine - CB1, CB2, 2AG, anandamide, hundreds of cannabinoids - will destroy about 1/4 to 3/4s of medicine as we know it.That is a rather large economic opportunity.

 

It is not as if we lack opportunities for significant improvement. We just have too much government.

Sun, 08/09/2015 - 13:28 | 6407167 Totentänzerlied
Totentänzerlied's picture

Wrong.

Wicked Problems do not have "solutions."

The consequence of "too much" will be "less." The consequence of "not enough" will also be "less".

Thermodynamics and geology do not negotiate.

The future is less.

Sun, 08/09/2015 - 13:29 | 6407169 eddiebe
eddiebe's picture

Love you Keiser !

Sun, 08/09/2015 - 13:31 | 6407170 rwe2late
rwe2late's picture

a five star vote for stating the basic problem

though not necessarily the article's specific recommended solutions.

The specific solutions to be implemented/tested should be determined after

a public debate based on having all the relevant information.

Unfortunately, no such public debate is possible due to

government secrecy, corporate secrecy,

a servile and muzzled mainstream media,

entrenched political organizations,

and vested private interests with funds to pander and propagandize

self-servingly in deliberate disregard of fact or reason.

Sadly, I do not see rationality to triumph in the foreseeable future.

Instead, the policies will more likely be made by those who

now monoplize wealth and violence.

Sun, 08/09/2015 - 13:31 | 6407171 bluskyes
bluskyes's picture

Perhaps you over-estimate the public

Sun, 08/09/2015 - 13:59 | 6407199 Winston Churchill
Winston Churchill's picture

Duh.

The last thing I want is the general public making decisions for me.The majority are barely

hairless apes.Real apes would be a better choice.

Neither the rich or the poor should have a voice, only the truly productive creators of

real goods and services.Not parasites or paper pushers.But I repeat myself.

Both are responsible for where we are now.

 

Sun, 08/09/2015 - 13:44 | 6407204 rwe2late
rwe2late's picture

 At this sorry point in history,

better to aim high and risk missing it,

than to aim low to keep the alleged safety of past practice.

Sun, 08/09/2015 - 19:29 | 6408081 monad
monad's picture

Nope, Goebbels was right. Here is a current example:

http://www.zerohedge.com/news/2015-08-09/shots-fired-ferguson-brown-deat...

Sun, 08/09/2015 - 23:02 | 6408641 TheEndIsNear
TheEndIsNear's picture
Nobody ever went broke underestimating the intelligence of the American public.
H. L. Mencken
Sun, 08/09/2015 - 13:31 | 6407172 eddiebe
eddiebe's picture

Unfortunately consider this truism:

After all is said and done, a lot more is said than done.

Sun, 08/09/2015 - 14:12 | 6407270 DollarMenu
DollarMenu's picture

This 8 minute video, "Why are you telling me?" kind of sums it up:

https://www.youtube.com/watch?v=oFFCaKtDzuA

 

Sun, 08/09/2015 - 18:40 | 6407937 Oscar Mayer
Oscar Mayer's picture

Thank You.

Sun, 08/09/2015 - 13:32 | 6407176 lakecity55
lakecity55's picture

O/T but I feel Megan Kelly is a Fucking Cunt.

Go Trump!

Faux News sucks the Obama Dick every fuckin' day.

Sun, 08/09/2015 - 13:51 | 6407216 NoPension
NoPension's picture

She tried to "make her bones" at Trump's expense.
I have, up to now, enjoyed her reporting. To me, watching her do that, she was just another feminist twat.
You think she would have the balls to ask Bill Clinton such a question?

"So , Mr President, let's talk about you using your power and authority to get a naive female aide to wax your carrot in the Oval Office. Do you think that was an appropriate use of your power? "

Sun, 08/09/2015 - 15:24 | 6407381 lakecity55
lakecity55's picture

Kelly: I'll take on any Progresive dick that comes my way!

BJs, vaginal, anal, I do not care!

I can sell the foetus for big bucks! Gimmie a hard dick!

I hope it's a black one so I can kill two birds with one stone!

Sun, 08/09/2015 - 13:55 | 6407227 mendolover
mendolover's picture

Ditto on Kelly.  Not so much on Trump.  I believe he and Sanders are setups for the wicked witch of the south.  The best point Fiorino made the other night was his little chat with Bubba before he announced.  And Sanders will get all the naive hippies behind him, then concede to the witch and she'll get all his supporters.

Sun, 08/09/2015 - 14:31 | 6407289 Pure Evil
Pure Evil's picture

Finally, a few people get it.

And, Trump will dump his supporters leaving them angry, disillusioned and resentful vowing not to support any other Retardican candidate for the way they treated their messiah during the campaign.

If, they're pissed off enough they might even cross the isle to vote for Hillary just to stick it to the "R" team.

Sun, 08/09/2015 - 14:38 | 6407313 bid the soldier...
bid the soldiers shoot's picture

but

to vote for Hillary

Don't you mean 'to vote for Bernie.' 

Felons can't run for president.

Sun, 08/09/2015 - 14:47 | 6407332 headhunt
headhunt's picture

Ha! Neither can n0n-citizens.

Sun, 08/09/2015 - 15:18 | 6407374 lakecity55
lakecity55's picture

Miss Lindsey: I would rather have a committed Communist as president instead of an American!\

I have my Senate Workout club Memebrship, and those boys are HOT!"

Sun, 08/09/2015 - 14:42 | 6407323 headhunt
headhunt's picture

If Fox sucks 0bama every day, CNN must take his up their ass every day... just saying

Sun, 08/09/2015 - 15:24 | 6407390 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

When you are on the fringe of the right, everything will look left. 

Sun, 08/09/2015 - 13:40 | 6407191 arbwhore
arbwhore's picture

Keiser Report? RT? What's next, Infowars? Stop the ZH credibility waterfall... please...

Sun, 08/09/2015 - 15:25 | 6407392 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Zero Hedge also references The Daily Mail at regular intervals.

The Daily Mail.

Sun, 08/09/2015 - 13:40 | 6407192 DOGGONE
DOGGONE's picture

These histories are kept out of sight TO FOOL THE PEOPLE:
http://showrealhist.com/yTRIAL.html

THE SOLUTION IS SHOW THEM ... everywhere, every time!

Sun, 08/09/2015 - 13:44 | 6407205 greatgiantsicko
greatgiantsicko's picture

Things just are not bad enough.  That's it.  Power structures exisit because people beleive in their power.  Once people start to question power, power shows it's violent side (Frenach, American, Russian revolutions and the 1960's and 1970's).  This is the point of decision, fight or go back to the status quo.  Russia was the last to fight.  The hippies ran right into the arms of capital.  I don't think anybody will stand and fight once the blood starts flowing.  Most of us have no idea what BAD really is.  The dream is still alive!

Sun, 08/09/2015 - 13:45 | 6407208 nevertheless
nevertheless's picture

When I first heard Trump was running for President, I thought here we go again. Then he started talking about illegal immigration, something the establishment is hard wired to avoid. There was a glimmer of hope, hope that this egotistical pompous ass would rise above himself and actually do something for the American people, and against his class.

Then I heard him on CNN discussing immigration, and he said the magic words, "build a wall", and I knew he was full of shit.It was never about a wall, it is always about work place enforcement and removing the "anchor baby" bs.

The system is beyond broken, not because the political class is any more morally bankrupt than they have ever been, but because the American people have checked out, they are just more than happy to have their ideas and viewpoints spoon fed to them buy media talking heads. Right vs left, white vs black, it all comes so natural and above all else, they don't have to think...

We get the government we deserve, the problem has been the rest of the world pays the price, now we are about to...

Sun, 08/09/2015 - 13:55 | 6407228 NoPension
NoPension's picture

I'm not a doctor, ( did stay in a Holi.......) but I do know this; if you are injured badly, and bleeding, the first thing is to stop the blood loss. Triage. Then, after you stabilize, you work on the other problems.

Build a wall sounds better than shoot the mother fuckers.

You would not want me in charge.

Sun, 08/09/2015 - 15:12 | 6407367 Joebloinvestor
Joebloinvestor's picture

If the Donald presents any real threat to either party, they will try to buy him off with promises of fat govt contracts to manage or build government facilities.

The only way to restore "confidence" in the system will be to start prosecution of the guilty parties.

I lost faith when they refused to toss Linda Green in jail or Barney and his butt buddy.

Sun, 08/09/2015 - 16:22 | 6407523 August
August's picture

Mass-market television is toxic to self-government, as pornography is to the family.

Enjoy!

Sun, 08/09/2015 - 13:57 | 6407229 European American
European American's picture

Solutions...live within ones means. Stay a way from any one or any institution that advocates Usury. Avoid debt like the plague. Strengthen ones physical, emotional and mental immune systems by using sustainable methods. Happiness nourishes and soothes the nervous system, so consume and express (at least) the minimum daily requirement of that experience.

Sun, 08/09/2015 - 13:59 | 6407238 q99x2
q99x2's picture

Any entity of individual with over 10,000,000 gets launched from the sacrificial pyramids. Problem solved.

Sun, 08/09/2015 - 14:10 | 6407264 lasvegaspersona
lasvegaspersona's picture

Envy is ugly...do some work and get youself 10M and then come back and tell us how you feel.

Sun, 08/09/2015 - 14:40 | 6407320 headhunt
headhunt's picture

Envy is the primary cause of man made death in this world

Sun, 08/09/2015 - 14:05 | 6407248 MedicalQuack
MedicalQuack's picture

Operation Perception Deception is alive and well in the US..sadly...when they can't find any new algorithms to move money, all the queries will bottom out as the arrays of available data will no longer suffice:)

http://ducknetweb.blogspot.com/2015/06/operation-perception-deception-into.html

60 year old book and was on the Bill Gates top list for reading..still works.."How to Lie with Statistics"...I embedded the pdf to read here for free and it's very easy reading...

http://ducknetweb.blogspot.com/2014/02/a-how-to-lie-with-statistics-guidenow.html

 

 

Sun, 08/09/2015 - 14:24 | 6407301 shovelhead
shovelhead's picture

144% of statistics are lies.

Sun, 08/09/2015 - 14:39 | 6407316 headhunt
headhunt's picture

I came up with 123%...?

Sun, 08/09/2015 - 14:08 | 6407257 Sudden Debt
Sudden Debt's picture

So it's them who made the bears movies... bummer. I always hoped it where more credible persons who wanted to stay away from the spotlights...

Sun, 08/09/2015 - 14:09 | 6407262 VWAndy
VWAndy's picture

Yes there are good solutions to many of todays problems. But they wont go anywhere in bizzaro world.

 Corruption is SOP. As such it is not possible to do the right things. Simply because the right things would break one monopoly after the other. I like to call it fiat magic. Like with GM or Tesla the game is rigged to protect them from reality.

 A stunningly large % of the planet believes in fiat magic.

Sun, 08/09/2015 - 14:13 | 6407268 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

As the Quantum Behavioural Economic Social Engineer of the 08 implosion, I can assure all that there is NO possible, or probable, solution to the deflation of the pre-2008 'growth model' that was actually a massive Ponzi scheme that operated Globally pre-2008. Since March 10th 2008 you can all kiss Ponzi Casino Capitalism farewell because it is NOT coming back in your lifetime, or mine, ever.

 

Any discourse that purports to seek solutions is misguided IMO. The only road ahead is a complete system wide implosion, and then nuclear World War Three which will leave no room for anything but nuclear winter, and mass death.

 

Welcome to the Necropolis, America.

Sun, 08/09/2015 - 14:25 | 6407302 shovelhead
shovelhead's picture

Have a nice Sunday.

Sun, 08/09/2015 - 14:38 | 6407314 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Thank you, shovelhead, you have a nice Sunday too.

Sun, 08/09/2015 - 14:17 | 6407287 NoWayJose
NoWayJose's picture

We won't address problems as long as debate moderators think that old Tweets, reality TV show comments, and political correctness are more important.

Sun, 08/09/2015 - 14:19 | 6407290 headhunt
headhunt's picture

This is all you have to know;

Most politicians live and die by graft and corruption.

Eliminate the IRS, which is the power arm of government/politicians, and you return sanity to government and finance.

Turn off the free money train and turn off the corruption - well mostly.

Sun, 08/09/2015 - 18:56 | 6407987 Clesthenes
Clesthenes's picture

In law, your remark, “Eliminate the IRS”, is out of order.  What is in order is, “How, and by whom, will it be done?”

Then, we can deal with your remark.

Sun, 08/09/2015 - 14:20 | 6407294 NoWayJose
NoWayJose's picture

Max can be a little repetitious but I still try to listen every once in a while. It makes me feel a little bit better knowing that England is just as bad off as we are!

Sun, 08/09/2015 - 14:31 | 6407309 bid the soldier...
bid the soldiers shoot's picture

No matter how you slice it and dice it, Charles, hopium is hopium is hopium...

 

In times like these, in olden days, everybody would put on sack cloth and ashes and pray to their idols for forgiveness.  

Neocons refuse to be seen without their Armani suits and Prada shoes and think they're more important than fate and destiny.

To be blunt, we're all fucked.

Sun, 08/09/2015 - 14:38 | 6407315 shovelhead
shovelhead's picture

No point in talking about any kind of "Fix" until we remove the fakey 'money'.

Fiat money and fractional reserve banking are the original sins from which all others flow.

10,000 more words would add nothing of value to that above sentence.

This is where the primal conflict will lie for the future.

 

Sun, 08/09/2015 - 18:50 | 6407977 Clesthenes
Clesthenes's picture

Fixing fake money is a fix; and it can only be done by private men who use First-Amendment assemblies.

Sun, 08/09/2015 - 23:23 | 6408677 TheEndIsNear
TheEndIsNear's picture

First amendment assemblies are now illegal, or haven't you heard? They are only allowed are "free speech zones" far from pubic view.

Sun, 08/09/2015 - 15:19 | 6407327 To Hell In A Ha...
To Hell In A Handbasket's picture

Factions, ideology and partizanship is the death of the western world. I've spoken to diplomats who believe the Neocons would deem a Pyrrhic victory as a victory, then what hope is there? The solution is simple. Get rid of the banking elite and the cabal known as the Neocons. 500 people removed from power and influence equals problem solved. It's not rocket science. The only thing lacking is conviction at the top and the reason conviction is lacking from the top, is because those at the top want their turn sucking the teats of the money changers, in exchange for following monetary and Neocon policy. IMO they are the definition of cowards.

Sun, 08/09/2015 - 14:53 | 6407336 perelmanfan
perelmanfan's picture

CHS - What a great font of humanity and common sense.

Sun, 08/09/2015 - 16:48 | 6407609 jcdenton
jcdenton's picture

Yes, let's do talk about fixes. One that should have been implemented by or before September 7, 2006. (To prevent 2008) The same that was ready to go once again in 2010. (To prevent 2012, 2013, 2014, 2015) It's actually not too late. It's never too late. It's never too late to actually attempt to do something about it. Ya know, like Hillary says. "It's for the children."

http://www.veteranstoday.com/2015/01/02/wanta-plan-must-be-deployed-now/

http://wantarevelations.com/2014/01/wanta-plan-macro-financial-economic-...

http://www.veteranstoday.com/2015/05/04/neo-so-much-more-than-nukes/

http://www.veteranstoday.com/2015/05/08/proposed-declaration-of-war-agai...

And while we are at it, let's talk about a lie bigger than 9/11 (official), brought to you via the very same that brought you 9/11 and control the FED et al ..

https://youtu.be/ZT5ZUO7H_js

Sun, 08/09/2015 - 18:46 | 6407956 Clesthenes
Clesthenes's picture

“Grousing indignation (at all failings) is an easy state to sustain; solving problems is an entirely different and not-so-easy state to sustain.”

Precisely.

If there is to be any redress, it will have to be done by private men.  Munitions makers, international and TBTF banks; and government employees (civilian and military) have everything to lose if there is any correction.  Losses by one and two are fairly obvious; but not many realize the enormous booty government employees will lose: monthly checks (while active and retired) of $4,000-$7,000/month for grunts and $15,000-$25,000/month for judges and department heads.

So the responsibility for redress devolves upon private men; and hardly anyone has knowledge of the only historically-proven method by which it can be done: First-Amendment assemblies.

Sun, 08/09/2015 - 19:12 | 6408020 MEFOBILLS
MEFOBILLS's picture

The solutions are well known to history:

 "Pennsylvania enjoyed fifty-two years of non-inflationary growth by issuing and lending its own currency into circulation, thereby financing major development of infrastructure without incurring debt or high tax burdens. Adam Smith, in his classic work Wealth of Nations (1776), praised Pennsylvania’s success with government-issued money. Such proposals have been introduced in Congress over the years, but Wall Street lobbying has prevented such legislation from passing."

https://www.dissentmagazine.org/article/who-runs-federal-reserve-2008-cr...

 

From 1938 to 1974 Canada enjoyed a long period of low debt and very low inflation, as the Bank of Canada spent debt free into the money supply.

http://www.comer.org/

There is an additional 3 thousand years of coin history that can be added into the history mix.  Sparta's peleanor money, the Numa period of Rome, the Hanseatic league.

There are plenty of computer models that show intermediated real money like the above examples, behaves superior to private bank credit.

Interemediated money is volume controlled and ideally injected into the consumer base of the population.  Alternatively, it can be injected into modes of production, usually the commons to build infrastructure.  Canada did both, and it also limited private credit issuance; private loans could never double with usury in Canada's system.

This could also be zero interest loans over a long time period, effectively allowing credit to float and serve transaction needs; this money type would be sovereign credit recalled at a slow rate.  These type of loans can also be targeted into societal needs.  How about fixing bridges that are ready to collapse, and hence put labor to work?

At one point Greenbacks were 40% of the money supply.  This was floating sovereign money issued by the Treasury.  They were so popular a "Greenbacker" party came into existence at the turn of the 19'th century.  And yes, the bankers won again. 

In the U.S. the coinage clause in Constitution still allows debt free Greenbacks to be created and spent TODAY.  The counter argument that this will cause inflation IS NOT backed by history.

 That all money must be loan based "credit/debt" is completely refuted by history, and it is a testament to the power of propaganda that people today think that money = debt.

In actuality, it is private Bank-credit-as- money which causes inflations, and then depressions.  For the inflation part of debt cycle : business raises prices in order to recover the interest they need to pay.  Remember the principle is destroyed in a credit system, but the interest is not.  The interest vectors to the banker, who gets to store it and also gets first seigniorage.

Business raises prices to cover interest which was not included in loan.  Goods prices rise.  Labor then demands raises to pay for price increases.  This then causes a wage/ price spiral = inflation.

Lately, new credit loans have been aimed at asset classes.  For example, new credit aims at housing, causing house prices to increase.  QE is aimed at financial paper, helping the finance casino and not mainstreet.
 

During WAR, government spends treasury money, although it is hidden from view:  In  U.S. it was the Reconstruction Finance Corporation that effectively was a bank and it spent about $1T.   In Germany it was MEFO bills, which were really Treasury money out of Reichsbank. MEFO bills made the German economy roar, and Germany had no great depression.  Mefobills were always examined and then discounted after goods were created, the new money then spun out into the supply, and then was recovered in an improved tax base.

 The private banking system looks the other way during war, because they are making money on the war, and there is promise of new conquered debt free territory they can hypothecate in a new debt cycle.

The other fix is to stop international exhange rates.  All international trade is only barter.  Use the superior Bancor system to mark trade.  Hjalmar Schact proved beyond doubt that trade is simply marking accounts to manage goods exchange.  STOP exchange rate TRADING MONEY FOR MONEY, and especially stop hypothecating new credit to then collapse exchange rates in shorting bear raids.

 Getting this stuff wrong is life and death, witness Greece and Nazi Germany.

Humans have great science, art, mathematics - but we cannot figure out money?  It is pathetic to behold. - 

A sovereign money system could be introduced overnight, or greenbacks spent now.  How stupid are we?

sovereignmoney.eu


 




Sun, 08/09/2015 - 19:12 | 6408029 Bay Area Guy
Bay Area Guy's picture

What's so surprising about needing fake fixes when you base your analysis of the issues on fake data?

Sun, 08/09/2015 - 19:16 | 6408041 MEFOBILLS
MEFOBILLS's picture

Pearls before swine

Sun, 08/09/2015 - 20:02 | 6408159 Pipetex
Pipetex's picture

Maybe the core of the problem is that credit cannot replace real income... Henry Ford figured it out like a thousand years ago.

Do NOT follow this link or you will be banned from the site!