On 8 May, 18:26, Les Cargill <lcarg...@[EMAIL PROTECTED]
> wrote:
> orangata...@[EMAIL PROTECTED]
wrote:
>
> <snip>
>
>
>
> > That is, to employ a system of full reserve banking.
>
> I've never seen this explain how it would improve on
> existing fiat systems for accommodating growth in GDP.
>
> I have seen people talk about "separating credit from
> money", which seems a wonderful, then an impossible
> thing. I am not sure it's not simply a euphemism
> for 100% reserve banking.
>
> Aristotle believed that charging interest *itself* was
> immoral, since money is but a medium of exchange. The
> immorality was the reifying of an abstract thing into
> something that was traded for its own sake. But I note
> that the farther we get from Aristotle on this point,
> the more prosperous we appear to be.
>
> But our ability to produce would have confounded Aristotle.
>
> --
> Les Cargill
In a fiat currency the treasury could issue new treasury notes in
pro****tion to gdp growth. This would keep the ratio of gdp to money
supply roughly constant. The benifit of this is that we would no
longer be slaves of the banks. As Josiah Stamp, directot of the bank
of england, explained in 1940 -
"Bankers own the earth; take it away from them but leave them with the
power to create credit; and, with a flick of a pen, they will create
enough money to buy it back again. Take this power away from them and
all great fortunes like mine will disappear, and they ought to
disappear, for then this world would be a happier and better world to
live in. But if you want to be slaves of bankers and pay the cost of
your own slavery, then let the bankers control money and control
credit."
Another way to control fluctuations in the money supply is to use the
bimetallic standard. New metals are mined each year. When the US was
on the bimetallic standard people could have their silver minted into
coins free of charge, helping to control deflation. If the value of
silver rose against the value of currency coins would be sold for
their metal vaule, helping to control inflation.
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