As may be obvious, I am a bit stubborn. I can fail all day every day for years on end. I can and often have persisted for long, long periods in the face of unrelenting criticism and personal attack.
One of my on-again, off-again projects is trying to get a professional economist to take my ideas seriously. Towards that end, I will send them emails from time to time. I’ve sent letters or emails to the faculties of Stanford, Yale, Johns Hopkins, University of Chicago, Yale, and Princeton (except Paul Krugman: he is an asshole, and clearly beyond any hope of redemption).
This is the latest iteration of this email, which I tweak from time to time.
Professor X,
I have developed what I think is a unique perspective on
our financial system and am soliciting feedback from credentialed economists.
If it would make a difference, I would be willing to make a $200 donation to a
charity of your choice in exchange for a substantive response, if only a short
one. My concern is with my children’s future, and social justice.
our financial system and am soliciting feedback from credentialed economists.
If it would make a difference, I would be willing to make a $200 donation to a
charity of your choice in exchange for a substantive response, if only a short
one. My concern is with my children’s future, and social justice.
The logic of my idea is quite simple: anyone
who creates money creates nothing of intrinsic value, but is still able to make
a claim on our actual, material wealth. It is quite appropriate to
call this theft, even though we are of course long accustomed to
it.
who creates money creates nothing of intrinsic value, but is still able to make
a claim on our actual, material wealth. It is quite appropriate to
call this theft, even though we are of course long accustomed to
it.
I would contrast this with what I would call true
Capitalism, in which the only way to make money is to provide a good or service
people want and are able to afford. As we all know, per capita productivity has
been increasing for some time, but wages have not. This requires an answer,
which I think relates to the system as a whole.
Capitalism, in which the only way to make money is to provide a good or service
people want and are able to afford. As we all know, per capita productivity has
been increasing for some time, but wages have not. This requires an answer,
which I think relates to the system as a whole.
In making loans banks create money which had not
existed. This places more money into circulation, with a resulting decline in
the overall value of existing money. We call this inflation, and expect some
amount of it every year, since deflation is feared.
existed. This places more money into circulation, with a resulting decline in
the overall value of existing money. We call this inflation, and expect some
amount of it every year, since deflation is feared.
Deflation is feared because in conditions of widespread
debt the amount of money to be repaid–the labor hours required to satisfy
it–rises steadily, resulting in higher rates of default, and thus higher rates
of banking insolvency, which propagated enough, generate economic
troubles.
debt the amount of money to be repaid–the labor hours required to satisfy
it–rises steadily, resulting in higher rates of default, and thus higher rates
of banking insolvency, which propagated enough, generate economic
troubles.
However, if there were no public or private debt, then a
steady increase in the value of money would be a good thing. We see many people
asking why wages have been stagnant or even declining for the past 15 years or
so. My view is that the purchasing power of money has been transferred via
monetary inflation from workers and corporations to bankers and governments.
The sheer quantity of money in existence has increased HUGELY since 1981 or so
(M2 at least five-fold), as has the wealth controlled by the worlds largest
financial institutions. The two are obviously related.
steady increase in the value of money would be a good thing. We see many people
asking why wages have been stagnant or even declining for the past 15 years or
so. My view is that the purchasing power of money has been transferred via
monetary inflation from workers and corporations to bankers and governments.
The sheer quantity of money in existence has increased HUGELY since 1981 or so
(M2 at least five-fold), as has the wealth controlled by the worlds largest
financial institutions. The two are obviously related.
I propose that in the coming economic collapse–it
appears overwhelmingly likely both that our debt will soon be downgraded, and
that this will have vast rippling effects throughout our economy (and this is
assuming we are not attacked economically)–a plan be proposed somewhat similar
to the Chicago Plan of the 1930’s, with some significant
differences.
appears overwhelmingly likely both that our debt will soon be downgraded, and
that this will have vast rippling effects throughout our economy (and this is
assuming we are not attacked economically)–a plan be proposed somewhat similar
to the Chicago Plan of the 1930’s, with some significant
differences.
Specifically, I propose that the Fed be brought
in-house and made an accountable and controllable instrument of government. I
propose that it then use its power to create money to pay off ALL debts in the
United States, public and private. All mortgages, all cars, all credit cards,
the national debt, State debt, municipal debt. Everything. This will transfer
wealth from the banks to the people. In the short term this will of course
be hugely inflationary, but I think things would settle down within a month or
two; and at that, far quicker and with much, much less suffering than would be
the case with a prolonged Depression.
in-house and made an accountable and controllable instrument of government. I
propose that it then use its power to create money to pay off ALL debts in the
United States, public and private. All mortgages, all cars, all credit cards,
the national debt, State debt, municipal debt. Everything. This will transfer
wealth from the banks to the people. In the short term this will of course
be hugely inflationary, but I think things would settle down within a month or
two; and at that, far quicker and with much, much less suffering than would be
the case with a prolonged Depression.
Then we end the Fed, require all banks to be 100% reserve
(they would make money by loaning the investor’s principle, by offering check
cashing and account services for a fee, and by warehousing money and other
valuables), and never alter the quantity of dollars in circulation again. This
should then, with productivity increases, gradually cause an increase in the
purchasing power of the dollar. This, in turn, will enable self financing of
new business, and completely eradicate business cycles.
(they would make money by loaning the investor’s principle, by offering check
cashing and account services for a fee, and by warehousing money and other
valuables), and never alter the quantity of dollars in circulation again. This
should then, with productivity increases, gradually cause an increase in the
purchasing power of the dollar. This, in turn, will enable self financing of
new business, and completely eradicate business cycles.
My view is that in a just, properly ordered
financial system people should be able to make a good living on 20 hours of work
a week. Health care, retirement, unemployment: all will quickly cease
to be problems.
financial system people should be able to make a good living on 20 hours of work
a week. Health care, retirement, unemployment: all will quickly cease
to be problems.
I have a longer treatment of this topic posted on the
internet, but I think the factors involved are quite simple. Self evidently,
this is a radical plan, but in my view we are facing desperate straits at some
point in the next 15 years or so, if not sooner.
internet, but I think the factors involved are quite simple. Self evidently,
this is a radical plan, but in my view we are facing desperate straits at some
point in the next 15 years or so, if not sooner.
Please let me know what you think. If you don’t have
time to respond, I would be happy to hear from a graduate student, or anyone who
might be able to render a knowledgeable opinion. Thanks for your
time!!!
time to respond, I would be happy to hear from a graduate student, or anyone who
might be able to render a knowledgeable opinion. Thanks for your
time!!!
Regards,
[The Beast]
[Decent School Pedigree]
P.S. As you might imagine, nobody replies to these. I
doubt most even open them. The reason I continue is that this is an enormously
important topic. If you have any feedback as to how I might more productively
solicit feedback or discussion, please let me know. There is no ulterior motive
other than a general amelioration of the human condition, and the advancement of
true fairness. This confuses nearly everyone.
doubt most even open them. The reason I continue is that this is an enormously
important topic. If you have any feedback as to how I might more productively
solicit feedback or discussion, please let me know. There is no ulterior motive
other than a general amelioration of the human condition, and the advancement of
true fairness. This confuses nearly everyone.