I am getting to where this thing is simple. That in my view is good.
All of our economic problems would be solved in short order and permanently if people simply grasped that the root of our trouble is the existence of two classes: those with the ability to create money, and those who cannot. Those with access to free money will always prosper relative to those who have to earn it.
The solution is simple. Use the Fed to pay off all American debt: all private debt, all corporate debt, all municipal, State and Federal debt. This can be done easily, as there are no restrictions, now, on the Feds ability to create money.
Require banks to have 100% reserves, and to make money solely by charging for checking accounts, by making a spread on CD’s, and by processing electronic payments.
All dollars in existence that were not created as loans remain in existence.
The value of the dollar and of every hour worked by an American will steadily increase. Monetary deflation–which is really a misnomer, as the value, which is what we should care about, is increasing, not decreasing–is not a danger if there is no debt.
We end the Fed, and enjoy continual and widely distributed prosperity. We never alter the quantity of money again. We pass a Balanced Budget Amendment, which requires all wars to be actually funded by tax increases, making their true costs transparent and obvious to all.
This is simple, but it requires a radical rethinking of economics. This is compounded by the problem that most Marxists are really suffering from profound emotional psychopathology, and not actually seeking solutions to real economic problems; rather, they seek in policy relief from the misery their distorted, warped world view causes them.
I would append to this that the economic use of gold would be radically altered in this proposal. If there is no inflation, there is no economic need for gold. We could sell off the vaults of Fort Knox and the New York Fed (if anything is still there; and if it isn’t we could find out who took it and put them in jail, if they are still alive) for use in jewelry. That would fund a lot of government activities, one would think.
I really think this would work. I have yet to receive substantive criticism of this proposal from people who show evidence of having read and understood it. It has of course been misunderstood many times.