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IPFS News Link • Economy - International

What If We Adopted A System Where The Banks Did Not Create Our Money?

•, By Michael
Would you be in favor of such a system? A surprising new IMF research paper entitled "The Chicago Plan Revisited" by Jaromir Benes and Michael Kumhof is making waves in economic circles all over the globe. The paper suggests that the world would be much better off if we adopted a system where the banks did not create our money. So instead of a system where more money is only created when more debt is created, we would have a system of debt-free money that is created directly by national governments. There have been others that have suggested such a system before, but to have an IMF research paper actually recommend that such a system be adopted is a very big deal. At the moment, the world is experiencing the biggest debt crisis in human history, and this proposal is being described as a "radical solution" that could potentially remedy some of our largest financial problems. Unfortunately, apologists for the current system are already viciously attacking this new IMF paper, and of course the big banks would throw a major fit if such a system was ever to be seriously contemplated. That is why it is imperative that we educate people about how money really works. Our current system is in the process of collapsing and we desperately need to transition to a new one.

1 Comments in Response to

Comment by Ed Price
Entered on:

What is money? No, really. WHAT IS MONEY?

Money, in reality, is the stored up labor of people.

You can't eat money like you eat food... not fiat money, anyway. Money is stored up labor of people because you can use it to hire their labor to grow and package food for you.

Did you know that you have all kinds of other forms of money around you? You use them every day. Your labor in everything you do is your money. If you mow the lawn, that is money for you, because otherwise you would have to pay someone else to do it. Making the bed is money for you, because otherwise you would have to pay someone to do it.

There is a great advantage to fiat money. And there is a great disadvantage to it, as well. The ADVANTAGE is the convenience. The DISADVANTAGE is that others may control its value in a way that reduces its value for you. And that is what we have. The banks control fiat money in ways that are advantageous for the banks... but the same control disadvantages you.

Any time that you want to start getting out from under the fiat money thumb, start to consider all kinds of other things to be money. Your food is money. Your land is money. Your car is money. Gasoline for your car is money. Your labor, itself, is money. Anything you might own is money. FIAT MONEY IS NOT MONEY. IT IS DISADVANTAGE.

Once you start doing this with everything in life, you will start to get more value for the thing that is the REAL money... YOUR LABOR.