Carl Herman, Contributor
The good news is that our economic problems exist literally only on paper, and solutions of monetary and credit reform can be easily understood:
- The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
- The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt that can never be repaid. It can’t be repaid because this is what we use for money. The US national debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest payment is ~$8,000 every year).
- Monetary reform creates debt-free money that extinguishes the debt (details here), and allows government to become employer of last resort for infrastructure investment (hard and soft). This creates full-employment, optimal infrastructure, and falling prices because infrastructure historically creates more value to the economy than cost. Credit reform allows for public loans at cost (such as 2% mortgages that pay for all state taxes), and eliminates the need for “rainy day funds” (and fraudulent funds in the trillions exposed in CAFRs).
The bad news is that we’ll continue to have the tragic-comic economic slavery poignantly communicated in the video below until the 99% sufficiently recognize the “emperor has no clothes” obvious crimes of the 1% and demand their arrests.