Thank you for taking the time to write. You’re a talented and entertaining writer, which is why I read your column.
You mentioned that the government can print as much as needed to cover the cost of living for businesses and people, that the government has that ability and that we’d only owe the money to ourselves which we could cancel out at a future date.
That’s not exactly true. The scenario you’re describing is similar to how it should be, as the Founding Fathers intended according to Article 1, Section 8 of the Constitution. However, in 1913, the United States signed over our control of monetary policy to the Federal Reserve, which is a private for-profit bank.
If the Fed issues more debt to print more money, which is what our money is — debt — that debt is owed to the central bank and the member bank owners, not the people. As a result, the American people have no ability to cancel out debt, nor the ability to float the economy during this time.
For example, you may agree that a better response to the coronavirus crisis would be to halt monthly payments. This would stop the cash burn and prevent bankruptcy at the family, business and government levels.
Unfortunately, the Federal Reserve’s “cumulative dividend” policy prevents the government from pausing payments because a “cumulative” dividend is paid out without exception to profitability. In other words, the people of America are on the hook for paying a dividend to the owners of the Federal Reserve, whoever they may be.
A better approach that also enables a better crisis response, is to #EndTheFed and #GoGreenInstead by replacing the Federal Reserve with a credit union that is clean, green, citizen-owned, and fully transparent. We, the people, would own an equity stake in our economy and be eligible for a dividend from our collective product. We’d get off of oil and out of oil wars, and finally invest into renewables and organics. We’d also be able to freeze payments in the event of a crisis.
So you see, in our current setup under the Federal Reserve, America cannot just print money because money is debt here and it’s owed to the central bank.
With that said, you and I are in total agreement: America would be better off with self-control over our money as was intended under Article 1, Section 8 of our Constitution.
As always, thank you for writing. Please keep sharing. And feel free to investigate my website as an Independent candidate for President of the United States at LibertyStrikesBack.com.