Re: A Money Supply Question

From: The Trucker (mikcob_at_verizon.net)
Date: 09/05/04 

Date: Sat, 04 Sep 2004 17:51:51 -0700

VHarris001 wrote:

> Thanks for the responses so far, and I'd like to have the discussion about
> how we would (or should) redesign the US monetary system, but I tried to
> pose the question and elicit responses that would flesh out what the first
> few transactions would be for a newly created money supply using the
> extant US system as the model (including unbacked $US fiat money in the
> fractional reserve system).
>
> Just to restate the hypothetical: the Constitution, Federal Government,
> Treasury Department, Federal Reserve, et. al. have just been authorized
> and
> organized this morning. There is no tax revenue and Congress ()and the
> President) wish to *deficit* spend $100 million for government payroll
> before breaking for lunch.
>
> I'm not too concerned with the political actions (although that might also
> be instructive), but more helpful would be the financial actions -- an
> accounting of the transactions, or the book entries, required to issue the
> bonds, etc., to finance this deficit spending -- starting from zero.
>
> V Harris

Why are you insisting on issueing bonds? You have a mental block?
Just issue the money and forget about it. George Washington wrote a
note out to the guy he got the boats from (to cross the river). It
was called government script and that is exactly the way this rig
should work. But we use accounts in the banks as opposed to paper
script. 

-- 
"I know no safe depository of the ultimate powers of society but
the people themselves; and if we think them not enlightened enough
to exercise their control with a wholesome discretion, the remedy
is not to take it from them, but to inform their discretion by
education." - Thomas Jefferson.  http://GreaterVoice.org