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January 28, 2009
A Better Way to Make Money
http://www.monbiot.com/archives/2009/01/20/a-better-way-to-make-money/
In Russell Hoban's novel Riddley Walker, the descendents of nuclear holocaust survivors seek amid the rubble the key to recovering their lost civilisation. They end up believing that the answer is to re-invent the atom bomb. I was reminded of this when I read the government's new plans to save us from the credit crunch. It intends - at gob-smacking public expense - to persuade the banks to start lending again, at levels similar to those of 2007. Isn't this what caused the problem in the first place? Is insane levels of lending really the solution to a crisis caused by insane levels of lending?
This is an interesting proposal, although I'm not at all convinced I agree with it. First of all, I don't think that it's legal to circulate another currency within the United States, though I may be wrong on this. I know that many states made it illegal for the coal mine industry to pay Appalachian workers in scrip.
But apparently, there is some discussion of issuing scrip on Obama's website.
I'm not an economist, so I'm sure I'm not in a position to say whether this is a good idea or not. But what occurs to me is that this is a brilliant time to re-open the debate of ending the Federal Reserve's monopoly on issuing money. And I personally would like to see us get out from under the thumb of the Federal Reserve in a big way.
Posted by Rob Kiser on January 28, 2009 at 3:41 AM
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