Bill Still on Economic Reform

From http://z6.invisionfree.com/Bill_Still_Reforum/index.php?showtopic=275

Well, in the case of the Bank of North Dakota, they are using international banking rules to break the hold the Fed has over the state. It's not the perfect solution nationally, but if it allows states to increase their sovereignty in EXACTLY the place where it's needed most today -- balancing their budgets -- then I'm all for it. The concept will undoubtedly need adjusting as it begins to sweep the states and thereby brings irresistible pressure for monetary reform at the national level. It's simply a politically and fiscally pragmatic approach. NO ONE can predict what the world would look like if a majority of the states formed State Banks. We'll have to wait and see.

For example, in a new reformed monetary system where the National Debt is prohibited and the federal government can issue only debt-free U.S. Notes, some very knowledgeable people contend that we must allow the commercial banks to leverage their deposits fractionally.

Unfortunately, I'm not capable of thinking that deeply at this juncture. I'm more politically practical. I see Step #1 and Step #2 and do what I can to move the ball in that direction, knowing that as we approach Step #3 the clouds will part to a certain degree and others far more knowledgeable than I will step forward with the correct resolution.

Step 1 is getting the first state since 1910 to adopt a State Bank. Once that occurs -- even that tiny first step -- then the world is going to look like an entirely different place with dozens of new variables to consider. I can't possibly predict what will happen then -- but I do know it will be a positive step in the right direction and we will play the ball where it lies from that point.

-Bill Still


http://z6.invisionfree.com/Bill_Still_Reforum/index.php?showtopic=223

http://z6.invisionfree.com/Bill_Still_Reforum/index.php?showtopic=273

http://american_almanac.tripod.com/leiblock.htm

________________


The idea behind a state bank and government regulated money supply is instead of draining taxes to make good on a promise to the Fed, the funds are reinvested as a universal citizen's dividend in infrastructure etc; but the Money Changers will never challenge the system that has made them powerful and will turn their nose up at it. A definite hurdle. My solution, PRESSURE YOUR REPS. Talk to your friends... people are flabbergasted every time I lay it on the table. It's a source of endless wonder for everyone.

-Sean.Twyman

_________________________

From http://z6.invisionfree.com/Bill_Still_Reforum/index.php?showtopic=188

Something along the lines of FDR's New Deal, or Obama's economic stumulus would work to restore an economy if the money was issued instead of borrowed The reason why the US economy still sucked until WWII is because FDR tried to finance his recovery by borrowing the money, and the economy crashed again from interest payments and the Fed's open market operations. Periods of economic depressions are essentially 'money famines' and the solution is straightforward in theory but politically difficult.I believe the article is correct in advocating 'Keynes without debt' as solutions to economic depressions. Public works projects such as highways and railways are highly effective at putting people to work, and also provide economic benefits once they're completed. Even paying people to build a pyramid in the middle of nowhere would solve the 'money famine', along with spending on armaments, which is essentially the same thing except it has geostrategic purposes.My main point of disagreement with the article is its rhetoric about Adam Smith and 'free market capitalism'.

Adam Smith's 'invisible hand' works very well when it comes to industrial capitalism; but not with financial capitalism. By industrial capitalism I refer to Henry Ford's method of business - to produce better goods, for lower prices while paying higher wages. With businesses competing to produce better and cheaper cars, the end result is everyone in society was better off - having access to affordable cars, high wages, and Ford himself made lots of money.However, it fails with financial capitalism. Financial institutions like banks don't produce 'real' wealth; they produce debt. By following Smith's invisible hand they're working in an industry that strives to increase society's debt burden and ultimately leave everyone worse off. It's the same deal with society's 'vices' like addictive substances and gambling.

-david