The way I see it the US Constitution forbids the Gov from collections from citizens for the public debt. simply stated citizens have ZERO obligation to gov debt. ZERO. The gov can tax income but it cannot make you pay a dime if you have no income and they cannot collect from you to pay gov debt.
So the debt means nothing to me. If the gov defaults tough. I owe them zilch.
Debt is an attribute of the Federal Reserve fractional reserve multiplier. It creates debt with each loan and themoney
supply increases. So the dollars increase in number and thus inflate.
What I have suggested is debt free dollars which are not run through the fractional reserve system. Thus, they create NO DEBT. Lincoln Greenbacks are a perfect example, Colonial Script is a perfect examples.
This money is controlled by issuance to strict quantity. There is no borrowing fractional reserve system to increase the money supply with loans. Instead interest rates
are kept low because of competition NOT THE LACK of competition that exists with the federal reserve banks.
For example. The Fed rents money to the Gov. They take that money and it creates instant debt to the gov. to the Fed. Then the Fed banks take that charted money and pay the Fed 1% and then loan it out at 5% and for every dollar they hold in reserves, they can loan out 10X the quantity. So you have a 10X multiplier in the money supply and a 4% premium on every loan and A Bond
to the Fed upon which the Gov pays interest.
That is your present system. It has nothing to do with what I think about debt. This system is constructed to create debt.
Consider greenbacks issued as people's currency. It is printed in circulation. It could replace debt dollars one for one or it could be a separate currency. It value would not change because the quantity of dollars would never change. Banks could lend greenbacks but they would not get a high interest rate
but a competitive interest rate set by competition not the FED. And fractional reserve multiplier would not exist so no bank would be set up to which the gov owes debt for every dollar plus interest.
There would be no debt to the government to issue greenback. It would simple replace Federal Reserve dollars.
Seeing the light doesn't always have to be complicated. Once again, It surprises me that you give me the debt and gold arguments which are supposed to make sense but you never took the time to explore the video I sent you that explains this monopolization so clearly.
Here's a the link and hope that you take a look and understand it. This is vintage Milton Friedman thinking and he was the greatest free market economist in history and a true genius.
http://www.youtube.com/watch?v=swkq2E8mswI
this is a very well done documentary.
You must remember the Fed was installed in 1916 to raise money for a stupid War and they people had no interest in it so they wanted to find a shifty way for liberals to spend money without accounting for it so this fractional reserve multiplier was installed to cheat the public and give the politicians a free hand at spending.
Lincoln was trying to finance the Civil war effort and bankers wanted too much interest. So Lincoln printed Green backs as a means to create debt free, interest free money which was used to replace bank printed money. And it worked well.