4 votes

Little Guernsey: 200 Years of Debt-Free Money

The single most important task in reversing the police state is to end the Federal Reserve's power, and the most important thing to do about that is to end debt-created money.

It is also something that the average person can understand. Thomas Edison said, "If our nation can issue a dollar bond, it can issue a dollar bill."

Instead of every dollar being issued requiring future taxation to pay interest, every dollar can be issued without any future expense. This will allow the government to have more money without people paying as much in taxes (something like this is the way to present it to the uniformed).

Milton Freedman came up with a way to pay off the national debit in one year, and it had the added benefit of virtually ending the power of the central bank in the same time period, WITHOUT causing inflation or any economic disruption (and even if it did, that would not be any worse than the current situation).

His plan was for the government to issue debt-free currency, as Lincoln did. Instead of people using "Federal Reserve Notes," they would start using "United States Notes," as they did 100+ years ago.

These notes would be debt-free because they would not be bonds that would be bought by the Federal Reserve. Instead, they would be issued and sent to the banks, which would REPLACE Federal Reserve Notes with these United States Notes. For a period of time, both would be in circulation, though they would look the same, so people could deal with it easily. Eventually, the FRN's would be gone.

It would likely be a process that would take a matter of months (maybe a year or so), and to prevent inflation, the banks would increase their reserve requirements at the same time, gradually from the current 10% to 100%. That would end fractional reserve banking.

There would be no need for a gold standard. Just replace the debt over time with new currency and slowly increase the amount the banks have to hold on deposit.

After that, the money supply could be increased at the rate of population increase. Then, we abolish the Federal Reserve Act, and end all connections to the World Bank and similar entities.

No more government borrowing also means the troops come home, ending the imperialism, as well as many other benefits. It would be the beginning of the end of the police state.

Then, we could start identifying those who deserve prosecution for the crimes they have committed.

The tiny island nation of Guernsey did something like this about 200 years ago. Although they had a pretty big increase in money supply over several decades, they suffered no inflation because their economy also grew at the same time.

Today, the tiny nation is prosperous, with the 9th highest per-capita income in the world -- and they still issue their own debt-free money.


We should start asking people a simple question: Wouldn't it make sense for the government to have debt-free money, so that it has more available for the people?

If anyone disagrees, we should simply ask them to explain how money is created now. Either they will show they don't know what they are talking about, or they will have to defend the added cost for no benefit. ;-)

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Our problems are built into our monetary system

Unless and until we fix our corrupt unsustainable built-to-fail monetary system ...

all these problems will continue

You lost me at "allow the government to have more money"

Giving money and power to government is like giving whiskey and car keys to teenage boys.

P. J. O'Rourke