[R-G] [BillTottenWeblog] The Economic Evil Gripping Our Nation

[Bill Totten]

by Arian Forrest Nevin, JD


Fundamentally, only the national government of a country should create
money. It should be created by the national government and paid into
circulation in the first instance through government expenditures. As the
science and technology of a people advance, so does their ability to
produce the necessities and luxuries of life; therefore they are capable
of producing more crops, houses, clothing, et cetera. As production
increases, more money is necessary to distribute all the goods produced
among the people of a nation.

If the money system of our nation was directed by people of conscience and
character, they would carefully monitor the growth of wealth production,
and as it increased, they would increase the quantity of money by spending
new money into existence in payment for some governmental activity. The
amount of government spending that could be met by creating new money
rather than through taxation would be small if the price level, that is,
the value of money, were kept invariant. New money could only be issued as
physical production increased; otherwise the purchasing power of all
existing money would be diluted. For a nation, money is simply a medium of
exchange, not a source of wealth.

The objective of a monetary system that is operated honestly and
scientifically is to keep the flow of money adequate to permit the
distribution of all goods produced by the nation. If money is placed into
circulation out of proportion to the goods produced, prices will rise and
the purchasing power of money will be decreased. If the supply of money is
too restricted then goods cannot be distributed and sold. This will result
in excessive inventory, which in turn will result in reduced production,
businesses closing down, and people being put out of work. The goal of an
honest money system is neither to create too much or too little money, but
to keep it in proper balance with production to allow for the distribution
of all goods.

Before money creation was privatized by banking corporations, anyone who
created money and spent or lent it was guilty of counterfeiting. What
counterfeiters are really doing is stealing from every single other person
in the nation. By creating money a counterfeiter not only obtains
purchasing power for himself, but also dilutes the purchasing power of the
money possessed by everyone else. Stated differently, a counterfeiter is
increasing the quantity of money without any regard to the production
level of the nation. By increasing the volume of money in the nation the
counterfeiter raises the price level in the nation, that is, the prices
everyone must pay for goods. This of course means that the purchasing
power of everyone else has been reduced for the benefit of the
counterfeiter. When caught, counterfeiters were punished very severely, as
counterfeiting is theft from every person who has any money, and that is a
serious offense. Of course, when banks create money out of nothing on a
scale unreachable for an individual counterfeiter, namely billions and
trillions, then counterfeiting becomes a respected business and is not
punished by the government.

Nobel laureate, Frederick Soddy, spent years researching the causes of
economic crises and how the prosperity of a nation could be increased. In
his book Wealth, Virtual Wealth, and Debt (1926) he came to the conclusion
that: "With adequate knowledge of the physical realities that dominate the
economic affairs of peoples, the road is clear for unlimited progress and
the attainment of universal peace and prosperity. The evils in the past
that have paralyzed the very heart of nations lie patent and beyond
concealment."

The evil Soddy speaks of are the private money system which has usurped
the national money system and caused the nation to sink into indebtedness
and recession. The road "for unlimited progress" he speaks of is the fruit
of science and technology, which we are frustrated from fully grasping by
the private money system. 

http://www.nationaleconomy.net/economicevilgrippingournation.html


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