Can all of our monetary policy be fixed?

I've had the privilege of watching a few documentaries on Constitutional and Economic history the last few days. Because my brain is constantly trying to solve problems, I think I found our prosperity by accident. This article will outline my solution with historical references, what's even better, I think this solution satisfies Libertarians, Republicans, and Democrats. I would like some of your feedback on this and will answer all questions I can. I will also try to simplify this as much as I can.

Solution:

Currency:

Once you realize money isn't as valuable as we make it out to be, we can therefore fix this current economic collapse. Even Glenn Beck acknowledges that Depressions are caused by the contraction of the money supply and collapses are because there's too much money in the system. With this being stated we can now see that even our money supply is subject to the Laffer Curve. This is why I propose that we have a constant per-capita supply of currency in our system, for example $ 5,000 per-capita. Every time someone is born there is $ 5,000 printed and every time someone does there's $ 5,000 destroyed.

Because we're still working somewhat under a feudal system our current money supply is loaned to us through a central bank called the Federal Reserve which may have ties to the Bank of England (explains the LIBOR rate in loans). The Constitution authorizes Congress to print money, and under this system I'm proposing we would have to do away with the private Federal Reserve. I will talk more later on in this article about how to pay off the debt, but I would like to point out that Congressman Paul posted an excerpt from the Federal Reserve Act of 1913 showing the buy out clause to end the Federal Reserve.

People might say that by the Department of Treasury has nothing to back this system up. If you look historically, countries have used land, gold, silver, wood, and many other things to back up their currency. For this problem, I propose that we use labor as collateral. This will satisfy lenders in the event that the government may need to borrow money, but under my system, the government really wont have a need to borrow money (no, this is not Communism).

Taxation:

To be an American, you must first understand that our Constitution makes us responsible for the effective implementation of government. Taxes can be collected in many ways.

Citizen Taxation:

Because we're responsible for the government effectively running, I propose that instead of allowing the government to tax our currency, because its only purpose is to facilitate trade, we should pay our taxes in the form of Community Service. Everything that is done in the private sector is also done in the government sector. This means that a private Lawyer can offer Community Service as a Lawyer and so on.

Business Taxation:

Since people will be offering labor, the other half of the solution is to tax businesses. I think there should be a standard tax put on businesses that never go up or down. The tax is a little unorthodox like the citizen taxation. Instead of giving money, they should provide resources such as raw materials or even consulting services. Think of this as tithing, every business should give 10%. This is such a win, win for everyone involved for many reasons.

Without the government having to use currency to purchase, this will effectively limit the government to the success of the private business sector, which will in turn reduce the amount of red tape and regulation that is currently hindering our economic development. Businesses would also be playing an even more positive role in the community because they're the ones who are contributing locally and nationally.

Import and Export Taxation:

This is the only part of my proposal that I feel may not be as sound as I would like it, but that's why I'm also asking for your feedback. Everyone knows after the most recent scandal with the IMF that all of our gold is gone.

I think the best way to tackle this issue is to use the Gold Standard for Tariffs. After watching "Money Masters" and a few other documentaries, Tariff is not an ugly word. Tariffs were such a good thing that the world leaders not under the British Thumb of the Bank of England were extremely prosperous. I urge you to read my previous article.

Social Security:

Because of citizen taxation, I feel there will be no real need for the Medicare program. I take General Welfare in the preamble to the Constitution seriously, but do you understand what it means? General Welfare means to ensure the survival of the species, not to create all these entitlement programs that enslave the general public.

Social Security should be taken care of in the following way. Because of citizen taxation and business taxation, there will be enough raw materials to use the construction sector to build housing for those who are using Social Security, but there's a catch. The catch is this, those who are relying on the producers of society should contribute 3x's more in the form of Community Service. For example if every citizen is required to put in 160 hours of Community service a year, then those who are relying on to social safety net of Social Security will be required to put in 480 hours of Community Service.



For those of you who think that the Social Security portion of my plan may not work, let me tell you about my mom. My mother is now disabled because of the stress she put on her body doing her job, she can barely move sometimes no more than just the basic to and from the kitchen or car. Although my mom couldn't walk the neighborhood and pick up trash, she could answer phones among other light duty jobs. So, if my mom could offer her basic services for 480 hours a year, I think anyone can. As Technology improves, those who are limited on movement will be more empowered to do more within the community. My grandmother took care of a guy who is paralyzed from the neck down, he's able to operate a computer with his mouth hooked up to a straw since the 90's.

This is not Communism:

Before you scream Communism, I urge you to do more research on the subject like I have. Everywhere Communism has been put into place it has failed, why would I want to model after a failed system. The only reason why we have Communism today is because a deal was struck in the 1800's allowing the rich to keep their wealth if they financed their Communist dreams. Although Marxism is widely followed, he was not the originator of it, it was the church who actually favored it. I urge you to read Lee Brobsts first article, which there's a link in suggested reading, to get a more detailed history of Communism and its origination.

My main influence for this system is the Pre-Revolutionary War Colonial Scripts and the lessons learned from Jamestown.

During the time of the Colonial Script, England was on the Gold Standard. The problem was that there wasn't enough gold to be exchanged which caused problems in commerce. The states printed their own money on paper script to put just enough currency in the system to facilitate trade. This was so successful that the King outlawed the Colonial Scripts and forced the Colonies into the Gold Standard. Since there was so little gold here in America at the time, people were starving and had high unemployment. One year later the Stamp Act was passed to force the Colonies to pay their portion of England's National Debt. This is the point in history that Benjamin Franklin points to as the fuel for the Revolution.

The lesson learned from Jamestown is this. When they first arrived in America they set up a Communist system. The object was that everyone shared the work and the food, but no one worked and everyone took the food. This was a gradual decline because once the larger portion of people realized that a smaller percentage of people were strictly consuming, they began to follow their bad example. This led to mass starvation and they had to rethink their idea. They then divided up the land and everyone traded food among each other because they all had different crops. This was the blessing, Property Rights, that was invented here in America and has played such a prominent role in the development of this country.

National Debt:

At the beginning of this article I said I would explain how we could pay off our National Debt and end the Federal Reserve. The Federal Reserve Act has a buyout clause of $1bn. We also have a $14.3Trn debt to pay off to. If we abolish the Federal Reserve and print our own money like JFK did with EO 1110, there would be no real change seen by the general public. I propose that we use the Tariff system to service and pay off our National Debt, which could be paid off in 10-15 years. There are other ways to pay it off as well, for example, using some of the excess government taxed resources and labor to then trade in exchange of currency. This is not as complicated as it seems.

Conclusion:

Right now we're in an economic collapse because of bad monetary policy. I don't claim this will fix everything, but it will fix a lot of them. Being a Libertarian myself, I would be excited to live under this system because you can only use it if you contribute (except in extreme circumstances). This satisfies Republicans because it will ultimately and forcibly limit the size of government and empower the individual. this will satisfy the Democrats because no human being should be deprived of basic necessities. This will satisfy Libertarians because it creates a sound monetary policy, limits the government, and provides for the general welfare of the public without letting the government become a parasite on society. There are probably holes in my argument, but its worth discussing. If you like this article, please pass it on so that we can bring as many people into this debate. Right now we have to fix our system or we risk going into another Dark Age or even worse, mass starvation. If our politicians won't offer up reasonable solutions, it's up to us because we are the government.