Pop The Bubble Before The Real Fiscal Cliff: The Chicago Plan



Can we really pop our bubble economy before it bursts in the form of negligent suicide?

A 1930′s economic study advocating that we walk away from a debt-based currency has been recently run through advanced computer models at the IMF, and the results suggest it would work marvelously… The Chicago Plan Revisited (pdf).

Any educated person knows that fractional reserve banking is a leading horse in the race to the real “fiscal cliff” — the end point of a self-destructive system that just so happens to feed off of the ground it’s running on. A perpetual growth-based economy relies on the growth of using up resources that keep us eating, drinking, sheltering and moving, and as people race to pay off growing debts created out of thin air, the problem gets exponentially worse, literally eating and burning away the resources they need in the future to continue civilization.

We call it, “negligent suicide.”

The paper argues that fiat currency can be, and has been, powerful and beneficial to the general public if held by the state, not a few zillionaires who developed a system gamed to give them ever more power. It does not need to be backed by gold, but by the government, who would not link its borrowing to its currency’s value.

From a piece in the Daily Telegraph’s Finance section:

One could slash private debt by 100pc of GDP, boost growth, stabilize prices, and dethrone bankers all at the same time. It could be done cleanly and painlessly, by legislative command, far more quickly than anybody imagined…

The conjuring trick is to replace our system of private bank-created money — roughly 97pc of the money supply — with state-created money. We return to the historical norm, before Charles II placed control of the money supply in private hands with the English Free Coinage Act of 1666.

Specifically, it means an assault on “fractional reserve banking”. If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.

The nation regains sovereign control over the money supply. There are no more banks runs, and fewer boom-bust credit cycles. Accounting legerdemain will do the rest. That at least is the argument.

Some readers may already have seen the IMF study, by Jaromir Benes and Michael Kumhof, which came out in August and has begun to acquire a cult following around the world….

The IMF paper says total liabilities of the US financial system – including shadow banking – are about 200pc of GDP. The new reserve rule would create a windfall. This would be used for a “potentially a very large, buy-back of private debt”, perhaps 100pc of GDP.

More study should be done, exploring what this would look like under an already corrupt, overly-stretched US government, currently wholly owned by the banking system, but one thing is clear: as the dude sitting in the horse carriage, if you don’t want your society and you to die a nasty, senseless death akin to negligent suicide, you’ve got to do something to stop the horses from running you over that cliff. Slowing them down or veering them off a degree or two still leads them to the same nearing cliff, and there’s plenty of history indicating that it’ll suck.

Is Occupy Leftist? Huffington Post Thinks So


That’s what this article and book are saying on AOL-owned HuffPo Radio piece called: Both Sides: Are We All Pre-wired Left or Right? Do Beliefs Precede Facts?

Left and Right then self-segregate into their own enclaves where they only hear their own side ratified — think a Tea Party rally and Occupy Wall Street protest.

Do you agree? Is it left to recognize facts that a growth-based, unchecked plutocracy is using up our resources? Are you a socialist to understand how Bank of America and Goldman Sachs profited from deceit at the expense of 99% of us?

Is this Ron Paul supporter a left-wing freak for understanding that the monetary supply is based on debt — nothing?

Should we let this go unchecked, or skip the fallacy of left/right?

Student Debt Stories – What’s Your Story?

Student debt is bigger than credit card debt — about a $1,000,000,000,000.00, give or take a $1,000,000,000.00 or $2,000,000,000.00 — and apart from the recent PR news that we have a rising economy, it will be impossible for many to pay off that investment.

But so what? Some kid decides to get a college degree in Early Rock Jewelry of Upper-Middle-Earth Hobbits, and they can’t afford it. Why should you care?

For one, if you’re trying to continue a growth-based economy (which, of course, is physically impossible), then having potential consumers taking their money and sending off to the banks, as opposed to investing it into their economy, is a back-breaker for such an economy.

But it goes beyond the numbers you can find in Forbes’ “The American Nightmare”. ¬†Intelligent, well-educated people everyday are choosing between paying their heating bills or student loans. And for those who are lucky enough to skip college, the workforce isn’t going their direction — as enrollment decreases, the amount of jobs for which employers require a degree is not.

One Occupier wrote us and asked us to spread the word about his project. What’s your story?

NewsiT (www.newsit.net) a startup crowd-reporting site covering the
student loan crisis, and we’re looking for students and recent
graduates who can tell us their stories and how student debt is
affecting their lives:
http://newsit.net/assignments/how-will-student-debt-affect-you

Click his link below and fill it in. There’s a lot of storytelling that needs to be done, if we want people to occupy educated.

VIDEO: The Deficit and Debt Ceiling Game

The cliché goes: the Democratic leadership want to increase the deficit and go deeper into debt, bankrupting our government, and the Republican leadership wants to cut spending on everything but perks for the rich, bankrupting 99% of the American People. But what are the facts behind this perception?

Here’s an objective video by Khanacademy.org explaining — in layman’s terms — the constant game the government plays with the deficit, to keep up the illusion that the United States is a stable economy, that can go growing forever. It covers the last round of the game, and will not be a much different story from the future rounds. As observed in The End of Growth (first book to be read by Occupy Educated’s new Meetup), such a thing is physically impossible, and keeping up this game may best be described as collective insanity. As seen in Debt: The First 5,000 Years, this game has been a long time coming.

How do you see this game ending, and when? Comment here or in the discussion forums.