Let’s face it. The United States of America has never been in more debt than it is right now. As James Madison stated, “A public debt to an economy becomes a public curse”. When you are $230 TRILLION in debt as a country, that bypasses the definition of slavery and becomes the equivalent of a public curse. There are no easy fixes for the financial pickle that the U.S. is in right now. However, I would like to present 3 measures that we as a nation could take to remedy our financial state, but I believe only one of the following can truly happen.
- End The Federal Reserve Bank– Yes, you saw it correctly. Make no mistake about it, The Federal Reserve Bank is not a federal entity, there are no “reserves”, and it is not a true bank. Most people do not know the purpose of the Federal Reserve Bank or how it “controls” our economy. The Fed control interest rates, which determines if it makes better sense to borrow or save money in banks. Lower interest rates create “mal investments” and higher interest rates leads to better savings rates. The FRB creates money out of thin air and freely directs those printed dollars into our banking system, Wall Street, and into our economy. The Federal Reserve enslaves our economy to a system of credit and printed money, which creates economic bubbles of “boom” and “bust” cycles. Eliminating artificial stimulation and directing an economy towards privatization and a free market can only lead to lasting change. I freely welcome it, but I doubt it will ever happen.
- Link the Dollar to a Gold Asset- In 1971, our economy’s currency was permanently weakened when the dollar lost its sound backing. Gold is truly sound money. It has intrinsic value that lasts. History tells us that Fiat and digital currency does not last. Creating money out of thin air only leaves our country in more debt and enables instability in our economy. If the dollar can be supported by something that has true, intrinsic value, then that lead can to stabilization in our economy and our banking system.
- Privatize Banking & Lending – This possibility is the only solution that could truly happen inside our economy. Banks are inflationary institutions. Since they lend other people’s money and keep a small fraction in their reserves, it causes the Federal Government to print more money and increase the supply of money in our economy. This has a cause and effect relationship which causes the price of goods and services to go up as our money supply goes up. Therefore, if we can use sources that privatize (not publicize) lending and banking then our economy can stabilize in due time. Since our economy will not be using sources of artificial growth and instruments that cause more indebtedness, our economy can only sprout towards a free market. Certain sources that can privatize banking and lending are mutual insurance companies, trust companies, and private business/consumer lending…just to name a few. This is something that we can all participate in which will create a win-win environment for our savings, investments, and individuals who could use the money from private sources.
As we all know, there is no quick answer for a debt that mounts by millions of interest dollars a day, but there are measures that can lead to a positive correlation for today’s consumers and our economy. We all have a part to play and it starts with being educated and looking towards tomorrow’s individuals.
How can we help our economy in our own small way? How can we prevent our kids and grandkids from entering into a basket of debt?
I like what the famous Austrian economist, Milton Friedman said, “The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. That is why it is so essential to preserve individual freedom.”