Saturday, April 26, 2014

Fixing our monetary system

Our current monetary system has three major flaws. What we have to do is find a way to manage these flaws.

The first problem is Fiat Currency. We need currency based on something tangible, not just promises to pay. But we can't go back to the gold 
standard, and the suggestion of sunshine that I saw in an earlier comment wouldn't work because it would give equatorial regions an advantage. My idea would be a currency based on carbon. Not carbon credits, but actual carbon pulled out of the atmosphere and stored in bulk. It's physical and measurable.

The second problem is Fractional Reserve Banking, where banks only have to maintain a fraction of their deposits in the central bank in order to give out loans. This is simply a matter of law. In the 1930's, with the bank reforms pushed through by FDR, the reserve requirement was pushed up. The higher the reserve requirement, the less money the private banks could just invent out of nowhere. This helped keep inflation under control, but I don't think it ever got above 26% in the US. It's much higher in some other countries.

The third problem is Compound Interest, where we pay interest upon interest upon interest again and again and again. I recently got a debt consolidation loan that had a fixed rate, without any compounding. It's wonderful. I think all loans and credit cards should be like that. Need a loan for 10K at 10%, you'll pay $1K in interest for a total of $11,000. That's it. This could be required by law.

The banks would fight these changes tooth and nail every step of the way, but if we made changes like these it would bring our monetary system to heel and make it a servant of the people instead of our money being our master and us being the slaves.

Sunday, March 30, 2014

From Washington State Democrats, how to help Oso

Like you, we are stunned and devastated by the destruction caused by the Oso mudslide.
We’ve already lost over a dozen Washingtonians. With many still missing, this could be one of the deadliest natural disasters in state history.
When one community in our state is hurt, it hurts us all. Our hearts are breaking for the victims taken by this disaster, their families, and all those affected.
With tragedies like this, heroes emerge. We learn about the strength in our communities that we didn’t know was there.
We thank and honor the first responders, relief organizations, civic and government leaders, volunteers, and all those who are working day and night to help those affected.
It’s hard not to feel powerless at times like this. But a donation to help the relief effort is one way that we can do our part.
In solidarity,
Jaxon Ravens
Washington State Democrats Chair