|Posted by dr.ron45 on February 24, 2013 at 5:55 PM|
The Green Money Stimulus Act button on the home page takes you to my latest thinking on how to avert the budget sequestration and halt the increase in national debt, at least in the short term. The unique thing about it is that there are NO NEW TAXES required, and NO NEW SPENDING CUTS either! The whole thing is done by replacing new bond selling with new Green Money creation, and replacing old bond buying with more Green Money creation. Since the whole process is one of substitution rather than augmentation, there is NO NET INCREASE in money supply beyond what would occur by continuing the current system. Hence the inflation red flag cannot be waived. Such a claim is so amazing to those who have not studied green money mechanics that I have provided for Congress to insert their favorite new revenues and spending cuts, as long as they can be approved by both sides of the aisle. So Democrats would have to stop calling for new income taxes (new Green Money takes their place) and Republicans have to stop calling for draconian cuts in the social safety net. Optional headings for uncontroversial revenues and cuts are provided because everyone expects that reducing the deficit requires a combination of new tax revenues and entitlement spending cuts. But in reality, new Green Money issues to replace current and previous borrowing is enough on its own to set aside both the budget sequestration and the debt ceiling debate.
Projected deficit reduction for the first year is $120 billion, $35 billion more than the $85 billion cuts scheduled under sequestration, and in ten years the deficit reduction would total $2.388 trillion, about three times the amount required to set aside budget sequestration. It delivers sequestration set aside with NO new taxes, NO spending cuts, and NO net inflationm all at essentially zero cost (Green Money is created without borrowing or interest obligation), How can you beat that? Meanwhile, national debt declines for 7 quarters in a row eliminating any need to increase the debt limit and providing time to plan new measures to keep it headed down towards the debt free status enjoyed by the British Island Protectorates Guerney and Jersey in the English Channel. The Canadians used Green Money to finance their participation in WWII, and their national debt remained essentially flat from 1935 until 1975 as a result. And here at home, Abraham Lincoln used Green Money ("greenbacks") to win the civil war and push through the 13th Amendment. Green Money is not a new idea, it's been around a long long time, and it has worked in all cases where new issues were regulated to be in proportion to the needs of trade and commerce, or to the "readl GDP" as we say today.
So to stop the sequestration and national debt default, please alert the key decision makers to the low cost solution promoted here. Why do it the hard way when you can do it the easy way? Failure to introduce Green Money into the solution now may have dire consequences, which are totally unnecessary if we but get Green Money flowing again (at a responsible rate). March 1 is just a few days away, no time to waste.
Categories: Fiscal Cliff / Debt Ceiling