April 27th, 2011
With the national debt getting ready to break through the $15 trillion mark, its worth noting that we can *easily* eliminate this current debt with 3 easy steps. I should note that this does not address Congress’ ridiculous spending and the deficit, but at least we don’t have the national debt.
- Eliminate the Federal Reserve
We need to stop borrowing our own currency. There is no reason to borrow our own money when we inflate our currency. Additionally, we need to allow the market to dictate interest rates instead of the Fed inflating and stagflating our economy.
- Step up the Required Reserve Rate while issuing new currency without it being backed by debt
Over the course of 4-5 years, we need to ratchet up the required reserve rate to 100%. To prevent hyper contraction of our economy due to a currency deflation, we would print money at the same rate as the reserve rate increase. This money would be placed in an account to buy back all money issued via debt issuance. The point of this step is to eliminate bank’s ability to inflate the money supply. We only print the money to ensure a relatively stable money supply.
- Require our new currency be backed by Gold
The file step after the 4-5 year reserve rate adjustment, we need to tie our currency to gold or silver. We need to maintain our currency going forward and tying it to a precious metal is one of the best ways of doing so. It discourages politicians from printing freely to start wars or other ridiculous ways of taxing their constituents through inflation.