Friday, November 2, 2012

Conjure away Debt

Ambrose Evans-Pritchard- 21 Oct 2012: ... A paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan. ... The conjuring trick is to replace our system of private bank-created money - roughly 97% of the money supply - with state-created money. ... If lenders are forced to put up 100% 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. ... The IMF study came out in August and has begun to acquire a cult following around the world. Entitled "The Chicago Plan Revisited", it revives the scheme first put forward by professors Henry Simons and Irving Fisher in 1936 during the ferment of creative thinking in the late Depression. Read all HERE and watch THIS