Guest Editorial: Saving Human American Citizens, Rather than Corporations

Wednesday, August 8th, 2012 at 11:00 AM
Guest Editorial: Saving Human American Citizens, Rather than Corporations by Robert Cogan

Congressional gridlock is nearly completely phony. Congress can create trillions of dollars in United States Notes without increasing our debt one penny. These “Legal Tender Notes” could be spent into the economy to jump start it. Very low interest, long-term loans could be made to Americans “underwater” to pay off mortgage arrears and, if a breadwinner is unemployed, a few months future payments.

Most of this legal tender doesn’t even have to be printed, to circulate and have prolonged multiplier effects. It can be directly deposited. $1.4 trillion U.S. Notes could produce 19 million jobs, provided we get over the idea that this money has to be used in maximally “productive” ways. Americans’ simplistic moralism (“jobless means undeserving”) and thus our psychological general welfare requires millions of jobs to replace jobs killed by automation, outsourcing, etc. The jobless can’t all operate earthmovers or computers. But millions can engage in paid, high-value, low-tool use, child, senior, and disability care, early education, homemaking, pick and shovel burial of the electric grid, building retrofitting, using hammers, paint brushes, trash spears, and other simple tools. Our money must serve us, instead of us serving our money.  

Would this be inflationary? Yes! The Panic of 2008 started severe deflation. Only massive targeted reflation can counteract it. Lack of massive reflation turned the Panic of 1929 into the Great Depression of  ’29-‘39.

Mega-banks hate the idea of U.S. Notes. They lose “earned” interest because they aren’t lending their Federal Reserve Notes to us. Weakening the dollar makes our exports more competitive and thus helps keep jobs in America. Reflation gives bond holders the haircut (the reduction in purchasing power of bond principals) they deserve for letting the bankers gamble. They’ll send a thousand “Liars for Lucre” economists, etc., to argue against it. They’ll withdraw advertising to media that educate the public about it. They’ll withdraw support from politicians who advocate it and support vocal opponents.

So look into U.S. Notes for yourself. Citizens will need to push the idea until the media and then Congress can’t ignore it any more.

Erie Reader: Vol. 6, No. 25
Available on Dec. 7, 2016


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