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
wikipedia.org

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. 7, No. 15
Now Available — Pick It Up Today

CURRENT

Erie still getting its Sister Act together

Dispatches from an American in Cuba 

Award-winning woodcarver, Fredy Mallqui connects history and passion

 

Familial vibe keeps annual fest alive

The chance to see Galactic Duo's Tony Grey and Ian Maciak should not be missed.

IN THIS ISSUE

Erie still getting its Sister Act together

Dispatches from an American in Cuba 

Award-winning woodcarver, Fredy Mallqui connects history and passion

 

Familial vibe keeps annual fest alive

The chance to see Galactic Duo's Tony Grey and Ian Maciak should not be missed.

The Playhouse has planned a weekend of festivities to celebrate their 100th anniversary. 

Fleet Foxes hasn’t really skipped a beat since their first record in 2011.

The Erie Reader's list of top 10 favorite releases from the year so far.

Thick Skin

The tragedy of Trump’s decisions