Keynesians want inflation? lets give them inflation

[hugolp]

Keynesians are always claiming that the solution for the crisis is inflation (well, its the solution for everything...) so why not give them inflation: repeal the legal tender laws and allow for competing currencies to inflate the money supply...

Its more of a publicity proposal because we know that if not even an audit the Fed bill was aproved, aproving this is even harder, but think about it. How can keynesians say no to this without admiting that they want the money to be monopolized arround the government created banking cartel? From a populist point of view they can only loose: Repealing legal tender laws would allow for local communities to fund their projects and develop their own economy, creating local jobs... How can they be against this? (we know they are, but they wont say it)

From a publicity and educational point of view is a win-win.

And from an economic point of view I think its solid. This idea came to me while thinking about the debate inflation vs deflation during the Great Depression. I oppose inflating away the problems, but the market actually tried to inflate by creating local competing currencies during that depression. So it got me thinking that the problem is not really the inflation but where the inflation appears. If inflation is not used to save the broken banks and companies and monetize government debt, but to fund new productive projects then its not bad inflation. But the fiat currency is blocked to do this during a recession because the banks are in trouble and the banks are the monopoly of the fiat credit. So competing currencies are the perfect solution to solve the crisis, because they bypass the lock that the broke banking system becomes. Its actually what the market tried to do during the Great Depression with the local competing currencies.

Opinions?

[Seraphim]

My opinion is that you are on to something and that free market money (competing currencies) is a HUGE part of the solution.

[-C-]

My opinion is that you are on to something and that free market money (competing currencies) is a HUGE part of the solution.

as if the Forex isn't already broken, lets just throw more currencies at it! great idea! all nations should abandon soveriegn currency and submit to private capital! YES!....No.

[Zeeder]

Yes, letting the market decide what it wants as currency is how it should be.

I take that back. They will decide on what money they want to use. We have plenty of government/bank controlled currencies.

Repeal all currency laws.

[Dr.3D]

as if the Forex isn't already broken, lets just throw more currencies at it! great idea! all nations should abandon soveriegn currency and submit to private capital! YES!....No.

Well, at one time, there was only one form of money world wide. It was gold and silver. It's about time the world went back to using something of value as money.

[roho76]

as if the Forex isn't already broken, lets just throw more currencies at it! great idea! all nations should abandon soveriegn currency and submit to private capital! YES!....No.

How exactly is the Forex broken again? Like Wall St., it is not broken it is just abused with the cooperation of our government. I think it works quite well myself.