Currency as Debt: A New Theory of Money
Currency Stability
 

My Dear Friend,

Manipulating the currency supply might cause currency inflation or deflation. Because currency is a public utility serving as future claims on the wealth of the society, altering the currency’s exchange value today affects the future exchange of wealth. This alteration changes the expected and originally contracted value of the exchanged wealth.

My dear friend, the crux of the problem with current monetary policy is the lack of a good mechanism to ensure that the amount of currency and the need for that currency remains in balance. In fact, current monetary policy always favors an excessive amount of currency in circulation. Money managers and politicians learned an important lesson in the Great Depression: A slight positive phase angle, more currency being created than is needed, is politically expedient because such a policy avoids currency deflation.

We need not overlook the fact that such a policy is profitable to those same people. Conspiracy theories are unnecessary to explain why we live today under the rampage and insult of continual currency inflation. A simple observation of basic human nature demonstrates more than adequate incentive.

In any moral monetary system the exchange value of a currency must remain stable. Market forces largely control the volume of goods and services produced and a sound monetary policy is necessary to control the volume and rate of circulation of the currency to match.

The problem then is not the character of currency, but the instability of currency circulation. Since currency is a public utility, there should never be currency inflation. The substance of the currency is irrelevant, but the simple fact that the expected exchange value continually dwindles, violates the trust placed between the people and those who currently manage the national currency. The existing Federal Reserve System and the banking industry reap tremendous and unjustified profits for performing clerical duties. The benefits received by these few people far outweigh the benefits received by the public. This imbalance upsets people—and should!

The character of currency is unimportant. Returning solely to gold and silver coin is impractical and probably impossible, although for the sake of definitions, and to remain Constitutional, a connection to the real world is essential. In a modern world of instant currency creation through credit, calculating the total quantity of currency in circulation is virtually impossible and fruitless as a tool to regulate the exchange value of currency. The quantity of currency in circulation is important, but only with respect to the available goods and services. Maintaining the exchange value of currency is an essential element of a stable and prosperous economy.

Monitoring and regulating the exchange value is possible and doable. With stable purchasing power, all arguments surrounding the nature of money and currency become irrelevant and unimportant. Unfortunately, my dear friend, no mechanism exists today to forcibly regulate currency exchange value.

Yet, there is hope. The National Economic Stabilization and Recovery Act, or NESARA, a bill currently proposed to Congress, would remedy the current problems with our money system. I pray that the people would awaken and demand their representatives pass this legislation.

With all due regard and affection,

Your friend
 

Editor’s Note:

To better understand the concept that the currency represents unclaimed wealth, please read Back to Basics—The Nature of Money.

To understand how NESARA restores the national currency to being a true public utility, please read the following portions of the bill:

• Part I. Banking and Monetary Reform, Section 2 Findings
• Part I. Banking and Monetary Reform, Section 3 Congressional Control Of The United States Monetary System

To understand how NESARA establishes honest and moral characteristics for the national currency, please read Part I. Banking and Monetary Reform, Section 4 Provisions For United States Currency (Note: Section 4B, the characteristics necessary for Congress to lawfully define United States Treasury credit-notes).

To understand how NESARA maintains stable purchasing power and maintains a stable exchange value of all currencies in circulation, please read Part I. Banking and Monetary Reform, Section 9 Regulation Of The Exchange Value Of Treasury Credit-Notes.

To understand the implications of restoring the national currency to being a public utility, please visit the What’s In It For Me? section.
 

Sherlock Holmes, from the novel The Sign of Four, Chapter 6, by Sir Arthur Conan Doyle