We have all seen the financial
system come close to collapse, worldwide, in the past month. And we have
seen how this phenomenon alone can create a truly undesirable effect on
the economy.
So how does a pro commerce advocate handle this?
First
the political problem to overcome is the deep seated
anti-commerce/pro-farming bias embedded in American society by the founders,
particularly the slave loving Thomas Jefferson: He made it clear:
'I believe that banking
institutions are more dangerous to our liberties than standing
armies. If the American people ever allow private banks to
control the issue of their currency, first by inflation, then
by deflation, the banks and corporations that will grow up
around the banks will deprive the people of all property until
their children wake-up homeless on the continent their fathers
conquered.'
Thanks
to the views of this paranoid anti-commerce slave loving farmer we have
had 200 years of riding a financial roller-coaster. Most of the humans
on the planet have suffered from our American caused disasters in the past eighty years.
The
pro commerce solution is simple:
* We need two of the largest banks that
provide direct banking service to the public to be controlled by the Treasury.
* The banks need two mandates: all deposits are fully secure
and liquid at all times (that includes multi-millions deposited by
giant corporations); all loans and lines of credit remain permanently
open and in force so long as the underlying security has not changed in
value.
The
two reasons for this simple policy on behalf of commerce are: (1) two banks
will provide some recourse to lenders if one bank isn't interested in lending. Furthermore the
entire banking market, with greater inherent risk, will also be
available for financing alternatives; (2) there is no reason
whatsoever that commerce should have to deal with an unstable currency
or an unstable financial system....commerce is complex enough without
added chaos. Commerce thrives on financial stability and always has.