Wednesday, November 28, 2012
The Chicago Plan (Update to An Earlier Post)
Who should own money? What does money represent? Where does money come from?
The Chicago Plan - a paper making the blogosphere rounds - delves into this. It's a must read.
Looks like I missed the real point of the Chicago Plan in my previous entry. Amazing what some vacation time to read will do!
Seems the real point is to have the government stop borrowing money at interest and instead issue (aka printing) their own cash at 0% interest.
This would be "good" because interest wouldn't have to be paid. The idea is that money should be a public good/policy tool/utility and taken away from the banks. Banks should be forced to keep 100% reserves - making commercial loans problematic IMO. None of this apparently matters because money is not real - just a perception.
All of this is part of something you are going to see A LOT of.
It's called Modern Monetary Theory.
It's the next big thing.
And that will get its own post.