You have a responsibility as a citizen of the U.S.A. to support
whatever plan you think is the best -- speak your mind!

A) It is absolutely ridiculous, confusing and mind-gagging that the
United States borrows money from anyone other than Citizens of the
USA. (In that case, the Government would not be borrowing money
because it needs it -- but would be borrowing to give its citizens a
safe place to keep their money and get reasonable returns). My
reasoning is that the United States, like all other sovereign nations
has the natural right under common-law to create money that will be
used as legal tender within the country.

I ask three questions and hope the logical answers will prove my
point: (1) "If the U.S.A. does not have the right to create money --
who does?" ; (2) Who created all the currency now in circulation in
the United States? and; (3) Is that currency legitimate?

B) I think The Austrian School of Economics teaches that the creation
of any new money debases existing money and thereby causes inflation.
I have this question for those who believe this. If new money is (a)
created by a United States bank and (b) lent into circulation to (c)
an entrepreneur who will (d) use that money for (e) a project that
will (f) create wealth in (g) the form of goods (and services?) that
have (h) a market value in dollars that is more than (i) the value of
the created money -- will that be (j) inflationary?

C) Why don't more common people and groups of people like homeowner's
associations, charities and corporations open State-Chartered Narrow
banks under existing laws and common practice to lend money at 4% to
people who have good collateral and who want to use the borrowed money
to create wealth? It is easy to start a bank.

D) I believe that the Fractional Reserve System of banking is
reasonable and not the least bit dangerous if it is managed properly
and all loans are considered contracts and are subject to contract
law. As I see it -- two mis-applications of Fractional Reserve Banking
have led to our current Money and banking problems (1) is the fact
that lending banks were allowed to sell off their loans to third
parties who then bundled those loans into strange financial
instruments that were completely unregulated and sold at inflated
prices that had no connection to the underlying loan value. and (2) is
the fact that Alan Greenspan instituted a Federal Reserve System
policy whereby it was perfectly OK for the creators of the bundled
instruments to sell them at inflated prices (in the spirit of Caveat
Emptor?) even though, in my mind, the sellers knew that there was no
logical justification for the price of those instruments and were thus
committing fraud. Can you tell me where my thinking is wrong on this?!

Martin Carbone
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