Use the bank's system against them

[tstorey1]

The occupy movement condemns a system that offers enough money for 1% and inadequate money supply for the rest of us. The principal issue is money supply. Once we increase the amount of money available  our conditions will quickly improve.

We have been told throughout our lives that the amount of money is limited. That there isn't enough. That only certain people have it. That too much money in the system is "bad." That only  certain people know how to control the amount of money in our world. This is indoctrination and has very little to do with the truth.

Money is a commodity just like electrical power. Without electricity our systems grind to a halt. They are dependent on it.

Without money people lose their homes, their employers fail, their governments waiver and all around them slows to a halt.

With enough electricity, as there is today, the systems that rely on it function well enough.

 

With enough money flowing through our economic system, foreclosures stop, businesses function efficiently and each of has enough money to conduct our day to day lives. Money is just a thing that we need. It is not valuable, it is not special, it is a commodity. Let us all work to increase the supply of money to ALL people, not just the 1%.

How?

Our system relies on credit to bring money into our lives. Banks get money into the system through loans. That is our system and it is best to work with it.

North Dakota has it's own publicly owned bank. They have the lowest foreclosure rate and the lowest unemployment rate in the nation.

You know why don't you?

Yes, they loan plenty of money to residents and businesses at very low or no interest. This creates a solid money supply for everyone in North Dakota. Just get the money into the system and today's problems will be reduced. The people of North Dakota are NOT reliant on the whims of wall street and the private banks for their quality of life. The 99% in North Dakota HAVE ENOUGH MONEY. 

Today's problems are inadequate money supply. Go learn about public banking for Illinois (or wherever you are from) and force your state legislators to set up their own state bank. Leave the national legislators to sleep with citibank. The state legislators HAVE to listen and they will. A dozen other states including California are considering public banks now.

Now go study up on state banks and increase the money supply. Wall street and the federal reserve have no intention of increasing the amount of money…it is up to each of us to push for the formation of state banks.

[BackSeatEconomist]

I actually like the idea of state banks, provided there are private sector banks as well subject to suitable regulation.  Consequently, I hope you don't feel I'm picking on you, but your post offers an opportunity to address what I feel are some widely held misconceptions about our monetary system.

tstorey1 said:

The occupy movement condemns a system that offers enough money for 1% and inadequate money supply for the rest of us. The principal issue is money supply. Once we increase the amount of money available  our conditions will quickly improve.

Money is simply a convenient mechanism to exchange things (actual goods and services).  Money is not an operational constraint on the economy or nation as a whole.  We can't build more bridges with more money, only with more steel. 

We have been told throughout our lives that the amount of money is limited. That there isn't enough. That only certain people have it. That too much money in the system is "bad." That only  certain people know how to control the amount of money in our world. This is indoctrination and has very little to do with the truth.

Money is a commodity just like electrical power. Without electricity our systems grind to a halt. They are dependent on it.

No, electrical power has real utility.  Money does not. Money is not a commodity, just pieces of paper or numbers in a computer.

Without money people lose their homes, their employers fail, their governments waiver and all around them slows to a halt.

While this is true on the micro scale, it is not true on the macro scale.  A particular family will lose their home if they don't have money; however, lack of money in the economy is not what causes aggregate housing loss.  The monetary supply is at an all time high right now, as are foreclosures.  The U.S. government is the global supplier of dollars and can never "run out."

With enough electricity, as there is today, the systems that rely on it function well enough.

With enough money flowing through our economic system, foreclosures stop, businesses function efficiently and each of has enough money to conduct our day to day lives. Money is just a thing that we need. It is not valuable, it is not special, it is a commodity. Let us all work to increase the supply of money to ALL people, not just the 1%.

Now you're talking about distribution, not supply.  I agree that aggregate demand is low because not enough people have money to spend, but that is not the same as there being not enough money.

How?

Our system relies on credit to bring money into our lives. Banks get money into the system through loans. That is our system and it is best to work with it.

Money is created two ways: bank loans create new money offset by an equal amount of new debt; government spending creates new money offset by the collection of taxes.  The net money supply (all cash minus all bank debt) is equal to the accumulated government deficit.  Government expenditure is the most effective way of getting money into private hands.

North Dakota has it's own publicly owned bank. They have the lowest foreclosure rate and the lowest unemployment rate in the nation.

They also received a large per-capita share of the stimulus (e.g., double what California got).  This put money in the hands of people who were going to spend it, which in turn increased their demand for goods and services, which reduced unemployment.

You know why don't you?

Yes, they loan plenty of money to residents and businesses at very low or no interest. This creates a solid money supply for everyone in North Dakota. Just get the money into the system and today's problems will be reduced. The people of North Dakota are NOT reliant on the whims of wall street and the private banks for their quality of life. The 99% in North Dakota HAVE ENOUGH MONEY. 

Today's problems are inadequate money supply. Go learn about public banking for Illinois (or wherever you are from) and force your state legislators to set up their own state bank. Leave the national legislators to sleep with citibank. The state legislators HAVE to listen and they will. A dozen other states including California are considering public banks now.

Now go study up on state banks and increase the money supply. Wall street and the federal reserve have no intention of increasing the amount of money…it is up to each of us to push for the formation of state banks.

Increasing the money supply is not enough.  The Federal Reserve tried to do that twice (QE1 and QE2) and it didn't work.  We need to increase the money supply in a way that doesn't do it by swapping private sector assets for cash.  The only way to do that is by increasing the government deficit.