THE SHORT VERSION
Fundamentally, an “economy” is entirely dependent upon the activity known as “trade“, not “investment“. Investment merely refers to but one of the many goods and services constantly traded within an economy—and so it does not constitute trade, itself. Therefore, in order for an economy to work smoothly and safely, trade must first be made distinct, protected, and efficient BEFORE any investment and its accompanying risk is allowed to enter the system to be accounted for. This brings us to the issue.
Most citizens have grown weary of using cash and prefer paying one another electronically. But because government has allowed all “banks” to be the only firms that supply this modernly-essential service to citizens, these “investment firms” can then literally command as much capital as they want from a public that cares absolutely nothing for the negligible interest rates offered in return. And so, when one is allowed to borrow even a little money from EVERYBODY, the overly-fortunate borrower ends up creating the same situation we can expect from a golf-cart driver who is allowed to pilot a 747: it will crash.
Being that “banks” are just “investment firms”, it is wholly inappropriate for the government to keep forcing its citizens into supplying “banks” with money. If all citizens want is to access the service of being able to pay one another electronically, then it is by withholding this crucial service from citizens that their choice to deny investment to “investment firms” is also withheld. Where’s our freedom to choose? (liberty)
The Treasury is now completely within its means to directly supply citizens with the technology of efficiently accomplishing electronically what cash does far too inefficiently for citizens, today: measuring and guaranteeing that the value promised always equals the value received (money).
If the Treasury offered interest-free, online accounts to all citizens, “banks” will have to be converted into regular “investment firms”; i.e. instead of “citizens” being converted into “powerless investors”. And since an economy, at large, is essentially a public entity, all information about this entity, with the exception of personal information, can then be accessible and analyzable by the same public that is responsible for its existence. Investment will be stronger and more confident than ever, and investment-risk will no longer be socialized. Protect the economy, and contact your Elected Representatives to tell them it’s time to fully “protect the economy“.
THE DETAILED VERSION
Government currently supplies citizens with the “medium of trade” known as “cash”.
Cash is called a medium because, in the same way a power cord acts as the medium for transmitting electricity between some plug and your laptop, cash acts as the medium for transmitting value between some other person and yourself. If copper wire is the medium that permits the flow of electricity, cash is the medium that permits the flow of value.
What’s awful about cash, however, is that it’s essentially made of wood. So, as it happens with all crappy conductors, value ends up moving too slowly through the medium while conditions make it impossible to track its movement—which some find convenient. And yet, cash is STILL the only direct personal means furnished by the government that individually empowers citizens to fulfill their promises of transmitting value between one another: which is the purpose of money.
Debit & credit cards, on the other hand, literally make up what is the electronic medium of trade—which is NOT supplied by the government. Obviously, transmitting value between citizens using an electronic medium makes for a FAR MORE efficient lifestyle because moving and keeping track of things in this environment takes up a lot less time and resources. So why is government not supplying its citizens with the more efficient medium?
Regardless of whether the medium under question should be paper or electronic, it MUST FIRST be understood that it is the job of government ALONE to supply the public’s only medium of trade.
Going further, we can THEN bring up the issue of technology by saying it is also the job of government to supply the most efficient, secure, and transparent medium of trade so as to protect the growth and integrity of the economy it’s responsible for “hosting”: which is the purpose of the Treasury.
Here is the entire problem in a nutshell: Government has wrongly surrendered its function of being the sole supplier of its citizen’s medium of trade by empowering “special investment firms” to supply one as well. And because the electronic medium is the more attractive and efficient version, citizens who wish to use this medium between one another are FORCED to invest their paper cash in these “special investment firms” that, consequently, have altogether avoided the difficult process of raising cash for their businesses the honest way. Citizens are being denied their freedom to refuse their role as investors in “bad investment firms” WHEN they want the advantage of paying one another electronically!
Dressed up legally as “banks” in Title 12 of the United States Code, these “special investment firms” exploit a government protected monopoly over the superior medium of trade which “We, the People” SHOULD be supplying ourselves. Since “We” are not supplying this medium, “We” are now living under the unfortunate condition where ALL CITIZENS who simply want to pay one another electronically are FORCED to simultaneously loan their unused deposited cash to these “special investment firms”. The result is that these very “special investment firms” end up with plenty of cash to invest with (capital), and without ever having to think up a new idea, meet new people, endure real scrutiny from their own investors, or be truly challenged with demonstrating how capable they are at earning a respectable rate of return.
In competition law, this concept of bundling products—such as the offering of 1) “access to an electronic network” along with 2) “an investment in an investment firm” is known as “tying“. This, obviously, is NOT ACCEPTABLE. No other type of investment firm in the world, or in all of “capitalism”, gets to raise cash for its business by keeping citizens from their right to access the most efficient means of trade; a medium which, ONCE AGAIN, the government must, itself, be supplying in order to guarantee its citizen’s access to electronic or cashless trade between one another. And the response from citizens is to remain acquiescent while they powerlessly continue to be converted into despondent investors?
Furthermore, if capitalism is expected to work among an ever-increasing population, such an expectation can only become reality if no one person or firm knows more about the economy than another: a concept known as information asymmetry. With the exception of personal information, an economy is a public entity; therefore, information about this entity must be treated as such so that the public can 1) quickly and reliably identify demand, and 2) meet it in the most efficient manner.
As long as “banks” continue to be allowed to man the gate of all electronic trade, the rest of the public will never be able to adequately measure and analyze all the economic events that either signal the advance of an opportunity, or just as important, a warning. Why never? Because in one case “banks” hoard information, and in the other, they hide information.
“Banks” are extremely inept investment firms that remain in existence today only because a law forces a cashless society to hazardously fund their existence in order to avoid the wood-based cash it receives from government. The time is now come for citizens, everywhere, to inform their government that the Treasury must supply its citizens with a solution that protects their right to trade from any and all influence in a modern and cashless civilization. A simple, interest-free, electronic account supplied by the Treasury where citizens can trade in a highly informative environment will undoubtedly supply the confidence and entrepreneurship needed to keep a modern civilization advancing.
CALL TO ACTION
Study the short lesson-plan below, get educated, talk to your professors, your associates, your friends and family. Then, contact all the officials you can get a hold of and let them understand that the time to “protect the economy” has come: Elected Representatives.
Note: Submit your ideas and have them presented here on the “Submitted Economic Solutions” page, or put them up on Facebook. Show you got answers; not more triviality.
And if you want to organize an event that educates government on why it must “protect the economy”, submit the time & place to have the information available on “Organized Events”, or share it on Facebook.