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Ellen Brown has written a great crystal clear synthesis about the alternative to the deficit hysteria, an alternative to the monopoly power private commercial banks have over money creation.
Send this article to your friends. It is short and concise enough or most to be able to understand how contrived, how little reality underlies the deficit-as-all-consuming-concern argument.
She mentions that Adair Turner, chairman of Britain’s Financial Services Authority, wrote a 75 page paper showing that there is ample empirical evidence that (below a certain factory utilization rate) a government can directly print money to buy the goods and services that it needs without causing hyperinflation, and she points out what economist Richard Werner really intended when he recommended Quantitative Easing to Japan had nothing to do with what Geitner has done here.

The QE he recommended was more along the lines of the money-printing engaged in by the American settlers in colonial times and by Abraham Lincoln during the American Civil War. The colonists’ paper scrip and Lincoln’s “greenbacks” consisted, not of bank loans, but of paper receipts from the government acknowledging goods and services delivered to the government. The receipts circulated as money in the economy, and in the colonies they were accepted in the payment of taxes.
The best of these models was in Benjamin Franklin’s colony of Pennsylvania, where government-issued money got into the economy by way of loans issued by a publicly-owned bank. Except for an excise tax on liquor, the government was funded entirely without taxes; there was no government debt; and price inflation did not result. In 1938, Dr. Richard A. Lester, an economist at Princeton University, wrote, “The price level during the 52 years prior to the American Revolution and while Pennsylvania was on a paper standard was more stable than the American price level has been during any succeeding fifty-year period.”

What she does not mention is that for every episode of commodity inflation caused by government money printing, there are many caused by commercial banks loaning to speculators.

TIAA  There IS and alternative.

Title updated to make clear it does not refer to Teachers Anuity

2:49 PM PT: This diary does not refer to the Teacher's Insurance and Annuity Association, but rather to the converse of TINA, (There is No Alternative) a favorite saying of deficit hawks.

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Comment Preferences

  •  Tip Jar (6+ / 0-)

    To Goldman Sachs in according to their desires, From us in accordance with the IRS.

    by Bluehawk on Mon Feb 18, 2013 at 01:28:42 PM PST

  •  The TIAA I know stands for... (3+ / 0-)
    Recommended by:
    wretchedhive, ColoTim, Odysseus

    Teacher's Insurance and Annuity Association (where I have much of my retirement savings kept and is a very well run organization along with its sister organization CREF, College Retirement Equities Fund, together known as TIAA-CREF).

    Men must learn now with pity to dispense; For policy sits above conscience. — William Shakespeare, 'Timon of Athens', Act III, Scene II

    by dewtx on Mon Feb 18, 2013 at 01:59:48 PM PST

    •  TIAA as opposed to TINA- THERE IS NO ALTERNATIVE (1+ / 0-)
      Recommended by:

      A favorite saying of the austerity hawks.

      To Goldman Sachs in according to their desires, From us in accordance with the IRS.

      by Bluehawk on Mon Feb 18, 2013 at 02:17:38 PM PST

      [ Parent ]

    •  former employee and current pension holder here (2+ / 0-)
      Recommended by:
      dewtx, ybruti

      was very proud of the ethics and fiduciary responsibilities that everyone exhibited during my tenure.

      What connection it has to this diary, I don't know

      I see a very beautiful planet that seems very inviting and peaceful. Unfortunately, it is not.…We're better than this. We must do better. Cmdr Scott Kelley

      by wretchedhive on Mon Feb 18, 2013 at 02:25:47 PM PST

      [ Parent ]

  •  This confused me as well. TIAA means (2+ / 0-)
    Recommended by:
    dewtx, FG

    Teacher's Insurance and Annuity Association to most people.  May want to clarify title.

    If the plutocrats begin the program, we will end it. -- Eugene Debs.

    by livjack on Mon Feb 18, 2013 at 02:38:24 PM PST

  •  Sorry (1+ / 0-)
    Recommended by:

    I had no idea that an enity with the same initials the Teacher's Insurance and Annuity Association existed.

    But I am glad it has given you good service.

    To Goldman Sachs in according to their desires, From us in accordance with the IRS.

    by Bluehawk on Mon Feb 18, 2013 at 02:48:17 PM PST

    •  Still not clear. I clicked expecting to see (2+ / 0-)
      Recommended by:
      FG, dewtx

      something about the insurance/pension/investment giant.  Just leave out TIAA from the title, and write: There Is An Alternative.

      The spirit of liberty is the spirit which is not too sure that it is right. -- Judge Learned Hand, May 21, 1944

      by ybruti on Mon Feb 18, 2013 at 02:52:00 PM PST

      [ Parent ]

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