The IMF paper “The Chicago Plan Revisited” is being discussed in the Telegraph, 21st Oct 2012. It is a paper that supports strongly the proposals of Irving Fisher for full reserve banking – those which are the basis for Positive Money’s proposals.
So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan.
One could slash private debt by 100pc of GDP, boost growth, stabilize prices, and dethrone bankers all at the same time. It could be done cleanly and painlessly, by legislative command, far more quickly than anybody imagined.
The conjuring trick is to replace our system of private bank-created money — roughly 97pc of the money supply — with state-created money. We return to the historical norm, before Charles II placed control of the money supply in private hands with the English Free Coinage Act of 1666.
Specifically, it means an assault on “fractional reserve banking”. If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.
The nation regains sovereign control over the money supply. There are no more banks runs, and fewer boom-bust credit cycles.
[sws_blockquote align=”” alignment=”alignleft” cite=”” quotestyles=”style02″] The IMF reports says the conjuring trick is to replace our system of private bank-created money. [/sws_blockquote]
What you can do to help spread the word: Please leave comments under the article in Telegraph, help bust the myths that appear in the discussion, and mention Positive Money and our proposals.