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RE: Countries Are Now Moving To Nationalize Their Private Western Central Bank - Episode 1325a

in #economy7 years ago

The reserve banking system is the worst method for coining currency. There is a benefit to coining money in the form of value added to the material used to make the money out of. In a system where the money is an electronic data and the material is nothing, the value added is practically the value of the resulting currency. There is a term(I remember that it contains the word sovereign) for this that escapes me right now. This benefit should not be given to a private organization. It belongs to the sovereign, which in the US, is the people. I know that there are problems allowing the government to coin money and reap the value added to the currency but the current system is worse. We need some system to control the coining of money that controls the government's ability to coin money at a whim and cause inflation AND retain the value added to the government and thereby pass it on to the people through lower taxes. I don't know if this is the gold standard as the price of gold can be manipulated. However, I do know that the reserve banking system must go.

P.S. If you know the term for the benefit to the sovereign for coining money let me know and I will edit this reply to include it.