With both the Euro and British pound reaching record highs against the dollar and the housing bubble ready to burst, it seems only a matter of time before the US economy is faced with the biggest recession in the last thirty or so years. Well, while surfing the web today I happened to stumble upon
this article and I have to that it's, in my opinion, quite good and relatively true (To a point). Since the entire thing is quite long, I only want to focus on the author's proposed fixes for the situation.
Quote:
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These are things that monetary reformers have known about for decades. The first steps within the U.S. would be 1) a large-scale cancellation of debt; 2) a guaranteed income for all at about $10,000 a year, not connected to whether a person has a job; 3) an additional National Dividend, fluctuating with national productivity, that would provide every citizen with their rightful share in the benefits of our incredible producing economy; 4) direct spending of money by the government for infrastructure and other necessary costs without resort to taxation or borrowing; 5) creation of a new system of private lending to businesses and consumers at non-usurious rates of interest; 6) re-regulation of the financial industry, including the banning of bank-created credit for speculation, such as purchase of securities on margin and for leveraging buyouts, acquisitions, mergers, hedge funds, and derivatives; and 7) abolishment of the Federal Reserve as a bank of issue with retention of its functions as a national financial transaction clearinghouse.
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Honestly, I think the guy's a genius and I agree with everything-- Except for point #2. I can't understand how giving people money to do nothing would stimulate the economy unless he's operating under the assumption that people will use that money to stimulate economic growth. Meh... Either way, I strongly believe that something must be done over the next few months or else the US economy (And a great deal of the world's economy, for that matter) will be in a hell of a lot of trouble.