OpEdNews - Page 3 of Article: Take the Power to Create Credit Away from the Giant Banks and Give It Back to the People

But they agree that the current fiat currency system where the creation of credit is controlled by the private banks has pushed us into an economic crisis and a credit crunch, with little hope of stability for the future.

Changing to a public banking system and/or reimplementing the gold standard would clearly be a large change. But remember - as Buckminster Fuller pointed out - building a new model is often easier than fighting the existing one.

The time is right for a new model.

Afterword: Is a Gold Standard Incompatible with Public Banking?

Many people assume that a gold standard is incompatible with public banking. But that might not necessarily be true.

An analysis of ways in which a gold standard might possibly complement public banking is beyond the scope of this essay, and I have not yet even thought it through myself. But before ruling out the possibility, I invite financial experts to brainstorm on this issue to see if we can have the best of both worlds.

After all, when currency speculation is removed from the equation, money simply acts as a yardstick to measure the exchange of goods and services so that barter is not necessary. People may be able to create a money system which has the stability and discipline created by a gold backed system. with the credit availability of a public banking system.

Admittedly, the gold standard may at first blush be seen as more conservative than public banking, as the former limits money expansion while the latter encourages it. But as with all liberal-conservative dichotomies, it is important to get beyond labels and to determine what is actually best. Indeed, public banking - especially if it is on the state or local level - would not create easy credit for the government to launch new imperial adventures.

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