There is a logical, rational, economically viable way out of this current economic nightmare, and Dr. Reisman brilliantly and concisely describes it all below.
The world’s greatest living economist speaks boldly and without reservation..
1. The intermediate step of moving to a paper reserve requirement would render the FDIC as unnecessary and it could be abolished.
2. The threat of bank failures could be eliminated.
3. The final move to a gold reserve standard would eliminate the need for the Fed.
“In summation, my pro-free-market program for economic recovery is a provisional 100-percent-paper-money-reserve system applied to checking deposits, accompanied by a demonstrable commitment to ultimately achieving a 100-percent-gold-reserve system. The 100-percent reserve in paper would put an end to all further credit expansion and at the same time make the money supply incapable of being deflated. Its establishment would also greatly increase the capital of the banking system. It would do so by more than enough to cover all the losses on loans and investments incurred in the aftermath of the collapse of the housing bubble and thus make possible the elimination of government ownership of common stock in banks and its interference in bank management. What it would not do is control the increase
in paper currency and paper-currency reserves. That will require a 100-percent gold reserve system.
Finally, the freedom of wage rates and prices to fall must be established through the repeal of pro-union and minimum-wage legislation, and more fundamentally, the education of the public concerning the errors of the Marxian exploitation theory and their replacement with actual knowledge of what determines wages and the general standard of living. To say the least, this will certainly not be an easy agenda to follow, inasmuch as it must begin in the midst of a Marxist occupation of our nations