Why we shouldn’t have sound money…

Posted: December 8, 2014 in Fractional Reserve Banking, Monetary System, Uncategorized
Tags: , ,

Far be it for this blog to refrain from shedding light on the opposing camps’ views on all things monetary, paper-based and sound. As the UK Parliament have just recently debated the issue of money creation by commercial banks, here is one broadsheets view on why we should retain the status quo….

http://www.telegraph.co.uk/finance/economics/11239084/For-believes-in-monetary-voodoo-try-this-for-a-spin.html

It would be nice to think that merely by reforming the way money works we could magic away our economic problems, abolish the credit cycle, tame the bankers and generally cure the world of all known diseases.

Yet there is no such thing as a free lunch. The reason we have fractional reserve banking, and a monetary system hedged around with taboos and constraints, is that warts and all, these things basically work. All alternatives are a giant leap in the dark, with likely disastrous consequences to judge by historical precedent.

I am not an utopian. I do not believe that solutions come at little cost. It is the underlying principle that to strive to make things fairer and just is worth the upheaval in order to shape a better future for all, on balance, regardless of creed, cast or colour.

I reject outright the notion that the risk and uncertainty of chaos should keep us from taking the necessary steps to alleviate our lives from the grip of those less accountable. The world is already in chaos. After all, can the lid be kept on a volcano which has been rumbling from before many can remember, how long can the current fix be maintained, trimmed to fit a new trend and then repackaged for another generation? Like it or not, change is inevitable, it is simply a question of who retains power. And those who favour the current power structure, make suggestions such as this. I highly question that the current fiat money system ‘basically works’.

 

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