We have a debt based currency. We are not allowed to have money unless we go into debt. This is as opposed to President Lincoln's Greenbacks where money was created without a debt. If we still had Lincoln's Greenbacks, there would be no $36 trillion national debt and we would not be paying a trillion dollars a year in interest on that fictional debt. In 1929 there were 123 million Americans. Debts were cancelled in foreclosures and in bankruptcy courts. This reduced our money supply by 31% by 1933. This caused 3 to 4 million Americans to starve to death. At that time, it was difficult to communicate with each other outside the corporate media. Today we have the Internet so we can debate a solution to solve the coming Depression before it happens meaning we can choose not to starve 10 million or more Americans to death.
A depression's severity can be determined in advance by measuring the amount of Unpayable Debts we need to cancel. Today we have more Unpayable Debts to cancel than any time in modern history so we can expect something far worse than 1933 America or 1923 Germany unless we allow free and open debates.
Might I suggest we go back to Lincoln's Greenbacks and additionally ban fractional reserve banking where a ten dollar deposit allows a Banker to make $100 in loans so he can charge us interest on the $100 but only pay interest to us on the $10. Our current system was designed to transfer wealth from those who do all the work to those who create checking account money by making loans. In 1933 people were not willing to go into debt so we suffered high unemployment until WW II.
Edward Dowd and others have predicted a severe recession in 2025. 1930 was a recession year but we did not hit rock bottom until 1933. We need to begin the debate today to change things before we stumble into the worst economic disaster in 500 years.
I would suggest we bring back Lincoln's Greenbacks so the Treasury does not have to go into debt to issue currency. And I would also suggest we ban fractional reserve banking so Bankers are not allowed to create checking account money. I would prefer we adopt Professor Irving Fisher's 100% money. This was recommended to FDR in 1933 by 8 University of Chicago professors and called the Chicago Plan. He rejected the idea so millions of Americans starved to death. This is 2025. We have the Internet and we can do better.