Written in a crisp, fast-paced style, this groundbreaking work presents an in-depth account of monetary theory and practice as the basis for its suggestion of a new system of money creation. First, the economic history of the United States is explored, with special emphasis on the years from the Civil War to the Great Depression. The proposal that follows, based on a long-lost method of money creation, is related to that context, as well as to America’s current situation, both economic and political.
Readers will learn how banks have created most of America’s money supply since the nation’s founding, but also about experiments with an alternative system in which the government plays that role. The crux of the book is an examination of the way in which the two systems could be harmonized to pay for public necessities without increasing taxes or national debt. The proposed new system of money creation would incorporate two complementary money streams—the existing banking system run by the Federal Reserve and a new stream of money created by Congress. By integrating the “Greenback” method with the fiscal and monetary status quo, the author argues, the United States could spend its way back to greatness.
- Explains in vivid terms the way money has evolved in modern times, clarifying the rise and global triumph of "fractional reserve banking"
- Shows how a compromise between our existing method of money creation and the "Greenback" method could pay for hundreds of billions of dollars of national necessities without higher taxes, more deficit spending, or inflation
- Documents what money consists of, how it enters into circulation, and how the nature of money has changed over the centuries
- Reveals how significant numbers of economists, businessmen, and political leaders have advocated for the direct creation of money by government through the years
- Takes the lay reader through the history of previous attempts at direct money creation in a fascinating tour of American economic history