I watched Disraeli     this morning. It starred George Arliss. It was made in 1929--- when I was four years old. TIVO, my favorite toy, grabbed it for me while I slept.

In the movie Disraeli bought the Suez Canal for England. Parliament was not in session so he bought it with private money lent by an insolvent banker (with money from the bank of England).

It is a story of protecting the British Empire and of Queen Victoria becoming Empress of India. It is also a story of finding money just when you most need it.

If in 2005 we are to prevent a catastrophic attack, and simultaneously create all the jobs we need, we must find all the money it takes.

George Bush does not want to find it by raising taxes. He thinks there is a marginal income tax rate that is as high as that rate should go --- 33% comes to mind. He can borrow the money needed right now, but that would increase the national debt. And a higher debt will make it harder than ever to have extra money for urgent needs in the future.

The President should see this film. He should see it with his top economic advisors. Then they should consider how we paid for WW II and how Lincoln used greenbacks in the Civil war.

His team ought to decide on monetary reform to spend all we must on liberty and long term prosperity with as low a national debt as possible. The goal should be to use taxes only to prevent the price of necessities from becoming unaffordable.

Unaffordable to whom? To anyone in need.

Once prices are low enough, those remaining in need should receive stamps to make sure they don't do without.

Full blown monetary reform, with debt-free money and effective anti-inflation tools in place is something to aim for. But we may begin with what we did in WW II**, reduced in scope--- until we need it all.

John Gelles

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** Blogs in this series take the current need for wartime monetary financing for granted. This authorizes government checks to be honored in advance of bond sales in the open market. The bonds issued (but not sold) are owned by the Treasury and held by the central bank as tokens of government's intention to avoid ruinous inflation. This authority also allows lower taxes than in the past---as debt-free money finances urgent priorities and private capital savings and investment to serve the public interest. Such savings---in inflation protected Individual Estate Accounts (IEA's)---are a fairer instrument than war savings bonds: they will protect ordinary savers from any penalty of holding bonds until payment is due.