THE BLOG of John Gelles
July 22, 2009
THE TRIUMPH OF COMMON SENSE
OVER SEEKING UNLIKELY CONSUMPTION PROFITS—
INSTEAD OF CREATING THE MONETARY FOUNDATION
TO PRODUCE CRITICALLY REQUIRED RESULTS
Profit is not the enemy. It is essential for success of firms and individuals.
Our monetary system of production requires a monetary profit to sustain both business operations and our economy's favorable results —to protect a real democracy of which both are a part.
Among the results we seek now are health care for the people and the nation based on more than enough doctors, nurses, paramedics, high technology and scientific success, to triumph over disease and related causes of death and disability.
We want this system of care to be of the highest quality—not the one procured at the lowest competitive price—risking inadequate standards (to protect the environment and supplier pricing) and inferior quality control.
Against such price for the best health, we intend to produce the highest quantity of highest quality civilian goods and services necessary to pay those health care specialists who deliver our standard of care.
We will produce such economic output over and above all that will be needed to pay for everything else great nations have in abundance and use every day.
Economic output will pay all our bills on time—if and only if—output is the real measure of money; and money is not allowed to be missing at the beginning—when motivation of firms and individuals is required to start us off.
Yesterday, the Chairman of America's central bank explained its power to create money necessary for our success. And that bank will do this for lending against all rational contracts.
What he did not discuss it congressional responsibility and presidential leadership's obligation to identify spending at all levels of government that may not be constrained—if results of the total system are to favorable for the triumph of common sense.
Taxes have a place in every system's economy: in ours, their place is to protect money from hyperinflation.
When the supply of products is high and money savings are (or can be) high, taxes must be low enough, (and interest must be low enough,) to allow money to be spent by governments to capitalize the talents and resources that will bring about desired results.
At the moment our congress and our president have invited national disaster to attack our fifty states for lack of individual central banks. But we not want or need such banks, if the one we have—together with congress—will do their duty.
The example above of health care is repeated for energy, infrastructure, education, and re-industrialization of America. We have tried to put our commercial banking system in order.
Now we must follow the common sense of a results based economic protection system that will not only prevent hyperinflation: it will prevent unemployment of labor and capital, it will prevent deflation, it will prevent global rivalry from constraining development to end poverty as soon as possible, and it will prevent the scourge of war from defeating life on earth forever.