I’m fundamentally not bothered that money is printed out of thin air. What bothers me about monetary policy is that the money is not printed “debt-free.”
Abraham Lincoln printed money out of thin air, but he provided for the borrowed money/credit to be payable in full. For example: You need to borrow $100, so the Fed prints $100 and then charges you 10% interest on the money. This means that you have to come up with $110 dollars. Well, how the hell are you going to do that when only $100 was printed???? Where do you find the other $10? Hence in the current fiat system, the debt can NEVER be repaid.
Lincoln’s method was to print $110 dollars. Give you the $100 you need to borrow and spend the other $10 in your local economy. That way you can earn the $110 by conducting your business and deploying your investments in the local economy. When you earn the $110, you pay it back and your debt-free. Ta Da!
I know, where’s the profit for central banks in Lincoln’s crazy method? Hey, here’s a bit of money trivia for y’all. There were a handful of men in our history that have tried to pioneer a debt-free money system or opposed a private central bank: George Washington, Ben Franklin, Andrew Jackson, Abraham Lincoln and John F. Kennedy. All happen to be on our money! Cool, huh?
