To: loantech who wrote (41215 ) 5/28/2007 11:02:58 AM From: E. Charters Respond to of 78403 The only problem with replacing the fed reserve and replacing paper money printing by government bond issuance is, "what do you replace it with?" Paul Hellyer, a former CDN federal government minister, was right, the chartered banks were/are a positive evil. They got, back then, a literal license to print money and issue bonds to the king. This is now Salomon brother's task and privilege. But it is a much greater evil if this privilege is handed back to the King, or the government, as it could be disastrous. Hellyer proposed that the CDN government issue shares which CDN's would buy, and some of which would be issued at birth, in a sort guaranteed income scheme. Now I will admit that implicitly each CDN owns shares in the government, but I think it would be extremely dangerous to hand the reigns of commerce solely to the government. It is a vital cheque and balance (API) that credit issuance be part of the financial system per se and not part of political control. Whereas the Fed is not totally independent of the gov., it would Argentinian scale in economic disaster if this ittty bitty differentiation that is now enforced, such as the exchequer's role or the fed's slight independence were not extant. If scrip money could be just created at the stroke of a political pen, then it would not be long before total economic collapse were with us. As it is, we are creating far too much money for areas where there is no natural or other cost control. i.e. government spending sprees: boondoggles, pork barrels, and banks' pet loan projects to keep foreign clients afloat who never pay back loans. If we went much further, we would be awash in Wiemar Republic shinplasters with an intrinsic value way right of the decimal place. EC<:-}