An idea to save the economy

With the cost of shoring up businesses that are hurting because of the Corona virus, and if we accept the horrendous cost if we go to war with China, and with a national debt of over 20 trillion dollars, the U.S. budget deficit is bound to climb drastically. Here is one idea on how we can support the weight of such a gargantuan debt:

I recall reading in Forbes magazine about an effort to conduct business transactions in unbreakable code over the internet. The idea was that this would shrink the authority of the government, because they couldn’t tax such transactions. Then, once government was shrunk to its proper size, the corporations could offer currency backed by businesses and corporations.

Maybe we could do this without conducting encoded business transactions. Maybe the corporations could create their own, fluid currencies to pay their employees with. It would be vaguely similar to bonds, but much more fluid, so these currencies could be traded on the economy.

There are a number of problems that would arise from this, but I think they can be solved.

I think I see where you’re coming from.

Do you mean a system sort of like bitcoin?

I know a lot of people use bitcoin, in spite of the security problems with it.

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Do you want to end the Fed?

That’s a tough question, but I think I would keep the Fed to control government currency, and to have at least some influence on the corporate currencies. There are a lot of technicalities involved in this. It would be hugely complex. I don’t know if it is possible or not. One problem would be that if corporations had their own currencies they would gain too much power. They would tend to become monopolies, with the leverage of their own currencies to back them up. I don’t know. My mind deals in generalities. I don’t have a good head for ultra complex problems.

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I haven’t thought through all the complexities. I think maybe we should go onto a smaller scale, and just say that companies have the option of paying their employees with stock in their own company, if the employees are amenable to that. I realize that some corporations already do that, but maybe they could find ways to creatively enhance that approach. I heard someone saying on the news that we could have to practice social distancing until 2022. It will be our own hard work and creativity that will get us through this. We need to be looking at new businesses, and new approaches to old businesses that will flourish in this environment.

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The federal reserve is a extremely complex entity, so I don’t blame you for not knowing. I don’t know too much about monetary policy, but I think the only way to get rid of the Fed would be to ditch fiat currency to something like gold, and leave government completely out of inflationary entities. But, like you, I’m not super knowledgeable when it comes to this, I just read economic books and ask my Dad, who is an economist.


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