How do you propose we convert today's fiat (debt) to tomorrow’s hard currency? Shall we declare a Jubilee as in the Old Testament or do you propose monetizing the debt with a hyper-inflated commodity?
Before you go into a tirade, let me assure you I have no bias against hard currency—in fact I support it heartily. It's just that the money changers own the temple and they are not likely to give it back without a struggle...
This is a good question. Before I start to answer, I need to understand where you are coming from. You appear to believe that once established, fiat systems are hard to disestablish and your name may imply that you are opposed to any such efforts. You also state that the “money changers” are in control and are unlikely to yield such control. In this I completely agree. I am prepared to discuss either of the following two issues in some depth and would find either fruitful:
1. Given the current system, what reforms I would recommend, nibbling around the edges, to create a more honest monetary system; or
2. If the political will were there and the special interest resistance weren’t, what single massive reform could effectively replace the current system with an honest one to the betterment of the vast majority of citizens.
As I say, I will discuss either (with a slight preference for the latter). Let me know which is more likely to hold your interest.
My goal would not be to convert, necessarily, to a hard currency but rather to convert to an honest one. The single-most important characteristic of an honest currency requires that NO ONE be empowered to create and distribute money by fiat. I have summarized briefly, below, the reform I have in mind.
We can convert to honest money by retiring (actually replacing) the national debt with non-interest bearing Treasury Certificates while simultaneously increasing the reserve ratio. In the process of retiring debt by issuing TCs and raising reserve ratio, the money supply would remain unchanged. This systematic and simultaneous process would convert our current dishonest debt based system to an honest one. In the process, the proposed reform would eliminate the national debt, would save hundreds of billions in annual interest, and would remove the money creation and distribution privilege from the banking system. In short, the reform would institute a currency that has scarcity and distributional integrity. Under my proposed reforms, the classic gold standard would be a natural candidate for settling international accounts.
I look forward to your comments, questions, and opinions.