88. Abolish National Borrowing.

Abolish National Borrowing.
Bob Komives
::

     This is all unfortunate, but necessary,
says the economist in his scarcity model of the world.
     We cannot provide for the welfare of the many
     because resources available to the few are scarce.
     We cannot clean up and protect our scarce resources
     because,
again, as the logic goes,
     our resources are scarce.

Where is the evidence
that this scarcity model works?
Where is the evidence
that doing the right thing costs too much,
that doing the wrong thing is affordable?
Where is the evidence
that poor countries
that follow this model
will someday become rich?

Where is the evidence?

Evidence

Monetary recall is not needed to pay for national government. National borrowing is a substitute for these pseudo taxes. Therefore, there is no need to borrow. When a country borrows foreign money from a foreign government, it shackles its own economy with unneeded obligations. When a central bank fights inflation by raising interest rates, it fights a fire with kerosene. A national government cannot enter the borrowing business, whether internal or international, without raising inflationary pressure. While local banks play a key role in financing local economic development through loans, a central bank such as the Federal Reserve System in the USA need have no role in financing national expenditures. Once this is understood, the central bank may assist a healthy flow of money into the economy through independent local banks.

:: Bob Komives, Fort Collins © 2006 :: Plum Local IV :: 88. Abolish National Borrowing.  ::
With attribution these words may be freely shared, but permission
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