Comments on: The Poker Game as Debt-Based Monetary System http://www.economicstability.org/petes-blog/the-poker-game-as-monetary-system A Rational Voice for Monetary Reform Thu, 05 Aug 2010 02:38:46 +0000 hourly 1 http://wordpress.org/?v=3.0 By: The Poker Game as Debt-Based Monetary System – Smart Taxes Network http://www.economicstability.org/petes-blog/the-poker-game-as-monetary-system/comment-page-1#comment-27 The Poker Game as Debt-Based Monetary System – Smart Taxes Network Sat, 24 Oct 2009 22:02:42 +0000 http://www.economicstability.org/?p=595#comment-27 [...] as good a description of the money system as I have ever seen so I have posted it all here. Link to the Economic Stability for more of where that came [...] [...] as good a description of the money system as I have ever seen so I have posted it all here. Link to the Economic Stability for more of where that came [...]

]]> By: Rob Burns http://www.economicstability.org/petes-blog/the-poker-game-as-monetary-system/comment-page-1#comment-26 Rob Burns Sat, 24 Oct 2009 01:36:14 +0000 http://www.economicstability.org/?p=595#comment-26 “ To be sure, it doesn’t expressly prohibit Congress from giving this power to a private entity like the Fed, and then borrowing it back at interest.” Indeed the Constitution doesn't prohibit changes. It has an article devoted to how the Constitution may be amended. That means that Congress is not enabled to amend the Constitution except by following the procedure described in Article V. Saying Congress can change the constitution of the nation simply by enacting a law would also allow Congress to give the power to declare War to Blackwater or give the power to appropriate funds to Bernie Madoff. Congress simply does not have those powers. Article V describes how such changes could be made: including the ways the people could give the Federal Reserve the power to coin money and regulate the value thereof. In terms of the money needed to pay back a loan, here's another example If I borrow $10,000 using a mortgage we require $10,000 to make the loan. To pay back the loan only requires $79.69 of money in circulation paid each month (based on 15 years at 5% interest). For a 30 year mortgage it only requires $54.39 of money in circulation. On the other hand, for a $10,000 bond it requires only $10,000 to make the final redemption payment and $42.00 each month to make the interest payments before redemption (though the 10,000 redemption and the final $42.00 interest payment might be very close together in time or even in the same payment). “ To be sure, it doesn’t expressly prohibit Congress from giving this power to a private entity like the Fed, and then borrowing it back at interest.”

Indeed the Constitution doesn’t prohibit changes. It has an article devoted to how the Constitution may be amended. That means that Congress is not enabled to amend the Constitution except by following the procedure described in Article V.

Saying Congress can change the constitution of the nation simply by enacting a law would also allow Congress to give the power to declare War to Blackwater or give the power to appropriate funds to Bernie Madoff. Congress simply does not have those powers. Article V describes how such changes could be made: including the ways the people could give the Federal Reserve the power to coin money and regulate the value thereof.

In terms of the money needed to pay back a loan, here’s another example If I borrow $10,000 using a mortgage we require $10,000 to make the loan. To pay back the loan only requires $79.69 of money in circulation paid each month (based on 15 years at 5% interest). For a 30 year mortgage it only requires $54.39 of money in circulation.

On the other hand, for a $10,000 bond it requires only $10,000 to make the final redemption payment and $42.00 each month to make the interest payments before redemption (though the 10,000 redemption and the final $42.00 interest payment might be very close together in time or even in the same payment).

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