Of The End of Monetized Debt as a Currency

                     In yesterday's blog I highlighted the problems with monetized debt as money.  Monetized debt as a currency is coming to an end.  The system of monetized debt as money is not going to crash, rather it will slow burn.  Indeed, it is far more profitable for the elites to have the economy in a prolonged cycle of debt than to simply allow a debt crises to occur.  As the economy becomes crippled with debt even the wealth and power of the elites could begin to suffer.  This may force the elites to slowly phase out the idea of monetized debt as a currency.  Debt free money would be difficult to obtain in this economy.  There are several different methods that this feat could be accomplished.  Historically, one of the most succesful ways to increase the supply of debt free money is to establish a mercantilist system in which a country tries to maximize its stores of commodities by exporting more goods and importing less goods.  In the case of America that commodity is the U.S dollar.  The U.S has been the reserve currency since the end of World War 2.  Oil and many other goods are traded between countries using the U.S dollar.  As I pointed out in a previous blog, the U.S dollar is a military backed currency.  In other words, the U.S government is able and willing to send the U.S military to any unprepared nation that challenges the U.S dollars dominance.  Indeed, there are many wealthy countries the U.S government would not dare to invade. 
                The second possibility for debt free money is for a central bank to print money.  This could increase inflation.  A central could issue the currency in two ways.  One is to buy government bonds with currency the central bank prints.  The other is to lend money to some of the largest banks in the country and this money would ultimately not be debt free.  It is important to note that if a central bank prints money to buy government bonds, the interest rate would decrease.  This would result in more lending and maybe speed economic growth.  A central bank may not be able to put an end to monetized debt as a currency. 
               The option for debt free money is simply for ordinary citizens to save money and borrow less.  This does not mean that everyone has to stop borrowing money altogether.  Rather, that saving and investing money productively would result in a return that may counter balance to effects of being burdened with debt.  I will explain more in depth how to do this in later blogs.  Also, I would encourage the readers to use local credit unions to met your banking needs and buy local when possible.  Also, go to a farmers market to meet food needs when it is available.