With all due respect, the collapse is not resolved by partisan politics.
1. The outstanding obligations (that which is owed to creditors and account holders) is a far greater sum than the amount of circulating medium of exchange. (I do not call it money, for it does not comply with law).
2. Pursuant to law, the only way NEW "dollar bills" are legally emitted, is by increasing the debt. In short, unless Congress goes deeper into debt, the "funny munny" supply cannot increase.
3. One of the major factors in triggering the subprime mortgage collapse was that the speculation finally drove up real estate prices to the point where the insufficient m.o.e. was exposed. Suddenly, there were no more "investors" with ready cash (nor credit) to continue the cycle of buy low, sell high, flip fast and bye bye.
4. As more investors try to "cash out", the pressure to come up with "dollar bills" is enormous. (Check the Federal Reserve M1 tally for Dec 2008)
5. Congress borrowed MORE than it paid in interest, in 2007 and 2008. It is servicing the debt with new investor's unmoney. That's why Bernie Madoff was arrested.
6. Under current conditions, the finite supply of "cash" has no proportionality with the marketplace (sum of all goods and services available for sale). Therefore, a disconnect exists, of such magnitude that it imperils commerce worldwide.
On a strict constitutional law basis,
there is no solution possible. WHY?
- The 14th amendment states that the public debt cannot be questioned - even though it is insane.
- The limitation to precious metal coin as lawful money is mathematically unsound. A subset of a set can never be a representative for a whole set.
- Usury and usurers are not prohibited. Usury is mathematically impossible to pay in a finite money token system.
Possible solution:
Repeal 14th amendment, amend Art.1 Sec.8 and Sec. 10 to eliminate the exclusion of other mediums of exchange. Explicitly ban usury - or at the least - cease enforcing contracts for usury in a court of law.
Which would, in turn, abolish the public debt, for it is based on usury and impossible to pay. (All bonds and T-bills would be void and FRNs would cease to be legal tender)
Expand the power of the court to recognize contracts denominated in other than lawful money - such as private promissory notes, denominated in goods and services (ex: coupons). Once productive people and enterprises can emit notes denominated in what they can do or produce, the money token supply will be freed from the mathematical paradox that has plagued mankind for millennia.
And let us not forget abolishing national socialism, and canceling all entitlement programs. But since Socialist InSecurity is 100% voluntary, it would only need full disclosure about the facts of the program to encourage mass exodus.
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