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June 07 , 2009

Monetary Stability: An Essay


A brief preface mentions the fear mongering on YouTube about America's imminent collapse. Chapter 1 discusses the basic value of money. Currency divided by goods supplies the unit of value. Counter to current business cycles, money actually deflates during boom time and inflates in recession. The matter is briefly explained. Chapter 2 discusses gold and paper currency. It notes that a gold standard has never guaranteed social and economic stability. I explain why gold has never guaranteed stable money. Chapter 3 suggests that Uncle Sam guarantee the value of pensions and contracts at time of agreement or initial payout. This works both ways, adjustment down in deflation and up in inflation. People are guaranteed notes payable (money) issued by Uncle Sam (or in his name.) Chapter 4 discusses the problem of establishing inflation/deflation rates and offers some other recommendations to improve the economic environment. Thank you for your interest and hope for a better world.

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