ForbiddenKnowledgeTV
Alexandra Bruce
Jan 28, 2011
Between 2002 and 2012, the national debt of the USA increased by $6.1 trillion.
However, certain entities believe that the printing of fiat currency by the Federal Reserve bank does not devalue the currency and hurt the pocketbook of the average American:
The International Monetary Fund published a working paper called The Chicago Plan Revisited suggested that the debt could be eliminated by raising bank reserve requirements, converting from fractional reserve banking to full reserve banking.
Economists at the Paris School of Economics have commented on the plan, stating that it is already the status quo for coinage currency, and a Norges Bank economist has examined the proposal in the context of considering the finance industry as part of the real economy. A Centre for Economic Policy Research paper agrees with the conclusion that, “no real liability is created by new fiat money creation, and therefore public debt does not rise as a result.”
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