3 Kinds of Money

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

        OPERATIONALLY,  THERE  ARE
           ONLY  3  KINDS  OF  MONEY

There can be (1) too much money (in relation to
the things it can buy),  (2) too little money (in re-
lation, etc.), and (3) just the right amount of money
for prices to simultaneously reflect cost, demand
and supply, and motivate workers and property
owners to sell labor and property for money with
confidence in its future value.

The methods of production in use when prices and
supply contribute to future economic growth can be
high-tech, low-tech, whatever.  Over time, however,
high-tech and green are best  IF  production is to end
poverty and deleterious want.

The method of money creation is use, to keep the
money supply (or the interest cost of borrowing)
in tune with economic growth, can be based on a
banking system relatively free of political pressure.

Or it can be a newer method that creates money to
order -- via gov't spending authorized by law, or any
other scheme within the realm of computerized econo-
metrics or related business science. The method makes
no difference:  operationally all that counts is utility
now and growth into tomorrow.

If we assume some or all of this is true, we know
that social, political and economic inertia bars the
way to change. Until and unless there is a Hitler
breathing down our neck, it is unlikely that we will
pass the laws that create the contracts and the money
to match future production of all that is needed.

One can see that America embarked on a military
crusade to end terrorism and Islamic fascism -- if
not poverty and deleterious want.

It has busted open a hornets nest in Iraq -- and
needs money to turn the hornets into honey bees.

It needs, as well, to fight environmental and social
wrongs at home and abroad.  It needs beaucoups
money in every state of its union.  But it seems
determined to stay with type-2 money and a type-2
economic supply system:  too little money and
too few things for sale or on order compared to
all that is needed.

Supply remains constrained by the commercial
profit and earnings potentials as normally expected
and realized in hard or semi-hard times.

America still insists on lowering interest and taxes
(which is good) in hopes that commercial success will
drive economic fundamentals (of employment, training
and output) to "finance" prosperity and the war for a
future peace.

        It refuses to let war and peace-seeking pro-
        duction sit in the economy's drivers seat.

I do not minimize the degree of organization and ex-
cellence required to make a success of our present
crusade.  Nor do I insist that we avoid alliances with
other great and small powers to harness the world's
resources in this struggle for worldwide progress.

        But political combinations on the left and
        right seem to be ignoring obvious choices --
        in hope of personal political gain and leaving
        their brains undisturbed by common sense.

It is true the bully pulpits are dedicated to support
of the status quo -- relative to our need for radical
financial and production reform.  Our pulpit is NOT
bully.  But, by some accounts, it exists.

        If there is zero echo of these thoughts here,
        what am I (or we) to assume?  Gelles is full of
        shit?  What we need instead of reform is higher
        taxes and more commerce?  There is no need to
        drive a deliberate economy -- the one that's
        evolved will do for now?

John Gelles