At Length james at desk 1

Published on April 5th, 2013 | by RLn Staff

0

Just Who’s Money Is It Anyway?– Currency, Debt and the Role of Government

By James Preston Allen, Publisher

If I were to ask the average person on the street, “Whose money was in their pocket,” they would adamantly tell me that it was theirs. In the common understanding of ownership, they’d be right. On a much bigger perspective, the currency of any nation or region belongs to the people of that nation. Basically it means that it is both yours and ours collectively. The banks think that it belongs to them.

If you don’t believe this, then try printing up some money with your own picture on it backed, not by the Federal Reserve, but  by the bank of “Me” and see just how far that will get you at the supermarket. This concept of money, which has been around since our ancestors first started trading using seashells, is a curious thing as it is reliant on everyone trusting that this currency actually holds some intrinsic value, however abstract it has become.

Trust is actually the critical issue with money, some say that’s why we only print pictures of dead presidents on it, because they are the only ones Americans trust.  The issue of  trust is essential in dealing with the core idea of “this note is legal tender for all debts public and private.”

Gone are the days when the currency was backed by gold or even silver. It is now backed by nothing more than our faith in the U.S. government and its ability to sell treasury bonds on the world market. It’s a pretty abstract concept when you think about it. The idea is comparable to an electrical current. Electricity only keeps flowing if the circuit remains unbroken. This is relevant to the way money works as well. If you stop the flow of money, the system short-circuits. That’s what almost happened with the Wall Street Banks and the nation in 2007.

The economy was “re-booted” with a massive infusion of currency into the financial system reflecting trust. Now lo-and-behold, Wall Street is posting record high volumes and profits. Yet, on the Main Street side of this equation, money and credit is still very tight. The sequester of the federal budget has done little to bolster the confidence in the future and our friendly bankers are squeezing more money out of small business with fees and credit restrictions– none of which are actually going to improve unemployment or growth of the real economy. So what to do?

My conservative readers keep harping on cutting the budget. Cut Medicare, cut Social Security and cut…cut…cut. But look at what just one small piece of federal spending in infrastructure has done in Los Angeles.  The Metro Expo line, which runs from downtown to Culver City was projected to cost $620 million. It was recently that reported cost overruns was in the range of $220 million with critics screaming in its wake. Yet, rail line has created thousands of jobs. And what’s more, at every Expo Line station, there is a flurry of development investments. This in turn will  increase property tax revenues and eventually higher sales taxes.

This is a prime example of the maxim, “private profit follows public investment.” The Federal money spent on the MTA expo line and the building booms around those stations is perhaps one of the most significant bright spots of a struggling Southern California economy.

This example of leveraging federal transportation grants to build transportation infrastructure that in turn inspires private capital investments should not be lost on the Port of Los Angeles as it moves forward with its Ports O’Call waterfront development. The current Mayor of Los Angeles previously authorized a study of similar transportation links to the Harbor and connecting it with various routes to the LAX airport.  If this and other transportation projects were made, it would not only guarantee a successful waterfront development, but would create huge capital investments all along its route to some of the most economically impacted parts of this region.

This  is an example of government doing for the people that which they can not do for themselves, and spending our way out of a recession.

Tags: , , , , , ,


About the Author



Leave a Reply

Back to Top ↑
  • Like Us On Facebook!

  • The Guide to Fine Dining

    The Guide to Fine Dining
  • Calendar

    April 2015
    S M T W T F S
    29

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityComplete Whale Watch with Cabrillo Marine Aquarium

    Category: EntertainmentJanis Mann & Bill Cunliffe Duo

    Category: ArtSecond Sight: New Representations in Photography

    Category: TheaterMarilyn Forever - A Full-Length Opera

    30

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    31

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtLuminous, Transparent, Realistic Watercolor Workshop

    1

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    2

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtFirst Thursday Artwalk

    3

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtFirst Thursday Artwalk

    Category: EntertainmentPiano Nights with Rob Klopfenstein

    Category: EntertainmentSister Spit National Tour

    Category: CommunitySister Spit National Tour

    Category: EntertainmentRequiem at Rolling Hills

    Category: EntertainmentSomething Funny at the Warner Grand

    4

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: TheaterTaking Sides

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityBreakfast with the Easter Bunny

    Category: TheaterThe Crucifixion

    Category: EntertainmentBobby West at the Seabird Lounge

    Category: EntertainmentEwan Dobson and Guest

    Category: EntertainmentAmerican Monster Burlesque and Blues Show

    5

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    6

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    7

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtLuminous, Transparent, Realistic Watercolor Workshop

    8

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: TheaterDon’t be Afraid to Pogo

    9

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: TheaterFilm Festival: ‘The Red Pony’

    Category: EntertainmentMarian Marie at the Seabird Lounge

    10

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: TheaterFilm Festival Opening Night Screenings

    Category: EntertainmentPiano Nights with Rob Klopfenstein

    Category: EntertainmentHaden Triplets at the Annex

    Category: EntertainmentJulian Coryell Trio

    Category: EntertainmentRichard Turner Group at the Seabird Lounge

    11

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtMexican Mobile Consulate

    Category: ArtElks Lodge Groundbreaking

    Category: TheaterHollywood Nostalgia Tribute

    Category: EntertainmentLuca comes to the Annex

    Category: EntertainmentAzar Lawrence Featuring George Kahn

    Category: EntertainmentWhich One’s Pink

    12

    Category: ArtCan the Artists of the World be Censored?

    Category: ArtTies to Modernism

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: TheaterLAHIFF Presents DocSunday

    Category: EntertainmentSecond Sundays at Two

    Category: TheaterThe Suburban Showgirl

    Category: EntertainmentTradicíon at the Seabird Lounge

    Category: EntertainmentTribute to the Black Crowes

    13

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    14

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtLuminous, Transparent, Realistic Watercolor Workshop

    15

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityThe Quixote Festival

    Category: CommunityBirding with Wild Birds

    Category: CommunityEarl Ofari Hutchinson Gives Talk at CSUDH

    16

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityThe Quixote Festival

    17

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityLong Beach Grand Prix

    Category: CommunityLong Beach Grand Prix

    Category: ArtRolling Hills Homes Tour

    Category: CommunityThe Quixote Festival

    Category: CommunityRolling Hills Homes Tour

    Category: EntertainmentPiano Nights with Rob Klopfenstein

    Category: Theater‘Get On Up,’ the James Brown Story

    Category: EntertainmentJacob Szekely Trio

    Category: EntertainmentDavid Jackson at the Seabird Lounge

    Category: EntertainmentThe Sure Fire Soul Ensemble

    18

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtRolling Hills Homes Tour

    Category: CommunityLong Beach Grand Prix

    Category: CommunityRolling Hills Homes Tour

    Category: ArtCelebrity Lecture Series

    Category: TheaterBye Bye Birdie

    Category: CommunityLA Local Beer and Food Fest

    Category: EntertainmentSuperhero Soundtracks

    Category: EntertainmentThom Rotella 4tet

    19

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityAuthors Day with Lisa See

    Category: TheaterIn My Life: Tribute to the Beatles

    Category: TheaterBye Bye Birdie

    Category: TheaterThe Suburban Showgirl

    Category: EntertainmentNova Live at the Seabird Lounge

    Category: EntertainmentA Wailing of a Town

    Category: EntertainmentDavid Garfield Quintet

    Category: EntertainmentA Wailing of a Town

    20

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityWelcome to Night Vale

    21

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtLuminous, Transparent, Realistic Watercolor Workshop

    22

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    23

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: EntertainmentAndy Waddell

    24

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityTechnology Conference

    Category: ArtFarmer’s Market

    Category: EntertainmentPiano Nights with Rob Klopfenstein

    Category: EntertainmentBrian Auger’s Oblivion Express

    Category: TheaterBye Bye Birdie

    Category: EntertainmentSouth Side Slim Blues

    25

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityEarth Day Celebration

    Category: CommunityNature Walk

    Category: CommunityGreen Prize Festival

    Category: CommunityRestoration Highlights Workshop

    Category: ArtHousing Development Opening

    Category: ArtRay Carofano: riverrun

    Category: TheaterBye Bye Birdie

    Category: EntertainmentNoise Fest 19

    Category: EntertainmentSpock’s Beard

    Category: EntertainmentThe Gears, The Crowd

    Category: EntertainmentAzar Lawrence at the Seabird Lounge

    26

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: CommunityFarmer’s Market

    Category: ArtOpen Studios at Angels Gate

    Category: ArtQuilt Show

    Category: ArtLos Angeles Artists Propose Solutions to Human Trafficking Through Art

    Category: TheaterBye Bye Birdie

    Category: EntertainmentLos Angeles Philharmonic

    Category: CommunityAbilities Night

    Category: EntertainmentOil Boom, Sir Madam, the South Hollows

    27

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    28

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtLuminous, Transparent, Realistic Watercolor Workshop

    29

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: TheaterAbigail/1702

    Category: TheaterAbigail/1702

    30

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtPlacas: The Most Dangerous Tattoo

    Category: TheaterPlacas: The Most Dangerous Tattoo

    Category: TheaterAbigail/1702

    Category: TheaterAbigail/1702

    1

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtPlacas: The Most Dangerous Tattoo

    Category: EntertainmentPiano Nights with Rob Klopfenstein

    Category: TheaterAbigail/1702

    Category: TheaterAbigail/1702

    Category: TheaterBye Bye Birdie

    2

    Category: ArtVarnette Honeywood

    Category: ArtMOLAA Presents Fantastic Mexico

    Category: ArtJohn Elgin Woolf: Master of Hollywood Regency

    Category: ArtPlacas: The Most Dangerous Tattoo

    Category: TheaterAbigail/1702

    Category: TheaterAbigail/1702

    Category: TheaterBye Bye Birdie

  • Take a Trip to Havana

    Take a Trip to Havana
  • Join the RLn Network

    Subscribe Today:


    Options


  • Get Home Delivery!

    Get Home Delivery!
  • Reset The Net: Protect Your Privacy

    Reset The Net: Protect Your Privacy