There is no better alternative for society than debt free currency

Thank your for pointing out where I am unclear, that is most unusual, most of the time people just guess, and guess incorrectly, which makes debate hard and makes it impossible for me to improve. There are no unstated conditions for these conclusions, these are inevitable effects of the proposals. As I said in my first argument, debt free currency can mean one or several of three different things. 1. No interest on the money borrowed from the central bank(no obligation to return the money. This makes it hard for the central bank to control inflation and avoid bubbles and crashes. 2. The state banks allocates money instead of lending. This leads to a centralized planned economy, and the inefficient economy, near zero-growth and in the long term poverty that results from that. 3. No state debt, which leads to free money for the state, which leads to the state spending by printing money, which leads to flooding the markets with currency which leads to hyperinflation, which leads to economic collapse. There are no particular conditions for these effects. They will just happen. You say that the state can liquidate the 20 trillion dollar debt by printing 20 trillion dollars. And that this will not cause inflation. That's astonishing, as you yourself in your last argument admitted that flooding the market with currency will cause inflation. And this is exactly what your proposal here amounts to. You suggest that the US prints 20 trillion dollars and dumps it on the market. As the total money supply at the moment amounts to about 10 trillion dollars, this would mean that the dollar would immediately sink to a third of it's value. No inflation? In fact, you couldn't stop there, as the dollar would start deprecating as soon as you start paying back the debt, which means that all debt in foreign currency would skyrocket. And pretty soon the world would lose all trust in the dollar as currency, and it would crash completely, and you would get hyperinflation. It's also funny that you argue for reissuing debt instruments, as that would require the state to be in debt. What is the purpose of first printing 20 trillion dollars to pay off the debt if you immediately just borrow 20 trillian dollars again? It's a very complicated way to reach status quo. -- The insurmountable US debt has nothing to do with the monetary system. It's there because the US state has borrowed an insurmountable amount of money. It's bad fiscla policy, nothing else, and it can only be fixed by good fiscal policy, not by monetary policy. -- The fiscal constraint is an effect of basic natural and economic laws. There is no such thing as a perpetuum mobile neither in physics not in economics. The state can not spend freely any more than you can. You need your spending to be balanced by your income, or you end up deep in debt. As simple as that. -- Calling the US unemployment "rampant" is pretty unique. The US has one of the lowest unemployment levels in the western world. But again, this has nothing to do with the monetary system. The whole western world has the same monetary system, But unemployment varies wildly. In July 2008 the US unemployment rate was 5-6%. In Sweden in France it was officially around 9%, and since they count differently the real rate in both countries are rather closer to 15%. Long term unemployment rate (unemployed longer than 27 weeks) in the US was in July 2008 just over one percent, while in France it's around 4%, and that is unemployed longer than a year. Clearly, "rampant" unemployment is not an effect of the monetary system. -- The banks refusing to lend at the moment is because the banks have a liquidity crisis. Basically, they don't have much resources, and they have a lot of unserviceable debt. They can't lend, because they don't have anything to lend. This is a temporary effect of the crisis of 2008-2009. Debts free currency will solve exactly zero of these issues. Very few of them have anything to do with the monetary system, and you think you can make a country rich by having it printing money, but it doesn't work that way. It will only make the money worthless. The wealth of nations is in it's people, not in it's dollars. International banks is just a source of instability if governments are running with a and fiscal or monetary policy. Your solution is to run with a bad monetary and fiscal policy permanently. It will hardly help. You are looking at debt free currency as a sort of magic Cornucopia, but such things do not exist. You can not have the government spending freely without getting in debt, it is simply impossible. You state that Japan has done it and Russia and China is doing it. This is simply false, these countries are not printing money without increasing debt. If you look through your description of Zimbabwes crisis again, we'll notice that Zimbabwes monetary policy almost exactly mimics what you think we should do. First of all, you want the countries to stop lending. Zimbabwe did this, although not freely. They did it because the defaulted on their loans. You seem to think that it's a punishment not to lend money to someone who doesn't pay the loads back. That's a very strange view. The IMF and all other lenders refused to lend money to Zimbabwes, just because they knew they wouldn't get it back. That's not a punishment. Lending money to somebody who won't give them back is not lending at all. It's giving. It turns the loan into foreign aid, something Zimbabew also has had a lot of. Instead of borrowing to spend (which is a bad policy) Zimbabwes government (who are completely uninterested in the welfare of Zimbabwe) turned to printing money to spend. Just as you say we should. The result is exactly what I said the result will be: Hyperinflation. You say that Zimbabwe should have refused to play IMFs game, and "instead issued it's own currency to pat for the production of goods and services for its own people". But this is exactly what it did. That did not avoid inflation, it *caused* inflation. Hyperinflation is not caused by a credit crisis, although that usually sparks it off. Hyperinflation is caused by the profligate printing of money to use for state spending or paying off state debts. This is exactly what you propose to do. Yet while you in one sentence describes how hyperinflation is caused, and in the next sentence proposes to do exactly those things that cause hyper inflation, you refuse to acknowledge that your proposed actions will cause hyperinflation. Yes, you do imply that a free lunch is in the offing. It's obvious that you think that by printing debt free currency to pay off loans and to spend, you think you can solve all fiscal problems. Debt free money is a free lunch, and it doesn't work. You think that by printing money you can reduce inflation and unemployment, but all you will get is hyperinflation and economic collapse. http://www.amazon.com... http://en.wikipedia.org... http://www.frbsf.org...