Arjay,

In my wanderings over the internet I came across "The Capitalist Manifesto" by Louis Kelso. To me he makes a great deal of sense and explains the problem with the current system.

http://www.kelsoinstitute.org/downloadable-books.html

He - like I - is a great believer in the power of open markets to allocate resources most efficiently.

He - like I - believes that most of our wealth comes from the application and use of social capital and physical capital not labour.

He - like I - believes that our current system is unfair in its allocation of physical capital and so erodes social capital. It is unfair because the money system only allocates new credit (new money) to the existing owners of physical capital. If you do not have capital you can only get new capital through the application of your labour while owners of capital double dip.

Pericles

In answer to your puzzle about why not turn the Canberra water supply into a public company the answer is YES. However, not with the current method of creating money. Privatising public assets is bad for the public because equity finance is supplied from savings or from money created by monetizing both real and ponzi assets. Equity finance includes paying interest on the money and paying profits to the owners of the dam and paying for the risk of the dam failing.

It is NOT necessary to fund public infrastructure with interest bearing money and it is not necessary to pay any profit to owners if the owners are the users of the resource. They can take the profits from lower water prices. In the event of the dam failing water users will pay through higher prices no matter who owns the dam.

By giving ownership of the dam to the users of the water, through the creation and wide distribution of interest free loans that must be used to build the dam, we overcome the problems of equity finance and we give ownership to the users of the resource.

Yabby; says that Ron Paul was a Republican during the Bush era and should have done something then.Yabby ,it is the US Fed a private group of banks that make monetary policy.Congress has little or no power over the money supply.Ron has been on record for decades about his economic views,but he does not have the power to instigate them.
Ron is a true believer in free markets and as he says, the Fed through its policy of fixing rates is not allowing this market to operate.Bernanke puts a lot of the blame on the lack of regulation.The regulation was there but they ignored regulation like the Glass Stegall Act which defined the role of the various banks and kept them honest.Both the Democrats and Republicans along with the Fed are responsible.Greed for the want of a better word,was not good.

At some time in the future the market correction will have to happen and this will mean high inflation, unemployment and very high interest rates with a devalued dollar.All they are doing is delaying the crisis and actually making it worse.

Fickle.
Thanks for the references.All us need to examine this disaster and look at new economic models not purely driven by money aggregates.We have to get back to sound currency and break up many of these global cartels who want to eliminate competition.

Perhaps there needs to international rules put into place like paying workers in poor countries a fair wage so they have the time for education and money to save.Your wealth is in your people and keep them poor does not increase wealth or keep population under control.

Hang on Arjay, it was Bush/Cheney/Republicans who dished out large
tax cuts, then went on a massive spending trip, year after year.
In their last year, their budget deficit was close to 1 trillion.

It was Bush/Cheney/Republicans who appointed Cox as head of the
SEC and turned it into a toothless tiger, as they felt that no
regulation was required.

This was all economic policy of the party to which Ron Paul belongs.
He clearly carries his share of responsibility for that.

It would hardly be sound policy for Obama to turn a recession into
a depression, which is what you are suggesting.

Its not only the Americans who borrowed to much. The British Pound
is in trouble, the Euro has huge problems, the Japanese Govt is in
debt to the tune of 200% of GDP

On the mark again Yabby. For there is no need for extreme of a revolution that would unrecognisably change current regimes, and potentially lead to another protracted ‘cold war.’ Not at all. All that is required is observed balance, and the basis for cultivation of constructively creative vision, and associated competent leadership. However, that is where my professional observation of the stewardship of those former BHP chiefs you identify Yabby, diverges from yours.

Scientific management is observed a profoundly admirable resource and asset, significant of its developmental contribution from the west, when its not ignored.

I recommend observing the Levitt paper, Marketing Myopia, produced from Harvard in the mid 1980’s, for its resonance in the issues posters are attempting to grapple with in this debate, may be enlightening. This paper never achieved international acclaim for simply appealing to everyones sentiments.

The analogy I would draw to the ignoring of scientific management, is the one line joke from the ABC series, The Library; “our country, our rules.” For the parallel may be observed of current attitudes within political and commercial leadership; ‘we will make all the noises that appears to demonstrate our accord with the science of management, however, in fact we will not allow it to interfere with pursuit of our vested interest.’ Perpetuation of GFC culture?

Our leaders are the key to such balanced reformation, and I am aware, of our political leaders awareness especially, that if they don’t get on the timeline soon, they will be inevitably embracing the future as a train crash.

Ngarmda,Yabby is not on the mark again.It was Bill Clinton who destroyed the Glass Steagall Act.It was Clinton's socialists policies that gave housing loans to people who had not the capacity nor job security to repay them.Hence we saw a housing bubble that sold mortage trash to Super funds around the world.It was a giant pyramid ponzy scheme based on fraud.

There are lots of people who should be in gaol but they got off scott free.

Both of you won't face the fact that the creation of money via the fractional reserve system is theft by stealth.The easy money days are over and we need to evolve a better system from the ashes.

The precious free market is still there and all we need to do is rid ourselves of these international cartels who not only want to fix the price of money but own the very currency which represents our creative and productive capacity.Now that is slavery which destroys all our aspirations & potential.

Arjay, your promotion of your ’idea’ may only be observed in reality as a gross oversimplification in one perspective, and an obsessive distortion in another. For what is the grand plan you suggest, how will its viability be demonstrated, what proofs will substantiate its foundation, and what instruments will drive it? Anyone can stand on a roof and shout revolution, change requires to be measured.