Only a few deaths on the dramatic collapse of the I-35 bridge in Minnesota on 1 August 2007, but in some ways the disaster rather a shock and a wake up call, when the collapse of the levees of New Orleans has that many more lives were. Finally, most of us have never faced with a Category 5 hurricane, but we expect that the bridge leads us to work every day to keep us, as we have on the light when we arrive at the counter strips and expect that the water came tooff when we look at the rooster on. All these infrastructure that we have always taken for granted, we are now learning is in danger. A 2005 report by the American Society of Civil Engineers gave the nation's infrastructure an overall grade of D - or almost - otherwise, including roads, bridges, drinking water and other public works.1 The Minneapolis bridge, which rated structurally deficient by the U.S. Government in 1990, was just one of more than 70,000 bridges across the countrywith that estimated rating.2 The American Society of Civil Engineers, that it would take nearly $ 190 billion, the country's resolve in the absence of bridges over the next two decades. "We need to develop a comprehensive, long-term infrastructure," said the president of the society. But we must, we have not because the government is bankrupt at all levels.
While the Democrats call for more money for the necessary repairs to sue Republicans LDP, which merely to impose additional taxes on a citizenWhich appeared already tapped. Repairs cost money, and where has it been? Built in the 1930s, Franklin Roosevelt, infrastructure, and has a severely depressed economy back on its feet are required at the same time, by borrowing the funds from the government to pay for the workers and materials. But while "deficit spending" has been credited with pulling the country out of depression, the long-term impact of the federal government was falling heavily into debt. Wholesale approve deficit spending causedThe national debt of 22 billion U.S. dollars in 1933 to balloon to a staggering $ 8.9 trillion today. The debt has grown so large that only the interest rates more quickly than the taxpayer can afford to pay.
There is another way to finance investments in the infrastructure of the country, and it is not the solution is privatization pushed by Wall Street investors. In fact, it could keep hovering vultures. Investment firms such as Goldman Sachs, the Carlyle Group, Merrill Lynch and Morgan Stanleyare willing and eager to pounce on juicy public infrastructure projects, but the privatization (sale or lease of public assets) means, governments will take control of important infrastructure for the years come.3 It also means higher prices for users, because investors expect the make their profits from the top, and this increased the prices do not necessarily translate into better service. On the contrary, polls have shown that in-house operation of publicly provided servicesgenerally more efficient than contracting them out, while the privatization of public infrastructure for private profit has typically to increased inefficiency and corruption.4 An example is conducted for the deregulation and privatization of electricity in California with heavy criticism as a economic disaster for the public services provided taken state.5 Complex tend to break with the privatization, but only on the complexity of contracting and monitoring of the contract. The privatization of BritishRail system, due for example to increase, rail accidents, and system collapse, to the point that a majority of the British public once again in the government favors the ownership and operation.
Okay, so who has a better idea? The government of the island of Guernsey is, for example. Among the British Channel Islands, south of Great Britain, Guernsey is so small that it has managed to stay under the radar long enough to finance without increasing the number of experimental attemptHackles of the international banking institution, which usually has control over such things. Guernsey, when the government needs the funding, then it just gives the money she needs. In 1994, said Dr. Bob Blain, a professor of sociology at Southern Illinois University, this remarkable island:
Were "In 1816, its crumbling sea walls, the streets were dirty, and only 4 1 / 2 feet wide. Guernsey's debt was 19,000 pounds. The island of annual income was 3,000 pounds, used in 2400 had to pay toInterest on its debt. Not surprisingly, people were leaving Guernsey and there was little employment.
"As the government and created a new loan, interest-free state banknotes in denominations of 6,000 pounds. Approximately 4,000 pounds were used to start the repair of the dikes. In 1820, was issued an additional 4,500 pounds, back interest. In 1821, a Another 10,000; 1824, 5000, 1826, 20,000. By 1837, 50,000 pounds were issued free of interest for the primary use of projects such as dams, roads,the market, churches and schools. This sum is more than double the money supply on the island during these thirteen years, but there was no inflation. In 1914, as the British restricted the expansion of money supply due to World War II, people started in Guernsey to another 142,000 pounds in the next four years, and shall never regretted it. By 1958 it had more than 542,000 pounds will be issued without inflation. "6
Guernsey has an income tax, but the tax is relativelylow ( "flat") 20 percent, and it is easy and seamless. It has no inheritance tax, no capital gains tax and no state debt. Banks and savings services provided by private lenders, but the government itself never goes into debt. If he wants to create some public work or service, then it is only the money it must pay for the work. Guernsey is the government's issuing its own money for nearly two centuries. During this time, the money supply by about 25 times its original size mushrooms;yet the economy is not worried by inflation, and it has remained prosperous and stable.7
As the money supply by 25 times could, without runaway inflation? Inflation arises when "demand" (money) more rapidly than the "supply" (goods and services). As the British economist John Maynard Keynes pointed out, adding new money supply in the economy will not raise the price to produce as long as the money goes to new goods and services, as this serviceto increase with demand. This modification of the classical "quantity theory of money" helps to explain how paradoxical data as "economic secret" of China. The Chinese have managed to keep prices of their products with a low for thousands of years, though, the money supply is constantly flooded with the world was gold and silver, and now with the U.S. dollar in the world, as the currencies in which is for China have poured cheap to pay products.8 The Keynesian explanation is that the pricesstable because the money has gone to more goods, the expansion of supply with demand.
Note that in the creation of money by booking process, the government would just do what the banks do every day. Each time a bank loan, it creates new money. (See E. Brown, "Dollar Deception: How Banks Secretly Create Money," was www.webofdebt.com / articles, July 3, 2007.) The power to create money exclusively for the Congress in the Constitution, but theIs power, was now by a private banking cartel pulled itself. Congress must take back his money issuing power.
With the impending collapse of the housing market and the global credit markets, there are clear signs that we go into another Great Depression. We prefer it in the same way Franklin Roosevelt did, by injecting money into the economy in the form of massive public investment in infrastructure. But instead of borrowing money from banks that it provideAir, so that the government heavily in debt, this time the government should should the money itself, debt and interest-free. If the people of Guernsey to infrastructure funds with state money spent, we can. Monetary reform is not an important political issue since the depressions of the 1890s and 1930s. It is time we looked forward to at the issue again.
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1 "Crumbling nation? U.S. Infrastructure Gets a 'D'", MSNBC.com (March 9, 2005).
2"After Minnesota Bridge Collapse, New Control Ever Nation-privatization of roads," www.democracynow.org (3 August 2007).
3 Emily Thornton, "Roads to Riches," www.businessweek.com (7 May 2007).
4 Betty Reid Mandell, "Privatization of Everything", "New Politics 9 (1-2) (2002).
5 See Harvey Wasserman, "California's Deregulation Disaster," The Nation (February 12, 2001).
6 Bob Blain, "The Other Way to Deal with the National Debt," Progressive Review(June 1994).
7 David Kidd, "how the money set up in Australia," http://dkd.net/davekidd/politics/money.html (2001), Michael Rowbotham, "How to cancel Third World debt," in Goodbye America! Globalization, debt and the Dollar Empire (Charlbury, England: Jon Carpenter Publishing, 2000), p. 188-89.
8 Keith Bradsher, "From the Silk Road to the highway that leads all the coins to China," The New York Times (26 February 2006).
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