Safe Goods Publishing
561 Shunpike Rd.,
Sheffield MA 01257
www.safegoodspub.com

For Immediate Release Contact: Nina Anderson
Sept. 24, 2008 413-229-7935
safe.bcn.net

Long-term Fix for the Wall Street Bailout

The looming financial crisis is creating fear and instability in economic markets, but also is causing us to look at the fragile model we have based our livelihoods on. Is the bailout sound advice or just a ploy to line the pockets of those who got us in this mess? Is there a better alternative?

To understand our disastrous financial situation better, it is necessary to review the history of economic systems. Barter was the first system, where goods or work were exchanged. This pretty well established market value. Currency came in to act as a common denominator. It made trading much easier. At some point it became easier to keep the gold or silver in a safe place, so banks were born. They would issue certificates stating that they had the gold or silver or other items of value. Later, they watered the value down by issuing more certificates than the value they had to back them up. As things became more complicated the paper issued became the measure of value. With the advent of the computer the rules changed again, and the source of value is now based on debt. The current debt has grown so large that it threatens the stability of the entire system. For adversaries of America, this is a great boon! They don't have to do anything but sit and watch us implode. The system can only function when there is motion. Fear has slowed that down. We no longer make money. Where originally value was based on productivity, this is no longer the case. The incentive is to take money from whoever has some. Increasing taxes will only make matters worse further slowing the economy.

A new financial model is based on the fact that there is nothing in nature that we can use without work being performed. The ultimate basis of value is work. This opens avenues that have existed for a long time, but not well mined (example: the Ithaca Hour program). Part of the problem has been the absence of adequate tools. Our current technology is capable of providing the service needed to use the concept of work value where that value can be converted directly into a liquid asset in a bank account of choice belonging to the individual performing the service. Here the individual is in control. However we need a support system and overseer. That should be the Federal Government and in a new economic system that is under development (the Vertical System), this would be self-funded.

As described in the book, The Vertical System, author Albert Benoist says, “This financial model is built on the premise that work performed has value, and that value is owned by the person or entity performing the service.” The identification of the work/value is not new. Schedules of this information have been compiled by many sources such as unions, professional groups, government agencies and even individuals. There is no need to invent this as we already have it. If we continue to issue more money to bail those institutions that have been failing we will increase our debt, as we will not be making more money (equity). This will produce more pieces to be divided into the GNP resulting in the shrinking value of each piece. This would be followed by a shrinking job market further exacerbating this miserable condition. Depending on how desperate people get, we may be confronted by ugly solutions such as happened in post WWI Germany. The financial solution outlined by Benoist has merit and could easily restore America to a debt-free status over time without taxing the population to extremes. Traditional solutions have resulted in an unstable market, cash poor United States and a population riddled with fear. It’s time the Presidential candidates investigate a new approach.
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