The following is a monetary reform proposal by PhiloPlatt. This proposal is subject to constructive criticism, refining, and elaboration.
(5/5/12) UPDATE: Philo has since changed his mind about his monetary reform proposal. Listen to The Last Bastille Podcast #52 – Communism for more details.
Step 1: The government needs to close all banks by confiscating the books and determining who has promissory obligations (who owes the bank) and who has checking and savings accounts. The government would need to return the depositors their money. The Bureau of Engraving & Printing would need to print up physical bills and/or write checks that could be deposited at a brokerage, pursuant to the former bank customer’s choice. Now, the borrowers wouldn’t be paying interest but they do make payments in order to extinguish the principal. Let them pay down their loans directly to the government to $1,000. This takes away the ability for a private entity to monopolize and profit from the creation of public cash.
Step 2: As that debt is extinguished, have the government issue $1,000 interest free to every producer that would like a loan. Don’t require repayment of the loan until the producer retires or moves from the country. Now you have a steady public cash supply resulting in a steady economy and full employment. No one is in too much public cash debit, resulting in minimal defaults, and thus minimal inflation.
Step 3: All pooling of resources would then be done through a private brokerage by the creation of stocks and bonds. Your broker would also handle your checking account, since he’s just a bookkeeper. The resulting culture is going to be of people who must save in order to buy things instead of getting supposed “financing.”