Submitted by ARL’s foil, Mr. Harry Dexter White
Step 0. Study “Modern Monetary Theory”
Step 1. Give every US citizen enough money to pay off all of their debts on the condition that the money be used to actually pay off that debt.
Step 2. Increase bank reserve requirements to sterilize all that money. Reserve requirements should be high enough to raise consumer rates high enough to discourage further borrowing. (100%??)
Step 3. End all tax deductions on interest, especially mortgage, corporate and student loans.
Step 4. End government loan guarantees.
Step 5. End FDIC except for one govt bank that offers the most basic consumer banking services.
We clear the housing market, boost the middle class, encourage saving, shrink the financial system, break Chris Martenson’s worry about divergence of money supply and debt.