Full Reserve Banking
I have proposed in previous posts that to fix the US, we need to immediately switch from PARTIAL RESERVE BANKING to FULL RESERVE BANKING. We need to get rid of the mega banks and allow local and state banks to borrow money directly from the US Treasury. Switching to Full Reserve Banking would create a huge demand for Currency. To prevent deflation, the government could print 14 Trillion dollars and pay off our debt.
The next step in the plan would be to switch the US Currency back to the gold or silver standard. I would not base the currency on a basket of commodities such as land and oil because these assets need to be returned to the states. I think land and mineral rights have been abused by the Federal Government as payoffs to big business in exchange for political favors and campaign contributions.
Gold Drain Problem
However, the problem would arise that once our creditors got paid off in US dollars they would immediately cash in their US Dollars for gold and silver. This would drain the US from all commodities and we would be left bankrupt and unable to print money.
Domestic vs. International Currency
The solution to this problem is to take a play from the opponents play book. Since, the US Dollar is worthless, and valueless, then we just pay all our debts to our creditors in US Dollars and create a new currency that is backed by gold and silver which can only be used domestically. That way we never allow foreign governments to drain our country of our resources, especially if those countries use worthless fiat currency like the US Dollar issued by their own central banks.
In this way we take all the US Dollars ever created since the creation of the FED and give them back to the people who created them. If you realize that all US Money comes from debt, then you would understand that the only way to get out of debt is to turn all that trash money back in.
Basket of Commodities
Another problem is that there may not exist enough gold available to create enough money to drive the economy at the pace that we desire. Therefore, one idea to increase the amount of money that can be created in the system is to back money by not just gold, but a basket of commodities such as land, oil, natural gas, metals, minerals and other real assets.