Click here to access article by Joe Firestone from New Economic Perspectives. [My commentary modified at 7pm PST.]
If I understand this "coin seigniorage" proposal, and I think I do, this is a perfectly valid and legal way to eliminate government debt owed to the private banking consortium known as "the Fed", which was authorized by a 1913 law to issue US money as debt (with interest charged). What I am unsure of is the use of this method to restore the Social Security and Medicare funds, which have been used to cover lowered taxes on the rich and government expenses including military invasions, without causing other problems.
There are other methods of eliminating the debt to the Fed, chief among them recognizes that our government is the supreme law of the land and can simply abolish the debt, and justifying this action because the debt is obviously illegitimate, having been created via money that was created "out of thin air". And, of course, we must abolish the Fed, and have the US Treasury issue interest-free money. It should be a government function to authorize sufficient quantities of money as a medium of value required for the exchange of goods and services that are produced or created by working people. Real goods and services that contribute to the well-being of a people constitute real wealth, not gold, silver, or any other metal that has been made into a fetish by those who can own and/or control it.
The unfortunate reality is that the government is overwhelmingly controlled by banking interests, and they are not about to pass any laws against their interests. They now have the nation in debt to them forever, and this is exactly where they want to be. Only an organized, informed citizenry can make real changes.
Still, it's good to propose and argue for such schemes, except that they are needlessly complicated and written in a style that only a relatively few people can understand. The concept of money has been so mystified--deliberately so--by the banking interests. As a result ordinary people find it difficult to understand issues related to money and debts, and they are easily deceived.
The best online source I've found to gain a better understanding is this one,
organized as a series of lessons designed by someone by the pseudonym
of "Smithy". Smithy has degrees in mathematics and economics, and she
works as a consultant calculating investment risk for financial
institutions. For this reason, she can't reveal her real name.
One needs to be aware that accurate knowledge about the money scam is
difficult to obtain simply because it is so profitable for bankers who control it. They have ways
of punishing people who reveal too many of their secrets.
