Comment Re:This Is Pointless (Score 1) 385
Inflation does not proportionally effect the working classes. It damages Rentiers, people on incomes derivative of financial holdings. (Niall Ferguson The Assent of Money). Someone living hand to mouth can ask for a raise to compensate for inflation. His boss will write inflation into the next generation of contracts. Some widow living off of income from bonds, Social Security and her husbands pension is screwed. The former "might" not get an increase for inflation; while the latter has no chance at anything.
This bankruptcy garbage is insane. The US has yet to exceed any crazy threshold in terms of public debt, Japan has issued credit in excess of twice their GDP with no hyperinflation. Professor Ferguson uses Argentina as the prime example of what happens in relation to hyperinflation; "what made Argentina's (monetary policy) so unmanageable was not war, but the constellation of social forces: the Oligarchs, the caudillos, the producers' interest groups and trade unions-not forgetting the impoverished under-classes or descumizados (literally the shirtless).To put it simply, there was no significant group with an interest in price stability. Owners of capital where attracted to deficits and devaluation; sellers of labour grew accustomed to a wage price-spiral. The gradual shift from financing government debt domestically to financing them externally meant that bond holding was outsourced."(p. 111) (Oh and the best part is, after Argentina declared bankruptcy it only took a decade to re-establish their credit with the international bond markets. Essentially meaning that they got out of 50 years worth of debt obligations for 10 years worth of low growth)
We here in the US have about 70 million people, or more then one fifth of our country, that has a strong interest in price stability since they're all about to, or already live on, fixed incomes (the 35-70 million old people duh). The Federal Reserve has no interest in creating hyperinflation as that would destroy our economy. (Inflation =/= Hyperinflation; Everyone just talks as if they are the same.) So we have several groups, old people being the strongest group in terms of voting, interested in preventing hyperinflation
As far as us being insolvent. We could erase our debt in a decade by wiping out the Health Care industry, institute a single payer system and Tax the industry by the difference. You'd pull 500 billion dollars of waste out of the economy every year and pay down the debt with it. To extend the household metaphor; We here in the US can literally just switch cable and phone providers and be out of debt in 15 years or less. This is hardly anything close to bankruptcy...
The Federal Government already has the legal power and infrastructure to shift money in the way that the OP describes.
This issue of "Total Central Control" versus "Total Individualism" is an illusion. Every modern Military is an example of a Large institution with centralised authority and high levels of micromanagement that prizes a high degree of individual autonomy. Individual courage and initiative are required as local decisions are best made by people there; while system wide coordination of resources is also required. Some would argue that that autonomy exists within a framework and is therefore not individualism at all. I would say that one could generalise that argument to include all activities that are considered to be individualistic by society, Reductio ad absurdum.