Free market capitalism runs on basic economic concepts of supply, demand and limited resources. It involves the producer/seller of goods and services and the consumer/buyer of goods and services. As civilizations develeloped the need for a medium of exchange currency to replace the barter system arose to facilitate the flow of goods and services. The ideal medium of exchange would have a stable value that does not inflate or deflate. The role of government in the economic arena is to create that medium of e change, set its value, maintain its stability and assure the amount in circulation balances the availability of goods and services. If government performs this role the economy of the nation will stabalize and grow as needed for the people of the nation and that nation will flourish economically.
Unfortunately another type of Capitalism arose out of the need for a medium of exchange. A system that treats currency/money/legal tender… as a commodity to be bought and sold with uses other than a medium of exchange. That system is Financial Capitalism, which developed during the time of the Assyrian and Babylonian Empires and has tried to control and manipulate free market Capitalism ever since. Under Financial Capitalism the value of currency fluctuates, inflates and deflates. That currency is put into circulation through debt (by banking institutions) that use interest to rob the economic market of its medium of exchange and create unstable economies. Financial Capitalists have been bankrupting and destroying nations for over four thousand years and it is time to stop this cycle. Governments have the power to stop them if they choose to.
Many wise men throughout history have understood the problems of Financial Capitalism, but that has not led to a solution to the problem.
In a letter to Thomas Jefferson from John Adams, 25 August 1787
“All the Perplexities, Confusions and Distresses in America arise not from defects in their Constitutions or Confederation, not from a want of Honour or Virtue, So much as from downright Ignorance of the Nature of Coin, Credit and Circulation.”. Abraham Lincoln tried and failed to fix the problem. The solution is not overly complicated. The problem is that the priorities and goals of those in power are not about trying to solve the root problem of our economy in this nation. Until our government takes control of creating and circulating our medium of exchange, rather than purchasing it from or granting that power to financial capitalists, we will not have the thriving economy the people of this nation deserve.