Woods,

> woods:
>     Glad to see somebody else bring inflation up.  I find this to be a
> central social issue that tangibly breaking up society.  I say tangibly
for
> we follow a root to this social issue that would eventually lead to other
arenas.
>      I was sitting back thinking.  All these bailouts, more money being
printed and infused into
> the market.  (ETC. snip)


>     A banking system that seems to offer solutions and when in practice
> had no cycles of inflation, no bubbles and busts.  Also no state taxes was
practiced in
> Pennsylvania and established by good ole' Ben Franklin.  It worked for
decades.  From
> what I've come across, the banking system was state owned and all the
interest went
> to fund the state budget.  By putting the money back out into the
infrastructure and other
> works via the state budget the money recirculated and this process kept
the state from
> ever having inflation and never was able to expand and burst in cyclic
bubbles.  The
> economy would grow, money in the bank, interest paid, but went straight to
the state
> which recirculated the same money.  I've come across this, but I can't
find
> a source for this when I google to show more details or how well this
banking
> system actually was.  Did anybody ever hear about this and may know
> some sources?
>


m
Nice post.  Your Franklin model of anking would be an interesting
one to see used, but that is one problem with the strong federalism
we now have, it prevents the very experimentation at state and local
level that might allows certain solutions to be "field tested."  No reason I
can see not to have competitive banking systems and see what works.


thanks--mel

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