atlunch,I don't care what else you choose to let your population...

atlunch,

I don't care what else you choose to let your population do - you can shoose to let them copulate with llamas, for all I care!

However, you must ensure that the creation of money (and money-like instruments, such as bonds and MBS's) is tightly controlled.

In past generations, gold fulfilled this function, because you couldn't create more dollars than you could back up with gold.

Today, it's all a combination of paper and electronic zeros and ones.

The problem is, institutions can borrow $bns of $A from overseas countries, without even referring to our governments, to ask whether or not we can afford it (whether we have the assets to afford it).

These clowns are so big and are borrowing so myuch these days, they're not just endangering themselves and their shareholders - they're endangering us!

We have a FIRB to review inward investments, which might not be in the best interests of the country. Why don't we have a similar body, which over sees the big borrowers and says, "I'm sorry, but you are a major Australian bank. You can't just go out and leverage Australia to the hilt, by saying it's only a private contract between your borrower and the overseas lender. By doing that, you've created a monetary claim by a foreigner over one of our nationals...and we didn't even authorise it."

I'm not advocating socialism. Let every other industry do as they wish. However, our financial system (without gold, or some other immutable standard) requires discipline.

The US has lost its discipline. Its currency is becoming weak and unwanted. Is it any wonder that growth is declining, payrolls are declining, etc.?

In recent years, Australia's broad money supply (which encompasses not just the government-created money, but privately created promises, by way of the banks) has expanded at up to 14%pa, while economic growth has rarely exceeded 4%. That is not "dicipline" in monetary terms.

The final thing that happens under such a system (and why so many people eventually lose their jobs), is that Reality Bites!

By allowing banks to mortgage your country, outside a government-regulated currency system, you almost guarantee that they'll mortgage the entire country.

We elected the Government; the Government turned a blind eye; the banks did it; you and I will now pay for it, because they banks are being bailed out with yours and my taxes.

[Oh, joy of joys! I'm in a happy mood tongight, aren't I?]