Towards a Viable Monetary System
The Need for a National Complementary Currency for the United States
by
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The impending disaster of a default on the national debt can be averted only by the use of an unconventional solution to the conventional problem of an unsustainable interest burden. An altogether different approach is required to solve the problem of the mounting interest burden on federal debt, which is fast becoming unsustainable. To eliminate the possibility of a default on Treasury debt, we need to reform the current monetary system of the United States. If we carefully examine the nature of the U.S. dollar that is currently in place, we will find that there is a serious flaw in our monetary system which needs to be corrected through appropriate monetary reform. The U.S. dollar cannot perform the role of a medium of exchange and the role of a convenient store of value simultaneously, because these two roles are in contradiction with each other. There is no escape from the conclusion that it is this defect in our current monetary system that has placed the United States in such a precarious situation. Incredible as it may seem, there is a way for the United States to avoid a default on its unsustainable interest burden. The problem of the mounting burden of interest payments can be addressed effectively with the establishment of a demurrage charged complementary currency as a second independent currency within the framework of a dual currency monetary system. This can be accomplished without nationalizing the private banking industry, without abolishing fractional reserve banking, and without changing the structure of the Federal Reserve System.
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About the Book
The burden of interest payments on the national debt is becoming unsustainable for the United States. According to the Congressional Budget Office, the amount of interest on the national debt will be $714 billion in the year 2026. If the interest on the national debt is not paid, a default on the national debt will occur.
A debt default would damage the full faith and credit of the United States government. The excellent credit rating of the United States government, both at home and abroad, would be ruined. Treasury securities would no longer be considered a safe and dependable asset to hold, and there may be a foreign sell-off of US securities that would drive up interest rates. A default on the national debt will trigger an economic collapse, which may prove to be worse than the Great Depression.
This book explains why the United States needs a second national currency that is conceptually different from the conventional US dollar. This book also explains how this second complementary currency will successfully ward off the impending disaster of a default on the national debt.
About the Author
After earning a B.Sc. Honors degree from the University of Dhaka in Bangladesh, Hussain Zahid Imam was awarded a graduate assistantship to pursue graduate study in Business in the United States. After getting his MBA in 1978, Mr. Imam started his own business in Athens, Georgia. He lives with his wife Fatima in Watkinsville, Georgia. He has one daughter.