The flip side of credit-money is debt. Debt deflation depression is an arithmetically inevitable consequence of money-debt imbalances that build up within the negative sum arithmetic of the bank-debt money monopoly. Savers have all the money (credits), spenders owe all the debts, and never the twain shall meet. Outcome: financial collapse.
Fisher accurately diagnosed the root of the problem, and wrote his simple prescription for curing it: monetary reform that features government issuance of the money supply.
Fisher argued that the power to "issue" the national money supply is the most essential power of a sovereign government. To cede that power to private bankers was to cede national sovereignty -- to cede effective government -- to the money-issuing bankers.
That had been done with the Federal Reserve Act of 1913. First there was the vast credit expansion to finance the most costly undertaking the world had seen to that time: WWI. Then a mere 16 years after bankers had established their legal monopoly on the issuance of US dollars, and had vastly expanded the quantity of credit and debt during the Great War and the Roaring Twenties, the world suffered the arithmetically inevitable consequence: the 1929 money system collapse, then the Great Depression, followed by a truly colossal scale of deficit spending to pay the costs of WWII.
Is it shocking that government deficit spending on War provides an enormous fiscal stimulus to financially collapsed economies, to pull them out of Depression? The term "perverse incentive" creeps into view.
Boom -- Collapse -- Depression -- World War. That is what happens when the money system is privately owned and operated as a for-profit business, so that the government's and the economy's money supply is issued by banks as debt at interest.
The Golden Rule of power: He who has the gold, makes the rules. The party who issues and owns the money rules over the party who borrows and owes the money. Under the Federal Reserve Act, money-issuing commercial banks own the credit-money and rule over the debt-bound US government.
The offer to pay money induces people to do what the offerer asks (the carrot). Aside from marshal force that coerces people to do stuff on threat of prison and death (the stick), money is the power of "government".
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