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A Helicopter Stimulus Idea, That Reels Itself In.

May 22, 2013 1:58 PM ET
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Mustecky's Blog
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An Ideal To Stimulate The Economy with minimal bad side affects.

1. It stimulates the economy by getting the money into the hands of people who will spend it now.

2. The money disappears on its own, as time passes. Thus when its time to cut back the stimulus, we simply quit creating it, and it disappears on its own.

We do this by creating a new form of money, call them StemDollars (SDs) for now.

  1. SDs have a nominal value of one Dollar at issue, and are legal tender.
  2. All SDs are dated, and their value decreased by some fixed amount, say 10 cents per month, from the date of issue.
  3. The Treasury Gives away say one billion SDs per month divided as equally as is practical, to all Americans below the poverty line.
  4. Banks are required to create and process non interest bearing SD accounts for anyone who asks, at no charge.

The result, The money gets spent. The money slowly disappears as the economy takes off, because their value fades away, and the Treasury quits issuing them.

* Granted the difficulty of managing accounts of variously dated SDs might be tricky, but the financial community are the people that created derivatives, and they're the ones that got us into this mess, they out to be able to manage it.

Regards Rick Vessell (Mustecky)

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