When new system of government can save america?
Completely new separate system for money creation with the incorporation of many “new money” delivery systems is the solution to reducing the first major flaw of capitalism. This reform is by far the most important economic decision to be made. To help you do your own historical research, we have narrowed down our recommended resources to four major books:
The Lost Science of Money by Stephen Zarlenga,The Bubble & Beyond or Killing the Host by Michael Hudson, The Secrets of the Temple by William Greider, and Sovereign Money, Beyond Reserve Banking by Joseph Huber (recommended for academics and economists). Additional web resources include: www.monetary.org, www. soverignmoney. eu,and www.postivemoney.uk.
Taking into account the many failures of private and central banking over the centuries, we have come to the conclusion that it is necessary to eliminate both the private fractional reserve system of monetary creation President Lincoln and insist that monetary creation belongs in government, not private banks. Benjamin Franklin, and Presidents Madison, Jackson, and Wilson joined Jefferson and Lincoln in that belief.
People are not perfect in practice or theory; therefore, delivery systems have to be diversified to reduce the severity of wrong decisions. The money creation power has to be placed back into a democratically elected governmentwith checks and balances. Whoever controls the money controls the society. “Give me control of a nation’s money supply, and I care not who makes its laws.” That is a quote from Mayer Amschel Rothschild, the financier who started the Rothschild banking empire.
There are two major economic functions of a federal government. One is tax and spend (fiscal policy). The other is the creation and distribution of new money (monetary policy) which was written into the Constitution by our Founding Fathers as part of a compromise with the individual States. It is in Article I, Section 8, and Clause 5 of the Constitution. Where it states: “To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.” “To coin” is a verb, meaning make or create. Congress licensed this power to the Federal Reserve in 1913. What they giveth, they can taketh away!
How New Money Should Be Created and Distributedand DistributedMoney should be created by a federal centralized governmental process with as many checks and balances as possible. It should not be a private processl It is much too powerful to be in private hands with all the benefits going to a mere few in only one sector of an economy. Money is created by law and by allowing taxes and government usage fees to be paid by its currency, it creates a basis for legitimacy and acceptance by the population.
This creation process has to allow maximum dispersion by setting the total amount of new money distributed through decentralized distribution channels. These amounts are calculatedby various inflationary formulas and statistics as guidelines. This means we should not use debt for creation of money, nor interest rates to control the creation. Additional monetary research can be found in Towards a New Monetary Paradigm:
A Quantity Theorem of Disaggregated Credit by Richard Werner.In the process of creating money we need to decide who has the power to determine how much is created, and where it will go. There can be three operating alternatives within a government: executive branch, legislativebranch, or a new separate entity. We don’t care which of these is chosen, because people with built-in biases, beliefs, and political influences operate all of them. We are more concerned with implementing monetary reform rather than who is running it. In fact, we would like to see variations in operations among different governments to determine the best practice. (We will discuss specifics in Chapter 13.)
We believe there are three basic overall processes, whereby creating money can be effectively structured within a government, including an independent authority:
1. Use monetary creation to fund government spending that is not funded by taxes (deficits). This would allow an increase in spending until the inflationary guidelines are met. This is the process recommended by the American Monetary Institute. It was submitted to
Congress under the “Need Act” in 2010. It uses a separate monetary authority to create money and is distributed by the various spending alternatives passed by Congress, including paying of the student debt and giving the states 25% of the money created for their spending. Use the current fiscal system (tax and spend) to fund programs that do not have an actual investment return (interest or capital gains) to the Treasury.
Then use the monetary system to fund programs that have some type of return to the Treasury, using debt and stock instruments. See Chapter 13. It is a more diversified system that uses private companies for some of its distribution. It will be a more difficult system to manage, but it will provide more new money for the many needed projects without excess inflation. This alternative should be more politically acceptable to the right.
We eliminate the fiscal (tax and spend) system all together and have only a monetary system. The legislative body makes spending decisions and funds it only by creating money. It then creates a progressive taxing system to reduce the money supply to control excess or hyperinflation. This is similar to No. 1 above.
The following is a list of potential distribution systems. A majority of these systems should be in private hands with the government providing the amount of new money, operational oversight, and the regulatory guidelines for their operations. They will use direct currency issue, equity- stock and debt vehicles to deliver the new money.
These are NOT creation systems, but distribution systems. We call them banks, for the lack of a better term. We will discuss each of these potential distribution systems in some detail in Chapter 13.