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Under the Constitution, Article
I, Sec. 8, our government has the sovereign power to issue money and spend it into circulation to promote
the general welfare -- through (for
example) the creation and repair of infrastructure, including human
infrastructure (health and education).
This we could be doing rather
than allowing banksters to use money, taken from taxpayers, for speculation,
as has historically been done, thereby periodically causing one crisis after
another. In order to prevent our
nation's next financial debacle (or a terrible worsening of the one we may have
not yet fully passed through), our lawmakers must now reclaim that power to
issue money, as granted by the U.S. Constitution!
Unhappily, but not surprisingly,
mankind's experience with bankster money-creation has been a long history of
fraud, mismanagement and even villainy, and so it is that the present crisis
could eventually turn into the worst yet!
Banking abuses are pervasive and
self-evident. Major banks and companies
focus on gaming (abusing) the money system instead of focusing on how to assist
and facilitate manufacturing and other production. Billions of dollars have been stolen, while trillions
more have been shamelessly grabbed (misallocated) in so-called bailouts (secretly
made, as most of them were)! Much of our
political leadership (heavily funded by financiers), instead of focusing on
protecting our citizenry, seems to be willing to take the role of patsies, as they look(ed) the other way while
financiers proceed(ed) to rape America.
Private money creation through
"fractional reserve" banking fosters an unprecedented concentration of wealth
which ultimately destroys the democratic process and promotes military
imperialism. (In a real democracy,
people never allow any vote to go to war; only the rich and politically powerful "vote'
to go to war. And why do they do
that? Because most of them generate huge profits from it.
One result of this lack of real
democracy and the laws that this allows to accumulate: less than 1% of the
population now claims ownership of a majority of the nation's privately held wealth. Meanwhile the maintenance of the nation's vital
infrastructure continues to be ignored. And
now, as our infrastructure continues to fall behind that of most European
countries, the American Society of Civil Engineers has given the grade of D to
our crumbling infrastructure and says it will soon deserve a D-, concluding that $2.2 trillion is needed to bring it to safe levels over the next 5
years!
Infrastructure repair could provide quality employment nationwide, for
millions now unemployed or underemployed.
There is a pretense that
government must either borrow or tax to get the money for such projects. And yet it is well known (by some) that the
government can directly create the money
needed, and simply spend it into circulation for such projects, all without
inflationary results! A reformed
monetary/banking system can make this happen NOW! Read what Congressman
Wright Patman had to say about this way back in 1941.
How to do it
First, incorporate the Federal
Reserve System into the U.S. Treasury wherein all new money would be created by
government -- no longer as
interest-bearing debt. This new money
would then be spent (by Congress and the Treasury Department) into circulation
to promote the general welfare. The
monetary system would be monitored and regulated so that this would be neither
inflationary nor deflationary. At
the first sign of too much inflation, spend less; at the first sign of
deflation (or too little inflation),
spend more. Read how Kent Welton
explains this in his recent article. And
then visit this website for much
more information.
Second, halt the banksters'
privilege to create money. Do this with
legislation that would end the fractional reserve system -- but do it in a
gentle and elegant way: all past monetized private credit would
be converted into U.S. government-issued money.
Banks would then act as intermediaries, accepting savings deposits and
loaning them out to borrowers. (Banks
would then be doing what most people think
they do now.)
This legislation would nationalize the money
system, but not necessarily the
banking system. Banking, says Dennis
Kucinich, is not a proper function of government -- Kent Welton disagrees. Be that as it may, both men agree that providing the nation's money supply is a government prerogative! And these two were of course not the
first! Just to name a few of their
highly esteemed predecessors: James
Jackson, Congressman from Georgia in 1790, President Andrew Jackson (who used
federally-issued, debt-free money to pay off the entire
national debt in 1835), PresidentAbraham Lincoln, highly esteemed Congressman
Wright Patman in 1941, and President John F. Kennedy.
Third, spend new money into
circulation on 21st century eco-friendly infrastructure and energy sources,
including the education and healthcare needed for a growing and improving
society, starting with the $2.2 trillion that the Civil Engineers estimate is
needed over the next 5 years, for infrastructure repair; creating good jobs across
our nation, re-invigorating local economies and re-funding local governments at
all levels.
The false specter of inflation
is always raised against suggestions that our government fulfill its
responsibility to furnish the nation's money supply. But that is a knee-jerk reaction -- the
result of decades, even centuries of propaganda against government. When one actually examines the monetary record
worldwide, as well as in the U.S., it becomes clear that government has a far superior record in issuing and controlling money
than the private issuers (banksters) have had. Inflation is avoided whenever real material
wealth has been created in tandem
with issuing more currency. Research and
development of superior, pollution-free technologies can be funded in this way,
as well as all manner of infrastructure.
Right from the Constitutional Convention,
delegates ignored society's monetary power and the excellent record of
government-issued money in building colonial infrastructure and giving us a
nation. They left the money power up for
grabs, and profited handsomely from essentially selling it to banksters. (Properly estimating and evaluating the
potential of federally-issued, debt-free currency would have meant placing it
in a fourth, monetary branch of government, right from the get-go. )
Our Great Task then is to complete that part of government left
inadequately defined by the founders,
i.e. to more precisely define the money power that we could have achieved
in our society (and might still achieve), and then bring it securely within the
proven system of checks and balances our founders often put in place in the creation
and formation of our government .
History shows that the money power will act like a fourth
branch of government whether we recognize it as such or not. And it's not safe (or financially sane) to
leave so much power and privilege in private hands! So, we must not shrink from our responsibility to begin implementing
the long-known solutions to this problem.
We start by placing the "money power" within our government where it
obviously belongs. (Or would you prefer
to let Goldman-Sachs continue to exert ever more influence and control
over our government and the world economy?
Would you prefer to let companies like "Enron" continue to exert way
more influence over the economy than should be allowed? And yes, Enron agents were on the Dallas Fed Board! )
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