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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