Dennis Kucinich says Congress must direct the Treasury Department to issue US Notes (like Abe Lincoln's Greenbacks, but which would also be issued in electronic deposit form) to pay off the National debt. He says the US must also gradually increase the reserve ratio that private banks are required to maintain from 10% to 100%, thereby gradually ending banksters ability to create money out of thin air and then loan this funny money out at interest. Prize-winning documentary film maker Bill Still agrees and has produced several very persuasive films, web sites, books and articles that explain and support this idea of nationalizing the Fed, ending fractional reserve banking, and distributing a new, non-debt-based currency.
Congressman Kucinich's proposal is laid out here in its entirety.
In this bill, HR 6550 IH, Kucinich proposes a means by which we can:
- create a full employment economy;
- provide for public investment in capital infrastructure;
- provide for a reduction in the cost of public investment;
- retire public debt;
- stabilize the Social Security retirement system;
- restore the authority of Congress to create and regulate money, modernize and provide stability for the monetary system of the United States, retire public debt, and achieve the goals just listed
This is a plan that prize-winning documentary film maker and author of No More National Debt believes has the potential of actually achieving all the goals just listed. However, it is a very long bill, and is written in legalese. What follows here, then, is my simplified and clarified version of attorney Pat Carmack's plan for monetary reform, which lays out all the essential principals in Congressman Kucinich's plan, and briefly provides the key arguments that Kucinich makes in his bill. (Carmack's version of the idea was written at the special request of Bill Still, for presentation in one of his prize-winning documentary films, The Secret of Oz.)
Two Step Plan to National Economic Reform and Recovery
Step 1: Direct the Treasury Department to issue U.S. Notes (like Lincoln's Greenbacks, but which can also be in electronic deposit format) to pay off the National debt.
Step 2: Gradually increase the reserve ratio that private banks are required to maintain -- from 10% to 100%, thereby ending their ability to create money out of thin air when they loan it out at interest.
These two relatively simple steps, which Congress has the power to enact, would extinguish the national debt, without inflation or deflation, and would end the unjust and parasitic practice of private banks creating interest-generating money every time they make a loan through fractional reserve banking.