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OpEdNews Op Eds    H3'ed 4/18/11

Solving the debt crisis without raising taxes or cutting spending: U.S. Notes

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I sent the following email off to a couple of reporters at CNBC - that right-wing in-the-box bastion of capitalism.  It had to be short, pithy and succinct.  If we even get the solution mentioned in the email on the air, even to be ridiculed, it'll still be a major victory over what passes for solutions right now to our twin revenue shortfall/debt increase disaster.  Right now, all that's talked about is raising the debt ceiling, raising taxes, cutting spending (but not on the wars, taxes for the rich, oh no, not that!), and even eliminating Medicare as we know it.  None of these solutions are necessary nor desirable.  Read on...

There is a way to solve the unsustainable debt crisis without raising taxes, cutting spending (in fact, you could increase it and provide jobs in underfunded areas like infrastructure), or even raising the debt ceiling.  Looked at the proper way, it should increase our debt rating too, because we would be generating less debt.   Furthermore, there is ample precedent from Lincoln in the Civil War. 
Simply follow Lincoln's example, as well as the Sovereign right of all nations and the mandate from Article 1, Section 8 of the U.S. Constitution to "coin money" in the form of United State Notes.  Unlike Federal Reserve Notes, U.S. Notes are not "borrowed" money, they are real money, produced by an act of Congress.  Congress did this at Lincoln's request to the tune of $450 million (a huge sum in those days), and the true Greenbacks (because they had a green back) were in limited circulation all the way until the 1990s !  Immensely popular in the late 19th century, the banks hated them because they wanted to keep the monopoly to manufacture money and loan it out at interest to themselves!  If Obama is serious about taking on the self-destructive Tea Party faction, he should do what his Illinois predecessor did in during our country's darkest hours and re-issue Greenbacks, dedicated specifically toward weak areas of the economy like infrastructure and the energy grid.
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Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a former blogger for Huffington Post, Daily Kos, and Global Economic Intersection.

His anthology of updated Opednews articles "America is Not Broke" was published by Tayen Lane Publishing (March, 2015) and may be found here:

Scott is a former and current President of Common Ground-NY (http://commongroundnyc.org/), a Geoist/Georgist activist group. He has written dozens of (more...)

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