We hold these Truths to be self-evident...
California’s official unemployment is 12.2%, or over 2 million California adults actively seeking work. This is the worst unemployment crisis in the state since the Great Depression. Many of the lost jobs are in state and local government, such as 20,000 laid-off teachers in California. I wrote that the recent Los Angeles fires could have been prevented if unemployed Americans had been hired to clear brush. California has important work to be done, the workers and resources to do it, but not the green slips of paper to facilitate beneficial economic production?
How could this be? Isn’t this an irrational economic system when preventable fires blaze, and needed teachers are sitting at home while students are packed into more crowded classrooms?
I’m about to explain the solution embraced by Americans from Benjamin Franklin to Thomas Edison. But this is important: you need to take a moment to FEEL how our current macroeconomic structure that prevents important work being accomplished HAS SOMETHING TERRIBLY WRONG with its structure. Don't feel alone in a conclusion of criminal acts. Nobel prize winners and Pulitzer journalists are also writing with passion that these are the largest economic crimes in the history of the planet.
Have you reflected? Here we go:
The answer is generally called “monetary reform.” This takes the power of creating money away from the banking industry and returns it to its Constitutional authority with our community (government) for the direct payment of public goods and services. The economic benefits of this shift are $1 TRILLION every year, paying-off the national debt forever, and full employment.
Here’s how: when banks create money (credit really), they do so as loans. This is called a “debt-based” monetary system that predictably creates perpetual debt. Currently the US has a money supply of ~$15 trillion, a $12 trillion national debt and a total debt of over $70 trillion. This is a function of a Robber Baron-era banking design by the banks for the banks. If we stop the banks from creating money, called the multiplier effect in all economics curricula, and have government do so for the public good we have predictable benefits: no debt and full employment.
How?
Instead of rolling-over debt when it’s due, we pay it. This solution was proposed by Economics Nobel Prize laureate Milton Friedman. For the market failure of unemployment, the government becomes the employer of last resort. As long as economic output is greater than wages, overall price levels decrease. For example, repairing roads provides greater economic productivity than the wages paid to the workers. It’s a good deal for the public and a good deal for workers who are unsuccessful finding a job in the free-market.
While we’re waiting for national monetary reform, California could create its own bank to issue 0% credit to pay for needed public services. North Dakota has a state-owned bank; their unemployment rate is only 4%, with their state government being one of only two with a budget surplus. California pays $5 billion every year for interest on state debt. With a state bank backed by state assets and working within existing banking law, we could issue credit to purchase our existing interest-bearing debt with a 0% loan to ourselves and save the $5 billion in interest every year. $5 billion would rehire that state’s 20,000 laid-off teachers at $70,000/year and still have $3.4 billion left-over!
So if this is so great, why hasn’t it happened?
Good question. Despite our brightest historical American minds explaining this idea quite clearly (and here), the history of creating money directly to fund the Revolutionary war (despite extensive British counterfeiting to devalue this money), Lincoln issuing Greenbacks rather than borrow the money to fund the Civil War, meteoric economic transformations in Napoleonic France and Nazi Germany, we’re still under the political domination of the banking industry rather than banking policy for the public benefit.
This should not surprise you if you’ve been reading among the hundreds of writers pointing out that our political “leaders” are lying about policies of war, constitutional rights, torture, and, of course, the economy.
Below is an 8-minute segment of the award-winning economic documentary “Zeitgeist: Addendum.” Look it up on Youtube if you want to watch more.
As always, please share this article with all who say they want economically competent policy for our states and nation. If you appreciate my work, please subscribe by clicking under the article title and feel free to browse through my entire collection of political and economic articles.
Comments
Spot on. It's high time we audit the federal reserve and expose the whole scam for what it is, bankers making money for bankers. Search and send the word for HR1207.
EAT THE RICH!!
It blows my mind that more people aren't raising pitchforks and torches over this. Just blows my mind how complacent the American public has become with getting royally screwed. I hope you enjoy the sweet taste ignorance my fellow Americans.
It is easy to blame macroeconomic issues on the government or policy framers. I have switched three jobs this year, by choice. I have two recruiters asking, no begging me do I know of anyone to get jobs. My parents tell me of their friends who want their old jobs at their old income level. There has been a paradigm shifts. There are certain jobs that are not coming back ever. The natural rate of unemployement needs to be raised to reflect the new reality of labor in this country. The jobs/careers are there, you have to go get them.
fureousangel: did you even read this article past the third sentence? I'm a professional educator; your comments show zero comprehension.
Germany pulled itself out of a terrible depression and became an economic and military superpower when they issued their own money.
Lincoln paid for the civil war with government issued greenbacks but then he got shot.
President Kennedy authorized the Treasury to issue silver backed dollars directly but then he got shot.
Australia paid it's entire cost of the first world war using the government owned Commonwealth Bank. It could have done it twice over. But now they have sold it to private interests.
Just how stupid or corrupt are our politicians?
answer:
EXTREMELY!!!!!
if you really want to raise Money TAX ALCOHOL like you do SMOKER'S,WIth ALCOHOL costing $ 175,000,000,000.00 per year in Healthcare,Healthcosts,accidents,murder.suicides,rapes,robberies,Accidents,Liver Brain,SPleen,Throat,Kidney DISEASE ..I think this would Drop this 175 Billion down to maybe 75 Million,But it has to be a 2-3 dollar tax on every bottle,can,mixed,shot.....Now thats what i call Common SENSE
Here is the problem. Start a bank? Easy! Need $51 million seed money,No problem! Find someone that can loan you the seed money for a short while.Here is the scam on FDIC. Loaner puts in $51 mils and the borrower promises to pay 20+% on the loan. But,the extra benefit (DEMAND) is that the new bank created most loan out to the seed money loaner $153 Million at a prime lending rate.
Remember,once the bank is FDIC approved,this bank can loan out 10 times it's capital--meaning $510 million.
Don't believe it? I should know--I work at such a bank :^/
@ Les -y I think you are missing the point. A state run bank issues it's own fiat currency. We don't need, nor do I think we want gold or silver backed currency since these commodities are too easily manipulated by institutional investors. As long as we can adhere to strict formulae in the issuance of currency, i.e. credits, no fractional reserve scam lending needed or allowed. A state owned and operated bank has the constitutional authority to regulate and value of the currency and the amount. The interest if it charges any goes back to the Treasury. This should eliminate the illegal personal income tax as well. It's so simple it's ridiculous.
Correction--"Most" should have been "must"
Cheers!
it sure appears its time for public hangings again. after proper convictions for ceos of central federal banks and their board members would be a great place to start, then theres insurance ceos and board members, pharmaceutical ceos and board members , big oil stc..... and all politicians who have voted for unconstitutional laws.
then we might be able to become a civilized nation again
Very interesting comments from poster: Michael Mazur
ral managers of two of the largest Berlin banks, both of Jewish faith, and one of them the leader of Zionism in Germany`.
It is fair to draw the conclusion that after 30 Jan 33 they politely enquired of the new Chancellor whether banking policy would remain as it had been before, and very likely he said that from now on the Reichsbank would issue the currency interest free for loans and debts.
And that, i proffer, was the nub of what WW2 was about - who shall issue the currency, private interests or the German people via their representative institutions ?
Now we are once more at full circle and again asking this same question which Chancellor Hitler had thought he had solved - and we know what happened to him and to 60,000,000 other people world wide in order that the `natural order` be restored.
~~freddy says:
Germany pulled itself out of a terrible depression and became an economic and military superpower when they issued their own money.~~
True, for between 30 Jan 33 and 24 March 33 something happened within the power structures of the allied private central banks of Britain and the United States for it was on that March day the banner headline in London's Daily Express blared, Judea Declares War on Germany, with the text following giving nary a hint as to the why of it, but plenty of detail as to exactly what the Judeans would be doing to Germany, centering on various temporising boycotts for the next 6 years, by the end of which time all the political and military pieces would be in place.
From an item on David Irving's site going back to 99 we know that Heinrich Bruning, who was one of the last Chancellors of the Weimar Republic, wrote to Winston Churchill in 1937 saying `that from October 1928 the two largest regular contributors to the Nazi Party were the gene
Carl,
Excellent work, as usual. Keep it up. I'm going to post your article on my own forum.
I totally agree that America is in dire need of monetary reform, but that is not all that needs to change. Congress passed the Gramm-Leach-Bliley Act of 1999 which gutted a very important depression era banking law the 'Banking Act of 1933 (Glass-Steagall Act), which forbid banking institutions from issuing, speculating, gambling, and trading securities and insurance. Then congress added insult to injury by passing H.R. 4541-Commodity Futures moderization Act of 2000, which legalized credit-default swaps and derivatives, which is a form of gambling upon assets that are not owned by the better. Derivatives can be hedged, which is likened to placing a side bet on your bet. When the markets collapsed in Oct. of 2008, there was $4 quadrillion worth of derivatives outstanding. The only way to insure safe banking is to make banking boring again by repealing these two laws.
fureousangel, are you a "real" American? Meaning, are you an east indian? Only east indians are able to work here in this country (largely, my sister lost her job (Wells Fargo) and was replaced by a H1b worker), look at CNN (which I largely avoid but every now and then I am confronted by their spin, they feature "specialist" all east indians, not American doctors or specialist but east indian specialist, here in the US. New Americans.) You burn me up that your head is buried deep. You really must come out of your ivory tower, good people are suffering, the Federal Reserve has raped this country and it's people, we will soon be Argentina as I prediced 10 years ago.
I hope you have signed up for the H1N1 shot since you are such a believer.
Our priorities are upside down. Every year we graduate another 2-3% more 4-year degree holders and have 2-3% fewer jobs for them. When our government talks of "recovery" it talks in terms of jobs for a 19th century workforce: "infrastucture" (back-breaking construction jobs) or "manufacturing" (boring, blue collar assembly line jobs), or "retail" (brain-dead, minimum wage, jobs that any bright 8th grader could do). We found a a vaccine for polio in 5 years with primitive technology. Where is the vaccine for AIDS and and anti-virals for the common cold? Tiny India produces twice the feature films of Hollywood. Aside from Apple, our high tech firms rarely innovate -- where's the R&D? These are the kinds of jobs American's want--high skill, high paid careers. We need to discourage the Wal-Marting of America and reward more companies like Apple.
spareword, do or have you ever voted? Do you or have you ever once paid your taxes? If so, I suggest you join the morons at trough and dig in, because you are just as ignorant as you claim your "fellow" americans are, If not, then you should at the very least scrounge up from somewhere in your empty soul the erstwhile compassion for which we are so well known around the world and realize the magnitude of the deception being foisted on all of us. Your arrogance and your ignorance are boring. Grow up.
there are worse things than unemployment. Just check Mainstreet dot com and read about the upside of being fired
You are advocating that congress be given the power to control the money supply, AND that money be printed to cover debts.
Given the dolts that are in congress now, I think that handing over the job of regulating the money supply to congress, is like giving a crack addict an unlimited supply of crack.
The suggestion to print money to cover debts is out of this world insanity. Inflation is a direct result of increasing the money supply by printing money. Inflation is a de-facto tax because it reduces the amount of goods that you can buy with a given amount of money. There is no functional difference between taking money from someone through taxes, or making everthing else more expensive with inflation. Printing money is the solution of idiots, because of the way it can get out of hand in a hurry. Read the wikipedia entry for the zimbabwe dollar, and look especially at the section about money supply in 2006-2008.
In short, your "reforms" would lead to the downfall of the country
Just read your bio. It says that you teach economics!??!!!?! Dude, from your amazingly naive article here, it sure seems like I know more about economics then you do, and I'm just a software engineer who considers macroeconomics a side interest. The responsible thing for you to do is to update your knowledge on macroeconomics before you make any more insane policy suggestions.
Mike, dude, you’re lumping Nobel laureates and our best inventive minds like Edison and Franklin into a naïve lump. Yes, banks should not create money; that power should go for the direct payment of goods and services, including the government as the employer of last resort for infrastructure improvement and the only way to achieve full employment.
Dude, you must be on crack to think this noble and Nobel group advocate unlimited supply; it should be TRANSPARENTLY managed according to population and economic growth. If you were to have thought one step ahead of your response of throwing your hands in the air with surrender to our current criminal system, maybe you would have imagined this.
The idea that the government would do a worse job than the private owned Fed can't be answered because we really don't know how bad the FED has done- They have never been audited, and are fighting like crazy to keep it that way. What are they hiding? The FED claims that an audit could reduce confidence in the markets- if they were doing a good job wouldn't it increase confidence in the markets?
If you believe California should set up a state bank - as I do - please sign my change.org petition: Help the Terminator save California and join 461 of your fellow citizens in petitioning the Electeds and other officials for REAL change. When the petition gets up to 500 names, I will print it out and fax it - again - to the top recipients on the list to emphasize the urgency to CREATE A STATE BANK. Remember, as goes California, so goes the nation!
The difference with running the press vs collecting revenues is that it burdens everybody and ultimately results in a weakened purchasing power for anyone using the Dollar. No one is exempt from it, whereas one can avoid IRS taxes even through legal means or dodge it altogether if one operates in the "undergound" economy. In a way it is a more effective and If I may add sweeping approach to pass the burden of paying down the national debt onto the masses by force majeur especially for an administration faced with the looming scenario of defaulting on its "foreign obligations" which would surely lead to an outright Dollar devaluation without a quick patchup job.
These Videos show Greenspan admitting the banks fraud and the fraud in Foreclosure , This is More REASON why We the PEOPLE need to be in control of US Monetary Policy , by Ending the Federal Reserve .
http://www.youtube.com/watch?v=731G71Sahok&feature=player_embedded
http://www.youtube.com/watch?v=14C_QvdD1kg&feature=player_embedded
http://www.msnbc.msn.com/id/21134540/vp/39836703#39836703
What is happening in world economies is a staged event by the elitists as they through the FEDERAL RESERVE and CENTRAL Banking institutions are sucking away all forms of finance to stop growth and cause a collapse in the economic structure , this will bring everyone to their Knees and beg for Government to do something in a slow bleed sense . Its because they think the earth has reached its carrying capacity in human growth , listen to the Environmentalists Organizations , and see these people in the same positions of Government and Banking interests too , Hank Paulson the BIGGEST banker of all these people was the Leader of Nature Conservancy for 15 years before taking the helm at Goldman and then the Treasury and staged the bailouts to his elitist organizations to put in place the cabal we are living with today .
End the Federal Reserve and you will take the power away from these ideologues , if we don't it won't be pretty .
End the FEDERAL RESERVE HR 833 bill http://www.govtrack.us/congress/bill.xpd?bill=h111-833
WE the PEOPLE THIS TIME NEED TO DO THIS .......
In 1936 depression USA tried to payoff its national debt , but the FED stopped it , so its time to END the FED , theres to much at stake !!!
http://www.rususa.com/news/news.asp-nid-33393-catid-4
I totally agree that the Federal Reserve needs to be eliminated, or at worst, nationalized. Congress has the Constitutional power to issue and regulate the currency, which is supposed to be backed by gold and silver. Even if they don't use gold or silver, they have the power to be their own bank. We need a banking system that is not tied to the international central banks. We need to be able to issue our own credit. Hitler's government broke away from being dominated by the international banking system and paid off their debt and became a very strong economic power in 5 years after he took power. If he hadn't taken the wrong turn by creating WW2 his government could have demonstrated whether, or not, a socialist government and economy really does work. So far, we have seen no instance where that is the case. But he was right on the currency issue. He rebuilt the infrastructure of Germany and they became strong economically all on their own. Maybe it is time we took the blinders off and look at what he really did on this subject. Forget the negative stuff he did. What did he to that was right. Can we use any of that today?
There are two things we need to, as far as I can see. That is abolish the Federal Reserve System and pass the Fair tax. See www.fairtax.org for details. It abolishes, the IRS, Income Tax, Corporate, Estate and Gift taxes and establishes in their place a Federal Sales tax of about 23%. This is not a tax on a tax. It replaces most of the taxes that build up the prices of goods and services. If they passed this tax the corporations would no longer have to go international to avoid taxes here at home. They could bring their operations back to the US. The US would then become a major tax haven to the rest of the world. All the tax treaties that have destroyed the international tax haves would become null and void. There would also be no further need of them since all the investors are doing is avoiding the income tax which would be abolished.
Think about it folks. A common sense solution that can actually work. Check this out it is gaining major momentum of popularity. Call our Congressman and Senators and urge that they pass the Fair tax.
And get rid of the FED!!!
The reason for my feeling that we the people need to be in control of our Monetary Policy instead of the Federal Reserve acting on Behalf of the International Think Tanks that control it , like the Trilateral Commission is because they are ............in their Phase of Resource consolidation through wealth consolidation , its all in this plan ; http://www.globalresearch.ca/index.php?context=va&aid=7735 , which was Lined out in this NSSM200 study ; http://www.population-security.org/11-CH3.html , they are about 10 years behind on where the plan was laid out by Kissinger as a Goal to be in full control of world wide population .
Its why we are seeing Crazy Intellects like Bill gates saying things like this ;
http://www.theblaze.com/stories/bill-gates-wants-death-panels-dying-peop... and then couple what Gates is plans are with this .......
http://www.metacafe.com/watch/621153/cia_predicts_the_future_2015_water_...
http://www.metacafe.com/watch/621146/cia_predicts_the_future_2015_overpo...
There was a time when the states had their own bank charters and their own banks. The Fed came along and manipulated the politicians to eliminate state banks. In this way the Fed Reserve became the total power dominating our total banking system.
From what I have read about what Hitler did to resolve his country's monetary system he was right on the mark. He caused the German central bank, I believe it was the Reichsbank, to issue currency that was not backed by anything that was tied into the Jewish dominated international banks. Our own Fed is owned by 12 international Jewish owned banks. Look it up on the internet. They work in concert with the other central banks of Europe that are similar in ownership to the Fed to dominate the monetary policies of the Western world.
Getting back to what Hitler did. He broke away from doing business with the Jewish owned international banks and issued a currency that was basically backed by the labor of the German people. He put the bulk of the population to work, especially on government sponsored, public works projects. Between that and other similar measures to employ the German workers they were able to create enough currency to finance their own way out of their tremendous inflation and reparations debt from World War 1, that was created by the inflationary measures that were forced on Germany by the Treaty of Versailles. Within five years of adopting this currency system Germany was out of debt and quickly becoming a major economic power in Europe.
Since this is a Socialist measure, and since President Obama is adopting Socialist tactics, maybe he should look at a Socialist tactic that actually did work, instead of tactics that don't work. If we did something similar we could put the bulk of the out of work blue collar workers to work on public works projects reparing the infrastructure that, I am told, is seriously deteriorating.
The government should also make it much easier for people to go into their own business. The SBA should lighten up and make it easier to get SBA loans. The government agencies that provide grants to people who want to open their own businesses should lighten up on their qualifications. Instead of favoring women and minorities they should level the playing field and make it possible for anyone to get a grant that seriously needs it.
I am a financial consultant and I am providing non-recourse loans to businesses that can qualify to receive non-recourse, no payback funds from our financial sources. The program we offer is good for commercial projects as well as humanitarian projects. For those who can invest $60,000, or more, they can get their projects totally funded. For those, who can afford it, we can use this to finance a persons healthcare, retirement and college funds. Instead of tying up your funds in a an IRA or other fund, get creative and create your own funds.
I once heard a wise man say, " I don't want you to come to me with criticisms about what is wrong with something without putting forward your solution to the problem as well." The real good solutions to complicated problems usually come from people with a lot of common sense. Usually the solutions that work come from the common man.
Let's hear from the common man. What are your solutions to the monetary problems we have been discussing?
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