by Stephen Zarlenga and Greg Coleridge
President Obama presented worthy economic goals during his State of the Union address of investing in our physical and social infrastructure and increasing employment. Absent was any specific plan of how to achieve these ends without further increasing the national debt.
We have a specific plan President Obama. Take public control of our money system.
A bill was introduced at the end of last year that can put people to work by building and repairing our nation's infrastructure without adding to the debt. The details are contained in the National Emergency Employment Defense (NEED) Act (HR 6550 in the last Congress) by Rep. Dennis Kucinich (D-OH).
While the bill focuses on the unemployment crisis, it contains the three essential monetary measures proposed by the American Monetary Institute in the American Monetary Act (AMA). The AMA's recommendations are based on decades of research and centuries of experience, are designed to end the current fiscal crisis in a just and sustainable way, and are aimed to place U.S. money under our constitutional system of checks and balances.
The three essential monetary measures of the NEED Act are:
1. Incorporate the mostly private Federal Reserve System into the US Treasury Department. The Fed would no longer be a virtual fourth branch of government, unaccountable to the public. Their important financial research functions would continue. But the Fed would no longer make unilateral monetary policy decisions beyond the reach of We the People.
2. End the banking systems "fractional reserve" accounting privilege in a gentle, elegant way. Fractional reserve lending allows banks to lend many times more than they possess, thereby issuing our money supply as interest bearing debt and dominating the financial system, taking wild risks as they did in creating the crisis. Instead, we should use our Government's Constitutional power (Art. 1 sec. 8) to provide the nation's money supply as interest free money, not interest bearing debt. This has immense benefits.
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