8. This new money would not be inflationary if issued within reason, because,
according to the Federal Reserve, money in circulation is STILL some $3
Trillion less than it was before the 2008-09 crash. We would simply be
restoring what was lost due to bad credit creation by the banks.
9. Two recent bills - HR1452 (from then-congressman Ray LaHood, 1999, reintroduced in 2003-04 as HR4371) and HR2990 (Kucinich, present), attempted to issue new U.S. Notes to augment or, in the more recent case, replace, existing Federal Reserve Notes. LaHood's bill is the simpler one, basically a transportation bill creating $350 billion "to provide for noninterest bearing loans of the money so created to State and local governments solely for the purpose of funding capital projects." However, the new money does not have to be loaned at all, but can simply be issued into the real economy (see #8).
10. Although U.S. Notes cannot directly pay off the debt, the tax revenues generated by businesses and individuals newly employed in public works projects, CAN be used to pay the debt. Eventually, the surplus could retire the debt, forever. A sovereign United States need not borrow its own money, at all.
This is a lot to take it, I know, but I have studied alternative economics for
4 years now...taken a dozen economics courses, read everything I could and
discussed these theories with economists like Dr. Michael Hudson, Dr. Mason
Gaffney, and very many more. I am now the president of Common Ground-NYC
- a Georgist economics group - and New York Coordinator of the Public Banking
Institute, where we discuss these changes regularly and try to reach out to
people like you to implement them.
America is not broke, and indeed there are 10s of trillions of dollars in real, or creatable, assets, just waiting to be tapped for the common good.
I welcome the chance to discuss these issues and more with you in the near future.
All the best,
9. Two recent bills - HR1452 (from then-congressman Ray LaHood, 1999, reintroduced in 2003-04 as HR4371) and HR2990 (Kucinich, present), attempted to issue new U.S. Notes to augment or, in the more recent case, replace, existing Federal Reserve Notes. LaHood's bill is the simpler one, basically a transportation bill creating $350 billion "to provide for noninterest bearing loans of the money so created to State and local governments solely for the purpose of funding capital projects." However, the new money does not have to be loaned at all, but can simply be issued into the real economy (see #8).
10. Although U.S. Notes cannot directly pay off the debt, the tax revenues generated by businesses and individuals newly employed in public works projects, CAN be used to pay the debt. Eventually, the surplus could retire the debt, forever. A sovereign United States need not borrow its own money, at all.
11. Our nation's bond rating, so critical
to low borrowing costs if we continue to borrow, would actually be
improved. S&P, Moody's etc.,
would see that we have the wherewithal to pay our bills, and to create
low levels of unemployment and an improving infrastructure for the
future. Our rating should return
to AAA and stay there.
America is not broke, and indeed there are 10s of trillions of dollars in real, or creatable, assets, just waiting to be tapped for the common good.
I welcome the chance to discuss these issues and more with you in the near future.
All the best,
Scott
Baker - President:Common Ground - NYC; NY State Coordinator:Public Banking Institute; Opednews Blogger/Senior Editor; Huffington Post Blogger; Author
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