A $700bn Scam
A further $700 billion scam against America, in addition to the Iraq war? Where is Congress? Fellows, and ladies, you are supposed to be representng us- please!
The demand for immediate action to avoid a meltdown is misplaced. Immediate and wrong action will accelerate the meltdown. There is only one thing Congress can do to inspire confidence and avoid a meltdown – that is to take deliberate and careful and good workable action to help resolve the crisis. In other words to fulfill its Congressional duty to America.
“A Trillion $ Here, A Trillion $ There – pretty soon …”
Yes we are talking about “real money!” Or are we?
As the Administration so adept at “shock and awe” takes aim at the American Congress, rushing them to sign on to an ill defined proposal fostering monetary and economic error, to ostensibly resolve a problem they have allowed to fester for years.
Not again folks – Congress job is to get this one right the first time.
Getting it right means requiring several conditions to protect the American people from the gang that’s been financially raping the nation; that gave us the unnecessary Iraqi war. It means facing the facts on where the banking crisis is and how it got there. It means examining the monetary and economic reforms of the Federal Reserve System that will assure that such thievery or foolishness won’t happen again; and taking back from those who improperly benefited from the tragedy and prosecuting them.
Finally it means giving all Americans a financial stake through ownership, of a share of the system that they are being asked to bail out.
Let’s examine just the monetary reform part of this:
Monetary Reform of the Federal Reserve System.
At the heart of the problem is that our money system has been privatized. Naturally it’s being run for the benefit of the “privates” in control, with minimal concern for the public interest..
First all the elements of the Monetary Transparency Act should be a stipulated part of the rescue in a section calling for greater transparency. A section can be added for an arm to investigate monetary crimes. But really, monetary transparency no longer does it. Real reform, not merely information is desperately needed.
Second, rather than borrowing the $700 billion being demanded, and ending up paying back about 3 times that amount after interest charges, The US Government could issue the money the same way the banks do, instead of borrowing it from them. But while the banks issue credit that substitutes for money, the U.S. would issue actual money. Our Government has the power to create the money, in an account, or by simply printing it as “greenbacks.”
There would not be inflationary effects, because it was already believed that those moneys existed in the form of the real estate values and loans. In effect this would stop a deflation which would follow from writing down those assets and loans to their present market values. Some conditions would be needed to assure that the banking system did not use those greenback dollars for further credit creation, as that would be inflationary. In essence the greenbacks would not be “re-discountable” by the banking system to create more loans, but would be legal tender for all debts public and private.
Third, Its important for the bailout legislation to establish a new U.S. Monetary Commission to examine the advisability of making this and additional features a permanent feature of the American Monetary System and report back to congress in the 1st quarter of 2009. Participants must be carefully selected and not be limited to the kind of economists and market operators who have brought us into the present crisis. Also to be avoided are the Internet agitators who don’t really know what they are doing. We know some of the people who should be there.
Legislation called The American Monetary Act has been in preparation for years. It’s based on well known monetary principles and actual experience from our own, and other countries monetary history.
The Act incorporates the Federal Reserve System into the U.S. Treasury. It removes the banking systems privilege to create money, placing that firmly within government, and it establishes areas for governmentally created money to be introduced into the economy for infrastructure, including the human infrastructure of health care and education. Voila!
Should the situation deteriorate markedly, the American Monetary Act could be put into effect immediately with the reliable understanding that it would be a definite improvement over the current system. Refinements, to this already advanced system will follow using Aristotle’s method, we “learn by doing.”
The monetary system will shift away from credit and debt, to real money. One difference between money and credit is that during uncertain times, credit evaporates, but money does not go out of existence, it is much more stable. A big part of the current problem is that while we have had loads of bank credit circulating, there has been very little “real money” issued by government in circulation mainly our coins and bills.
The AMI has been ready and working on these provisions for years, while realizing that it unfortunately might require a crisis to bring real attention to it. We have the crisis. Let’s make this happen. Let’s get real reform that helps bring humanity forward, out of the ignorance and poverty and warfare, and darkness; and into the light.
What the administrations proposal is doing is almost identical to what Keynes did during the Great Depression. He insisted that the bailout be in terms of government going into more debt to the banking system, whereas the Chicago Plan by the greatest economists in the nation at that time, was promoting the government to create money (Greenback equivelants) instead of debt.
(See http://www.monetary.org/chicagoplan.html describing Chicago Plan and Keynes)
Whats that line about repeating actions and expecting a different result?
Keynes won the argument but his program did not work and it was only WW2 and the wartime employment, creating tanks to be blown up, airplanes to be shot out of the sky, and ships to be sunk, that Americans went back to work and we worked our way out of the depression, and into more debt. Thats where this proposal leads. Keynes answer was that "in the long run we are all dead," but not our posterity. Based on what happened following his program before, our descendants, and society that survives become enslaved. (Bob Poteat is presenting a talk on Keynes and Militarism at our conference.)
Serfdom will result, unless we begin putting a stop to the monetary enslavement now.
Unless Monetary Reform is in the mix now, it could take a tremendous worsening of the situation to come up again soon. If there are any questions on this, Tell me – maybe I have answers.
One articulate friend (George Romero) summed it up for me:
“The private sector has failed. The public sector is expected to rescue them, and it will. Therefore the public sector should be in control of the money system to benefit the country.”
Director, American Monetary Institute
From a previous post some years back on an IMF Bailout:
"The corporate attempt to be bailed out of their errors, in the same year that they have agitated to cut welfare benefits to the truly needy, is despicable. Their attempt to have the same American workers they are attacking, bail out their corporate greed and stupidity shows the complete bankruptcy of their philosophy, as well as their management methods, and the depravity of their soul-less existence. Lobbying furtively for assistance from the government they continually denigrate as impotent, attests to the unfathomable depth of their hypocrisy.
It should not be allowed. "