naked capitalism

Bev says:

Goals sooner or later.

Sooner in order to Help Dennis Kucinich’s NEED Act, formerly HR 6550, newly HR 2990 for big changes to help everyone.

http://www.monetary.org/


Congressman Dennis Kucinich introduced the National Emergency Employment Defense Act (“NEED,” HR 6550*) which contains all the monetary reform provisions of The American Monetary Act- see the brochure at http://www.monetary.org.

It is much more than regulation; it fundamentally reforms our private CREDIT/DEBT system now wrecking our nation and harming all humanity, and replaces it with a government MONEY system.


The Act achieves reform with 3 basic provisions. All three are necessary; doing one or two of them wouldn’t work and could cause more damage.


In brief:


First the Federal Reserve gets incorporated into the U.S. Treasury where all new money is created by our government – what people think happens now.


Second, It ends the fractional reserve system. Banks no longer have the accounting privilege of creating our money supply. All their previously issued credit is converted into U.S. Money through an elegant and gentle accounting change. The banks are held accountable for this conversion and from that point operate the way people think they do now – as intermediaries between depositors and borrowers.


Third, new money is introduced by the government spending it into circulation for infrastructure, starting with the $2.2 trillion the engineers tell us is needed to properly maintain our infrastructure over the next 5 years. Infrastructure will include the necessary human infrastructure of health care and education.

Banks are encouraged to continue lending as profit making companies, but are no longer allowed to create our money supply through their loan making activity.

Thus, The NEED Act nationalizes the money system, not the banking system.

……..

http://www.monetary.org/

These 3 elements must all be done together, and are all in draft legislative form as the proposed American Monetary Act (read it here: http://www.monetary.org/amacolorpamphlet.pdf).



The correct action is for Congress to fulfil its constitutional responsibilities to furnish the nation with its money by making the American Monetary Act law.


The correct action for the States is to insist on this Federal action!



Genuine monetary reform is the solution to the nation’s fiscal problems, and that can only be achieved at the national level.



………


http://kucinich.house.gov/news/email/show.aspx?ID=X7EX6WS6JW7AZSDNJHSVS5UZXM



Kucinich Proposes Landmark Jobs Plan



Bill To Put 7 Million Americans Back to Work, Rebuild Infrastructure



Washington D.C. (September 21, 2011) — As the nation struggles with long-term unemployment at rates not seen in generations and as infrastructure crumbles across the nation, Congressman Kucinich (D-OH) today introduced a dramatic new proposal to address our structural economic problems directly by creating over 7 million jobs.

The National Emergency Employment Defense (NEED) Act of 2011 would allow the federal government to directly fund badly-needed infrastructure repairs and fund education systems nationwide by spending money into circulation without increasing the national debt or causing inflation. 


snip

“The ability to coin money is an inherent power under Article I, Section 8 of the United States Constitution. The NEED Act would control inflation because it will enable the government to invest in America by creating infrastructure, which is real wealth. Inflation is caused when new money is created without the creation of new wealth,” explained Kucinich. 



The proposal would also establish fiscal integrity, reassert Congressional sovereignty and regain control of monetary policy from private banks.

…..


http://www.monetary.org/how-the-economists-facilitated-the-crisis-and-how-hr-655…/06


Creating an Interest- and Debt- Free Money System 


MAJOR, HISTORIC PROGRESS BEING MADE


How the Economists Facilitated the Crisis and How HR 6550* Solves it

(Newly HR 2990, …How HR 2990 Solves it)

Economist Jamie Galbraith in testimony to the Senate Crime subcommittee on May 4th, 2010:


False “monetary” beliefs (some call them theories) have misdirected public policy decisions for decades, with devastating effect! Errors of Concept, methodology and factual errors led to disastrous outcomes for our nation and have the potential to gradually take America down into an unprecedented abyss of lawlessness and deprivation. Consider the present insane calls for austerity. Economists have allowed the idea to prevail that a government has to be run the way a shopkeepers runs his store. These times call for greater care and some heroism among economists; and cowardice is no longer tolerable among those who do understand.


Which particular monetary errors? Most importantly, economists have not understood or appreciated the difference between money and credit. That using credit for money is dangerous, harmful and unnecessary. Can’t they read Knapp’s “State Theory of Money, available in English since the early 1920s, to understand credit is just one type of money system, and not a good one at that?

snip

Many economists have falsely concluded that “all money is debt,” and while most money in our particular mis structured system is debt, this attitude ignores the possibility and necessity to define a better system based on government money, not private debt. This failure to understand the concept of government money as opposed to private credit, has had immense and deadly repercussions.

The Great Henry Simons summed it up in one magnificent sentence in the 1930s:


“The mistake … lies in fearing money and trusting debt.”

Henry Simons, (Economic Policy for a Free Society, 1930s, P.199)


This fundamental error has allowed the most egregious banking and money system to dominate our society for a century. It has caused immense damage:


For example: The privatization of our monetary system, with control over public policy being in unelected hands, for whoever controls the money system, over time will control the nation.


And look what they have done with that power:


* They’ve given special privilege to create money to some, and disadvantage to others; which has led to an obscene concentration of wealth and a corresponding poverty! This has encouraged lawlessness and corruption among the privileged; pushing them to diseased excess for acquisition, and ignoring those among us in great need.


snip

In our present system most of what we use for money – more accurately purchasing media – comes into existence as an interest bearing debt, when banks make loans. In that sense, most money in our fractional reserve system – is debt. But economists can’t seem to grasp that those rules can and must be changed. Afraid to confront their paymasters, who are benefitting from the injustice, they can’t conceive of practical ways we can use real government issued money for money instead of substituting private debt for it. They ignore previous attempts such as the Chicago Plan of the 1930s; and smear prior periods when such real money was used successfully.


snip

Thus, The NEED Act nationalizes the money system, not the banking system.

snip

All serious Monetary reformers understand that banks can not be allowed to create our money supply.