Thursday, June 16, 2011
Sunday, February 6, 2011
Good News NEED ACT
This Bill was introduced to committee in December of 2010 in 111TH CONGRESS
2D SESSION H. R. ll; and seeks to abolish the Federal Reserve and restore treasury sovereignty. Many speak of "end the fed", but here we have a vaible alternative.
Why draft monetary currency reform legislation with little chance of enactment under the present circumstances with a corrupt congress?
It is worth drafting & constructing radical changes with an ideal goal, so that incremental changes can be judged by whether they move the institutional currency structure toward or away from that ideal; if a crisis requiring or facilitating radical change does arise, alternatives will be available that have been carefully developed and fully explored.
To create a full employment economy as a matter of national economic
defense; to provide for public investment in capital infrastructure; to
provide for reducing the cost of public investment; to retire public debt;
to stabilize the Social Security retirement system; to restore the authority
of Congress to create and regulate money, modernize and provide stability
for the monetary system of the United States, retire public debt and
reduce the cost of public investment, and for other public purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr. KUCINICH introduced the following bill; which was referred to the
Committee
A BILL
To create a full employment economy as a matter of national
economic defense; to provide for public investment in
capital infrastructure; to provide for reducing the cost
of public investment; to retire public debt; to stabilize
the Social Security retirement system; to restore the
authority of Congress to create and regulate money,
modernize and provide stability for the monetary system
of the United States, retire public debt and reduce the
cost of public investment, and for other public purposes.
VerDate Nov 24 2008
1 Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘National Emergency
5 Employment Defense Act of 2010’’.
6 SEC. 2. FINDINGS; PURPOSES.
7 (a) FINDINGS.—The Congress finds as follows:
8 (1) Nearly 15,000,000 Americans are currently
9 unemployed, another 12,000,000 estimated Ameri10
cans are underemployed, wages are stagnant and
11 millions of Americans are being asked to take pay
12 cuts.
13 (2) Over 43,000,000 Americans live below the
14 poverty line, 49,000,000 of Americans go to bed
15 hungry at night, and an estimated 3,000,000 Ameri16
cans are homeless.
17 (3) An all-time high of over 1,500,000 non18
business bankruptcies were filed through June,
19 2010, and the small business failure rate in America
20 recently hit 12 percent.
21 (4) More than 2,000,000 homes have been lost
22 to foreclosure and millions of homeowners are falling
23 behind in their mortgage payments; the housing
24 market in terms of construction and sales has un25
dergone an historic decline; and the declining value
1 of housing means Americans’ largest single invest2
ment, the home, is no longer a safe harbor for sav3
ings, nest eggs, social mobility or the transfer of
4 generational wealth.
5 (5) Notwithstanding recent passage of the Pa6
tient Protection and Affordable Care Act, a
7 privatized health care system has made quality
8 health care beyond the reach of most Americans.
9 (6) The cost of higher education has put higher
10 academic attainment outside the reach of millions
11 more young Americans, and the current generation
12 of young Americans will not be able to attain the
13 quality of life of their parents, reversing a long14
standing trend.
15 (7) Retired Americans are losing confidence
16 that employment levels will be sufficient to ensure
17 Social Security will have resources to guarantee 100
18 percent of the promised benefits. A mechanism is
19 needed to assure retired American’s of Social Secu20
rity’s viability.
21 (8) The American Institute of Architects has
22 estimated that there are $3 trillion in unmet infra23
structure needs. Cities and States, urban and rural
24 areas all have an urgent need to rebuild and repair
25 roads, bridges, railroads, water systems, sewer sys-
1 tems and other infrastructure but lack the necessary
2 funds, bond-issuing capacity and other needs which
3 has led to America’s infrastructure falling into dis4
repair.
5 (9) The United States is not financially capable
6 of capitalizing on the burgeoning demand for wind,
7 solar and other renewable energy technologies which
8 reduce the cost of energy and help protect the envi9
ronment, the continued use of non-renewable ener10
gies such as coal and oil create a national security
11 crisis as well as long-term economic vulnerability.
12 (10) The annual United States trade deficit is
13 $380 billion, and the flow of jobs out of America has
14 been accelerated by trade agreements which have not
15 protected the rights of workers, the environment or
16 human rights.
17 (11) Tax cuts to top brackets cost the Federal
18 Government in excess of $1 trillion, yet have failed
19 to create significant numbers of new jobs.
20 (12) The monetary policies of the Board of
21 Governors of the Federal Reserve System have com22
pounded the economic crisis by failing to take deci23
sive action to move the economy forward, Wall
24 Street—which was bailed out by the American peo25
ple—is not investing its rising assets in Main Street
1 America, and individual investors are beginning to
2 turn away from the stock market.
3 (13) Some banks, many of which received gov4
ernment bailouts, are not investing in small busi5
nesses, nor in the creation of jobs, the private sector
6 is not creating jobs, and in fact most businesses are
7 freezing their employment levels.
8 (14) The country is stymied by competing
9 forces: a desire to put people to work and an aver10
sion to borrowing money to create programs to do
11 so.
12 (15) Confidence in the United States’ economic
13 leadership at home and around the world is waning,
14 the value of our currency cannot be securely main15
tained, and no other path to economic recovery ex16
ists which will create the changes necessary to put
17 people back to work, invest in rebuilding America’s
18 infrastructure, i.e. highway, rail, airport, harbors,
19 light rail, communication, shipping, water, sewer,
20 education, and civil defense.
21 (16) The aforementioned conditions require
22 comprehensive action by the United States Congress
23 to create full employment, invest in America and se24
cure our Nation’s long-term economic, social and po-
1 litical future; and that such action is within our
2 Constitutional right and responsibility.
3 (17) The authority to create money is a sov4
ereign power vested in the Congress under Article I,
5 Section 8 of the Constitution.
6 (18) The enactment of the Federal Reserve Act
7 in 1913 by Congress effectively delegated the sov8
ereign power to create money, to the Federal Re9
serve system and private financial industry.
10 (19) This ceding of Constitutional power has
11 contributed materially to a multitude of monetary
12 and financial afflictions, including—
13 (A) growing and unreasonable concentra14
tion of wealth;
15 (B) unbridled expansion of national debt,
16 both public and private;
17 (C) excessive reliance on taxation of citi18
zens for raising public revenues;
19 (D) inflation of the currency;
20 (E) drastic increases in the cost of public
21 infrastructure investments;
22 (F) record levels of unemployment and
23 underemployment; and
24 (G) persistent erosion of the ability of Con25
gress to exercise its Constitutional responsibil-
1 ities to provide resources for the general welfare
2 of all the American people.
3 (20) A debt-based monetary system, where
4 money comes into existence primarily through pri5
vate bank lending, can neither create, nor sustain, a
6 stable economic environment, but has proven to be
7 a source of chronic financial instability and frequent
8 crisis, as evidenced by the near collapse of the finan9
cial system in 2008.
10 (21) Banks pyramided their value by spending
11 money into existence, greatly inflating the value of
12 bank holdings, inflating the value of their asset
13 bases, enticing unknowing investors to participate in
14 financing schemes like the bundling of subprime
15 mortgages, and ultimately bringing undercapitalized
16 banks and the entire financial system to the edge of
17 ruin, creating circumstances where the taxpayers of
18 the United States were called upon to save the
19 banks from their own imprudent money-issuing
20 practices, misspending and mis-investments. The
21 banks’ ability to create money out of nothing ulti22
mately became the taxpayers’ liability, and raises a
23 fundamental question about a practice of money cre24
ation which threatens the wealth of the American
25 people.
1 (22) Abolishing private money creation can be
2 achieved with minimal disruption to current banking
3 operations, regulation, and supervision.
4 (23) The creation of money by private financial
5 institutions as interest-bearing debts should cease
6 once and for all.
7 (24) Reclaiming the power of the Federal Gov8
ernment to create money, and to spend or lend
9 money into circulation as needed, eliminates the
10 need to treat money as a Federal liability or to pay
11 interest charges on the Nation’s money supply to fi12
nancial institutions; it also renders unnecessary the
13 undue influence of private financial institutions over
14 public policy.
15 (25) Under the current Federal Reserve Sys16
tem, the persons responsible for the conduct of
17 United States monetary policy have been unaccount18
able to the Congress and the Nation, have resisted
19 auditing by the General Accounting Office, and have
20 claimed exemptions from some Federal statutes, in21
cluding the Civil Rights Act of 1964, that apply to
22 all agencies of the Federal Government.
23 (26) The conduct of United States monetary
24 policy by the Board of Governors of the Federal Re25
serve System, and specifically the failure of Board
1 members to safeguard the financial system against
2 wholesale fraud and abuse of citizens, demonstrates
3 the risks of maintaining a system wherein the power
4 to create and regulate money has been delegated to
5 private individuals who are unaccountable to the
6 People of the United States in any way, even
7 through their representatives in Congress.
8 (27) The Board of Governors of the Federal
9 Reserve System has acted unilaterally to create and
10 spend $1.25 trillion for the purpose of acquiring
11 mortgage-backed securities, in disregard for the
12 Constitutional requirement that all Federal Govern13
ment spending originate in the House of Representa14
tives.
15 (28) An examination of the historical record
16 demonstrates that the exercise of control by the
17 United States Government over the money system
18 has provided greater moderation in the supply of
19 money and promoting the general welfare, and has
20 been indispensable in times of national emergency
21 for generating resources required to support public
22 investment, provide for national defense, and pro23
mote the general welfare, and is therefore superior
24 to private control over the money system.
1 (29) As our money system is a key pillar in
2 maintaining general economic welfare and as the
3 Federal Reserve System and its private banking
4 partners has consistently failed to promote or pre5
serve the general welfare, it is essential that Con6
gress, in the name of protecting the economic lives
7 of the American people and the long-term security of
8 our Nation, reassume the powers and responsibilities
9 granted to it by the Constitution.
10 (b) PURPOSES.—The purposes of this Act are as fol11
lows:
12 (1) To create a full employment economy as a
13 matter of national economic defense; to provide for
14 public investment in capital infrastructure; to pro15
vide for reducing the cost of public investment; to
16 retire public debt; to stabilize the Social Security re17
tirement system; to restore the authority of Con18
gress to create and regulate money, to modernize
19 and provide stability for the monetary system of the
20 United States, and for other public purposes.
21 (2) To abolish the creation of money, or pur22
chasing power, by private persons through lending
23 against deposits, by means of fractional reserve
24 banking, or by any other means.
1 (3) To enable the Federal Government to invest
2 or lend new money into circulation as authorized by
3 Congress and to provide means for public investment
4 in capital infrastructure.
5 (4) To incorporate the Federal Reserve System
6 into the Executive Branch under the United States
7 Treasury, and to make other provisions for reorga8
nization of the Federal Reserve System.
9 (5) To provide for an orderly transition.
10 (6) To make other provisions necessary to ac11
complish the purposes of this Act.
12 SEC. 3. DEFINITIONS.
13 (a) IN GENERAL.—For purposes of this Act, the fol14
lowing definitions shall apply:
15 (1) BUREAU.—The term ‘‘Bureau’’ means the
16 Bureau of the Federal Reserve established under
17 section 314 of title 31, United States Code, as added
18 by section 303.
19 (2) DEPOSIT.—The term ‘‘deposit’’—
20 (A) has the meaning given such term in
21 section 3(l) of the Federal Deposit Insurance
22 Act); and
23 (B) includes—
1 (i) a member account (as defined in
2 section 101(5) of the Federal Credit Union
3 Act) in a credit union; and
4 (ii) any transaction account.
5 (3) DEPOSITORY INSTITUTION.—The term ‘‘de6
pository institution’’—
7 (A) has the same meaning as in section 3
8 of the Federal Deposit Insurance Act; and
9 (B) includes any credit union (as defined
10 in section 101 of the Federal Credit Union
11 Act).
12 (4) INSTRUMENT OF INDEBTEDNESS OF THE
13 UNITED STATES; TREASURY INSTRUMENTS.—The
14 terms ‘‘instrument of indebtedness of the United
15 States’’ and ‘‘Treasury instrument’’ include any obli16
gation issued under subchapter I of chapter 31 of
17 title 31, United States Code.
18 (5) MEMBER BANK.—The term ‘‘member bank’’
19 has the same meaning as in the first section of the
20 Federal Reserve Act.
21 (6) MONEY.—The term ‘‘money’’ refers to
22 United States Money, as established under title I.
23 (7) MONETARY AUTHORITY.—The term ‘‘Mone24
tary Authority’’ means the Monetary Authority es25
tablished under section 302.
1 (8) SECRETARY.—The term ‘‘Secretary’’ means
2 the Secretary of the Treasury.
3 (9) STATE.—The term ‘‘State’’ has the same
4 meaning as in section 3 of the Federal Deposit In5
surance Act.
6 (10) EFFECTIVE DATE.—The term ‘‘effective
7 date’’ means the date determined and published in
8 the Federal Register by the Secretary, during the
9 90-day period beginning on the date of the enact10
ment of this Act, that—
11 (A) is not less than 1 year after such date
12 of enactment and not more than 2 years after
13 such date; and
14 (B) is the date on which the designated
15 provisions of this Act take effect.
16 (b) TECHNICAL AND CONFORMING AMENDMENT TO
17 THE FDIA.—Section 3(l) of the Federal Deposit Insurance
18 Act (12 U.S.C. 1813(l)) is amended by adding at the end
19 the following:
20 ‘‘Such term does not include any amount on which any
21 interest is paid or which is received or held by a bank
22 or savings association pursuant to a loan agreement for
23 a fixed term of time (as determined without regard to any
24 designation on the agreement as a loan, certificate, or
25 other particular instrument).’’.
1 SEC. 4. COORDINATION WITH OTHER LAW.
2 (a) IN GENERAL.—This Act shall supersede any pro3
vision of Federal law in effect on the day before the date
4 of the enactment of this Act that is inconsistent with any
5 provision of this Act but only to the extent of such incon6
sistency.
7 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
8 Before the end of the 6-month period beginning on the
9 date of the enactment of this Act, the Secretary of the
10 Treasury shall submit to the Congress a proposed draft
11 of legislation of the Monetary Authority that, if enacted,
12 would implement such technical and conforming amend13
ments as the Monetary Authority may recommend—
14 (1) to repeal the provisions of law referred to
15 in subsection (a) that are inconsistent with this Act;
16 and
17 (2) to further clarify and implement the provi18
sions of this Act.
19 TITLE I—ORIGINATION OF
20 UNITED STATES MONEY
21 SEC. 101. EXERCISE OF CONSTITUTIONAL AUTHORITY TO
22 CREATE MONEY.
23 (a) IN GENERAL.—Pursuant to the exercise by the
24 Congress of the authority contained in the 5th clause of
25 section 8 of Article I of the Constitution of the United
26 States of America—
1 (1) the authority to create money within the
2 United States shall hereafter reside exclusively with
3 the Federal Government; and
4 (2) the money so created shall be known as
5 United States Money and denominated and ex6
pressed as provided in section 5101 of title 31,
7 United States Code.
8 (b) EXERCISE OF SOVEREIGN POWER.—The creation
9 of United States Money under this Act is the legal expres10
sion of the sovereign power of the Nation and confers upon
11 its bearer an unconditional means of payment.
12 (c) LIMITATION ON EXPRESSION.—Beginning on the
13 effective date—
14 (1) only the coin, notes, or other forms of legal
15 tender, including electronic currency, originated by
16 the United States Treasury under the authority of
17 this Act shall be deemed as United States money;
18 and
19 (2) it shall be unlawful for any person to des20
ignate any credit, note, bond, script or other finan21
cial instrument as United States Money.
22 SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY.
23 Any person who creates or originates United States
24 money by lending against deposits, through so-called frac25
tional reserve banking, or by any other means, after the
1 effective date shall be fined under title 18, United States
2 Code, imprisoned for not more than 5 years, or both.
3 SEC. 103. PRODUCTION OF UNITED STATES MONEY.
4 (a) COMMENCING FULL PRODUCTION OF UNITED
5 STATES CURRENCY.—Section 5115 of title 31, United
6 States Code, is amended by striking subsections (a) and
7 (b) and inserting the following new subsections:
8 ‘‘(a) IN GENERAL.—In order to furnish suitable
9 notes for circulation as United States money, the Sec10
retary of the Treasury shall cause plates and dies to be
11 engraved in the best manner to guard against counterfeits
12 and fraudulent alterations, and shall have printed there13
from and numbered such quantities of such notes of the
14 denominations of $1, $2, $5, $10, $20, $50, $100, $500,
15 $1,000, $5,000, $10,000 as may be required.
16 ‘‘(b) FORM AND TENOR.—United States currency
17 notes for circulation as United States money shall be in
18 form and tenor as directed by the Secretary of the Treas19
ury.’’.
20 (b) CEASING PRODUCTION OF FEDERAL RESERVE
21 NOTES.—The Secretary of the Treasury shall wind-down
22 and cease production of Federal reserve notes under the
23 8th undesignated paragraph of section 16 of the Federal
24 Reserve Act (12 U.S.C. 418) as quickly as practicable
25 after the date of the enactment of this Act, but no later
1 than the effective date, in coordination with the start-up
2 and maintenance of production of United States currency
3 under section 5115 of title 31, United States Code. The
4 Secretary shall ensure that at all times the amount of Fed5
eral Reserve notes in circulation is sufficient to meet de6
mand until the production of United States currency is
7 sufficient to meet such demand.
8 (c) CONTINUING CIRCULATION UNTIL RETIRE9
MENT.—Any Federal Reserve notes in circulation shall
10 continue to be legal tender until retired in accordance with
11 applicable provisions of law.
12 SEC. 104. LEGAL TENDER.
13 (a) IN GENERAL.—United States Money shall enter
14 into general domestic circulation as full legal tender in
15 payment of all debts public and private.
16 (b) TECHNICAL AND CONFORMING AMENDMENT.—
17 Section 5103 of title 31, United States Code, is amended
18 by striking ‘‘(including Federal reserve notes and circu19
lating notes of Federal reserve banks and national banks)’’
20 and inserting ‘‘in the form of United States Money’’.
21 SEC. 105. DISBURSEMENTS TO BE DENOMINATED IN
22 UNITED STATES MONEY.
23 On the effective date, all United States Government
24 disbursements shall be denominated in United States
25 Money, the unit being the dollar, symbolized as $.
1 SEC. 106. ORIGINATION IN LIEU OF BORROWING.
2 (a) IN GENERAL.—After the effective date, and sub3
ject to limitations established by the United States Mone4
tary Authority under provisions of section 302, the Sec5
retary shall originate United States Money to address any
6 negative fund balances resulting from a shortfall in avail7
able Government receipts to fund Government appropria8
tions authorized by Congress under law.
9 (b) PROHIBITION ON GOVERNMENT BORROWING.—
10 After the effective date, unless otherwise provided by an
11 Act of the Congress enacted after such date—
12 (1) no amount may be borrowed by the Sec13
retary from any source; and
14 (2) no amount may be borrowed by any Federal
15 agency or department, any independent establish16
ment of the executive branch, or any other instru17
mentality of the United States (other than a na18
tional bank, Federal savings association, or Federal
19 credit union) from any source other than the Sec20
retary.
21 (c) RULE OF CONSTRUCTION.—No provision of this
22 Act shall be construed as preventing the Congress from
23 exercising its constitutional authority to borrow money on
24 the full faith and credit of the United States.
25 (d) TECHNICAL AND CONFORMING AMENDMENT.—
26 On the effective date, chapter 31 of title 31, United States
1 Code, is hereby repealed, subject to the retirement of out2
standing instruments of indebtedness of the United States
3 in accordance with section 401.
4 SEC. 107. RETIREMENT OF INSTRUMENTS OF INDEBTED5
NESS.
6 Before the effective date, the Secretary shall com7
mence to retire all outstanding instruments of indebted8
ness of the United States by payment in full of the amount
9 legally due the bearer in United States Money, as such
10 amounts become due.
11 SEC. 108. ACCOUNTING.
12 (a) IN GENERAL.—The Secretary shall account for
13 the disbursement of United States Money and of current
14 fund balances through accounting reports maintained and
15 published by the Secretary and by departments and agen16
cies of the United States Government.
17 (b) GAO AUDIT.—The Comptroller General of the
18 United States shall conduct an independent biennial audit.
19 TITLE II—ENTRY OF U.S. MONEY
20 INTO CIRCULATION
21 SEC. 201. ENTRY OF U.S. MONEY INTO CIRCULATION.
22 The Secretary shall cause United States Money to
23 enter into circulation by and through any of the following
24 means:
1 (1) Any origination or disbursement of funds to
2 accomplish Federal expenditures authorized and ap3
propriated by an Act of the Congress.
4 (2) Any disbursement to retire outstanding in5
struments of indebtedness of the Federal Govern6
ment or the Secretary of the Treasury as such in7
struments become due.
8 (3) Any contribution authorized by an Act of
9 the Congress subject to any limitation established by
10 the Monetary Authority to the Revolving Fund es11
tablished in section 302 of this Act.
12 (4) Any action provided for in the transitional
13 arrangements specified in title IV of this Act, includ14
ing the conversion of all deposits in transaction ac15
counts into United States Money.
16 (5) Any exercise of ‘‘lender of last resort’’ emer17
gency authorities under the emergency procedures
18 specified in section 305.
19 (6) Any purchase of stock in a Federal reserve
20 bank from a member bank and of any other assets
21 as prescribed under the Federal Reserve Act as re22
quired to accomplish the purposes of section 301.
23 (7) Any other means, and for any other purpose
24 explicitly authorized by an Act of the Congress that
25 becomes law after the effective date of this Act.
1 TITLE III—RECONSTITUTION OF
2 THE FEDERAL RESERVE SYSTEM
3 SEC. 301. RECONSTITUTION OF THE FEDERAL RESERVE.
4 (a) GOVERNMENT ACQUISITION OF ALL NET ASSETS
5 OF FEDERAL RESERVE SYSTEM.—On the effective date,
6 the Secretary shall purchase on behalf of the United
7 States all net assets in the Federal Reserve System, in8
cluding the Federal reserve banks, according to the rules
9 specified in the Federal Reserve Act (12 U.S.C. 288) for
10 this purpose.
11 (b) REPAYMENT OF RESERVES.—Any reserves of any
12 member bank that is held by any Federal reserve bank
13 shall be returned to the member bank in the form of
14 United States Money, subject to the provisions contained
15 in sections 401 and 402(b).
16 SEC. 302. ESTABLISHMENT OF THE UNITED STATES MONE17
TARY AUTHORITY.
18 (a) MONETARY AUTHORITY.—
19 (1) ESTABLISHMENT.—
20 (A) IN GENERAL.—There is hereby estab21
lished the Monetary Authority as an authority
22 within the Department of the Treasury under
23 the general oversight of the Secretary of the
24 Treasury.
1 (B) AUTONOMY OF MONETARY AUTHOR2
ITY.—The Secretary of the Treasury may not
3 intervene in any matter or proceeding before
4 the Monetary Authority, unless otherwise spe5
cifically provided by law.
6 (C) INDEPENDENCE OF MONETARY AU7
THORITY.—The Secretary of the Treasury may
8 not delay, prevent, or intervene in the issuance
9 of any regulation or other determination of the
10 Monetary Authority, including the determina11
tion of the amounts of money to be originated
12 and most efficient method of disbursement con13
sistent with the appropriations of Congress and
14 the statutory objectives of monetary policy as
15 specified in this Act.
16 (2) MEMBERSHIP.—
17 (A) IN GENERAL.—The Monetary Author18
ity shall consist of 9 public members appointed
19 by the president, by and with the advice and
20 consent of the Senate.
21 (B) TERMS.—
22 (i) IN GENERAL.—Except as provided
23 in subparagraph (E), each member of the
24 Monetary Authority shall be appointed to a
25 term of 6 years.
1 (ii) CONTINUATION OF SERVICE.—
2 Each member of the Monetary Authority
3 may continue to serve after the expiration
4 of the term of office to which such member
5 was appointed until a successor has been
6 appointed and qualified.
7 (C) POLITICAL AFFILIATION.—Not more
8 than 4 of the members of the Monetary Author9
ity may be members of the same political party.
10 (D) VACANCY.—
11 (i) IN GENERAL.—Any vacancy on the
12 Monetary Authority shall be filled in the
13 manner in which the original appointment
14 was made.
15 (ii) INTERIM APPOINTMENTS.—Any
16 member appointed to fill a vacancy occur17
ring before the expiration of the term for
18 which such member’s predecessor was ap19
pointed shall be appointed only for the re20
mainder of such term.
21 (E) STAGGERED TERMS.—Of the members
22 first appointed to the Monetary Authority after
23 the enactment of this Act—
24 (i) 1 shall be appointed for a term of
25 2 years;
1 (ii) 2 shall be appointed for a term of
2 3 years;
3 (iii) 2 shall be appointed for a term of
4 4 years;
5 (iv) 2 shall be appointed for a term of
6 5 years; and
7 (v) 2 shall be appointed for the full
8 term of 6 years.
9 (3) CHAIRPERSON.—One of the members of the
10 Monetary Authority shall be designated by the Presi11
dent as the Chairperson of the Monetary Authority.
12 (4) DUTIES.—The Monetary Authority shall—
13 (A) establish monetary supply policy and
14 monitor the Nation’s monetary status; and
15 (B) carry out such other responsibilities as
16 the President may delegate to the Monetary
17 Authority or that may be provided by an Act of
18 Congress.
19 (5) GOVERNING PRINCIPLE OF MONETARY POL20
ICY.—The Monetary Authority shall pursue a mone21
tary policy based on the governing principle that the
22 supply of money in circulation should not become in23
flationary nor deflationary in and of itself, but will
24 be sufficient to allow goods and services to move
25 freely in trade in a balanced manner. The Monetary
1 Authority shall maintain long run growth of the
2 monetary and credit aggregates commensurate with
3 the economy’s long run potential to increase produc4
tion, so as to promote effectively the goals of max5
imum employment, stable prices, and moderate long6
term interest rates.
7 (6) MEETINGS.—The Monetary Authority shall
8 meet on a regular basis subject to the call of the
9 Chairperson, the Secretary, or a majority of the
10 members.
11 (7) PAY.—The members of the Monetary Au12
thority shall receive a salary at annual rates equal
13 to the annual rate determined under section 5 of
14 title 28, United States Code, for an associate justice.
15 (8) STAFF.—The Monetary Authority may ap16
point and establish the pay of such employees as the
17 Monetary Authority determines is appropriate to as18
sist the Monetary Authority to carry out the duties
19 imposed under this section.
20 (c) RESPONSIBILITY OF SECRETARY.—The Secretary
21 shall regulate the monetary supply in reasonable accord22
ance with targets established by the Monetary Authority.
23 (d) REPORTS ON DISCREPANCIES.—The Secretary
24 shall report to the Congress any discrepancy between any
1 monetary target and the monetary supply in excess of 0.5
2 percent at the end of each quarter.
3 SEC. 303. ESTABLISHMENT OF THE BUREAU OF THE FED4
ERAL RESERVE.
5 (a) IN GENERAL.—Subchapter I of chapter 3 of title
6 31, United States Code, is amended by adding at the end
7 the following new section:
8 ‘‘§ 314. Bureau of the Federal Reserve
9 ‘‘(a) ESTABLISHMENT.—There is hereby established
10 the Bureau of the Federal Reserve as a bureau within the
11 Department of the Treasury (hereafter in this section re12
ferred to as the ‘Bureau’).
13 ‘‘(b) MANAGEMENT.—
14 ‘‘(1) COMMISSIONER.—The management of the
15 Bureau shall be vested in a Commissioner who, with
16 the assistance of the Deputy Commissioner and such
17 staff as the Commissioner may appoint, shall carry
18 out the duties vested in the Bureau and the Com19
missioner.
20 ‘‘(2) DEPUTY COMMISSIONER.—There is hereby
21 established within the Bureau the position of Deputy
22 Commissioner.
23 ‘‘(3) APPOINTMENT.—The Commissioner and
24 the Deputy Commissioner shall be appointed by the
1 president, by and with the advice and consent of the
2 Senate.
3 ‘‘(4) TERMS.—
4 ‘‘(A) IN GENERAL.—The Commissioner
5 and the Deputy Commissioner shall each be ap6
pointed to a term of 7 years.
7 ‘‘(B) STAGGERED TERMS.—Notwith8
standing subparagraph (A), the person first ap9
pointed Deputy Commissioner shall be ap10
pointed to a term of 4 years.
11 ‘‘(5) VACANCY.—
12 ‘‘(A) IN GENERAL.—Any vacancy on the
13 Bureau shall be filled in the manner in which
14 the original appointment was made.
15 ‘‘(B) INTERIM APPOINTMENTS.—Any
16 member appointed to fill a vacancy occurring
17 before the expiration of the term for which such
18 member’s predecessor was appointed shall be
19 appointed only for the remainder of such term.
20 ‘‘(c) DUTIES.—
21 ‘‘(1) MONETARY POLICY.—The Bureau shall—
22 ‘‘(A) administer, under the direction of the
23 Secretary, the origination and entry into cir24
culation of United States Money, subject to the
1 limitations established by the Monetary Author2
ity; and
3 ‘‘(B) administer lending of United States
4 Money to authorized depository institutions, as
5 described in section 403 (‘Revolving Fund’) to
6 ensure that—
7 ‘‘(i) money creation is solely a func8
tion of the United States Government; and
9 ‘‘(ii) fractional reserve lending is
10 ended.
11 ‘‘(2) TRANSFERRED FUNCTIONS.—After the ef12
fective date, the Bureau shall exercise all functions
13 consistent with this Act which, before such date,
14 were carried out under the direction of the Board of
15 Governors of the Federal Reserve System.
16 ‘‘(3) ITEMIZATION BY SECRETARY.—Not less
17 than 90 days before the effective date, the Secretary
18 and the Monetary Authority shall itemize—
19 ‘‘(A) the functions of the Board of Gov20
ernors of the Federal Reserve System that are
21 transferred to the Bureau pursuant to para22
graph (2); and
23 ‘‘(B) the provisions of the Federal Reserve
24 Act and other provisions of Federal law, relat25
ing to the functions so transferred, in the application of which the term ‘Bureau’ (as estab2
lished under this section) shall be substituted
3 for the term ‘Board of Governors of the Federal
4 Reserve System’ or ‘Board’, as the case may
5 be.’’.
6 (b) CLERICAL AMENDMENT.—The table of sections
7 for subchapter I of chapter 3 of title 31, United States
8 Code, is amended by adding at the end the following new
9 item:
‘‘314. Bureau of the Federal Reserve’’.
10 (c) ROLE OF BOARD AFTER ENACTMENT.—With ef11
fect on the effective date, the Board of Governors of the
12 Federal Reserve System shall be dissolved.
13 SEC. 304. FORECASTING OF DISBURSEMENT REQUIRE14
MENTS.
15 The Secretary shall—
16 (1) forecast disbursement requirements on a
17 daily, monthly, and annual basis;
18 (2) provide such forecasts to the Congress and
19 the public;
20 (3) integrate forecasts with the Federal budget
21 process;
22 (4) maintain a sufficient research capability to
23 continuously and effectively assess the impact of dis24
bursement of United States Money on all aspects of
25 the domestic and international economies; and
1 (5) report to the Congress and the public regu2
larly on the economic impact of disbursements of
3 United States Money and the status of the monetary
4 supply.
5 SEC. 305. LENDER OF LAST RESORT; EMERGENCY PROCE6
DURES.
7 (a) RECOMMENDATION OF THE PRESIDENT UPON
8 RECOMMENDATION OF EMERGENCY BOARD.—The Mone9
tary Authority may not exercise any authority under the
10 3rd undesignated paragraph of section 13 of the Federal
11 Reserve Act unless—
12 (1) the Emergency Board established under
13 subsection (b) recommends, upon a vote of 2/3 of
14 the members, to the House of Representatives and
15 the Senate, that the House of Representatives and
16 the Senate adopt a concurrent resolution calling on
17 the President to certify that a national emergency
18 exists which requires the exercise of such authority;
19 (2) the House of Representatives and the Sen20
ate each adopt, by a vote of 2/3 of the members
21 present, a concurrent resolution calling on the Presi22
dent to certify that a national emergency exists
23 which requires the exercise of such authority; and
1 (3) the President issues a certification that a
2 national emergency exists which requires the exercise
3 of such authority by the Monetary Authority.
4 (b) EMERGENCY BOARD.—There is established for
5 purposes of this section the Emergency Board which shall
6 consist of the following members:
7 (1) The President.
8 (2) The Secretary of Commerce.
9 (3) The Secretary of Labor.
10 (4) The Secretary of the Treasury.
11 (5) The Speaker of the House of Representa12
tives.
13 (6) The minority leader of the House of Rep14
resentatives.
15 (7) The majority leader of the Senate.
16 (8) The minority leader of the Senate.
17 (9) The chairpersons and ranking members of
18 the Committee on Financial Services and the Com19
mittee on Oversight and Government Reform of the
20 House of Representatives.
21 (10) The chairpersons and ranking members of
22 the Committee on Banking, Housing, and Urban Af23
fairs and the Committee on Homeland Security and
24 Governmental Affairs of the Senate.
1 (c) RULE OF CONSTRUCTION.—Except as provided in
2 subsection (a), no provision of this Act shall be construed
3 as affecting the authority of the Monetary Authority under
4 the 3rd undesignated paragraph of section 13 of the Fed5
eral Reserve Act.
6 SEC. 306. SAVINGS PROVISIONS AND TRANSFER PROVI7
SIONS.
8 (a) SAVINGS PROVISIONS.—
9 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA10
TIONS NOT AFFECTED.—The establishment of the
11 Bureau of the Federal Reserve shall not affect the
12 validity of any right, duty, or obligation of the
13 United States, the Bureau (as the successor to the
14 Board of Governors of the Federal Reserve System
15 or any Federal reserve bank), or any other person
16 that—
17 (A) arises under any provision of law relat18
ing to any function of the Board of Governors
19 of the Federal Reserve System transferred to
20 the Bureau by this title and amendments made
21 by this title; and
22 (B) existed on the day before the effective
23 date.
24 (2) CONTINUATION OF SUITS.—This Act shall
25 not abate any proceeding commenced by or against the Board of Governors (or any Federal reserve
2 bank) before the effective date with respect to any
3 function of the Board of Governors (or any Federal
4 reserve bank) transferred to the Bureau by this title,
5 except that the Bureau shall be substituted for the
6 Board of Governors (or Federal reserve bank) as a
7 party to any such proceeding as of the effective date.
8 (b) TRANSFER OF CERTAIN PERSONNEL.—
9 (1) IDENTIFYING EMPLOYEES FOR TRANS10
FER.—The Secretary and the Chairman of the
11 Board of Governors of the Federal Reserve System
12 shall—
13 (A) jointly determine the number of em14
ployees of the Board necessary to perform or
15 support the functions of the Board of Gov16
ernors that are transferred to the Monetary Au17
thority (if any) and the Bureau of the Federal
18 Reserve pursuant to a provision of or amend19
ment made by this title; and
20 (B) consistent with the number determined
21 under subparagraph (A), jointly identify em22
ployees of the Board of Governors for transfer
23 in a manner that the Secretary and the Board
24 of Governors of the Federal Reserve System, in
25 their sole discretion, determine to be equitable.
1 (2) IDENTIFIED EMPLOYEES TRANSFERRED.—
2 All employees of the Board of Governors of the Fed3
eral Reserve System identified under paragraph
4 (1)(B) shall be transferred to the Monetary Author5
ity or the Bureau of the Federal Reserve, as the
6 case may be, for employment.
7 (3) FEDERAL RESERVE BANK EMPLOYEES.—
8 Employees of any Federal reserve bank, as of the
9 day before the transfer date for any employees of
10 the Board of Governors of the Federal Reserve Sys11
tem, shall be treated as employees of the Board of
12 Governors for purposes of paragraph (1) and (2).
13 TITLE IV—TRANSITIONAL
14 ARRANGEMENTS
15 SEC. 401. CONVERSION OF FEDERAL RESERVE NOTES.
16 (a) IN GENERAL.—Before the end of the 120-day pe17
riod beginning on the date of the enactment of this Act,
18 the Secretary shall establish the rules and procedures for
19 converting outstanding Federal reserve notes to United
20 States Money of equal face value.
21 (b) PROVISION OF SUPPLY SUFFICIENT FOR CON22
VERSION AND ISSUANCE.—Before the end of the 150-day
23 period beginning on the date of the enactment of this Act
24 and as Federal reserve notes are converted to United
25 States Money, the Secretary shall begin providing a sufficient quantity of United States Money to the domestic
2 banking system to allow for conversion of all outstanding
3 Federal reserve notes and the issuance of additional cur4
rency as required.
5 (c) DISBURSAL OF FUNDS.—After the end of the
6 180-day period beginning on the date of the enactment
7 of this Act, all financial institutions within the United
8 States shall only disburse funds in United States Money,
9 whether as currency, an addition to an available account
10 balance, or other instrument.
11 (d) DISPOSAL OF OBSOLETE CURRENCY.—The Sec12
retary shall promptly dispose of (in the manner provided
13 under section 5120(b) of title 31, United States Code, for
14 the disposal of obsolete United States currency) all Fed15
eral reserve notes as they are returned in exchange for
16 United States Money.
17 (e) TECHNICAL AND CONFORMING AMENDMENT.—
18 Effective at the end of the 150-day period beginning on
19 the date of the enactment of this Act, section 16 of the
20 Federal Reserve Act is amended by striking the 8th, 9th,
21 10th, 11th, and 12th undesignated paragraphs (12 U.S.C.
22 418, 419, 420, 421, and omitted, respectively).
SEC. 402. REPLACING FRACTIONAL RESERVE BANKING
2 WITH THE LENDING OF UNITED STATES
3 MONEY.
4 (a) CONVERSION PROCESS.—
5 (1) DEPOSITS.—
6 (A) IN GENERAL.—All deposits at any de7
pository institution shall be designated as and
8 treated as United States Money (either cash or
9 an electronic equivalent) and as transaction ac10
counts.
11 (B) PROHIBITIONS.—In addition to sub12
section (d), the following provisions shall apply
13 with respect to United States Money on deposit
14 in a transaction account at any depository insti15
tution:
16 (i) INTEREST.—No interest may be
17 paid or may accrue on any United States
18 Money on deposit in a transaction account
19 at any depository institution.
20 (ii) DEPOSITS AS BAILMENT.—Any
21 United States Money on deposit in a trans22
action account at any depository institu23
tion shall—
24 (I) be treated as a bailment for
25 the mutual benefit of the parties and
26 terminable at will; and as property held in trust as
2 bailed property, not be treated as an
3 asset of the depository institution or
4 as a source of credit.
5 (C) EXCEPTION FOR LONG-TERM SAVINGS
6 NOT SUBJECT TO DEPOSIT INSURANCE.—
7 (i) IN GENERAL.—Subparagraph (B)
8 shall not apply to any liability of deposi9
tory institution to a customer for any
10 amount in an account at the depository in11
stitution pursuant to a contract that re12
stricts the availability of any such amount
13 for a fixed term and does not permit
14 amounts to be transferred in any manner
15 for the benefit of a third party.
16 (ii) FIXED-TERM SAVINGS NOT IN17
SURED.—Any account described in clause
18 (i) may not be treated as a deposit, for
19 purposes of the Federal Deposit Insurance
20 Act, or as a share draft account, for pur21
poses of the Federal Credit Union Act.
22 (2) OUTSTANDING CREDIT.—Any asset of a de23
pository institution that results from credit extended
24 against, is attributable to, or has been accounted for
1 with respect to, amounts described in paragraph
2 (1)(A) shall, as of the effective date—
3 (A) be a liability of the depository institu4
tion to the Federal Government; and
5 (B) as the outstanding balance is repaid
6 pursuant to its terms, shall be paid over to the
7 Federal Government.
8 (3) DEPOSIT IN REVOLVING FUND.—The mon9
ies paid to the Federal Government shall be depos10
ited into the Revolving Account established in sec11
tion 403.
12 (4) IN GENERAL.—Before the effective date and
13 subject to the requirements of this section, the Mon14
etary Authority shall establish and publish the ac15
counting rules, pricing, and processes which will con16
vert all bank credit in circulation as of the date of
17 such conversion, into United States legal tender
18 money.
19 (5) RETENTION OF INTEREST PAYMENTS.—A
20 depository institution may keep as income, any in21
terest payment made by a customer to a depository
22 institution on an outstanding loan for which the de23
pository institution became indebted to the Federal
24 Government under paragraph (2).
1 (b) TREATMENT OF AMOUNTS ON RESERVE AT A
2 FEDERAL RESERVE BANK.—The Monetary Authority
3 shall determine, by the effective date, how the reserves of
4 a depository institution at a Federal reserve bank pursu5
ant to section 19 of the Federal Reserve Act shall be treat6
ed, so as to promote a seamless transition to the new sys7
tem.
8 (c) ACCOUNTS IN GENERAL.—Before the effective
9 date, the Monetary Authority shall prescribe new lending
10 and accounting regulations for various types of accounts
11 including transaction accounts and time deposit accounts
12 described in subsections (d) and (e).
13 (d) TRANSACTION ACCOUNTS.—
14 (1) FRACTIONAL RESERVE BANKING ENDED.—
15 The regulations prescribed under subsection (c) shall
16 provide that—
17 (A) any depository institution shall have a
18 fiduciary responsibility for the money of any de19
positor on deposit in a transaction account
20 which—
21 (i) shall be held for the exclusive use
22 of the account holder; and
23 (ii) may not be used by a depository
24 institution to fund loans or investments;
1 (B) a dollar of United States Money shall
2 be on hand or in a Federal Government account
3 for each dollar in a transaction account; and
4 (C) a depository institution may charge a
5 reasonable fee for providing transaction account
6 services.
7 (2) TRANSACTION ACCOUNT DEFINED.—For
8 purposes of this section, the term, ‘‘transaction ac9
count’’—
10 (A) means a deposit or account on which
11 the depositor or account holder is permitted to
12 make withdrawals by negotiable or transferable
13 instrument, payment orders of withdrawal, tele14
phone transfers, or other similar items for the
15 purpose of making payments or transfers to
16 third persons or others; and
17 (B) includes demand deposits, negotiable
18 order of withdrawal accounts, savings deposits
19 subject to automatic transfers, and share draft
20 accounts.
21 (e) UNITED STATES MONEY AS SOURCE OF
22 LOANS.—After the effective date, all lending by depository
23 institutions may be accomplished only by the lending of
24 actual United States Money that is—
1 (1) owned by the depository institution from
2 earnings and or capital contributions by investors;
3 (2) borrowed at interest from the Federal Gov4
ernment; or
5 (3) borrowed at interest through the issuance of
6 bonds or other interest-bearing securities by the
7 lending bank, to the extent that such bonds or secu8
rities are structured in a manner consistent with the
9 purposes of this Act.
10 (f) ENCOURAGEMENT OF PRIVATE, PROFIT-MAKING
11 MONEY LENDING ACTIVITY.—The regulations prescribed
12 and actions taken under this section shall be established
13 and taken in a manner that—
14 (1) encourages private, profit-making money
15 lending activity by banking institutions; and
16 (2) prohibits the creation of private money
17 through the establishment of lending credit against
18 depository receipts, sometimes referred to as ‘‘frac19
tional reserve banking’’.
20 SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND.
21 (a) REVOLVING LOAN FUND.—Subject to provision
22 in advance in an appropriation Act, there is hereby estab23
lished a revolving loan fund in the Treasury of the United
24 States where amounts received from depository institu25
tions under terms specified in section 402 of this Act shall
1 be deposited and made available for relending to banking
2 institutions and for other purposes.
3 (b) ADMINISTRATION.—The Revolving Fund shall be
4 administered by the Bureau under such terms and condi5
tions as the Secretary shall prescribe consistent with the
6 purposes of this Act.
7 (c) NATIONAL EMERGENCY.—In the event of a find8
ing by the President that a National Emergency exists,
9 and with the concurrence of the Congress in accordance
10 with the emergency procedures specified under section
11 305, the Secretary may draw upon up to 80 percent of
12 the funds on deposit in the Revolving Fund. Such funds
13 shall be returned to the Revolving Fund within 3 years
14 of the date of initial disbursement, either through repay15
ment of loans or through an Appropriation Act, unless the
16 Secretary receives from the Congress specific authoriza17
tion to extend the term of the loans. The authorization
18 of Congress shall be given by joint resolution..
19 TITLE V—ADDITIONAL
20 PROVISIONS
21 SEC. 501. DIRECT FUNDING OF INFRASTRUCTURE IM22
PROVEMENTS.
23 (a) REPORT REQUIRED ON OPPORTUNITIES FOR DI24
RECT FUNDING.—Before the effective date, the Secretary,
25 after consultation with the heads of Executive branch de-
1 partments, agencies and independent establishments, shall
2 report to the Congress on opportunities to utilize direct
3 funding by the United States Government to modernize,
4 improve, and upgrade the physical economy of the United
5 States in such areas as transportation, agriculture, water
6 usage and availability, sewage systems, medical care, edu7
cation, and other infrastructure systems, to promote the
8 general welfare, and to stabilize the Social Security retire9
ment system.
10 (b) BROAD EQUITABLE DISPERSION OF FUNDING.—
11 Generally, any program recommended for direct funding
12 shall be undertaken throughout the Nation.
13 SEC. 502. INTEREST RATE CEILINGS.
14 (a) LIMIT ON AMOUNT OF FINANCING FEES.—The
15 total amount of interest charged by a financial institution
16 on any extension of loans (other than a mortgage) to any
17 individual borrower through amortization, including all
18 fees and service charges, shall not exceed the total amount
19 of the loan extended.
20 (b) LIMIT ON RATE.—The annual percentage rate
21 applicable to any loan of money may not exceed 8 percent
22 on unpaid balances, inclusive of all charges.
23 SEC. 503. AUTHORITY OF FDIC.
24 Except as provided in section 402 and the amend25
ment made by section 3(b), no provision of this Act shall be construed as altering or affecting any authority or func2
tion of the Federal Deposit Insurance Corporation. No
3 later than 12 months after the date of the enactment of
4 this Act, the Chairperson of the Board of Directors of the
5 Federal Deposit Insurance Corporation shall study and
6 make recommendations to the Congress regarding any
7 changes in authorities, including expanded supervision and
8 monitoring, required to enhance the oversight and regu9
latory roles of the Federal Deposit Insurance Corporation
10 under this Act.
11 SEC. 504. MONETARY GRANTS TO STATES.
12 (a) IN GENERAL.—Each year, the Monetary Author13
ity shall instruct the Secretary to disperse grants over a
14 12-month period to the States equal to 25 percent of the
15 money created under this title in the prior year. In the
16 first year the amount of such grants shall be 25 percent
17 of the anticipated money creation in that first year.
18 (b) USE OF GRANTS FOR BROAD-BASED PUR19
POSES.—The States may use such funds in broadly des20
ignated areas of public infrastructure, education, health
21 care and rehabilitation, pensions, and paying for unfunded
22 Federal mandates.
23 SEC. 505. EDUCATION FUNDING PROGRAM.
24 Before the end of the 120-day period beginning on
25 the date of the enactment of this Act, the Secretary, in
cooperation with the Secretary of Education, shall provide
2 recommendations to the Congress for a program to help
3 fund our educational system that will put the United
4 States on par with other highly developed nations, and to
5 sufficiently provide for universal pre-kindergarten fully
6 funded State programs for elementary and secondary edu7
cation and universal college at every 2- and 4-year public
8 institution of higher learning and create a learning envi9
ronment so that every child has an opportunity to reach
10 their full educational potential.
11 SEC. 506. SOCIAL SECURITY TRUST FUNDS.
12 The Secretary in consultation with the Board of
13 Trustees of the Federal Old-Age and Survivors Insurance
14 and Federal Disability Insurance Trust Funds shall sub15
mit to the Monetary Authority any requests to cover im16
pending deficits in Social Security Trust Fund accounts.
17 SEC. 507. INITIAL MONETARY DIVIDEND TO CITIZENS.
18 (a) IN GENERAL.—Before the effective date, the Sec19
retary, in cooperation with the Monetary Authority, shall
20 make recommendations to the Congress for payment of
21 a Citizens Dividend as a tax-free grant to all United
22 States citizens residing in the United States in order to
23 provide liquidity to the banking system at the commence24
ment of this Act, before governmental infrastructure ex25
penditures have had a chance to work into circulation.
1 (b) STUDY OF EFFECTS OF CITIZENS DIVIDEND.—
2 The Secretary shall maintain a thorough study of the ef3
fects of the Citizens Dividend observing its effects on pro4
duction and consumption, prices, morale, and other eco5
nomic and fiscal factors.
6 SEC. 508. UNIVERSAL HEALTH CARE FUNDING.
7 The Congress shall be aware that funding through
8 this Act is available for a universal health care plan as
9 may be enacted by Congress.
10 SEC. 509. RESOLVING THE MORTGAGE CRISIS.
11 The Congress shall be aware that funding through
12 this Act is available for Congressional enactments for re13
solving aspects of the mortgage crisis.
14 SEC. 510. INTEREST FREE LENDING TO LOCAL GOVERN15
MENTAL BODIES.
16 Before the end of the 180-day period beginning on
17 the date of the enactment of this Act, the Secretary shall
18 provide recommendations to the Congress for a program
19 of interest-free lending of United States Money to State
20 and local governmental entities, including school boards
21 and emergency fire services for infrastructure improve22
ments under their control and within their jurisdictions,
23 based on per capita amounts and other criteria to assure
24 equity as determined by the Monetary Authority.
2D SESSION H. R. ll; and seeks to abolish the Federal Reserve and restore treasury sovereignty. Many speak of "end the fed", but here we have a vaible alternative.
Why draft monetary currency reform legislation with little chance of enactment under the present circumstances with a corrupt congress?
It is worth drafting & constructing radical changes with an ideal goal, so that incremental changes can be judged by whether they move the institutional currency structure toward or away from that ideal; if a crisis requiring or facilitating radical change does arise, alternatives will be available that have been carefully developed and fully explored.
To create a full employment economy as a matter of national economic
defense; to provide for public investment in capital infrastructure; to
provide for reducing the cost of public investment; to retire public debt;
to stabilize the Social Security retirement system; to restore the authority
of Congress to create and regulate money, modernize and provide stability
for the monetary system of the United States, retire public debt and
reduce the cost of public investment, and for other public purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr. KUCINICH introduced the following bill; which was referred to the
Committee
A BILL
To create a full employment economy as a matter of national
economic defense; to provide for public investment in
capital infrastructure; to provide for reducing the cost
of public investment; to retire public debt; to stabilize
the Social Security retirement system; to restore the
authority of Congress to create and regulate money,
modernize and provide stability for the monetary system
of the United States, retire public debt and reduce the
cost of public investment, and for other public purposes.
VerDate Nov 24 2008
1 Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘National Emergency
5 Employment Defense Act of 2010’’.
6 SEC. 2. FINDINGS; PURPOSES.
7 (a) FINDINGS.—The Congress finds as follows:
8 (1) Nearly 15,000,000 Americans are currently
9 unemployed, another 12,000,000 estimated Ameri10
cans are underemployed, wages are stagnant and
11 millions of Americans are being asked to take pay
12 cuts.
13 (2) Over 43,000,000 Americans live below the
14 poverty line, 49,000,000 of Americans go to bed
15 hungry at night, and an estimated 3,000,000 Ameri16
cans are homeless.
17 (3) An all-time high of over 1,500,000 non18
business bankruptcies were filed through June,
19 2010, and the small business failure rate in America
20 recently hit 12 percent.
21 (4) More than 2,000,000 homes have been lost
22 to foreclosure and millions of homeowners are falling
23 behind in their mortgage payments; the housing
24 market in terms of construction and sales has un25
dergone an historic decline; and the declining value
1 of housing means Americans’ largest single invest2
ment, the home, is no longer a safe harbor for sav3
ings, nest eggs, social mobility or the transfer of
4 generational wealth.
5 (5) Notwithstanding recent passage of the Pa6
tient Protection and Affordable Care Act, a
7 privatized health care system has made quality
8 health care beyond the reach of most Americans.
9 (6) The cost of higher education has put higher
10 academic attainment outside the reach of millions
11 more young Americans, and the current generation
12 of young Americans will not be able to attain the
13 quality of life of their parents, reversing a long14
standing trend.
15 (7) Retired Americans are losing confidence
16 that employment levels will be sufficient to ensure
17 Social Security will have resources to guarantee 100
18 percent of the promised benefits. A mechanism is
19 needed to assure retired American’s of Social Secu20
rity’s viability.
21 (8) The American Institute of Architects has
22 estimated that there are $3 trillion in unmet infra23
structure needs. Cities and States, urban and rural
24 areas all have an urgent need to rebuild and repair
25 roads, bridges, railroads, water systems, sewer sys-
1 tems and other infrastructure but lack the necessary
2 funds, bond-issuing capacity and other needs which
3 has led to America’s infrastructure falling into dis4
repair.
5 (9) The United States is not financially capable
6 of capitalizing on the burgeoning demand for wind,
7 solar and other renewable energy technologies which
8 reduce the cost of energy and help protect the envi9
ronment, the continued use of non-renewable ener10
gies such as coal and oil create a national security
11 crisis as well as long-term economic vulnerability.
12 (10) The annual United States trade deficit is
13 $380 billion, and the flow of jobs out of America has
14 been accelerated by trade agreements which have not
15 protected the rights of workers, the environment or
16 human rights.
17 (11) Tax cuts to top brackets cost the Federal
18 Government in excess of $1 trillion, yet have failed
19 to create significant numbers of new jobs.
20 (12) The monetary policies of the Board of
21 Governors of the Federal Reserve System have com22
pounded the economic crisis by failing to take deci23
sive action to move the economy forward, Wall
24 Street—which was bailed out by the American peo25
ple—is not investing its rising assets in Main Street
1 America, and individual investors are beginning to
2 turn away from the stock market.
3 (13) Some banks, many of which received gov4
ernment bailouts, are not investing in small busi5
nesses, nor in the creation of jobs, the private sector
6 is not creating jobs, and in fact most businesses are
7 freezing their employment levels.
8 (14) The country is stymied by competing
9 forces: a desire to put people to work and an aver10
sion to borrowing money to create programs to do
11 so.
12 (15) Confidence in the United States’ economic
13 leadership at home and around the world is waning,
14 the value of our currency cannot be securely main15
tained, and no other path to economic recovery ex16
ists which will create the changes necessary to put
17 people back to work, invest in rebuilding America’s
18 infrastructure, i.e. highway, rail, airport, harbors,
19 light rail, communication, shipping, water, sewer,
20 education, and civil defense.
21 (16) The aforementioned conditions require
22 comprehensive action by the United States Congress
23 to create full employment, invest in America and se24
cure our Nation’s long-term economic, social and po-
1 litical future; and that such action is within our
2 Constitutional right and responsibility.
3 (17) The authority to create money is a sov4
ereign power vested in the Congress under Article I,
5 Section 8 of the Constitution.
6 (18) The enactment of the Federal Reserve Act
7 in 1913 by Congress effectively delegated the sov8
ereign power to create money, to the Federal Re9
serve system and private financial industry.
10 (19) This ceding of Constitutional power has
11 contributed materially to a multitude of monetary
12 and financial afflictions, including—
13 (A) growing and unreasonable concentra14
tion of wealth;
15 (B) unbridled expansion of national debt,
16 both public and private;
17 (C) excessive reliance on taxation of citi18
zens for raising public revenues;
19 (D) inflation of the currency;
20 (E) drastic increases in the cost of public
21 infrastructure investments;
22 (F) record levels of unemployment and
23 underemployment; and
24 (G) persistent erosion of the ability of Con25
gress to exercise its Constitutional responsibil-
1 ities to provide resources for the general welfare
2 of all the American people.
3 (20) A debt-based monetary system, where
4 money comes into existence primarily through pri5
vate bank lending, can neither create, nor sustain, a
6 stable economic environment, but has proven to be
7 a source of chronic financial instability and frequent
8 crisis, as evidenced by the near collapse of the finan9
cial system in 2008.
10 (21) Banks pyramided their value by spending
11 money into existence, greatly inflating the value of
12 bank holdings, inflating the value of their asset
13 bases, enticing unknowing investors to participate in
14 financing schemes like the bundling of subprime
15 mortgages, and ultimately bringing undercapitalized
16 banks and the entire financial system to the edge of
17 ruin, creating circumstances where the taxpayers of
18 the United States were called upon to save the
19 banks from their own imprudent money-issuing
20 practices, misspending and mis-investments. The
21 banks’ ability to create money out of nothing ulti22
mately became the taxpayers’ liability, and raises a
23 fundamental question about a practice of money cre24
ation which threatens the wealth of the American
25 people.
1 (22) Abolishing private money creation can be
2 achieved with minimal disruption to current banking
3 operations, regulation, and supervision.
4 (23) The creation of money by private financial
5 institutions as interest-bearing debts should cease
6 once and for all.
7 (24) Reclaiming the power of the Federal Gov8
ernment to create money, and to spend or lend
9 money into circulation as needed, eliminates the
10 need to treat money as a Federal liability or to pay
11 interest charges on the Nation’s money supply to fi12
nancial institutions; it also renders unnecessary the
13 undue influence of private financial institutions over
14 public policy.
15 (25) Under the current Federal Reserve Sys16
tem, the persons responsible for the conduct of
17 United States monetary policy have been unaccount18
able to the Congress and the Nation, have resisted
19 auditing by the General Accounting Office, and have
20 claimed exemptions from some Federal statutes, in21
cluding the Civil Rights Act of 1964, that apply to
22 all agencies of the Federal Government.
23 (26) The conduct of United States monetary
24 policy by the Board of Governors of the Federal Re25
serve System, and specifically the failure of Board
1 members to safeguard the financial system against
2 wholesale fraud and abuse of citizens, demonstrates
3 the risks of maintaining a system wherein the power
4 to create and regulate money has been delegated to
5 private individuals who are unaccountable to the
6 People of the United States in any way, even
7 through their representatives in Congress.
8 (27) The Board of Governors of the Federal
9 Reserve System has acted unilaterally to create and
10 spend $1.25 trillion for the purpose of acquiring
11 mortgage-backed securities, in disregard for the
12 Constitutional requirement that all Federal Govern13
ment spending originate in the House of Representa14
tives.
15 (28) An examination of the historical record
16 demonstrates that the exercise of control by the
17 United States Government over the money system
18 has provided greater moderation in the supply of
19 money and promoting the general welfare, and has
20 been indispensable in times of national emergency
21 for generating resources required to support public
22 investment, provide for national defense, and pro23
mote the general welfare, and is therefore superior
24 to private control over the money system.
1 (29) As our money system is a key pillar in
2 maintaining general economic welfare and as the
3 Federal Reserve System and its private banking
4 partners has consistently failed to promote or pre5
serve the general welfare, it is essential that Con6
gress, in the name of protecting the economic lives
7 of the American people and the long-term security of
8 our Nation, reassume the powers and responsibilities
9 granted to it by the Constitution.
10 (b) PURPOSES.—The purposes of this Act are as fol11
lows:
12 (1) To create a full employment economy as a
13 matter of national economic defense; to provide for
14 public investment in capital infrastructure; to pro15
vide for reducing the cost of public investment; to
16 retire public debt; to stabilize the Social Security re17
tirement system; to restore the authority of Con18
gress to create and regulate money, to modernize
19 and provide stability for the monetary system of the
20 United States, and for other public purposes.
21 (2) To abolish the creation of money, or pur22
chasing power, by private persons through lending
23 against deposits, by means of fractional reserve
24 banking, or by any other means.
1 (3) To enable the Federal Government to invest
2 or lend new money into circulation as authorized by
3 Congress and to provide means for public investment
4 in capital infrastructure.
5 (4) To incorporate the Federal Reserve System
6 into the Executive Branch under the United States
7 Treasury, and to make other provisions for reorga8
nization of the Federal Reserve System.
9 (5) To provide for an orderly transition.
10 (6) To make other provisions necessary to ac11
complish the purposes of this Act.
12 SEC. 3. DEFINITIONS.
13 (a) IN GENERAL.—For purposes of this Act, the fol14
lowing definitions shall apply:
15 (1) BUREAU.—The term ‘‘Bureau’’ means the
16 Bureau of the Federal Reserve established under
17 section 314 of title 31, United States Code, as added
18 by section 303.
19 (2) DEPOSIT.—The term ‘‘deposit’’—
20 (A) has the meaning given such term in
21 section 3(l) of the Federal Deposit Insurance
22 Act); and
23 (B) includes—
1 (i) a member account (as defined in
2 section 101(5) of the Federal Credit Union
3 Act) in a credit union; and
4 (ii) any transaction account.
5 (3) DEPOSITORY INSTITUTION.—The term ‘‘de6
pository institution’’—
7 (A) has the same meaning as in section 3
8 of the Federal Deposit Insurance Act; and
9 (B) includes any credit union (as defined
10 in section 101 of the Federal Credit Union
11 Act).
12 (4) INSTRUMENT OF INDEBTEDNESS OF THE
13 UNITED STATES; TREASURY INSTRUMENTS.—The
14 terms ‘‘instrument of indebtedness of the United
15 States’’ and ‘‘Treasury instrument’’ include any obli16
gation issued under subchapter I of chapter 31 of
17 title 31, United States Code.
18 (5) MEMBER BANK.—The term ‘‘member bank’’
19 has the same meaning as in the first section of the
20 Federal Reserve Act.
21 (6) MONEY.—The term ‘‘money’’ refers to
22 United States Money, as established under title I.
23 (7) MONETARY AUTHORITY.—The term ‘‘Mone24
tary Authority’’ means the Monetary Authority es25
tablished under section 302.
1 (8) SECRETARY.—The term ‘‘Secretary’’ means
2 the Secretary of the Treasury.
3 (9) STATE.—The term ‘‘State’’ has the same
4 meaning as in section 3 of the Federal Deposit In5
surance Act.
6 (10) EFFECTIVE DATE.—The term ‘‘effective
7 date’’ means the date determined and published in
8 the Federal Register by the Secretary, during the
9 90-day period beginning on the date of the enact10
ment of this Act, that—
11 (A) is not less than 1 year after such date
12 of enactment and not more than 2 years after
13 such date; and
14 (B) is the date on which the designated
15 provisions of this Act take effect.
16 (b) TECHNICAL AND CONFORMING AMENDMENT TO
17 THE FDIA.—Section 3(l) of the Federal Deposit Insurance
18 Act (12 U.S.C. 1813(l)) is amended by adding at the end
19 the following:
20 ‘‘Such term does not include any amount on which any
21 interest is paid or which is received or held by a bank
22 or savings association pursuant to a loan agreement for
23 a fixed term of time (as determined without regard to any
24 designation on the agreement as a loan, certificate, or
25 other particular instrument).’’.
1 SEC. 4. COORDINATION WITH OTHER LAW.
2 (a) IN GENERAL.—This Act shall supersede any pro3
vision of Federal law in effect on the day before the date
4 of the enactment of this Act that is inconsistent with any
5 provision of this Act but only to the extent of such incon6
sistency.
7 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
8 Before the end of the 6-month period beginning on the
9 date of the enactment of this Act, the Secretary of the
10 Treasury shall submit to the Congress a proposed draft
11 of legislation of the Monetary Authority that, if enacted,
12 would implement such technical and conforming amend13
ments as the Monetary Authority may recommend—
14 (1) to repeal the provisions of law referred to
15 in subsection (a) that are inconsistent with this Act;
16 and
17 (2) to further clarify and implement the provi18
sions of this Act.
19 TITLE I—ORIGINATION OF
20 UNITED STATES MONEY
21 SEC. 101. EXERCISE OF CONSTITUTIONAL AUTHORITY TO
22 CREATE MONEY.
23 (a) IN GENERAL.—Pursuant to the exercise by the
24 Congress of the authority contained in the 5th clause of
25 section 8 of Article I of the Constitution of the United
26 States of America—
1 (1) the authority to create money within the
2 United States shall hereafter reside exclusively with
3 the Federal Government; and
4 (2) the money so created shall be known as
5 United States Money and denominated and ex6
pressed as provided in section 5101 of title 31,
7 United States Code.
8 (b) EXERCISE OF SOVEREIGN POWER.—The creation
9 of United States Money under this Act is the legal expres10
sion of the sovereign power of the Nation and confers upon
11 its bearer an unconditional means of payment.
12 (c) LIMITATION ON EXPRESSION.—Beginning on the
13 effective date—
14 (1) only the coin, notes, or other forms of legal
15 tender, including electronic currency, originated by
16 the United States Treasury under the authority of
17 this Act shall be deemed as United States money;
18 and
19 (2) it shall be unlawful for any person to des20
ignate any credit, note, bond, script or other finan21
cial instrument as United States Money.
22 SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY.
23 Any person who creates or originates United States
24 money by lending against deposits, through so-called frac25
tional reserve banking, or by any other means, after the
1 effective date shall be fined under title 18, United States
2 Code, imprisoned for not more than 5 years, or both.
3 SEC. 103. PRODUCTION OF UNITED STATES MONEY.
4 (a) COMMENCING FULL PRODUCTION OF UNITED
5 STATES CURRENCY.—Section 5115 of title 31, United
6 States Code, is amended by striking subsections (a) and
7 (b) and inserting the following new subsections:
8 ‘‘(a) IN GENERAL.—In order to furnish suitable
9 notes for circulation as United States money, the Sec10
retary of the Treasury shall cause plates and dies to be
11 engraved in the best manner to guard against counterfeits
12 and fraudulent alterations, and shall have printed there13
from and numbered such quantities of such notes of the
14 denominations of $1, $2, $5, $10, $20, $50, $100, $500,
15 $1,000, $5,000, $10,000 as may be required.
16 ‘‘(b) FORM AND TENOR.—United States currency
17 notes for circulation as United States money shall be in
18 form and tenor as directed by the Secretary of the Treas19
ury.’’.
20 (b) CEASING PRODUCTION OF FEDERAL RESERVE
21 NOTES.—The Secretary of the Treasury shall wind-down
22 and cease production of Federal reserve notes under the
23 8th undesignated paragraph of section 16 of the Federal
24 Reserve Act (12 U.S.C. 418) as quickly as practicable
25 after the date of the enactment of this Act, but no later
1 than the effective date, in coordination with the start-up
2 and maintenance of production of United States currency
3 under section 5115 of title 31, United States Code. The
4 Secretary shall ensure that at all times the amount of Fed5
eral Reserve notes in circulation is sufficient to meet de6
mand until the production of United States currency is
7 sufficient to meet such demand.
8 (c) CONTINUING CIRCULATION UNTIL RETIRE9
MENT.—Any Federal Reserve notes in circulation shall
10 continue to be legal tender until retired in accordance with
11 applicable provisions of law.
12 SEC. 104. LEGAL TENDER.
13 (a) IN GENERAL.—United States Money shall enter
14 into general domestic circulation as full legal tender in
15 payment of all debts public and private.
16 (b) TECHNICAL AND CONFORMING AMENDMENT.—
17 Section 5103 of title 31, United States Code, is amended
18 by striking ‘‘(including Federal reserve notes and circu19
lating notes of Federal reserve banks and national banks)’’
20 and inserting ‘‘in the form of United States Money’’.
21 SEC. 105. DISBURSEMENTS TO BE DENOMINATED IN
22 UNITED STATES MONEY.
23 On the effective date, all United States Government
24 disbursements shall be denominated in United States
25 Money, the unit being the dollar, symbolized as $.
1 SEC. 106. ORIGINATION IN LIEU OF BORROWING.
2 (a) IN GENERAL.—After the effective date, and sub3
ject to limitations established by the United States Mone4
tary Authority under provisions of section 302, the Sec5
retary shall originate United States Money to address any
6 negative fund balances resulting from a shortfall in avail7
able Government receipts to fund Government appropria8
tions authorized by Congress under law.
9 (b) PROHIBITION ON GOVERNMENT BORROWING.—
10 After the effective date, unless otherwise provided by an
11 Act of the Congress enacted after such date—
12 (1) no amount may be borrowed by the Sec13
retary from any source; and
14 (2) no amount may be borrowed by any Federal
15 agency or department, any independent establish16
ment of the executive branch, or any other instru17
mentality of the United States (other than a na18
tional bank, Federal savings association, or Federal
19 credit union) from any source other than the Sec20
retary.
21 (c) RULE OF CONSTRUCTION.—No provision of this
22 Act shall be construed as preventing the Congress from
23 exercising its constitutional authority to borrow money on
24 the full faith and credit of the United States.
25 (d) TECHNICAL AND CONFORMING AMENDMENT.—
26 On the effective date, chapter 31 of title 31, United States
1 Code, is hereby repealed, subject to the retirement of out2
standing instruments of indebtedness of the United States
3 in accordance with section 401.
4 SEC. 107. RETIREMENT OF INSTRUMENTS OF INDEBTED5
NESS.
6 Before the effective date, the Secretary shall com7
mence to retire all outstanding instruments of indebted8
ness of the United States by payment in full of the amount
9 legally due the bearer in United States Money, as such
10 amounts become due.
11 SEC. 108. ACCOUNTING.
12 (a) IN GENERAL.—The Secretary shall account for
13 the disbursement of United States Money and of current
14 fund balances through accounting reports maintained and
15 published by the Secretary and by departments and agen16
cies of the United States Government.
17 (b) GAO AUDIT.—The Comptroller General of the
18 United States shall conduct an independent biennial audit.
19 TITLE II—ENTRY OF U.S. MONEY
20 INTO CIRCULATION
21 SEC. 201. ENTRY OF U.S. MONEY INTO CIRCULATION.
22 The Secretary shall cause United States Money to
23 enter into circulation by and through any of the following
24 means:
1 (1) Any origination or disbursement of funds to
2 accomplish Federal expenditures authorized and ap3
propriated by an Act of the Congress.
4 (2) Any disbursement to retire outstanding in5
struments of indebtedness of the Federal Govern6
ment or the Secretary of the Treasury as such in7
struments become due.
8 (3) Any contribution authorized by an Act of
9 the Congress subject to any limitation established by
10 the Monetary Authority to the Revolving Fund es11
tablished in section 302 of this Act.
12 (4) Any action provided for in the transitional
13 arrangements specified in title IV of this Act, includ14
ing the conversion of all deposits in transaction ac15
counts into United States Money.
16 (5) Any exercise of ‘‘lender of last resort’’ emer17
gency authorities under the emergency procedures
18 specified in section 305.
19 (6) Any purchase of stock in a Federal reserve
20 bank from a member bank and of any other assets
21 as prescribed under the Federal Reserve Act as re22
quired to accomplish the purposes of section 301.
23 (7) Any other means, and for any other purpose
24 explicitly authorized by an Act of the Congress that
25 becomes law after the effective date of this Act.
1 TITLE III—RECONSTITUTION OF
2 THE FEDERAL RESERVE SYSTEM
3 SEC. 301. RECONSTITUTION OF THE FEDERAL RESERVE.
4 (a) GOVERNMENT ACQUISITION OF ALL NET ASSETS
5 OF FEDERAL RESERVE SYSTEM.—On the effective date,
6 the Secretary shall purchase on behalf of the United
7 States all net assets in the Federal Reserve System, in8
cluding the Federal reserve banks, according to the rules
9 specified in the Federal Reserve Act (12 U.S.C. 288) for
10 this purpose.
11 (b) REPAYMENT OF RESERVES.—Any reserves of any
12 member bank that is held by any Federal reserve bank
13 shall be returned to the member bank in the form of
14 United States Money, subject to the provisions contained
15 in sections 401 and 402(b).
16 SEC. 302. ESTABLISHMENT OF THE UNITED STATES MONE17
TARY AUTHORITY.
18 (a) MONETARY AUTHORITY.—
19 (1) ESTABLISHMENT.—
20 (A) IN GENERAL.—There is hereby estab21
lished the Monetary Authority as an authority
22 within the Department of the Treasury under
23 the general oversight of the Secretary of the
24 Treasury.
1 (B) AUTONOMY OF MONETARY AUTHOR2
ITY.—The Secretary of the Treasury may not
3 intervene in any matter or proceeding before
4 the Monetary Authority, unless otherwise spe5
cifically provided by law.
6 (C) INDEPENDENCE OF MONETARY AU7
THORITY.—The Secretary of the Treasury may
8 not delay, prevent, or intervene in the issuance
9 of any regulation or other determination of the
10 Monetary Authority, including the determina11
tion of the amounts of money to be originated
12 and most efficient method of disbursement con13
sistent with the appropriations of Congress and
14 the statutory objectives of monetary policy as
15 specified in this Act.
16 (2) MEMBERSHIP.—
17 (A) IN GENERAL.—The Monetary Author18
ity shall consist of 9 public members appointed
19 by the president, by and with the advice and
20 consent of the Senate.
21 (B) TERMS.—
22 (i) IN GENERAL.—Except as provided
23 in subparagraph (E), each member of the
24 Monetary Authority shall be appointed to a
25 term of 6 years.
1 (ii) CONTINUATION OF SERVICE.—
2 Each member of the Monetary Authority
3 may continue to serve after the expiration
4 of the term of office to which such member
5 was appointed until a successor has been
6 appointed and qualified.
7 (C) POLITICAL AFFILIATION.—Not more
8 than 4 of the members of the Monetary Author9
ity may be members of the same political party.
10 (D) VACANCY.—
11 (i) IN GENERAL.—Any vacancy on the
12 Monetary Authority shall be filled in the
13 manner in which the original appointment
14 was made.
15 (ii) INTERIM APPOINTMENTS.—Any
16 member appointed to fill a vacancy occur17
ring before the expiration of the term for
18 which such member’s predecessor was ap19
pointed shall be appointed only for the re20
mainder of such term.
21 (E) STAGGERED TERMS.—Of the members
22 first appointed to the Monetary Authority after
23 the enactment of this Act—
24 (i) 1 shall be appointed for a term of
25 2 years;
1 (ii) 2 shall be appointed for a term of
2 3 years;
3 (iii) 2 shall be appointed for a term of
4 4 years;
5 (iv) 2 shall be appointed for a term of
6 5 years; and
7 (v) 2 shall be appointed for the full
8 term of 6 years.
9 (3) CHAIRPERSON.—One of the members of the
10 Monetary Authority shall be designated by the Presi11
dent as the Chairperson of the Monetary Authority.
12 (4) DUTIES.—The Monetary Authority shall—
13 (A) establish monetary supply policy and
14 monitor the Nation’s monetary status; and
15 (B) carry out such other responsibilities as
16 the President may delegate to the Monetary
17 Authority or that may be provided by an Act of
18 Congress.
19 (5) GOVERNING PRINCIPLE OF MONETARY POL20
ICY.—The Monetary Authority shall pursue a mone21
tary policy based on the governing principle that the
22 supply of money in circulation should not become in23
flationary nor deflationary in and of itself, but will
24 be sufficient to allow goods and services to move
25 freely in trade in a balanced manner. The Monetary
1 Authority shall maintain long run growth of the
2 monetary and credit aggregates commensurate with
3 the economy’s long run potential to increase produc4
tion, so as to promote effectively the goals of max5
imum employment, stable prices, and moderate long6
term interest rates.
7 (6) MEETINGS.—The Monetary Authority shall
8 meet on a regular basis subject to the call of the
9 Chairperson, the Secretary, or a majority of the
10 members.
11 (7) PAY.—The members of the Monetary Au12
thority shall receive a salary at annual rates equal
13 to the annual rate determined under section 5 of
14 title 28, United States Code, for an associate justice.
15 (8) STAFF.—The Monetary Authority may ap16
point and establish the pay of such employees as the
17 Monetary Authority determines is appropriate to as18
sist the Monetary Authority to carry out the duties
19 imposed under this section.
20 (c) RESPONSIBILITY OF SECRETARY.—The Secretary
21 shall regulate the monetary supply in reasonable accord22
ance with targets established by the Monetary Authority.
23 (d) REPORTS ON DISCREPANCIES.—The Secretary
24 shall report to the Congress any discrepancy between any
1 monetary target and the monetary supply in excess of 0.5
2 percent at the end of each quarter.
3 SEC. 303. ESTABLISHMENT OF THE BUREAU OF THE FED4
ERAL RESERVE.
5 (a) IN GENERAL.—Subchapter I of chapter 3 of title
6 31, United States Code, is amended by adding at the end
7 the following new section:
8 ‘‘§ 314. Bureau of the Federal Reserve
9 ‘‘(a) ESTABLISHMENT.—There is hereby established
10 the Bureau of the Federal Reserve as a bureau within the
11 Department of the Treasury (hereafter in this section re12
ferred to as the ‘Bureau’).
13 ‘‘(b) MANAGEMENT.—
14 ‘‘(1) COMMISSIONER.—The management of the
15 Bureau shall be vested in a Commissioner who, with
16 the assistance of the Deputy Commissioner and such
17 staff as the Commissioner may appoint, shall carry
18 out the duties vested in the Bureau and the Com19
missioner.
20 ‘‘(2) DEPUTY COMMISSIONER.—There is hereby
21 established within the Bureau the position of Deputy
22 Commissioner.
23 ‘‘(3) APPOINTMENT.—The Commissioner and
24 the Deputy Commissioner shall be appointed by the
1 president, by and with the advice and consent of the
2 Senate.
3 ‘‘(4) TERMS.—
4 ‘‘(A) IN GENERAL.—The Commissioner
5 and the Deputy Commissioner shall each be ap6
pointed to a term of 7 years.
7 ‘‘(B) STAGGERED TERMS.—Notwith8
standing subparagraph (A), the person first ap9
pointed Deputy Commissioner shall be ap10
pointed to a term of 4 years.
11 ‘‘(5) VACANCY.—
12 ‘‘(A) IN GENERAL.—Any vacancy on the
13 Bureau shall be filled in the manner in which
14 the original appointment was made.
15 ‘‘(B) INTERIM APPOINTMENTS.—Any
16 member appointed to fill a vacancy occurring
17 before the expiration of the term for which such
18 member’s predecessor was appointed shall be
19 appointed only for the remainder of such term.
20 ‘‘(c) DUTIES.—
21 ‘‘(1) MONETARY POLICY.—The Bureau shall—
22 ‘‘(A) administer, under the direction of the
23 Secretary, the origination and entry into cir24
culation of United States Money, subject to the
1 limitations established by the Monetary Author2
ity; and
3 ‘‘(B) administer lending of United States
4 Money to authorized depository institutions, as
5 described in section 403 (‘Revolving Fund’) to
6 ensure that—
7 ‘‘(i) money creation is solely a func8
tion of the United States Government; and
9 ‘‘(ii) fractional reserve lending is
10 ended.
11 ‘‘(2) TRANSFERRED FUNCTIONS.—After the ef12
fective date, the Bureau shall exercise all functions
13 consistent with this Act which, before such date,
14 were carried out under the direction of the Board of
15 Governors of the Federal Reserve System.
16 ‘‘(3) ITEMIZATION BY SECRETARY.—Not less
17 than 90 days before the effective date, the Secretary
18 and the Monetary Authority shall itemize—
19 ‘‘(A) the functions of the Board of Gov20
ernors of the Federal Reserve System that are
21 transferred to the Bureau pursuant to para22
graph (2); and
23 ‘‘(B) the provisions of the Federal Reserve
24 Act and other provisions of Federal law, relat25
ing to the functions so transferred, in the application of which the term ‘Bureau’ (as estab2
lished under this section) shall be substituted
3 for the term ‘Board of Governors of the Federal
4 Reserve System’ or ‘Board’, as the case may
5 be.’’.
6 (b) CLERICAL AMENDMENT.—The table of sections
7 for subchapter I of chapter 3 of title 31, United States
8 Code, is amended by adding at the end the following new
9 item:
‘‘314. Bureau of the Federal Reserve’’.
10 (c) ROLE OF BOARD AFTER ENACTMENT.—With ef11
fect on the effective date, the Board of Governors of the
12 Federal Reserve System shall be dissolved.
13 SEC. 304. FORECASTING OF DISBURSEMENT REQUIRE14
MENTS.
15 The Secretary shall—
16 (1) forecast disbursement requirements on a
17 daily, monthly, and annual basis;
18 (2) provide such forecasts to the Congress and
19 the public;
20 (3) integrate forecasts with the Federal budget
21 process;
22 (4) maintain a sufficient research capability to
23 continuously and effectively assess the impact of dis24
bursement of United States Money on all aspects of
25 the domestic and international economies; and
1 (5) report to the Congress and the public regu2
larly on the economic impact of disbursements of
3 United States Money and the status of the monetary
4 supply.
5 SEC. 305. LENDER OF LAST RESORT; EMERGENCY PROCE6
DURES.
7 (a) RECOMMENDATION OF THE PRESIDENT UPON
8 RECOMMENDATION OF EMERGENCY BOARD.—The Mone9
tary Authority may not exercise any authority under the
10 3rd undesignated paragraph of section 13 of the Federal
11 Reserve Act unless—
12 (1) the Emergency Board established under
13 subsection (b) recommends, upon a vote of 2/3 of
14 the members, to the House of Representatives and
15 the Senate, that the House of Representatives and
16 the Senate adopt a concurrent resolution calling on
17 the President to certify that a national emergency
18 exists which requires the exercise of such authority;
19 (2) the House of Representatives and the Sen20
ate each adopt, by a vote of 2/3 of the members
21 present, a concurrent resolution calling on the Presi22
dent to certify that a national emergency exists
23 which requires the exercise of such authority; and
1 (3) the President issues a certification that a
2 national emergency exists which requires the exercise
3 of such authority by the Monetary Authority.
4 (b) EMERGENCY BOARD.—There is established for
5 purposes of this section the Emergency Board which shall
6 consist of the following members:
7 (1) The President.
8 (2) The Secretary of Commerce.
9 (3) The Secretary of Labor.
10 (4) The Secretary of the Treasury.
11 (5) The Speaker of the House of Representa12
tives.
13 (6) The minority leader of the House of Rep14
resentatives.
15 (7) The majority leader of the Senate.
16 (8) The minority leader of the Senate.
17 (9) The chairpersons and ranking members of
18 the Committee on Financial Services and the Com19
mittee on Oversight and Government Reform of the
20 House of Representatives.
21 (10) The chairpersons and ranking members of
22 the Committee on Banking, Housing, and Urban Af23
fairs and the Committee on Homeland Security and
24 Governmental Affairs of the Senate.
1 (c) RULE OF CONSTRUCTION.—Except as provided in
2 subsection (a), no provision of this Act shall be construed
3 as affecting the authority of the Monetary Authority under
4 the 3rd undesignated paragraph of section 13 of the Fed5
eral Reserve Act.
6 SEC. 306. SAVINGS PROVISIONS AND TRANSFER PROVI7
SIONS.
8 (a) SAVINGS PROVISIONS.—
9 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA10
TIONS NOT AFFECTED.—The establishment of the
11 Bureau of the Federal Reserve shall not affect the
12 validity of any right, duty, or obligation of the
13 United States, the Bureau (as the successor to the
14 Board of Governors of the Federal Reserve System
15 or any Federal reserve bank), or any other person
16 that—
17 (A) arises under any provision of law relat18
ing to any function of the Board of Governors
19 of the Federal Reserve System transferred to
20 the Bureau by this title and amendments made
21 by this title; and
22 (B) existed on the day before the effective
23 date.
24 (2) CONTINUATION OF SUITS.—This Act shall
25 not abate any proceeding commenced by or against the Board of Governors (or any Federal reserve
2 bank) before the effective date with respect to any
3 function of the Board of Governors (or any Federal
4 reserve bank) transferred to the Bureau by this title,
5 except that the Bureau shall be substituted for the
6 Board of Governors (or Federal reserve bank) as a
7 party to any such proceeding as of the effective date.
8 (b) TRANSFER OF CERTAIN PERSONNEL.—
9 (1) IDENTIFYING EMPLOYEES FOR TRANS10
FER.—The Secretary and the Chairman of the
11 Board of Governors of the Federal Reserve System
12 shall—
13 (A) jointly determine the number of em14
ployees of the Board necessary to perform or
15 support the functions of the Board of Gov16
ernors that are transferred to the Monetary Au17
thority (if any) and the Bureau of the Federal
18 Reserve pursuant to a provision of or amend19
ment made by this title; and
20 (B) consistent with the number determined
21 under subparagraph (A), jointly identify em22
ployees of the Board of Governors for transfer
23 in a manner that the Secretary and the Board
24 of Governors of the Federal Reserve System, in
25 their sole discretion, determine to be equitable.
1 (2) IDENTIFIED EMPLOYEES TRANSFERRED.—
2 All employees of the Board of Governors of the Fed3
eral Reserve System identified under paragraph
4 (1)(B) shall be transferred to the Monetary Author5
ity or the Bureau of the Federal Reserve, as the
6 case may be, for employment.
7 (3) FEDERAL RESERVE BANK EMPLOYEES.—
8 Employees of any Federal reserve bank, as of the
9 day before the transfer date for any employees of
10 the Board of Governors of the Federal Reserve Sys11
tem, shall be treated as employees of the Board of
12 Governors for purposes of paragraph (1) and (2).
13 TITLE IV—TRANSITIONAL
14 ARRANGEMENTS
15 SEC. 401. CONVERSION OF FEDERAL RESERVE NOTES.
16 (a) IN GENERAL.—Before the end of the 120-day pe17
riod beginning on the date of the enactment of this Act,
18 the Secretary shall establish the rules and procedures for
19 converting outstanding Federal reserve notes to United
20 States Money of equal face value.
21 (b) PROVISION OF SUPPLY SUFFICIENT FOR CON22
VERSION AND ISSUANCE.—Before the end of the 150-day
23 period beginning on the date of the enactment of this Act
24 and as Federal reserve notes are converted to United
25 States Money, the Secretary shall begin providing a sufficient quantity of United States Money to the domestic
2 banking system to allow for conversion of all outstanding
3 Federal reserve notes and the issuance of additional cur4
rency as required.
5 (c) DISBURSAL OF FUNDS.—After the end of the
6 180-day period beginning on the date of the enactment
7 of this Act, all financial institutions within the United
8 States shall only disburse funds in United States Money,
9 whether as currency, an addition to an available account
10 balance, or other instrument.
11 (d) DISPOSAL OF OBSOLETE CURRENCY.—The Sec12
retary shall promptly dispose of (in the manner provided
13 under section 5120(b) of title 31, United States Code, for
14 the disposal of obsolete United States currency) all Fed15
eral reserve notes as they are returned in exchange for
16 United States Money.
17 (e) TECHNICAL AND CONFORMING AMENDMENT.—
18 Effective at the end of the 150-day period beginning on
19 the date of the enactment of this Act, section 16 of the
20 Federal Reserve Act is amended by striking the 8th, 9th,
21 10th, 11th, and 12th undesignated paragraphs (12 U.S.C.
22 418, 419, 420, 421, and omitted, respectively).
SEC. 402. REPLACING FRACTIONAL RESERVE BANKING
2 WITH THE LENDING OF UNITED STATES
3 MONEY.
4 (a) CONVERSION PROCESS.—
5 (1) DEPOSITS.—
6 (A) IN GENERAL.—All deposits at any de7
pository institution shall be designated as and
8 treated as United States Money (either cash or
9 an electronic equivalent) and as transaction ac10
counts.
11 (B) PROHIBITIONS.—In addition to sub12
section (d), the following provisions shall apply
13 with respect to United States Money on deposit
14 in a transaction account at any depository insti15
tution:
16 (i) INTEREST.—No interest may be
17 paid or may accrue on any United States
18 Money on deposit in a transaction account
19 at any depository institution.
20 (ii) DEPOSITS AS BAILMENT.—Any
21 United States Money on deposit in a trans22
action account at any depository institu23
tion shall—
24 (I) be treated as a bailment for
25 the mutual benefit of the parties and
26 terminable at will; and as property held in trust as
2 bailed property, not be treated as an
3 asset of the depository institution or
4 as a source of credit.
5 (C) EXCEPTION FOR LONG-TERM SAVINGS
6 NOT SUBJECT TO DEPOSIT INSURANCE.—
7 (i) IN GENERAL.—Subparagraph (B)
8 shall not apply to any liability of deposi9
tory institution to a customer for any
10 amount in an account at the depository in11
stitution pursuant to a contract that re12
stricts the availability of any such amount
13 for a fixed term and does not permit
14 amounts to be transferred in any manner
15 for the benefit of a third party.
16 (ii) FIXED-TERM SAVINGS NOT IN17
SURED.—Any account described in clause
18 (i) may not be treated as a deposit, for
19 purposes of the Federal Deposit Insurance
20 Act, or as a share draft account, for pur21
poses of the Federal Credit Union Act.
22 (2) OUTSTANDING CREDIT.—Any asset of a de23
pository institution that results from credit extended
24 against, is attributable to, or has been accounted for
1 with respect to, amounts described in paragraph
2 (1)(A) shall, as of the effective date—
3 (A) be a liability of the depository institu4
tion to the Federal Government; and
5 (B) as the outstanding balance is repaid
6 pursuant to its terms, shall be paid over to the
7 Federal Government.
8 (3) DEPOSIT IN REVOLVING FUND.—The mon9
ies paid to the Federal Government shall be depos10
ited into the Revolving Account established in sec11
tion 403.
12 (4) IN GENERAL.—Before the effective date and
13 subject to the requirements of this section, the Mon14
etary Authority shall establish and publish the ac15
counting rules, pricing, and processes which will con16
vert all bank credit in circulation as of the date of
17 such conversion, into United States legal tender
18 money.
19 (5) RETENTION OF INTEREST PAYMENTS.—A
20 depository institution may keep as income, any in21
terest payment made by a customer to a depository
22 institution on an outstanding loan for which the de23
pository institution became indebted to the Federal
24 Government under paragraph (2).
1 (b) TREATMENT OF AMOUNTS ON RESERVE AT A
2 FEDERAL RESERVE BANK.—The Monetary Authority
3 shall determine, by the effective date, how the reserves of
4 a depository institution at a Federal reserve bank pursu5
ant to section 19 of the Federal Reserve Act shall be treat6
ed, so as to promote a seamless transition to the new sys7
tem.
8 (c) ACCOUNTS IN GENERAL.—Before the effective
9 date, the Monetary Authority shall prescribe new lending
10 and accounting regulations for various types of accounts
11 including transaction accounts and time deposit accounts
12 described in subsections (d) and (e).
13 (d) TRANSACTION ACCOUNTS.—
14 (1) FRACTIONAL RESERVE BANKING ENDED.—
15 The regulations prescribed under subsection (c) shall
16 provide that—
17 (A) any depository institution shall have a
18 fiduciary responsibility for the money of any de19
positor on deposit in a transaction account
20 which—
21 (i) shall be held for the exclusive use
22 of the account holder; and
23 (ii) may not be used by a depository
24 institution to fund loans or investments;
1 (B) a dollar of United States Money shall
2 be on hand or in a Federal Government account
3 for each dollar in a transaction account; and
4 (C) a depository institution may charge a
5 reasonable fee for providing transaction account
6 services.
7 (2) TRANSACTION ACCOUNT DEFINED.—For
8 purposes of this section, the term, ‘‘transaction ac9
count’’—
10 (A) means a deposit or account on which
11 the depositor or account holder is permitted to
12 make withdrawals by negotiable or transferable
13 instrument, payment orders of withdrawal, tele14
phone transfers, or other similar items for the
15 purpose of making payments or transfers to
16 third persons or others; and
17 (B) includes demand deposits, negotiable
18 order of withdrawal accounts, savings deposits
19 subject to automatic transfers, and share draft
20 accounts.
21 (e) UNITED STATES MONEY AS SOURCE OF
22 LOANS.—After the effective date, all lending by depository
23 institutions may be accomplished only by the lending of
24 actual United States Money that is—
1 (1) owned by the depository institution from
2 earnings and or capital contributions by investors;
3 (2) borrowed at interest from the Federal Gov4
ernment; or
5 (3) borrowed at interest through the issuance of
6 bonds or other interest-bearing securities by the
7 lending bank, to the extent that such bonds or secu8
rities are structured in a manner consistent with the
9 purposes of this Act.
10 (f) ENCOURAGEMENT OF PRIVATE, PROFIT-MAKING
11 MONEY LENDING ACTIVITY.—The regulations prescribed
12 and actions taken under this section shall be established
13 and taken in a manner that—
14 (1) encourages private, profit-making money
15 lending activity by banking institutions; and
16 (2) prohibits the creation of private money
17 through the establishment of lending credit against
18 depository receipts, sometimes referred to as ‘‘frac19
tional reserve banking’’.
20 SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND.
21 (a) REVOLVING LOAN FUND.—Subject to provision
22 in advance in an appropriation Act, there is hereby estab23
lished a revolving loan fund in the Treasury of the United
24 States where amounts received from depository institu25
tions under terms specified in section 402 of this Act shall
1 be deposited and made available for relending to banking
2 institutions and for other purposes.
3 (b) ADMINISTRATION.—The Revolving Fund shall be
4 administered by the Bureau under such terms and condi5
tions as the Secretary shall prescribe consistent with the
6 purposes of this Act.
7 (c) NATIONAL EMERGENCY.—In the event of a find8
ing by the President that a National Emergency exists,
9 and with the concurrence of the Congress in accordance
10 with the emergency procedures specified under section
11 305, the Secretary may draw upon up to 80 percent of
12 the funds on deposit in the Revolving Fund. Such funds
13 shall be returned to the Revolving Fund within 3 years
14 of the date of initial disbursement, either through repay15
ment of loans or through an Appropriation Act, unless the
16 Secretary receives from the Congress specific authoriza17
tion to extend the term of the loans. The authorization
18 of Congress shall be given by joint resolution..
19 TITLE V—ADDITIONAL
20 PROVISIONS
21 SEC. 501. DIRECT FUNDING OF INFRASTRUCTURE IM22
PROVEMENTS.
23 (a) REPORT REQUIRED ON OPPORTUNITIES FOR DI24
RECT FUNDING.—Before the effective date, the Secretary,
25 after consultation with the heads of Executive branch de-
1 partments, agencies and independent establishments, shall
2 report to the Congress on opportunities to utilize direct
3 funding by the United States Government to modernize,
4 improve, and upgrade the physical economy of the United
5 States in such areas as transportation, agriculture, water
6 usage and availability, sewage systems, medical care, edu7
cation, and other infrastructure systems, to promote the
8 general welfare, and to stabilize the Social Security retire9
ment system.
10 (b) BROAD EQUITABLE DISPERSION OF FUNDING.—
11 Generally, any program recommended for direct funding
12 shall be undertaken throughout the Nation.
13 SEC. 502. INTEREST RATE CEILINGS.
14 (a) LIMIT ON AMOUNT OF FINANCING FEES.—The
15 total amount of interest charged by a financial institution
16 on any extension of loans (other than a mortgage) to any
17 individual borrower through amortization, including all
18 fees and service charges, shall not exceed the total amount
19 of the loan extended.
20 (b) LIMIT ON RATE.—The annual percentage rate
21 applicable to any loan of money may not exceed 8 percent
22 on unpaid balances, inclusive of all charges.
23 SEC. 503. AUTHORITY OF FDIC.
24 Except as provided in section 402 and the amend25
ment made by section 3(b), no provision of this Act shall be construed as altering or affecting any authority or func2
tion of the Federal Deposit Insurance Corporation. No
3 later than 12 months after the date of the enactment of
4 this Act, the Chairperson of the Board of Directors of the
5 Federal Deposit Insurance Corporation shall study and
6 make recommendations to the Congress regarding any
7 changes in authorities, including expanded supervision and
8 monitoring, required to enhance the oversight and regu9
latory roles of the Federal Deposit Insurance Corporation
10 under this Act.
11 SEC. 504. MONETARY GRANTS TO STATES.
12 (a) IN GENERAL.—Each year, the Monetary Author13
ity shall instruct the Secretary to disperse grants over a
14 12-month period to the States equal to 25 percent of the
15 money created under this title in the prior year. In the
16 first year the amount of such grants shall be 25 percent
17 of the anticipated money creation in that first year.
18 (b) USE OF GRANTS FOR BROAD-BASED PUR19
POSES.—The States may use such funds in broadly des20
ignated areas of public infrastructure, education, health
21 care and rehabilitation, pensions, and paying for unfunded
22 Federal mandates.
23 SEC. 505. EDUCATION FUNDING PROGRAM.
24 Before the end of the 120-day period beginning on
25 the date of the enactment of this Act, the Secretary, in
cooperation with the Secretary of Education, shall provide
2 recommendations to the Congress for a program to help
3 fund our educational system that will put the United
4 States on par with other highly developed nations, and to
5 sufficiently provide for universal pre-kindergarten fully
6 funded State programs for elementary and secondary edu7
cation and universal college at every 2- and 4-year public
8 institution of higher learning and create a learning envi9
ronment so that every child has an opportunity to reach
10 their full educational potential.
11 SEC. 506. SOCIAL SECURITY TRUST FUNDS.
12 The Secretary in consultation with the Board of
13 Trustees of the Federal Old-Age and Survivors Insurance
14 and Federal Disability Insurance Trust Funds shall sub15
mit to the Monetary Authority any requests to cover im16
pending deficits in Social Security Trust Fund accounts.
17 SEC. 507. INITIAL MONETARY DIVIDEND TO CITIZENS.
18 (a) IN GENERAL.—Before the effective date, the Sec19
retary, in cooperation with the Monetary Authority, shall
20 make recommendations to the Congress for payment of
21 a Citizens Dividend as a tax-free grant to all United
22 States citizens residing in the United States in order to
23 provide liquidity to the banking system at the commence24
ment of this Act, before governmental infrastructure ex25
penditures have had a chance to work into circulation.
1 (b) STUDY OF EFFECTS OF CITIZENS DIVIDEND.—
2 The Secretary shall maintain a thorough study of the ef3
fects of the Citizens Dividend observing its effects on pro4
duction and consumption, prices, morale, and other eco5
nomic and fiscal factors.
6 SEC. 508. UNIVERSAL HEALTH CARE FUNDING.
7 The Congress shall be aware that funding through
8 this Act is available for a universal health care plan as
9 may be enacted by Congress.
10 SEC. 509. RESOLVING THE MORTGAGE CRISIS.
11 The Congress shall be aware that funding through
12 this Act is available for Congressional enactments for re13
solving aspects of the mortgage crisis.
14 SEC. 510. INTEREST FREE LENDING TO LOCAL GOVERN15
MENTAL BODIES.
16 Before the end of the 180-day period beginning on
17 the date of the enactment of this Act, the Secretary shall
18 provide recommendations to the Congress for a program
19 of interest-free lending of United States Money to State
20 and local governmental entities, including school boards
21 and emergency fire services for infrastructure improve22
ments under their control and within their jurisdictions,
23 based on per capita amounts and other criteria to assure
24 equity as determined by the Monetary Authority.
Sunday, February 1, 2009
Fw: KUCINICH VERSUS THE LOBBY
Fri, 1/23/09, Council for the National Interest Foundation <cnif@democracyinaction.org> wrote:From: Council for the National Interest Foundation <cnif@democracyinaction.org> |
Wednesday, January 21, 2009
Stunning Victory! ... and Stunning Persecution – As We Enter 2009!
January 12, 2009 NA (Network America) e-wire
>
>
> Stunning Victory! ... and Stunning Persecution -
> As We Enter 2009!
>
>
> "We are living in an age of lies," one of my
> mentors told me over a decade ago. It is an age
> of lies because those who control our mass
> communication channels are clever and
> accomplished deceivers. They are playing Chess,
> while we their intended victims are playing
> simple checkers - or are not even aware a "game"
> is being played at all.
>
> One of the very obvious mass deception operations
> is that bimbo celebrities of both sexes (like
> Brittney Spears, Brad Pitt and Paris Hilton) get
> endless news coverage, while the information
> controllers hide from the public's view the
> REALLY important issues of our time.
>
> Another mass deception that has turned into a
> battle is going on RIGHT NOW. Our heroes are Pete
> Hendrickson, author of the watershed book
> "Cracking the Code: The Fascinating Truth About
> Taxation in America," and a handful of everyday
> Americans working at the IRS (Internal Revenue
> Service), whose names I do not know. Our villains
> are the top wirepullers at the IRS, who are
> engaged in Soviet style tactics against Pete
> Hendrickson to protect their exploitation of tens
> of millions of "income receiving" Americans.
>
>
> THE $6 MILLION DOLLAR MAN
>
> In late 2008, the front line workers at the IRS
> conceded that day-trader Bruce G. of Arizona did
> NOT owe "income" tax on some $6 million that had
> passed through his bank account. Bruce, using the
> sound research in Pete Hendrickson's book
> "Cracking the Code," was successfully able to
> argue that the money in question was not
> "income," was not federally privileged, and was
> thus not subject to "income" tax.
>
> Thousands of people have been educated as Bruce
> was by Pete Hendrickson's "Cracking the
> Code."
> Altogether, they have retained or been refunded
> (by the IRS) well over $9,000,000 (that's nine
> million dollars!) since the book was first
> published in 2003. (The current recovery total
> posted on Hendrickson's website,
> LostHorizons.com, is $9,644,422.83, and that
> figure comprises only what has been relayed back
> to him by those who have followed his example.)
> (Period needed here -- see it in red!)
>
> Hendrickson is careful to state that it was
> Congress ITSELF that provided a way for all
> Americans to free themselves from "income" tax
> each and every year. While the tax protest
> movement insists that income tax is
> unconstitutional and unlawful, Hendrickson's
> research (from an assiduous examination of over 6
> million words of Internal Revenue Code and the
> accompanying statutory law) informs us that the
> income tax IS in fact perfectly lawful, but is
> far from the voracious monster we believe it to
> be. As an excise tax, NOT a direct tax, it
> applies only to revenue in which the federal
> government has a direct ownership interest. For
> a simplified (and very clear) explanation of how
> income tax pertains to the earnings of Americans
> as explained in Pete Hendrickson's "Cracking the
> Code," please see the important website
> www.NotIncome.com
>
> One reason I call Pete Hendrickson our hero is
> because of the thousands of hours he spent
> reading the millions of words in the hugely
> convoluted IRS Code, and the law from other cases
> and places - so that the rest of us could
> understand and protect ourselves against the anti
> American tricks and bamboozlements which the
> parasitic wirepullers at the top of the IRS
> created for us.
>
> The reason I also call some everyday (as of now
> nameless) Americans who work at the IRS our
> heroes, is because these individuals have had to
> look with fresh eyes at the tax code - and have
> realized that Pete Hendrickson's interpretation
> of the law and the tax code is absolutely
> correct. Over the years they have been conceding
> "victories" to Hendrickson educated filers, and
> they demonstrated clarity again by giving Bruce
> G. of Arizona his $6 million release a few weeks
> ago.
>
> PLEASE NOTE: The uppermost Wirepullers and
> Controllers of the IRS are ESSENTIALLY DIFFERENT
> from the everyday American IRS employees who
> acknowledged that Bruce G.'s and Pete
> Hendrickson's interpretation of the law and the
> tax code are correct. And that ESSENTIAL
> DIFFERENCE will be explained at the end of this
> article.
>
>
> . . . AND A STUNNING PERSECUTION HAS BEGUN
>
> Pete Hendrickson, author of "Cracking the Code,"
> is now facing a Soviet-style (or Orwellian
> "1984") prosecution/persecution from the VERY
> HIGHEST TAX THUGS behind the IRS. He is facing
> this persecution for his efforts to liberate all
> of us from a false understanding of the tax
> system as almost universally practiced in the
> United States since 1942. (Since only as far back
> as 1942? Yes, since only as far back as1942. See
> NotIncome.com)
>
> These would be Enslavers of America are desperate
> that Americans not wake up to their scam. They
> are desperate that you continue to be deceived as
> to what the tax system means, so that they can
> continue to enjoy your surrender of 15% to 40% of
> your income to the IRS (depending on your tax
> bracket), for no reason at all except the
> ignorance that you (and I) have been laboring
> under.
>
> You see, if the correct interpretation of the law
> and the tax code as explained by Pete Hendrickson
> in "Cracking the Code" continues to catch on and
> take hold in the minds of Americans - then two
> pillars of the enslavement system which the
> Pharisee Money Changers behind the IRS are trying
> so feverish fasten around everyday citizens in
> the USA will come crumbling down.
>
> Those two pillars I am talking about are (1) the
> continued successful extraction of billions of
> dollars from American "earners" (blue collar and
> white collar) every year, which these "earners"
> DO NOT OWE to the IRS; and (2) the ability to
> terrorize and almost always JAIL any prominent or
> effective person the tyrants want to remove from
> general circulation.
>
>
> LET'S STOP THERE - AT THE JAIL PART
>
> Over the last two decades or so, these Moral
> Monsters behind the IRS have jailed TWO SITTING
> CONGRESSMEN for no good reason whatsoever
> except that each was an effective advocate for
> the people against the likes of the top
> wirepullers behind the IRS.
>
> Former Congressman George Hansen, author of "To
> Harass our People" (an indictment of IRS
> misdeeds), served 15 months in jail in 1986 87,
> during which time he was tortured and denied
> medial treatment (many accounts of his
> experiences can be found on the Internet). He had
> long battled for the little guy against IRS
> mistreatment. PLEASE NOTE: In 1995 Hansen's
> conviction (which led to his imprisonment) was
> overturned by the Supreme Court. The thugs behind
> the IRS and related menacing entities (CIA,
> Homeland Security, etc.) don't care if their
> effective enemies are guilty - THEY JUST WANT
> THEM OUT OF THE WAY IN PRISON AT THE HEIGHT OF
> THEIR EFFECTIVENESS.
>
> Same goes for former Congressman Jim Traficant,
> slated to get out of his seven year prison term
> in early 2009. There were several reasons why the
> Feds wanted Traficant behind bars. Here's one of
> them: in late 1997 Congressman Traficant led the
> charge and got a bill passed into law requiring
> the IRS to go to court before they could seize a
> taxpayer's home. Until then in 1997 the IRS had
> seized 10,500 homes without any court
> proceedings. How many homes were seized by the
> IRS in 1998 when they were required by law to go
> to a court BEFORE seizing a citizen's home? ...
> 58 homes, as I recall.
>
> Congressman Traficant himself said on the floor
> of the House of Representatives that this one
> piece of legislation alone was sufficient reason
> that powerful forces wanted to have him put away.
> (Michael Collins Piper has just published a book,
> "Target Traficant," which details the persecution
> of Jim Traficant and explains that he is not
> guilty of anything for which he was railroaded
> out of Congress and into imprisoned.)
>
> There are other, less prominent people sitting in
> jail right now on false or unjust charges.
>
>
> WHICH BRINGS US TO THE CHARGES JUST FILED AGAINST
> PETE HENDRICKSON
>
> In November 2008, the IRS filed felony charges
> against author Pete Hendrickson. These are
> serious charges that could result in a long
> prison term. (By the way, the hijacked US
> government has become notorious for illegally
> packing the jury in such cases where they want to
> make an example -- a political prisoner -- out
> of someone.)
>
> Hendrickson's "crime" is well CRACKING
> THE
> CODE. He figured it out. That's his "crime."
>
> Believe it or not, the IRS Top Thugs are not
> claiming that Pete said anything false in his
> book or in his tax filings. They are not asking
> him to retract anything he said. What they want
> him to do is say that he didn't believe what he
> put on his tax return, even though everything he
> put on his tax filings were honest, accurate, and
> in total accord with US law and the IRS code.
> TALK ABOUT A THOUGHT CRIME!!
>
> What they are trying to create is a Soviet style
> forced confession.
> They want Pete, under fear of a long prison term,
> to confess to something he doesn't believe in for
> a lesser prison term - while all the while Pete
> knows he's not guilty of anything - AND the IRS
> thugs KNOW that Pete is not guilty of anything.
>
> (However, it is important to understand this: in
> the minds of these insidious Money Changers,
> stepping between them and their exploited
> victims, i.e., tens of millions of misinformed
> tax payers, is FAR WORSE than being guilty of
> some real crime!)
>
> In fact, the top IRS Commissars know that Pete
> Hendrickson has actually done heroic work that
> could liberate tens of millions of Americans from
> their schemes in the relatively near future.
> That's why they've indicted Pete on such absurd
> charges. And that's why they want to take him out
> of circulation, put him in prison, and intimidate
> any one else from using the law and the IRS code
> to rebut or deny their alleged "taxable
> activities," which is so expertly and accurately
> explained in "Cracking the Code" (see
> www.NotIncome.com for a simple preview).
>
>
> WHO WAS BEHIND SOVIET CONFESSIONS, AND WHO IS
> BEHIND THE IRS AS IT NOW OPERATES?
>
> I am speaking for myself only throughout this
> article. Pete Hendrickson has had zero input into
> this article, and neither he nor anyone else
> except myself is responsible for anything I write
> here. The hour is late, and I cannot wait for
> those who have been slumbering, or resisting the
> call of truth, to "get in the game."
>
> There is an alien, criminal mind afoot in America
> and world. The way this criminal mind thinks is
> so alien to the decent thought processes of
> normal Americans - that the everyday American
> can't even believe that such people exist. But
> they do.
>
> This criminal mind is found in a relatively small
> sect of mankind. This small sect has power
> thousands of times beyond their numbers because
> they grasp always for money, media, and positions
> of power. This sect was behind Communism in
> Russia and the 20 million Russians who were
> murdered after they took control. And their
> leaders now control the deplorable Democratic and
> Republican Parties at the national level in the
> USA in 2008. It is they who were behind
> Soviet-style "confessions." It is they who
> transformed our tax code from a relatively benign
> "necessary evil" to the oppressive Behemoth that
> it is today. It is they who have grasped control
> of the central banks of the world, such as the
> Federal Reserve Board in the USA, from which they
> issue trillions to fund their world grasping
> agenda. It is they who pulled off the incredible
> 2008 "banking crisis" theft by which millions of
> Americans lost 40% of their pensions, their
> retirements, and their 401Ks. It is they who lied
> us into war in Iraq in 2003, and who are planning
> more unnecessary wars and evils as I write this.
>
> It is they who put former Congressman Hansen,
> former Congressman Traficant, and many other
> innocent Americans in jail who stood up to them
> in one way or another.
>
> This sect is best described as the Jewish
> Supremacists, or, as I like to call them these
> days, the NeoCon Jewish Crime Syndicate. (See
> "High Priests of War," for a full explanation of
> the term "NeoCon", as well as "Final
> Judgement,"
> "The New Jerusalem," or any book by Michael
> Collins Piper. See "Barbarians Inside the Gates"
> by Colonel Donn de Grandpre, who learned of this
> sect in his capacity as one of the top arms
> dealers for the Pentagon to countries in the
> Mideast in the mid to late 70s. See "The Israel
> Lobby and US Foreign Policy" by Professors Walt
> of Harvard and Mearsheimer of the University of
> Chicago. See "They Dare to Speak Out," by former
> Congressman Paul Findley; see the DVD "9/11
> Missing Links" by Prothink, or the home page at
> www.realnews247.com, or many of the programs at
> www.IamTheWitness.com ; see any books by the late
> Douglas Reed, Ivor Benson, or Fr. Denis Fahey -
> and the other thousands of books, audios, and
> videos that I can't even begin to list here.)
>
> The criminal mindset exhibited by this faction
> comes from the Talmud, in which the Jews who
> study it, or absorb its contents from fellow Jews
> around them, are taught that they have the right
> to cheat non Jews, kill non Jews, and use all
> goyim (human cattle, i.e., non Jews) as their
> footstool. (See "The Talmud Unmasked," Fr
> Prainatis, 1904; "The Plot Against Christianity,"
> Elizabeth Dilling, 1964, online at come and
> hear.com; "Judaism's Strange Gods" by Michael
> A.
> Hoffman II, or Hoffman's newest work, "Judaism
> Discovered," the first book ever banned by
> Amazon.com; also see the late Jewish author,
> Israel Shahak, "Jewish History, Jewish Religion:
> The Weight of 3000 Years," and "Sacred
> Terrorism", compliced by Livia Rokach, also
> online; this book is actually based on the
> diaries of the 2nd Prime Minister of Israel,
> Moshe Sharett. Again, this is just a sampling of
> works available on this now planet threatening
> subject.)
>
>
> DON'T FALL FOR PHONY CRIES OF PERSECUTION BY THIS
> FACTION
>
> I am half Irish and one quarter Italian -
> Sicilian Italian. And if I were alive 60 years
> ago I might have heard someone in America say
> that the power of the Mafia had to be broken, and
> that most of the visible Mafia leadership were
> Sicilian Italians. Now, if I had, upon hearing
> this, wailed, "You're anti Italian! Quit
> slandering my people!" - then I hope you would
> conclude that I was either part of the Mafia, or
> that I was victim of a mind warping brainwash, or
> that I was deranged.
>
> And that's what you should think of any Jewish
> person who cries "anti-Semitism" when someone
> like myself spotlights the faction that is
> pushing us towards a police state in the USA and
> trying to foment more foreign wars so they can
> increase their control over the population of the
> world. I am not anti-Jewish. I am anti-criminal.
> And the biggest criminal syndicate in the world
> in our time happens to be powered by this sect
> which can be dubbed many things, such as
> Neocon/Zionist/Communist/Talmudist Jews. I
> believe the most accurate term is "Jewish
> Supremacists" or "Talmudic Jewish
> Supremacists".
> But the most effective description as we enter
> 2009 is, "NeoCon Jewish Crime Syndicate." This
> clearly delineates between those Jews working for
> the current criminal drive for world domination,
> and all the other Jews who are not consciously
> arranging criminal aggressions against the rest
> of mankind.
>
> By the way, some of the most courageous battlers
> against the IRS and the Ruling Elite have been
> Jewish individuals, such as long time author Alan
> Stang ("The Stang Report"), the late Jim and Ken
> Collier ("Votescam: The Stealing of America"),
> the late Aaron Russo (producer of the movie
> "America: From Freedom to Fascism"), and
> "The
> Zionist Connection II: What Price Peace?" by the
> recently deceased Alfred M. Lilienthal.
>
> But that doesn't change the fact that the Super
> Crime Syndicate of would be dictators we are
> facing is made up primarily and overwhelmingly of
> such Jews as I have been describing.
>
> This is WHY there is a world of difference
> between the everyday, normal Americans who work
> at the IRS and think they are there to treat
> everyone fairly under the law, and these Neocon
> Jewish Super Criminals at the top of the IRS who
> concoct and prosecute these "Show Trials" against
> American patriots and heroes like Pete
> Hendrickson.
>
>
> MAKE THEM DO THEIR DIRTY DEED ON THE DOUBLE
> YELLOW LINE IN THE MIDDLE OF RUSH HOUR TRAFFIC
>
> Some of the Top Wirepullers in this faction are
> targeting Pete Hendrickson now and trying to put
> him in prison for a long time - because of the
> heroic work he is doing on behalf of all
> Americans.
>
> They expect to mug Pete in a dark alley with no
> one looking. They expect to put Pete in prison
> with relative ease. We must make sure this does
> not happen. IF they are going to attack Pete, we
> have to make sure they do it on the double yellow
> line in the middle of rush hour traffic.
>
>
> "RIDE TO THE SOUND OF THE GUNS" and HELP PETE
> HENDRICKSON NOW!
>
> Sometimes, in the confusion of battle when there
> is no visible General - all the good soldiers can
> do is ride to the sound of the guns.
>
> That's what I'm asking you to do.
>
> One VERY IMPORTANT battle is now raging around
> the prosecution of Pete Hendrickson. We must all
> ride towards the battle and do what we can. We
> are not only fighting for Pete Hendrickson, we
> are fighting for ourselves, our children, and our
> grandchildren.
>
> Realize this: this is NOT a long term battle as
> so many of these battles are.
>
> RIGHT NOW we can all send $10 or $100 or $1000 or
> whatever we can afford to Pete Hendrickson's
> Legal Defense Fund at this web page:
>
> http://www.losthorizons.com/Donate.htm PLEASE
> NOTE: you must go to the BOTTOM of that webpage
> to find the donate button; or mail a check to:
>
> Pete Hendrickson Legal Defense Fund, 232 Oriole
> Road, Commerce Twp., MI 48382
>
> AND RIGHT NOW thousands, then tens of
> thousands, then millions of people can start
> using the law as accurately explained in
> "Cracking the Code" and begin to reclaim tens of
> thousands of dollars in each person's case that
> should never have been paid to the IRS in the
> first place.
>
> Print this Network America ewire out and mail it
> to the Commissioner of the IRS, Abe Foxman at the
> ADL (Anti Defamation League of B'nai B'rith),
> AIPAC (American Israel Public Affairs Committee),
> or the office of a Zionist Jewish office holder
> such as Senator Charles Schumer of New York, or
> Senator Arlen Specter of Pennsylvania. Or print
> it out and mail it to ANY opinion molder in your
> area, whether to an office holder, businessman,
> pastor, teacher or intellectually curious person
> in any profession. (Or, if you prefer, mail to
> one or more such persons something that you
> yourself write about the persecution of Pete
> Hendrickson because of his book, "Cracking the
> Code", with or without this Network America
> ewire.)
>
> If this Crime Syndicate thinks they can proceed
> unchallenged with their agenda and put their most
> effective opponents in jail without opposition,
> they will continue to do both.
>
> If they think that they are going to wake up tens
> of thousands of Americans (or more) by
> persecuting Pete Hendrickson and putting him in
> jail, they will not do it, or they will do it at
> great peril to their continued domination of the
> United States of America and the world.
>
>
> DO WHAT YOU CAN
>
> DO WHAT YOU CAN. Do it now. But do something! Buy
> "Cracking the Code" and read it thoroughly. You
> have four months until you have to do that "dirty
> deed" and file your 1040! LEARN HOW TO DO IT THE
> LAWFUL, RIGHT WAY AND SAVE YOURSELF A CHUNK OF
> CASH! And please remember what is described
> in Pete's book and on his website, and on the
> simpler introductory website www.NotIncome.com is
> completely lawful and has been honored by the IRS
> thousands of times for the past several years
> ever since Pete's book came out and educated
> American tax filers.
>
> You see, it's up to EACH OF US to answer the
> charges (made by others every year in the form of
> 1099s and W 2s) that we are obligated to pay
> "income" tax. Learn how the law REALLY WORKS
> It's so simple you won't be able to stand it!
> And then you can teach everyone you know ...
>
> If five million - or three million - or even one
> million people in America did their taxes the
> RIGHT way, the way Congress provided for us to do
> them, this whole corrupt Hydra would be
> suffocated. It would simply not have the oxygen
> (our tax dollars) it needs to keep breathing.
> Think about that!! And thanks in advance.
>
>
> COMMENTS ON "CRACKING THE CODE"
>
> And some who have read the book, "Cracking the
> Code", have begun to comment More comments are
> found at www.NotIncome.com - but here are a two
> such comments:
>
> "I have been studying this subject for 10 years
> and this is, by far, the best work I have seen on
> the subject. Not only is it enlightening, but it
> tells you how to proceed to get your money back
> if you should choose to do so. Thanks for your
> work."
> Brad Parsons, Cleburne TX
>
> "I just finished reading Cracking the Code
> yesterday and I must congratulate you on this
> fine piece of work. I have spent several
> thousand hours in the law library researching
> these and other legal issues, and your book is a
> masterpiece."
> Gerald Brown, Ed.D., author of Cooperative
> Federalism
> and co author of In Their Own Words
>
>
> A FINAL NOTE ABOUT THE AMERICAN SPIRIT IN THIS
> YEAR OF 2009
>
> A note about the money change we face: Standing
> up for what is right in the United States of
> America 2009 can come with a cost. It would be
> ILLOGICAL for me to identify the ruthless,
> inhuman enemy now atop the IRS and the US federal
> government on the one hand, while, on the other
> hand, pretend that some who stand up against them
> will not suffer persecution. BUT, the more who
> stand up quickly, the faster this enemy will be
> spotlighted, made ineffective, and then routed!
>
> If there are not enough Americans willing to
> stand up like men and women against these evil
> doers, then prepare for an agonizing
> impoverishment and enslavement, a process you now
> see unfolding before your eyes in real time since
> the announcement of the contrived "banking
> crisis" in late September 2008.
>
> Excerpt from "The Mask of Anarchy" by Percy
> Bysshe Shelley, written in 1819 in response to an
> egregious injustice at that time:
>
> 'And these words shall then become
> Like Oppression's thundered doom
> Ringing through each heart and brain,
> Heard again again again
>
> 'Rise like Lions after slumber
> In unvanquishable number
> Shake your chains to earth like dew
> Which in sleep had fallen on you
> Ye are many they are few.'
>
> (End of poem's excerpt.)
>
> * * * * *
>
> Remember, Pete is standing in for ALL of us!
> Again, to help the Pete Henrickson Legal Defense
> Fund:
>
> www.losthorizons.com/Donate.htm PLEASE NOTE:
> you must go to the BOTTOM of that webpage to find
> the donate button; or mail a check to:
>
> Pete Hendrickson Legal Defense Fund, 232 Oriole
> Road, Commerce Twp., MI 48382
>
> End of this Network America ewire.
>
>
> Jim Condit Jr.
> votefraud.org
> networkamerica.org
>
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>
> Stunning Victory! ... and Stunning Persecution -
> As We Enter 2009!
>
>
> "We are living in an age of lies," one of my
> mentors told me over a decade ago. It is an age
> of lies because those who control our mass
> communication channels are clever and
> accomplished deceivers. They are playing Chess,
> while we their intended victims are playing
> simple checkers - or are not even aware a "game"
> is being played at all.
>
> One of the very obvious mass deception operations
> is that bimbo celebrities of both sexes (like
> Brittney Spears, Brad Pitt and Paris Hilton) get
> endless news coverage, while the information
> controllers hide from the public's view the
> REALLY important issues of our time.
>
> Another mass deception that has turned into a
> battle is going on RIGHT NOW. Our heroes are Pete
> Hendrickson, author of the watershed book
> "Cracking the Code: The Fascinating Truth About
> Taxation in America," and a handful of everyday
> Americans working at the IRS (Internal Revenue
> Service), whose names I do not know. Our villains
> are the top wirepullers at the IRS, who are
> engaged in Soviet style tactics against Pete
> Hendrickson to protect their exploitation of tens
> of millions of "income receiving" Americans.
>
>
> THE $6 MILLION DOLLAR MAN
>
> In late 2008, the front line workers at the IRS
> conceded that day-trader Bruce G. of Arizona did
> NOT owe "income" tax on some $6 million that had
> passed through his bank account. Bruce, using the
> sound research in Pete Hendrickson's book
> "Cracking the Code," was successfully able to
> argue that the money in question was not
> "income," was not federally privileged, and was
> thus not subject to "income" tax.
>
> Thousands of people have been educated as Bruce
> was by Pete Hendrickson's "Cracking the
> Code."
> Altogether, they have retained or been refunded
> (by the IRS) well over $9,000,000 (that's nine
> million dollars!) since the book was first
> published in 2003. (The current recovery total
> posted on Hendrickson's website,
> LostHorizons.com, is $9,644,422.83, and that
> figure comprises only what has been relayed back
> to him by those who have followed his example.)
> (Period needed here -- see it in red!)
>
> Hendrickson is careful to state that it was
> Congress ITSELF that provided a way for all
> Americans to free themselves from "income" tax
> each and every year. While the tax protest
> movement insists that income tax is
> unconstitutional and unlawful, Hendrickson's
> research (from an assiduous examination of over 6
> million words of Internal Revenue Code and the
> accompanying statutory law) informs us that the
> income tax IS in fact perfectly lawful, but is
> far from the voracious monster we believe it to
> be. As an excise tax, NOT a direct tax, it
> applies only to revenue in which the federal
> government has a direct ownership interest. For
> a simplified (and very clear) explanation of how
> income tax pertains to the earnings of Americans
> as explained in Pete Hendrickson's "Cracking the
> Code," please see the important website
> www.NotIncome.com
>
> One reason I call Pete Hendrickson our hero is
> because of the thousands of hours he spent
> reading the millions of words in the hugely
> convoluted IRS Code, and the law from other cases
> and places - so that the rest of us could
> understand and protect ourselves against the anti
> American tricks and bamboozlements which the
> parasitic wirepullers at the top of the IRS
> created for us.
>
> The reason I also call some everyday (as of now
> nameless) Americans who work at the IRS our
> heroes, is because these individuals have had to
> look with fresh eyes at the tax code - and have
> realized that Pete Hendrickson's interpretation
> of the law and the tax code is absolutely
> correct. Over the years they have been conceding
> "victories" to Hendrickson educated filers, and
> they demonstrated clarity again by giving Bruce
> G. of Arizona his $6 million release a few weeks
> ago.
>
> PLEASE NOTE: The uppermost Wirepullers and
> Controllers of the IRS are ESSENTIALLY DIFFERENT
> from the everyday American IRS employees who
> acknowledged that Bruce G.'s and Pete
> Hendrickson's interpretation of the law and the
> tax code are correct. And that ESSENTIAL
> DIFFERENCE will be explained at the end of this
> article.
>
>
> . . . AND A STUNNING PERSECUTION HAS BEGUN
>
> Pete Hendrickson, author of "Cracking the Code,"
> is now facing a Soviet-style (or Orwellian
> "1984") prosecution/persecution from the VERY
> HIGHEST TAX THUGS behind the IRS. He is facing
> this persecution for his efforts to liberate all
> of us from a false understanding of the tax
> system as almost universally practiced in the
> United States since 1942. (Since only as far back
> as 1942? Yes, since only as far back as1942. See
> NotIncome.com)
>
> These would be Enslavers of America are desperate
> that Americans not wake up to their scam. They
> are desperate that you continue to be deceived as
> to what the tax system means, so that they can
> continue to enjoy your surrender of 15% to 40% of
> your income to the IRS (depending on your tax
> bracket), for no reason at all except the
> ignorance that you (and I) have been laboring
> under.
>
> You see, if the correct interpretation of the law
> and the tax code as explained by Pete Hendrickson
> in "Cracking the Code" continues to catch on and
> take hold in the minds of Americans - then two
> pillars of the enslavement system which the
> Pharisee Money Changers behind the IRS are trying
> so feverish fasten around everyday citizens in
> the USA will come crumbling down.
>
> Those two pillars I am talking about are (1) the
> continued successful extraction of billions of
> dollars from American "earners" (blue collar and
> white collar) every year, which these "earners"
> DO NOT OWE to the IRS; and (2) the ability to
> terrorize and almost always JAIL any prominent or
> effective person the tyrants want to remove from
> general circulation.
>
>
> LET'S STOP THERE - AT THE JAIL PART
>
> Over the last two decades or so, these Moral
> Monsters behind the IRS have jailed TWO SITTING
> CONGRESSMEN for no good reason whatsoever
> except that each was an effective advocate for
> the people against the likes of the top
> wirepullers behind the IRS.
>
> Former Congressman George Hansen, author of "To
> Harass our People" (an indictment of IRS
> misdeeds), served 15 months in jail in 1986 87,
> during which time he was tortured and denied
> medial treatment (many accounts of his
> experiences can be found on the Internet). He had
> long battled for the little guy against IRS
> mistreatment. PLEASE NOTE: In 1995 Hansen's
> conviction (which led to his imprisonment) was
> overturned by the Supreme Court. The thugs behind
> the IRS and related menacing entities (CIA,
> Homeland Security, etc.) don't care if their
> effective enemies are guilty - THEY JUST WANT
> THEM OUT OF THE WAY IN PRISON AT THE HEIGHT OF
> THEIR EFFECTIVENESS.
>
> Same goes for former Congressman Jim Traficant,
> slated to get out of his seven year prison term
> in early 2009. There were several reasons why the
> Feds wanted Traficant behind bars. Here's one of
> them: in late 1997 Congressman Traficant led the
> charge and got a bill passed into law requiring
> the IRS to go to court before they could seize a
> taxpayer's home. Until then in 1997 the IRS had
> seized 10,500 homes without any court
> proceedings. How many homes were seized by the
> IRS in 1998 when they were required by law to go
> to a court BEFORE seizing a citizen's home? ...
> 58 homes, as I recall.
>
> Congressman Traficant himself said on the floor
> of the House of Representatives that this one
> piece of legislation alone was sufficient reason
> that powerful forces wanted to have him put away.
> (Michael Collins Piper has just published a book,
> "Target Traficant," which details the persecution
> of Jim Traficant and explains that he is not
> guilty of anything for which he was railroaded
> out of Congress and into imprisoned.)
>
> There are other, less prominent people sitting in
> jail right now on false or unjust charges.
>
>
> WHICH BRINGS US TO THE CHARGES JUST FILED AGAINST
> PETE HENDRICKSON
>
> In November 2008, the IRS filed felony charges
> against author Pete Hendrickson. These are
> serious charges that could result in a long
> prison term. (By the way, the hijacked US
> government has become notorious for illegally
> packing the jury in such cases where they want to
> make an example -- a political prisoner -- out
> of someone.)
>
> Hendrickson's "crime" is well CRACKING
> THE
> CODE. He figured it out. That's his "crime."
>
> Believe it or not, the IRS Top Thugs are not
> claiming that Pete said anything false in his
> book or in his tax filings. They are not asking
> him to retract anything he said. What they want
> him to do is say that he didn't believe what he
> put on his tax return, even though everything he
> put on his tax filings were honest, accurate, and
> in total accord with US law and the IRS code.
> TALK ABOUT A THOUGHT CRIME!!
>
> What they are trying to create is a Soviet style
> forced confession.
> They want Pete, under fear of a long prison term,
> to confess to something he doesn't believe in for
> a lesser prison term - while all the while Pete
> knows he's not guilty of anything - AND the IRS
> thugs KNOW that Pete is not guilty of anything.
>
> (However, it is important to understand this: in
> the minds of these insidious Money Changers,
> stepping between them and their exploited
> victims, i.e., tens of millions of misinformed
> tax payers, is FAR WORSE than being guilty of
> some real crime!)
>
> In fact, the top IRS Commissars know that Pete
> Hendrickson has actually done heroic work that
> could liberate tens of millions of Americans from
> their schemes in the relatively near future.
> That's why they've indicted Pete on such absurd
> charges. And that's why they want to take him out
> of circulation, put him in prison, and intimidate
> any one else from using the law and the IRS code
> to rebut or deny their alleged "taxable
> activities," which is so expertly and accurately
> explained in "Cracking the Code" (see
> www.NotIncome.com for a simple preview).
>
>
> WHO WAS BEHIND SOVIET CONFESSIONS, AND WHO IS
> BEHIND THE IRS AS IT NOW OPERATES?
>
> I am speaking for myself only throughout this
> article. Pete Hendrickson has had zero input into
> this article, and neither he nor anyone else
> except myself is responsible for anything I write
> here. The hour is late, and I cannot wait for
> those who have been slumbering, or resisting the
> call of truth, to "get in the game."
>
> There is an alien, criminal mind afoot in America
> and world. The way this criminal mind thinks is
> so alien to the decent thought processes of
> normal Americans - that the everyday American
> can't even believe that such people exist. But
> they do.
>
> This criminal mind is found in a relatively small
> sect of mankind. This small sect has power
> thousands of times beyond their numbers because
> they grasp always for money, media, and positions
> of power. This sect was behind Communism in
> Russia and the 20 million Russians who were
> murdered after they took control. And their
> leaders now control the deplorable Democratic and
> Republican Parties at the national level in the
> USA in 2008. It is they who were behind
> Soviet-style "confessions." It is they who
> transformed our tax code from a relatively benign
> "necessary evil" to the oppressive Behemoth that
> it is today. It is they who have grasped control
> of the central banks of the world, such as the
> Federal Reserve Board in the USA, from which they
> issue trillions to fund their world grasping
> agenda. It is they who pulled off the incredible
> 2008 "banking crisis" theft by which millions of
> Americans lost 40% of their pensions, their
> retirements, and their 401Ks. It is they who lied
> us into war in Iraq in 2003, and who are planning
> more unnecessary wars and evils as I write this.
>
> It is they who put former Congressman Hansen,
> former Congressman Traficant, and many other
> innocent Americans in jail who stood up to them
> in one way or another.
>
> This sect is best described as the Jewish
> Supremacists, or, as I like to call them these
> days, the NeoCon Jewish Crime Syndicate. (See
> "High Priests of War," for a full explanation of
> the term "NeoCon", as well as "Final
> Judgement,"
> "The New Jerusalem," or any book by Michael
> Collins Piper. See "Barbarians Inside the Gates"
> by Colonel Donn de Grandpre, who learned of this
> sect in his capacity as one of the top arms
> dealers for the Pentagon to countries in the
> Mideast in the mid to late 70s. See "The Israel
> Lobby and US Foreign Policy" by Professors Walt
> of Harvard and Mearsheimer of the University of
> Chicago. See "They Dare to Speak Out," by former
> Congressman Paul Findley; see the DVD "9/11
> Missing Links" by Prothink, or the home page at
> www.realnews247.com, or many of the programs at
> www.IamTheWitness.com ; see any books by the late
> Douglas Reed, Ivor Benson, or Fr. Denis Fahey -
> and the other thousands of books, audios, and
> videos that I can't even begin to list here.)
>
> The criminal mindset exhibited by this faction
> comes from the Talmud, in which the Jews who
> study it, or absorb its contents from fellow Jews
> around them, are taught that they have the right
> to cheat non Jews, kill non Jews, and use all
> goyim (human cattle, i.e., non Jews) as their
> footstool. (See "The Talmud Unmasked," Fr
> Prainatis, 1904; "The Plot Against Christianity,"
> Elizabeth Dilling, 1964, online at come and
> hear.com; "Judaism's Strange Gods" by Michael
> A.
> Hoffman II, or Hoffman's newest work, "Judaism
> Discovered," the first book ever banned by
> Amazon.com; also see the late Jewish author,
> Israel Shahak, "Jewish History, Jewish Religion:
> The Weight of 3000 Years," and "Sacred
> Terrorism", compliced by Livia Rokach, also
> online; this book is actually based on the
> diaries of the 2nd Prime Minister of Israel,
> Moshe Sharett. Again, this is just a sampling of
> works available on this now planet threatening
> subject.)
>
>
> DON'T FALL FOR PHONY CRIES OF PERSECUTION BY THIS
> FACTION
>
> I am half Irish and one quarter Italian -
> Sicilian Italian. And if I were alive 60 years
> ago I might have heard someone in America say
> that the power of the Mafia had to be broken, and
> that most of the visible Mafia leadership were
> Sicilian Italians. Now, if I had, upon hearing
> this, wailed, "You're anti Italian! Quit
> slandering my people!" - then I hope you would
> conclude that I was either part of the Mafia, or
> that I was victim of a mind warping brainwash, or
> that I was deranged.
>
> And that's what you should think of any Jewish
> person who cries "anti-Semitism" when someone
> like myself spotlights the faction that is
> pushing us towards a police state in the USA and
> trying to foment more foreign wars so they can
> increase their control over the population of the
> world. I am not anti-Jewish. I am anti-criminal.
> And the biggest criminal syndicate in the world
> in our time happens to be powered by this sect
> which can be dubbed many things, such as
> Neocon/Zionist/Communist/Talmudist Jews. I
> believe the most accurate term is "Jewish
> Supremacists" or "Talmudic Jewish
> Supremacists".
> But the most effective description as we enter
> 2009 is, "NeoCon Jewish Crime Syndicate." This
> clearly delineates between those Jews working for
> the current criminal drive for world domination,
> and all the other Jews who are not consciously
> arranging criminal aggressions against the rest
> of mankind.
>
> By the way, some of the most courageous battlers
> against the IRS and the Ruling Elite have been
> Jewish individuals, such as long time author Alan
> Stang ("The Stang Report"), the late Jim and Ken
> Collier ("Votescam: The Stealing of America"),
> the late Aaron Russo (producer of the movie
> "America: From Freedom to Fascism"), and
> "The
> Zionist Connection II: What Price Peace?" by the
> recently deceased Alfred M. Lilienthal.
>
> But that doesn't change the fact that the Super
> Crime Syndicate of would be dictators we are
> facing is made up primarily and overwhelmingly of
> such Jews as I have been describing.
>
> This is WHY there is a world of difference
> between the everyday, normal Americans who work
> at the IRS and think they are there to treat
> everyone fairly under the law, and these Neocon
> Jewish Super Criminals at the top of the IRS who
> concoct and prosecute these "Show Trials" against
> American patriots and heroes like Pete
> Hendrickson.
>
>
> MAKE THEM DO THEIR DIRTY DEED ON THE DOUBLE
> YELLOW LINE IN THE MIDDLE OF RUSH HOUR TRAFFIC
>
> Some of the Top Wirepullers in this faction are
> targeting Pete Hendrickson now and trying to put
> him in prison for a long time - because of the
> heroic work he is doing on behalf of all
> Americans.
>
> They expect to mug Pete in a dark alley with no
> one looking. They expect to put Pete in prison
> with relative ease. We must make sure this does
> not happen. IF they are going to attack Pete, we
> have to make sure they do it on the double yellow
> line in the middle of rush hour traffic.
>
>
> "RIDE TO THE SOUND OF THE GUNS" and HELP PETE
> HENDRICKSON NOW!
>
> Sometimes, in the confusion of battle when there
> is no visible General - all the good soldiers can
> do is ride to the sound of the guns.
>
> That's what I'm asking you to do.
>
> One VERY IMPORTANT battle is now raging around
> the prosecution of Pete Hendrickson. We must all
> ride towards the battle and do what we can. We
> are not only fighting for Pete Hendrickson, we
> are fighting for ourselves, our children, and our
> grandchildren.
>
> Realize this: this is NOT a long term battle as
> so many of these battles are.
>
> RIGHT NOW we can all send $10 or $100 or $1000 or
> whatever we can afford to Pete Hendrickson's
> Legal Defense Fund at this web page:
>
> http://www.losthorizons.com/Donate.htm PLEASE
> NOTE: you must go to the BOTTOM of that webpage
> to find the donate button; or mail a check to:
>
> Pete Hendrickson Legal Defense Fund, 232 Oriole
> Road, Commerce Twp., MI 48382
>
> AND RIGHT NOW thousands, then tens of
> thousands, then millions of people can start
> using the law as accurately explained in
> "Cracking the Code" and begin to reclaim tens of
> thousands of dollars in each person's case that
> should never have been paid to the IRS in the
> first place.
>
> Print this Network America ewire out and mail it
> to the Commissioner of the IRS, Abe Foxman at the
> ADL (Anti Defamation League of B'nai B'rith),
> AIPAC (American Israel Public Affairs Committee),
> or the office of a Zionist Jewish office holder
> such as Senator Charles Schumer of New York, or
> Senator Arlen Specter of Pennsylvania. Or print
> it out and mail it to ANY opinion molder in your
> area, whether to an office holder, businessman,
> pastor, teacher or intellectually curious person
> in any profession. (Or, if you prefer, mail to
> one or more such persons something that you
> yourself write about the persecution of Pete
> Hendrickson because of his book, "Cracking the
> Code", with or without this Network America
> ewire.)
>
> If this Crime Syndicate thinks they can proceed
> unchallenged with their agenda and put their most
> effective opponents in jail without opposition,
> they will continue to do both.
>
> If they think that they are going to wake up tens
> of thousands of Americans (or more) by
> persecuting Pete Hendrickson and putting him in
> jail, they will not do it, or they will do it at
> great peril to their continued domination of the
> United States of America and the world.
>
>
> DO WHAT YOU CAN
>
> DO WHAT YOU CAN. Do it now. But do something! Buy
> "Cracking the Code" and read it thoroughly. You
> have four months until you have to do that "dirty
> deed" and file your 1040! LEARN HOW TO DO IT THE
> LAWFUL, RIGHT WAY AND SAVE YOURSELF A CHUNK OF
> CASH! And please remember what is described
> in Pete's book and on his website, and on the
> simpler introductory website www.NotIncome.com is
> completely lawful and has been honored by the IRS
> thousands of times for the past several years
> ever since Pete's book came out and educated
> American tax filers.
>
> You see, it's up to EACH OF US to answer the
> charges (made by others every year in the form of
> 1099s and W 2s) that we are obligated to pay
> "income" tax. Learn how the law REALLY WORKS
> It's so simple you won't be able to stand it!
> And then you can teach everyone you know ...
>
> If five million - or three million - or even one
> million people in America did their taxes the
> RIGHT way, the way Congress provided for us to do
> them, this whole corrupt Hydra would be
> suffocated. It would simply not have the oxygen
> (our tax dollars) it needs to keep breathing.
> Think about that!! And thanks in advance.
>
>
> COMMENTS ON "CRACKING THE CODE"
>
> And some who have read the book, "Cracking the
> Code", have begun to comment More comments are
> found at www.NotIncome.com - but here are a two
> such comments:
>
> "I have been studying this subject for 10 years
> and this is, by far, the best work I have seen on
> the subject. Not only is it enlightening, but it
> tells you how to proceed to get your money back
> if you should choose to do so. Thanks for your
> work."
> Brad Parsons, Cleburne TX
>
> "I just finished reading Cracking the Code
> yesterday and I must congratulate you on this
> fine piece of work. I have spent several
> thousand hours in the law library researching
> these and other legal issues, and your book is a
> masterpiece."
> Gerald Brown, Ed.D., author of Cooperative
> Federalism
> and co author of In Their Own Words
>
>
> A FINAL NOTE ABOUT THE AMERICAN SPIRIT IN THIS
> YEAR OF 2009
>
> A note about the money change we face: Standing
> up for what is right in the United States of
> America 2009 can come with a cost. It would be
> ILLOGICAL for me to identify the ruthless,
> inhuman enemy now atop the IRS and the US federal
> government on the one hand, while, on the other
> hand, pretend that some who stand up against them
> will not suffer persecution. BUT, the more who
> stand up quickly, the faster this enemy will be
> spotlighted, made ineffective, and then routed!
>
> If there are not enough Americans willing to
> stand up like men and women against these evil
> doers, then prepare for an agonizing
> impoverishment and enslavement, a process you now
> see unfolding before your eyes in real time since
> the announcement of the contrived "banking
> crisis" in late September 2008.
>
> Excerpt from "The Mask of Anarchy" by Percy
> Bysshe Shelley, written in 1819 in response to an
> egregious injustice at that time:
>
> 'And these words shall then become
> Like Oppression's thundered doom
> Ringing through each heart and brain,
> Heard again again again
>
> 'Rise like Lions after slumber
> In unvanquishable number
> Shake your chains to earth like dew
> Which in sleep had fallen on you
> Ye are many they are few.'
>
> (End of poem's excerpt.)
>
> * * * * *
>
> Remember, Pete is standing in for ALL of us!
> Again, to help the Pete Henrickson Legal Defense
> Fund:
>
> www.losthorizons.com/Donate.htm PLEASE NOTE:
> you must go to the BOTTOM of that webpage to find
> the donate button; or mail a check to:
>
> Pete Hendrickson Legal Defense Fund, 232 Oriole
> Road, Commerce Twp., MI 48382
>
> End of this Network America ewire.
>
>
> Jim Condit Jr.
> votefraud.org
> networkamerica.org
>
> EMAIL US at: votefraud@fuse.net -- or simply
> reply to this message;
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Thursday, September 25, 2008
Re: Reply toThe M3; wikapedia; and the truth about the lie
-------------------Billions for the Bankers
Debts For The People
Debts For The People
In his essay, "Billions for the Bankers--Debts for the People: An indictment of the Federal Reserve System," the late Pastor Sheldon Emry examines the corruption at the core of the American monetary system.
This essay examines the corruption at the core of the Canadian monetary system. It suggests that Canadians lost control of their money supply in much the same way as the Americans. How can we get it back?
Money is "Created", Not Grown or Built
Economists use the term "create" when speaking of the process by which money comes into existence. New "Creation" means making something which did not exist before. Lumber workers make boards from trees, workers build houses from lumber, and factories manufacture automobiles from metal, glass and other materials. But in all these they did not actually "create."
They only changed existing materials into a more usable and, therefore, more valuable form. This is not so with money. Here, and here alone, man actually "creates" something out of nothing.
A piece of paper of little value is printed so that it is worth a piece of lumber.
With different figures it can buy the automobile or even the house. It's value has been "created" in the truest sense of the word.
"Creating" money is very profitable!
As is seen by the above, money is very cheap to make, and whoever does the "creating" of money in a nation can make a tremendous profit. Builders work hard to make a profit of 5 % above their cost to build a house.
Auto makers sell their cars for 1 percent to 2 percent above the cost of manufacture and it is considered good business. But money "manufactures" have no limit on their profits, since a few cents will print a $1 bill or a $10,000 bill. That profit is part of our story, but first let consider another unique characteristic of the thing -- money, the love of which is the "root of all evil".
Adequate money supply needed
An adequate supply of money is indispensable to civilized society. We could forego many other things, but without money, industry would grind to a halt, farms would become only self-sustaining units, surplus food would disappear, jobs requiring the work of more than one man or one family would remain undone, shipping and large movement of goods would cease, hungry people would plunder and kill to remain alive, and all government except family or tribe would cease to function.
An overstatement, you say? Not at all. Money is the blood of civilized society, the means of all commercial trade except simple barter. It is the measure and the instrument by which one product is sold and another purchased. Remove money or even reduce the supply below that which is necessary to carry on current levels of trade, and the results are catastrophic.
For an example, we need only look at Canada's depression of the early 1930's.---------------------------------------------------------------
nick,
this quoted article is exactly what i'm talking about, same as wikipedia, it implies money is created by printing, when in fact it is not, it is created as debt, NEW LOANS = NEW MONEY. Fraction reserve banking means $8 deposited in the federal reserve allows a bank to "create" $100 as loan/debt, but the $8stays there; do you get it? the bank isn't allowed to borrow your deposits, it has to create borrow/loan/debt misnomer. i don't even think the bank tellers get it.
thanks for the reply, glad to see your thinking about it.
you must see this 45minute video:
so please respond; how do you feel about the point i tried to make, IS IT RIGHT THAT BANKS CREATE MONEY AS DEBT, AND ALL THE LIES WE HEAR ABOUT HOW IT'S CREATED ON THE PRINTING PRESS`
Why draft monetary currency reform legislation with little chance of enactment under the present circumstances with a corrupt congress?
It is worth drafting & constructing radical changes with an ideal goal, so that incremental changes can be judged by whether they move the institutional currency structure toward or away from that ideal; if a crisis requiring or facilitating radical change does arise, alternatives will be available that have been carefully developed and fully explored.
~
Subject: Reply toThe M3; wikapedia; and the truth about the lie
Wow! First of all Wikipedia is not a great source for
> any
> information. I could easily create an entry as could you.
> It is
> essentially an open source reference created by any person
> with access to
> the net. The ONLY time incorrect information is corrected
> is when someone
> complains. AND it tool a law suit to create a process in
> which corrections
> could made.
>
> Anyway, it all started with Bretton Woods.
>
>
> http://economics.about.com/od/foreigntrade/a/bretton_woods.htm
>
> But in 1971 Nixon (GOP) took the US, and essentially
> the world off the
> "gold standard" because he was mad at DeGaulle
> (France), who was buying all
> the gold they could get their hands on. Nixon used a
> legitamate excuse to
> remove controls and deregulate most of the financial
> regulatory systems in
> the US banking system.
>
> Then some moron named Jimmy Carter become president in
> 1976 and through
> some fault, but not all, of Carter and the Democrats the US
> experienced
> inflation rates of double digits, record unemployment, and
> an impending
> world wide stock market major decline.
>
> Getting back to the point Reagan came along and used a
> legitimate
> problem to deregulate the banking industry even more than
> Nixon had. His
> vice president was someone named Bush.
>
> This is what happened next
>
> http://rationalrevolution.net/war/bush_family_and_the_s.htm
>
> After Clinton tried to clean things up, and reduced the
> damn federal
> deficit to an actual surplus the country elected another
> Bush.
>
> http://zfacts.com/p/318.html
>
> The GOP used to always say all the Democrats do is tax
> and spend. At
> least the don't BORROW and spend!
>
> One more thing. The "creation of money" is
> usually a good thing.
>
> http://www.justiceplus.org/creating.htm
>
> The real problem is the rich run the GOP and they have
> been burning our
> asses for at least fifty years. Reagan used to talk about
> "trickle down"
> economics. If the rich get richer, it will trickle down to
> the middle class
> and the poor. The only time I ever heard about that
> happening is Buffet and
> Gates.
>
> http://money.cnn.com/2006/06/25/magazines/fortune/charity1.fortune/index.htm
>
The M3; wikapedia; and the truth about the lie
>
>
>
> CRITIQUE of info taken from wikapedia;
> Fractional-reserve banking is a banking practice in which
> banks are required
> to keep only a fraction of their [deposits] in reserve with
> the choice of
> [lending] out the remainder
> http://en.wikipedia.org/wiki/Fractional_reserve_banking#Money_creation
>
> LIES 1; USE OF WORD [deposits]INCLUDES LOANS, MISLEADING
> 2; BANKS DON'T LOAN[lending] DEPOSITS. AS THIS ARTICLE
> GOES ON TO- LIE 3;
> USE OF WORD [funded] SHOULD BE CREATED.
>
> Money creation
>
> The process of fractional-reserve banking has a cumulative
> effect of money
> creation by banks.[4] In short, there are two types of
> money in a
> fractional-reserve banking system:[5][6]
>
> 1. central bank money (physical currency such as coins
> and paper money)
> 2. commercial bank money (money created through loans) -
> sometimes
> referred to as checkbook money[7]
>
> When a loan is [funded] with central bank money, new
> commercial bank money
> is created. As a loan is paid back, the commercial bank
> money disappears
> from existence.
>
> LIE 4; BANK MONEY ISN'T DISSAPPEARING, INFACT THE MONEY
> SUPPLY {M3} IS
> GROWING @18% CURRENTLY, ACCORDING TO RON PAUL. THEN THEY
> COME OUT WITH THE
> TRUTH THAT LOAN MONEY ISN'T LENT, BUT CREATED, AND
> OBSCURE IT WITH A COMA;
> Although no new money was physically created in addition to
> the initial $100
> deposit, [[[new commercial bank money is created through
> loans.]]]
>
> PLEASE REPLY W/ IDEAS; ALL BANKS OUT OF BUSINESS,
> GOVERNMENT BANKS W/
> TEXTBOOK AUDITS INSTEAD, OPERATE W/O INTEREST.
>
> Why draft monetary currency reform legislation with little
> chance of
> enactment under the present circumstances with a corrupt
> congress?
>
> It is worth drafting & constructing radical changes
> with an ideal goal, so
> that incremental changes can be judged by whether they move
> the
> institutional currency structure toward or away from that
> ideal; if a crisis
> requiring or facilitating radical change does arise,
> alternatives will be
> available that have been carefully developed and fully
> explored.
> ~Jason
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