The solutions to our financial crisis are easy, why is no one looking?Submitted by DrKrbyLuv on Wed, 07/15/2009 - 19:36
Let me give you something that has become very rare, some great news regarding our economy. Necessity is truly the mother of invention and we are at a point where reform isn't enough.
But first the bad news...our monetary system is usurious and it has a terminal flaw - debt must continually grow which becomes an exponential function.
We are at the end of our monetary system as there are no longer enough willing and worthy borrowers to sustain the required growth. Government has stepped in as the borrower of last resort in an effort to "artificially sustain" the system.
The problem is that every dollar the government borrows is backed by "We the People." When the ship sinks; and that is inevitable with our current system, we are going to pay through huge losses of our national and private wealth and assets (collateral).
Government and the Fed know this and they have already made the choice - save the Fed and it's banking system at the expense of "We the People." There's only room for one in the lifeboat. You can forget any notion you may hold that our federal government and the non-federal fed are working towards the best interests of the people.
Our federal government has been usurped at the highest levels by the federal reserve banking cartel. Solutions must come from others as they are the problem.
The Fed's plan at this point is to steal as much as they can from the sinking ship. After our economy collapses, we are going to lose what remains of our national sovereignty. The central banks are consolidating under the mother of all greed - the Bank of International Settlements located in Switzerland.
A global bank to usher in global governance. We may have already celebrated our last day of independence this past 4th of July.
Now for the good news...California may create their own currency. The currency solutions they find may become law without Washington's corruption.
Should States Be Allowed to Create Currency? Seeking Alpha:
Schwarznegger to Obama: Watch and Learn, by Marshall Auerback: According to the San Diego Union-Tribune, Republicans and Democrats alike embraced legislation last Friday that would make California IOUs legal tender for all taxes, fees and other payments owed to the state.
Effectively, California is using its IOUs to create a currency. If this bill passes it would allow California to deficit spend just like the Federal Government and with the IOU's acceptable as payment of state taxes, it instantly imparts value to them. In effect, what you have is a state of the union creating a sovereign currency right under the noses of Treasury, Fed. They are stumbling their way into it...
It will be viewed as a stop gap measure at first, and then could very well become entrenched as states realize they have a way to escape balanced budget requirements..
The ... Federal government retains this monopoly under our existing monetary arrangements. If California is successful here in allowing its IOUs to pay tax, it has profound constitutional ramifications. It will be interesting to see how this plays out. As California goes, will the nation follow?
The solution is right in front of us. Over 130 years ago, Abraham Lincoln said "The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity."
It is time to take back our supreme prerogative and greatest opportunity. The California idea of creating IOUs is only one of the many creative opportunities that we have to restore our financial freedom and security. Here are several examples that could take place at the state level (I will use California as an example, but this applies to every state):
1) California could buy or establish their own "private" state bank. This would enable them to create money through the fractional system that is held as a "money-making-monopoly" by private banks. California's 2009 projected revenue of $128 billion falls short of their budget requirements by $23 billion.
Assuming a 10% reserve requirement, if they deposited $2.3 billion in their own bank, they could loan out the $23 billion instead of running a deficit. North Dakota is doing something similar now (Ellen Brown's explanation).
2) If they deposited the full $128 billion in revenues, they would have the potential to issue $1.28 trillion in loans! They could use this money to rebuild their infrastructure or for special purposes. For example, they could provide 0% loans for all qualified state residents to get out of predatory private mortgages that are destroying the state.
3) They could charter a state bank to advance funds for legislatively-approved projects in the same way that banks make commercial loans – simply by "monetizing" the projects. Our entire money supply is now created by banks in the form of loans - banks create all the money they lend.
This was confirmed by the Chicago Federal Reserve in a booklet called "Modern Money Mechanics," which states:
Of course, [banks] do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both rise [by the same amount].
Projects could be simply monetized without adding any debt! The money could be used to purchase goods and services, benefiting business. It could be used to eliminate or greatly reduce state taxes. And it would flow back into the state reducing the number of loan defaults, increasing employment and benefiting every segment of society. Byron Dale has written the Minnesota Transportation Act (It has not yet passed) which explains this in greater detail.
But are these ideas inflationary? Inflation results when the money supply increases faster than the amount of new goods and services. The key is to increase goods and services as the money supply is increased, maintaining a balance between the two.
The federal reserve system system is inflationary because banks create the principal but not the interest necessary to pay back their loans. Additional loans must therefore continually be made just to service existing debt. Loan profits go into the pockets of private banks rather than contributing to the productivity of the community.
Our nation faces many problems but money should not be one of them, in fact, money is the tool to help solve or minimize all other problems. This is getting exciting as people will now begin to look at alternatives to the rotten federal reserve.
We still hold our sovereign destiny but that power is being taken from us...let's take it back before it's too late.