Was Banken, Wissenschaftler, die Medien und Politiker nicht sagen, Sie über Geld

Wednesday, November 19th, 2008 Mittwoch, 19. November, 2008

The privilege of creating and issuing money is not only the supreme prerogative of government, but is the government’s greatest creative opportunity. Das Privileg der Schaffung und die Ausstellung von Geld ist nicht nur der höchste Vorrecht der Regierung, aber die Regierung ist die größte kreative Chance. By the adoption of these principles, the taxpayers will be saved immense sums of interest. — Abraham Lincoln Durch die Annahme dieser Grundsätze, die Steuerzahler werden gespeichert immense Summen von Interesse. - Abraham Lincoln

Most of what follows is the work of the extraordinary and admirable Stephen Zarlenga of the Die meisten von dem, was folgt, ist die Arbeit der außerordentliche und bewundernswerte Stephen Zarlenga der American Monetary Institute American Währungsinstituts . We have taken excerpts from various of his writings - including a 2003 speech to US Treasury staff - and blended it into one piece. Wir haben Auszüge aus verschiedenen seiner Schriften - darunter ein 2003 Rede vor US-Treasury-Mitarbeiter - und Blended es in einem Stück. Also included is an article we ran 1994 by Bob Blain and an excerpt from Sam Smith’s Great American Political Repair Manual, published by WW Norton in 1997. Ebenfalls enthalten ist ein Artikel führten wir 1994 von Bob Blain und ein Auszug aus Sam Smith's Great American Political Reparatur-Handbuch, herausgegeben von WW Norton & Co Ltd in 1997.

Some history Ein bisschen Geschichte

Stephen Zarlenga, American Monetary Institute - The money system is society’s greatest dispenser of justice or injustice. Stephen Zarlenga, US-amerikanischer Währungs-Institut - Das Geld ist der Gesellschaft die größte Spender der Gerechtigkeit oder Ungerechtigkeit. A good one functions fairly, helping create values for life. Eine gute Funktionen ein recht, einen Beitrag zur Schaffung besserer Werte für das Leben. A bad, unjust one obstructs the creation of values; gives special privileges to some and disadvantage to others causing unfair concentrations of wealth and power; leading to social strife and eventually warfare and a thousand unforeseen bad consequences - physical and spiritual. Eine schlechte, ungerechte ein behindert die Schaffung von Werten; gibt Sonder-Privilegien und bis zu einem gewissen Nachteil für andere verursacht unlauteren Konzentration von Reichtum und Macht, was zu sozialen Unruhen und schließlich Kriegsführung und tausend unvorhergesehene schlechten Folgen - körperliche und geistige. . .

One reason economists have failed mankind so badly is their poor methodology - an over-reliance on theoretical reasoning. Ein Grund Ökonomen haben die Menschheit nicht so schlecht ist ihre schlechte Methode - ein übermäßiges Vertrauen auf theoretische Begründung. Alexander Del Mar the world’s greatest monetary historian noted: “As a rule economists. Alexander Del März die weltweit größte Geld-Historiker zur Kenntnis genommen: "In der Regel Ökonomen. . . don’t take the trouble to study the history of money; it is much easier to imagine it and to deduce the principles of this imaginary knowledge.”. nicht die Mühe, um die Geschichte des Geldes, es ist viel einfacher, sich vorzustellen, sie und Rückschluss auf den Grundsätzen dieser imaginären Wissen. ". . .

In England the struggle became the goldsmiths vs the monarchy representing society. In England wurde der Kampf gegen die Goldschmiede der Monarchie, die Gesellschaft. Later it was the Bank of England vs. society. Später war es der Bank of England vs Gesellschaft. Until then England’s money power was in the monarch’s hands. Bis dahin England's Geld Macht war in der Monarch die Hände. But from that point, Bank of England credits would be substituted in place of public money. Aber an dieser Stelle, die Bank von England Kredite wäre das danach den Platz der öffentlichen Gelder. This promoted a confusion between credit and money to this day. Diese gefördert einer Verwechslung zwischen Kredit-und Geld bis auf den heutigen Tag. But they are different things. Aber sie sind verschiedene Dinge. Credit depends on the creditor remaining solvent. Credit hängt davon ab, die Gläubiger verbleibenden Lösungsmittel. Real money does not promise to pay something else. Real Geld nicht zu bezahlen versprechen etwas anderes. Money is on a higher order than credit. Das Geld ist auf einer höheren Ordnung angehören als Kredit.

Those behind the Bank of England obscured the real source of the bank’s power - its legal privilege. Diese hinter der Bank of England verdeckt die eigentliche Quelle der Bank Macht - seine rechtliche Privileg. Its notes were accepted in payments to the government. Seine Noten wurden bei den Zahlungen an die Regierung. Recovering the science of money for the private profit of a small group produced harmful results: 120 years of continuous warfare spawned an unpayable national debt leading to excessive taxation leading to horrors like the Irish potato famine. Wiederherstellen der Wissenschaft von Geld für den privaten Gewinn von einer kleinen Gruppe produziert schädliche Ergebnisse: 120 Jahre kontinuierliche Krieg hervorgebracht ein unschätzbaren Staatsverschuldung führt zu einem übermäßigen Besteuerung führt zu Schrecken wie die irische Kartoffel-Hungersnot.

Before then, when a nation’s money system was used for taxation, the revenue generally aided the society. Bevor dann, wenn eine Nation Geld genutzt wurde, für die Besteuerung, die Einnahmen der Regel geförderten die Gesellschaft. But the Bank of England concentrated society’s resources in the wrong hands, crippling the possibility for government to function properly, leading to a growing contempt of government. Aber die Bank of England konzentrierte sich die Gesellschaft die Mittel in die falschen Hände geraten, lähmender die Möglichkeit für die Regierung, ordentlich zu funktionieren, was zu einer wachsenden Verachtung der Regierung.

Today it’s still the bankers versus the society. Heute ist es nach wie vor die Banken gegenüber der Gesellschaft. At base, the battle remains private money vs. public money. An der Basis, die Schlacht nach wie vor private Geld vs öffentliche Gelder. The outcome determines whether the money system operates to serve the few in control, or the whole society. Das Ergebnis legt fest, ob das Geld-System betreibt, um die wenigen in der Steuer-, oder die ganze Gesellschaft. . .

Mankind can live under various forms of government from dictatorship to republic, but the best systems are those in harmony with human nature. Menschen leben können unter verschiedenen Formen der Regierung von der Diktatur zur Republik, aber die besten Systeme sind solche, in Harmonie mit der menschlichen Natur. Likewise many things can be made into money, but the best will be the ones in harmony with the nature of money. Ebenso viele Dinge können in Geld, sondern die besten werden diejenigen in Harmonie mit der Natur des Geldes.

Remember: don’t confuse money with tangible wealth. Denken Sie daran: nicht verwechseln Geld mit greifbaren Reichtum. Yes, commodities can be improperly monetized by law. Ja, Rohstoffe werden können unsachgemäß monetized durch Gesetz. The result will make the money system hostage to the commodities situation; hostage to the people, companies, countries that control the commodity. Das Ergebnis wird die Geld-System Geisel der Rohstoffe Situation; Geisel zu den Menschen, Unternehmen, Länder, die Kontrolle der Ware. Ultimately it removes the monetary power from society and places it into the hands of the wealthy. Letztlich Er entfernt den monetären Macht aus der Gesellschaft und stellt sie in die Hände der Reichen.

And don’t confuse money with credit - either private or public credit. Und nicht zu verwechseln mit Geld Kredit - entweder privat oder öffentlich-Kredit. Yes private credits can be improperly monetized by law. Ja privaten Gutschriften können nicht ordnungsgemäß monetized durch Gesetz. But that gives great privilege to those whose credits have been monetized, to the detriment of the whole society. Aber das gibt große Ehre für all jene, deren Kredite wurden monetized, zu Lasten der gesamten Gesellschaft. The money system then becomes an engine of injustice - as it is now. Das Geld wird dann zu einem Motor der Ungerechtigkeit - wie es jetzt ist. . .

How private central banking started in America Wie privaten Zentralbankfunktionen startete in Amerika

First Step: Our Constitutional Convention, considered two grand themes on humanity: First whether mankind could be self-governing. Erster Schritt: Unsere Verfassungskonvents, als zwei große Themen der Menschheit: Erstens, ob die Menschheit werden könnte Selbst-Regierung. This American experiment is still in doubt because the Convention mishandled the other grand theme over the nature of money. Das amerikanische Experiment befindet sich noch in Zweifel, weil die falsch-Übereinkommens die anderen großen Thema über die Natur des Geldes.

They met from May to September 1787 but the money subject didn’t came up til August 16. Sie trafen sich von Mai bis September 1787, aber das Geld nicht Gegenstand kam bis 16. August. Jefferson and Paine weren’t there. Jefferson und Paine waren nicht da. Franklin was too old to speak. Franklin war zu alt, zu sprechen.

A curious book on money appeared, written anonymously by Calvinist clergyman John Witherspoon. Ein neugieriger Buch über Geld erschien, geschrieben von anonym Reformierte Pfarrer John Witherspoon. The book attacked government money and promoted Adam Smith’s primitive view that only gold and silver are money. Das Buch angegriffen Regierung Geld und gefördert Adam Smith's primitive Auffassung, dass nur Gold und Silber sind Geld. . . .

The power for government to create money, long considered a necessary part of sovereignty was already in the articles of Confederation, but the Federalists fought to exclude this crucial power from the new government, arguing that it could not be trusted with it. Die Macht für die Regierung, um Geld, lange als ein notwendiger Bestandteil der Souveränität war bereits in den Artikeln der Konföderation, aber die Föderalisten gekämpft, um diese entscheidende Macht von der neuen Regierung, mit dem Argument, sie könne nicht vertraut werden mit ihr. Some of them intended to get hold of the power privately as had been done in England. Einige von ihnen, die zu erreichen ist die Macht privat als getan wurde in England.

The supreme importance of understanding the nature of money now becomes evident: For if money obtains its value from “intrinsic” qualities, it could be viewed more as a creature of merchants and bankers than of governments. Die höchste Bedeutung, die Kenntnisse über die Natur des Geldes jetzt wird deutlich: Denn wenn Geld erhält seinen Wert aus "intrinsische" Qualitäten, könnte es sich mehr als ein Geschöpf der Kaufleute und Bankiers als von Regierungen.

But if money’s essence is an abstract social institution obtaining value through law, then its a creature of government and the Constitution had better deal with it adequately. Aber wenn's Geld Essenz ist eine abstrakte soziale Institution den Erhalt der Wert durch Gesetz, dann seine eine Kreatur des Staates und der Verfassung hatte sich besser mit ihr angemessen. Describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. Beschreiben, wie eine einheitliche Währung zu machen, kontrolliert und einigermaßen stabil gehalten werden, in einer gerechten Art. The Constitutional Convention faltered on this crucial question. Der Verfassungskonvent ins Stocken geraten auf diese entscheidende Frage.

The delegates accepted Smith’s primitive concept of money and didn’t firmly place the money power into government’s hands, leaving it ambiguous. Die Delegierten akzeptiert Smith's primitiven Konzept der Geld-und nicht fest, die Geld Macht in der Regierung die Hände, so dass es zweideutig.

But the power would still exist. Aber die Macht würde noch existieren. What I’m suggesting is that human affairs require government to have four branches, not three; the fourth branch to administer the money power. Was ich vorschlagen ist, dass menschliche Angelegenheiten erfordern Regierung zu haben vier Niederlassungen, nicht drei, die vierte Zweigstelle zu verwalten das Geld Macht.

The Constitution left the money power up for grabs. Die Verfassung aus dem Geld Macht für Grabs. Alexander Hamilton wasted no time in grabbing. Alexander Hamilton verschwendet keine Zeit in der linken Maustaste.

Second Step: The Constitution went into effect in late 1789. Zweiter Schritt: Die Verfassung in Kraft trat im Spätsommer 1789. Hamilton’s first move as Secretary of the Treasury, was to assume $15 million of the state debts. Hamiltons ersten Schritt als Sekretär des Treasury, wurde zu der Annahme, 15 Millionen Dollar von der staatlichen Schulden. . . an extremely unpopular act. ein äußerst unpopulär handeln. Why? Warum?

The worthless debt was held by the revolutionary soldiers, farmers, manufacturers and merchants who furnished its supplies. Die wertlos Schuldenstand betrug im Besitz der revolutionären Soldaten, Bauern, Hersteller und Händler, die ihre Lieferungen eingerichtet. As Congress secretly passed the bill behind closed doors, the country was overrun by speculators, buying up the certificates for pennies on the dollar. Als Kongress heimlich an der Gesetzentwurf hinter verschlossenen Türen, das Land wurde Überschreitung von Spekulanten, den Kauf der Bescheinigungen für Pennies auf dem Dollar.

Third step: Next Hamilton and associates, having kept the monetary power out of government, moved to assume it themselves. Dritter Schritt: Weiter Hamilton und assoziierten Unternehmen, mit der monetären gehalten Macht von Regierung, verschoben zu der Annahme, es selbst. . .

Hamilton’s Federalists quickly put through legislation chartering the First Bank of The United States, as a privately owned central bank on the Bank of England model. Hamilton's Föderalisten ist schnell dahin, durch die Gesetzgebung Chartern der Erste Bank der Vereinigten Staaten, als ein privat geführtes Zentralbank auf der Bank of England Modell. The Bank would be issuing paper notes not really backed by metal, but pretending to be redeemable in coinage, on the one condition that not a lot of people asked for redemption. Die Bank wäre die Ausstellung von Papier stellt fest, nicht wirklich von Metall, aber so zu tun, zu Redeemable im Münzwesen, über die ein Bedingung, dass nicht eine Menge Leute gefragt, für die Erlösung. They never had enough coinage. Sie hatte nie genug vorhanden war.

Thus the real question was whether it would be private banks or the government that would issue paper money. Damit die eigentliche Frage war, ob es private Banken oder der Regierung, die Frage Papiergeld. Will the immense power and profit of issuing currency go to the benefit of the whole nation, or to the private bankers? Wird die immense Kraft und Gewinn der ausstellenden Währung gehen zum Nutzen der ganzen Nation, oder an den privaten Banken? That’s always been the real monetary question in America. Das ist immer der realen Geld-Frage in Amerika.

Gold and silver served as a smoke-screen. Gold und Silber als Rauch-Bildschirm. What the bankers counted on were the legal considerations of the money. Was die Banker gezählt wurden auf die rechtlichen Erwägungen des Geldes. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Sie wussten, dass alles, was erforderlich war, um ihre Papier stellt fest, Wert, war für die Regierung zu akzeptieren, sie als Zahlung für die Steuern. That, and not issuing too excessive a quantity. Das, und nicht die Ausstellung zu einem übermäßigen eine Menge. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. Unter diesen Bedingungen wird das Papier stellt fest, sie ausgedruckt der dünnen Luft, wäre ein Anspruch auf alle vorhandenen Reichtum in der Gesellschaft.

Just where did the money for first bank of the US came from? Wo haben nur das Geld für die erste Bank der USA kamen aus? . . . The $10 million subscription for the banks’ shares, was oversubscribed within two hours. Die 10 Millionen Dollar Abonnement für die Banken "Aktien, überzeichnet" war innerhalb von zwei Stunden. Only 1/10 of it was ever paid in gold. Nur 1 / 10 der war es immer in Gold gezahlt. The rest was accepted in the form of bonds - the government bonds that Hamilton had turned from pennies on the dollar to full value. Der Rest wurde in Form von Anleihen - die Staatsanleihen, dass Hamilton hatte sich aus Pfennige auf den Dollar zu vollen Wert. The money for the private bank actually came from the American people. Das Geld für die private Bank tatsächlich kamen aus dem amerikanischen Volk.

Thanks to Jefferson’s efforts, the bank was liquidated in 1811. Dank Jefferson's Bemühungen, die Bank wurde in 1811 liquidiert. Three quarters of it was found to be owned by English and Dutch. Drei Viertel davon wurde festgestellt, dass im Besitz von Englisch und Niederländisch.

AMI’s proposed reforms AMI vorgeschlagenen Reformen

- Nationalize the Federal Reserve System. - Nationalisieren die Federal Reserve System. Reconstitute it in the US Treasury, to evolve into a fourth branch of government. Den sie in das US-Finanzministerium, die sich in eine vierte Zweig der Regierung. Only the government would create money. Nur die Regierung neues Geld schaffen würde.

- Remove the privilege which banks presently have to create money. - Entfernen Sie das Privileg, die Banken derzeit haben, um neues Geld schaffen. This is done through an elegant and gentle process which automatically turns all the previously issued bank credit into real American money. Dies geschieht durch eine elegante und schonende Verfahren schaltet sich automatisch ein, die alle zuvor ausgestellte Bankkredit in echte amerikanische Geld. 100% reserves are reached not by calling in loans but by increasing reserves. 100% erreicht sind behält sich nicht durch Rückgriff auf Kredite, sondern durch Erhöhung der Reserven. This would be neither inflationary or deflationary. Dies wäre weder inflationären oder deflationären.

- Institute programs for automatic, constitutionally determined government money creation, starting with the $2 trillion which the civil engineers need to bring our infrastructure up to acceptable levels. - Institut für Automatik, verfassungsmäßig festgelegt Regierung die Schaffung von Geld, beginnend mit dem 2 Billionen Dollar, die die Ingenieure brauchen, um unsere Infrastruktur bis auf ein annehmbares Niveau. From there we go forward carefully determining how to best run the monetary system. Von dort aus gehen wir nach vorn sorgfältig Bestimmung, wie Sie am besten laufen die monetäre System. . .

What difference would reconstituting the money power in government make? Welchen Unterschied würde Rekonstitution das Geld Macht in der Regierung machen? Government money goes into infrastructure; better life; better jobs; education, safer roads, cleaner water; better health care; social security, etc. Society is empowered by being able to direct the money power to solve pressing problems rather than into useless speculation. Regierung Geld fließt in die Infrastruktur; besseres Leben, bessere Arbeitsplätze, Bildung, sicherere Straßen, sauberes Wasser, bessere Gesundheitsversorgung, soziale Sicherheit usw. Gesellschaft wird ermächtigt, indem der Lage, das Geld direkt zu lösen drängenden Probleme nicht in nutzlose Spekulation. We no longer have to say we can’t afford it, when so many people and resources are unemployed!. Wir nicht mehr zu sagen haben wir uns nicht leisten können es, wenn so viele Menschen und Ressourcen, die arbeitslos sind!.

These three reforms can be closer than we think; and in a crisis situation if only 5% of the citizenry has an awareness of the societal/legal nature of money, they could be enacted. Diese drei Reformen lassen sich näher als wir denken, und in einer Krisensituation, wenn nur 5% der Bürger hat ein Bewusstsein für die gesellschaftliche / rechtliche Natur des Geldes, sie könnten erlassen werden.

The need for monetary reform Die Notwendigkeit für die Währungs-Reform

The power to create money is an awesome power - at times stronger than the executive, legislative or judicial powers combined. Die Macht zu schaffen Geld ist eine großartige Leistung - in Zeiten stärker als die Exekutive, Legislative oder Judikative kombiniert werden. It’s like having a “magic checkbook,” where checks can’t bounce. Es ist wie mit einer "magischen Scheckheft zu handhaben," wenn die Kontrollen nicht Sprungkraft. When controlled privately it can be used to gain riches, but more importantly it determines the direction of our society by deciding where the money goes - what gets funded and what does not. Wenn privat kontrolliert werden kann, benutzt, um Reichtum, aber was noch wichtiger ist es bestimmt die Richtung unserer Gesellschaft entscheiden, wohin das Geld fließt - was finanziert und was nicht. Will it be used to build and repair vital infrastructure such as levees to protect major cities? Wird es für den Bau und die Reparatur der lebenswichtigen Infrastruktur, wie Deiche zum Schutz der Großstädte? Or will it go into warfare or real estate loans, creating asset price inflation - the real estate bubble. Oder wird es gehen in die Kriegsführung oder Immobilienkredite, die Asset-Inflation - die Immobilienblase.

Thus the money issuing power should never be alienated from democratically elected government and placed ambiguously into private hands as it is in America in the Federal Reserve system today. Damit das Geld die Ausstellung von Macht sollte nie entfremdet demokratisch gewählte Regierung und setzte zweideutig in private Hände, da sie in Amerika in der Federal Reserve System heute.

Indeed most people would be surprised to learn that the bulk of our money supply is not created by our government, but by private banks when they make loans. Denn die meisten Leute wären überrascht zu erfahren, dass der Großteil unserer Geld-Versorgung ist nicht von unserer Regierung, sondern von privaten Banken, wenn sie Darlehen. Most of our money is issued as interest-bearing debt. Die meisten unserer Geld ausgegeben als verzinsliche Schulden.

We are borrowing this money system from private banks when instead we should own the system, not rent it. Wir sind Kreditaufnahme dieses Geld-System aus privaten Banken, wenn stattdessen sollten wir uns selbst das System, nicht mieten. Our government has the sovereign power to issue money (Art.1, Sect.8) and spend it into circulation to promote the general welfare through the creation and repair of infrastructure, including human infrastructure - health and education - rather than misusing the money system for speculation as banking has historically done. Unsere Regierung hat die souveräne Macht zur Ausgabe von Geld (Art. 1, Sect.8) und verbringen sie in den Verkehr zur Förderung der allgemeinen Wohlfahrt durch die Schaffung und Instandsetzung von Infrastruktur, einschließlich der menschlichen Infrastruktur - Gesundheit und Bildung - und nicht als missbräuchlich das Geld System für Spekulationen, wie Banken hat historisch getan. Our lawmakers must now reclaim that power. Unser Gesetzgeber muss jetzt wieder, dass die Macht. . .

Unhappily, mankind’s experience with private money creation has undeniably been a long history of fraud, mismanagement and even villainy. Unglücklich, Menschen die Erfahrung mit privatem Geld Schaffung hat unbestreitbar eine lange Geschichte von Betrug, Missmanagement und sogar villainy. Banking abuses are pervasive and self-evident. Banking Missbrauch sind allgegenwärtig und selbstverständlich. Major companies focus on misusing the money system instead of production. Große Unternehmen konzentrieren sich auf das Geld missbräuchlich System anstelle der Produktion. For example, in June 2005, Citibank and Merrill Lynch paid over $1.2 Billion to Enron pensioners to settle fraud charges. Zum Beispiel, im Juni 2005, Citibank und Merrill Lynch zahlen über $ 1,2 Milliarden an Enron-Rentner, um die Grenze zu Südossetien.

Private money creation through fractional reserve banking fosters an unprecedented concentration of wealth which destroys the democratic process and ultimately promotes imperialism. Private Geld Schaffung durch gebrochene Reserve Banken fördert eine beispiellose Konzentration von Reichtum, die zerstört den demokratischen Prozess und letztlich fördert Imperialismus. Less than 1% of the population claims ownership of almost 50% of the wealth, but vital infrastructure is ignored. Weniger als 1% der Bevölkerung Forderungen Eigentum von fast 50% des Reichtums, aber lebenswichtige Infrastruktur wird ignoriert. The American Society of Civil Engineers gives a D grade to our infrastructure and estimates that $1.6 trillion is needed to bring it to acceptable levels. Die American Society of Civil Engineers gibt eine Klasse D auf unsere Infrastruktur und geht davon aus, dass $ 1,6 Billionen erforderlich ist, um es auf ein annehmbares Niveau.

That fact alone shows the world’s dominant money system to be a major failure crying for reform. Diese Tatsache allein zeigt, die weltweit dominierende Geld-System nach wie vor ein wichtiges Versäumnis Weinen für die Reform.

Infrastructure repair would provide quality employment throughout the nation. Infrastruktur Reparatur würde die Qualität der Beschäftigung in der gesamten Nation. There is a pretense that government must either borrow or tax to get the money for such projects. Es ist ein Vorwand, dass die Regierung muss entweder ausleihen oder Steuern, um das Geld für solche Projekte. But the government can directly create the money needed and spend it into circulation for such projects, without inflationary results. Aber die Regierung kann direkt schaffen, das Geld benötigt und verbringen sie in den Verkehr für solche Projekte, ohne Inflationsdruck Ergebnisse.

The false specter of inflation is usually raised against suggestions that our government fulfill its responsibility to furnish the nation’s money supply. Die falsche Gespenst der Inflation ist in der Regel gegen die Vorschläge, dass unsere Regierung erfüllen ihre Verantwortung auf, die Nation der Geldmenge. But that is a knee jerk reaction - the result of decades, even centuries of propaganda against government. Aber das ist ein Knie-Reflex - das Ergebnis von Jahrzehnten, sogar Jahrhunderten der Propaganda gegen die Regierung. When one actually examines the monetary record, it becomes clear that government has a superior record issuing and controlling money than the private issuers have. Wenn man tatsächlich untersucht die Währungs-Datensatz, so wird deutlich, dass die Regierung hat ein Superior-Datensatz die Ausstellung und Kontrolle der Geld als die privaten Emittenten haben. Inflation is avoided because real material wealth has been created in the process. Die Inflation wird vermieden, weil realen materiellen Reichtum erstellt wurde, in den Prozess einzubeziehen.

From Stephen Zarlenga’s 2003 speech at the US Treasury Von Stephen Zarlenga's 2003 Rede auf das US-Finanzministerium

Perhaps the chief failure of economics is its inability, from Adam Smith to the present, to define or discover a concept of money consistent with logic and history. Vielleicht ist der Chef Versagen der Wirtschaft ist seine Unfähigkeit, von Adam Smith bis in die Gegenwart, zu definieren, oder entdecken Sie ein Konzept des Geldes im Einklang mit Logik und Geschichte. Economists rarely define money, assuming an understanding of it. Ökonomen selten definieren, Geld, vorausgesetzt, ein Verständnis für sie. It’s still being argued whether the nature of money is a concrete power, embodied in a commodity like gold; or whether it’sa credit/debit issued by private banks. Es ist immer noch geltend gemacht werden, ob die Natur des Geldes ist eine konkrete Macht, die in eine Ware wie Gold, oder ob es sich um eine Kredit-/ Debitkarte, die von privaten Banken. Does its value come from the material of which it’s made? Ist sein Wert aus dem Material, aus dem es gemacht? Or is it, as we have concluded, an abstract social power - an institution of the law, having value because its accepted in exchanges due to the sponsorship of government? Oder ist es, wie wir zu dem Schluss gekommen sind, eine abstrakte gesellschaftliche Macht - eine Institution des Rechts, unter Wert, weil ihr in den Austausch durch das Sponsoring der Regierung? The correct answer leads to conclusions on the proper monetary role of government; whether the power to create and control money should be lodged, as at present in a somewhat ambiguous private issuer - the Federal Reserve System and its member banks - or should be wholly reconstituted within government. Die richtige Antwort führt zu Schlussfolgerungen über die ordnungsgemäße monetäre Rolle der Regierung, ob die Befugnis zur Erstellung und Kontrolle Geld sollte eingereicht werden, als derzeit in einer etwas zweideutig privaten Emittenten - das Federal Reserve System und seinen Mitgliedstaaten Banken - oder sollte vollständig rekonstituierte innerhalb der Regierung. An accurate concept of money will light the way to solving the present fiscal crisis. Eine genaue Konzept des Geldes wird Licht den Weg zur Lösung der gegenwärtigen Finanzkrise.

We have two basic approaches to understanding money: A theoretical method based on logic; and an empirical approach based on experience or history. Wir haben zwei grundlegende Ansätze zum Verständnis Geld: Eine theoretische Methode, bei der die Logik, und eine empirische Ansatz auf der Grundlage von Erfahrung oder Geschichte. Practitioners of the two methods arrive at very different conclusions. Praktiker der beiden Methoden kommen bei sehr unterschiedlichen Schlussfolgerungen. Theoreticians usually support private commodity money and private credit money. Theoretiker in der Regel die Unterstützung privater Ware Geld und privaten Kredit-Geld. Historians normally want a much larger role for government. Historiker der Regel wollen eine viel größere Rolle für die Regierung.

Let’s start with Aristotle who gave the culmination of Greek thought and experiment on money around 330 BC: “All goods must therefore be measured by some one thing. Beginnen wir mit Aristoteles, die im Berichtsjahr den Höhepunkt des griechischen Denkens und der Versuch am Geld rund 330 v. Chr.: "Alle Waren müssen daher daran gemessen werden, etwa eine Sache. . . now this unit is in truth, demand, which holds all things together. jetzt ist diese Einheit in der Wahrheit, Nachfrage, die über alle Dinge gemeinsam. . . but money has become by convention a sort of representative of demand; and this is why it has the name nomisma - because it exists not by nature, but by law (which in Greek was nomos) and it is in our power to change it and make it useless.” So Aristotle calls money a creature of the law. Geld, sondern hat sich durch die Konvention eine Art Vertreter der Nachfrage, und dies ist der Grund, warum es hat den Namen Nomisma - denn sie existiert nicht durch die Natur, sondern durch Gesetz (das war in der griechischen Nomos), und es ist in unserer Macht Stehende zu ändern und machen es unbrauchbar. "So Aristoteles fordert Geld ein Geschöpf des Gesetzes. Not a commodity from nature but an abstract social institution. Keine Ware aus der Natur, sondern eine abstrakte sozialen Institution. Its essence is not tangible wealth in itself, but a power to obtain wealth. Sein Wesen ist nicht greifbaren Reichtum an sich, sondern eine Macht, um Reichtum.

Plato agreed with Aristotle and advocated fiat money for his Republic: “The law enjoins that no private individual shall possess or hoard gold or silver bullion, but have money only fit for domestic use. Plato vereinbart mit Aristoteles und befürwortet Fiat Geld für seine Republik: "Das Gesetz enjoins, dass keine Privatperson müssen über oder horten Gold-oder Silber-Gold, sondern haben nur Geld fit für die Verwendung im Haushalt. . . . wherefore our citizens should have a money current among themselves but not acceptable to the rest of mankind. weshalb unsere Bürgerinnen und Bürger sollten einen aktuellen Geld untereinander, jedoch nicht akzeptabel für den Rest der Menschheit. . . ” And: “Then they will need a market place, and a money-token for purposes of exchange.” "Und:" Dann werden sie brauchen einen Markt, und eine Geld-Token für die Zwecke des Austauschs. "

So both Aristotle and Plato noted the paramount principle - that the nature of money is a fiat of the law, an invention or creation of mankind. Also beide Aristoteles und Plato festgestellt, das oberste Prinzip - dass die Natur des Geldes ist ein Fiat von dem Recht, eine Erfindung oder der Schaffung der Menschheit. This principle, part of a lost science of money, must now be relearned in the Third Millennium in order to achieve the monetary reforms needed to move back from the brink of nuclear disaster, to move away from a future dominated by fraud and ugliness, toward a world of justice and beauty. Dieses Prinzip, ein Teil der verloren Wissenschaft von Geld, muss nun relearned in das dritte Jahrtausend, um zur Erreichung der monetären Reformen, die notwendig sind, um wieder aus dem Abgrund der nuklearen Katastrophe, die Abkehr von einem künftigen dominiert von Betrug und Hässlichkeit, in Richtung eine Welt der Gerechtigkeit und Schönheit.

This “private vs. public” battle for the control of the money power is part of a great ongoing social battle recurring throughout history to this day. Diese "private vs Öffentlichkeit" Kampf um die Kontrolle über das Geld Macht ist ein Teil der großen sozialen laufenden Schlacht immer wieder im Laufe der Geschichte bis zum heutigen Tag. This factor shapes the most important outcomes determining how well a money system works. Dieser Faktor Formen der wichtigsten Ergebnisse der Bestimmung, wie gut ein Geld System funktioniert. A good system functions fairly; helping the society create values for living. Ein gutes System funktioniert recht; Unterstützung der Gesellschaft schaffen Werte für das Leben. A bad one obstructs the creation of values; places special privileges in the hands of some to the disadvantage of others, and promotes unfair concentrations of wealth and power, and disharmony and social strife. Eine schlechte eins behindert die Schaffung von Werten; Orte Sonder-Privilegien in den Händen einiger weniger zum Nachteil der anderen, und fördert den unlauteren Konzentrationen von Reichtum und Macht, und Disharmonie und soziale Unruhen.

Now it may be surprising, but the historical record actually shows that publicly controlled systems function much better than private ones. Jetzt ist es vielleicht überraschend, aber die historischen Aufzeichnungen geht hervor, dass tatsächlich öffentlich kontrollierte Systeme funktionieren viel besser als dem privaten Sektor. Furthermore, it shows that the concept of money - how money is defined - usually determines whether the system will be publicly or privately controlled. Darüber hinaus zeigt, dass das Konzept des Geldes - wie Geld definiert ist - in der Regel legt fest, ob das System wird öffentlich oder privat kontrolliert werden. . .

Our American experience contains many of the best case studies for understanding money. Unsere amerikanische Erfahrung enthält viele der besten Fallstudien für das Verständnis Geld. We have been a great monetary laboratory - every conceivable solution was tried at some time, and we’ve been a paper money nation from colonial days. Wir haben eine große Geld-Labor - jede denkbare Lösung wurde versucht, zu einem bestimmten Zeitpunkt, und wir haben ein Papiergeld Nation aus kolonialen Tagen. Our development was inseparable from it - without it there’d be no United States. Unsere Entwicklung ist untrennbar mit der sie - ohne sie hätte es keine Vereinigten Staaten.

English and Dutch laws forbade sending coinage to the colonies, placing them in continual distress. Englisch und Niederländisch Gesetze verbot Senden Münzwesen zu den Kolonien, das Setzen von ihnen in ständigem Seenot. The intent was to extract raw materials, not for the colonists to trade with each other. Die Absicht war, um die Rohstoffe, nicht für die Kolonisten auf den Handel mit jeder anderen. An early form of globalization. Eine frühe Form der Globalisierung. The colonies had to devise monetary innovations. Die Kolonien hatten auf, Währungs-Innovationen.

In the period 1632 - 92, seventeen different commodities were monetized by law at specified prices. In der Zeit zwischen 1632 und 92, siebzehn verschiedene Waren wurden monetized per Gesetz zu bestimmten Preisen. It didn’t work - everyone wanted to pay with the least desirable commodity, in the worst condition. Es hat nicht funktioniert - jeder wollte er die Zahlung mit den am wenigsten wünschenswert Ware, im schlimmsten Zustand. . .

Private land banks were set up but were shunned by the colonists, who considered money a prerogative of government, as it was in England until 1694. Private Flächen Banken wurden eingerichtet, aber gemieden wurden von den Kolonisten, die als Geld ein Vorrecht der Regierung, wie war es in England bis 1694.

Then in 1690, four years before the Bank of England, Massachusetts embarked on a radical course and issued paper bills of credit, spending them into circulation. Dann in 1690, vier Jahre vor der Bank of England, Massachusetts begonnen, einen radikalen Kurs-und Papier ausgestellten Rechnungen von Kredit-, Ausgaben sie in Umlauf. Rather than a promise to pay anything, they were a promise to receive them back for all payments to the commonwealth. Vielmehr als ein Versprechen, etwas bezahlen, sie waren ein Versprechen zu erhalten, sie wieder für alle Zahlungen an den Commonwealth. The colony thrived. Die Kolonie gediehen. Other colonies copied them and infrastructure arose. Andere Kolonien kopiert sie und Infrastruktur entstanden ist.

In 1723 Pennsylvania’s system loaned the bills into circulation, charging interest on them and using it to pay colonial expenses. In 1723 Pennsylvania-System verliehen die Rechnungen in Umlauf, die Erhebung Interesse auf sie und sie zur Zahlung kolonialen Aufwendungen. Ben Franklin wrote: Ben Franklin schrieb:

“Experience, more prevalent than all the logic in the World, has fully convinced us all, that paper money has been, and is now of the greatest advantages to the country.” . "Die Erfahrung, stärker als alle Logik in der Welt, hat voll und ganz davon überzeugt, uns alle, dass Papiergeld wurde, und ist nun der größten Vorteile für das Land.". . .

Some long lost principles of the science of money quickly resurfaced: Einige lange verloren Grundsätze der Wissenschaft von Geld schnell wieder:

- Money need not have intrinsic value; its nature is more of an abstract legal power than a commodity. - Geld brauchen nicht mit inneren Wert, seine Natur ist eher eine abstrakte juristische Macht als eine Ware.

- Accepting the government paper back in taxes was the key feature needed to give it circulating value. - Akzeptieren der Regierung Papier zurück in Steuern war der Schlüssel-Funktion benötigt, um es zirkulierenden Wert.

- The quantity of money in circulation had to be regulated to maintain its value. - Die Menge an Geld in Umlauf musste geregelt werden, um an seinen Wert.

- They observed that paper money helped build real infrastructure. - Sie merkten an, dass Papiergeld geholfen, echte Infrastruktur.

- Most importantly, the colonies did not issue more money than their legislatures authorized. - Am wichtigsten ist, dass die Kolonien nicht ausgestellt mehr Geld als ihre Gesetzgeber ermächtigt. They have an outstanding record issuing currency. Sie haben einen hervorragenden Rekord Ausstellung Währung. Of over a hundred colonial issues I found only one case of fraud. Von über ein hundert kolonialen Fragen fand ich nur ein Fall von Betrug. In Virginia, a Mr. Robertson who was supposed to be burning the old notes as new ones were printed, was giving them to friends instead. In Virginia, ein Herr Robertson, der angeblich dem Brennen der alten stellt fest, wie neue gedruckt wurden, war ihnen zu Freunden statt.

But in the battle for monetary dominance, the colonial monetary experience has been miscast as irresponsible inflation money. Aber im Kampf um die Währungs-Dominanz, die koloniale Erfahrung Währungspolitik wurde Fehlbesetzung als unverantwortlich Inflation Geld. This was the result of 18th century Boston’s medical Dr. William Douglas’ inaccurate writings. Dies war das Ergebnis des 18. Jahrhunderts Boston die Krankengeschichte Dr. William Douglas' ungenau Schriften. The error was corrected by Alexander Del Mar in 1900 in The History of Money in America, but was ignored. Der Fehler wurde korrigiert von Alexander Del März in 1900 in die Geschichte des Geldes in Amerika, wurde aber ignoriert. It was authoritatively cleared up again by Professor Leslie Brock in 1976 and again ignored. Es war maßgeblich gelöscht wieder von Professor Leslie Brock in 1976 und wieder ignoriert. Many economists, and especially the libertarians, still haven’t got the message that colonial government paper money was crucial in building the colonies. Viele Ökonomen, und vor allem die Libertären, haben noch nicht über die Nachricht, dass kolonialen Regierung Papiergeld war von entscheidender Bedeutung beim Aufbau der Kolonien.

In 1764, England’s Lords of Trade and Plantations prohibited all colonial legal tender issues, and that became the underlying cause of the American Revolution, not some tax on tea. In 1764, England die Herren von Handels-und Plantagen verboten alle kolonialen gesetzliches Zahlungsmittel Fragen, und dass sich die zugrunde liegende Ursache der amerikanischen Revolution, nicht einige Steuer auf Tee.

The continental currency became the lifeblood of the revolution. Die kontinentalen Währung wurde der Lebensnerv der Revolution. $200 million was authorized and $200 million issued. 200 Millionen Dollar wurde ermächtigt, und 200 Millionen Dollar ausgegeben. The currency functioned well. Die Währung gut funktioniert. In late 1776 the notes were only at a 5% discount against coinage, when General Howe took over New York City and made it a center for British counterfeiting. Ende 1776 waren die Noten nur auf einen 5% Rabatt gegen Münzwesen, wenn General Howe übernahm New York City und machte es ein Zentrum für britische Fälschung. The Brits counterfeited billions; newspaper ads openly offered the forgeries. Die Briten gefälschten Milliarden; Zeitung Anzeigen offen die Fälschungen angeboten. . . In March 1778 after 3 years of war, it was $2.01 Continental for $1 of coinage. Im März 1778 nach 3 Jahren des Krieges, war es $ 2/01 Continental für "$ 1 Münzprägung.

The continentals carried us over 5 1/2 years of Revolution to within 6 months of its final victory. Die Continentals durchgeführt uns über 5 1 / 2 Jahren der Revolution, um innerhalb von 6 Monaten nach ihrer endgültigen Sieg. Thomas Paine wrote: “Every stone in the Bridge, that has carried us over, seems to have a claim upon our esteem. Thomas Paine schrieb: "Jeder Stein in der Brücke, dass hat uns über, scheint eine Forderung gegen unsere Wertschätzung. But this was a corner stone, and its usefulness cannot be forgotten.” Aber das war eine Ecke Stein, und seine Nützlichkeit kann nicht vergessen werden. "

Our constitutional convention considered two grand themes of humanity: First whether mankind could be self-governing or had to be ruled by authority. Unsere Verfassungskonvent als zwei großen Themen der Menschheit: Erstens, ob die Menschheit werden könnte Selbstregierung besitzt oder musste ausgeschlossen werden durch die Behörde. Often referred to as the American experiment. Oft als das amerikanische Experiment. We are still learning the outcome, and one of the reasons it’s still in doubt is because of the way the convention mishandled the other grand theme - the nature of money. Wir sind immer noch Lernen das Ergebnis, und einer der Gründe, es ist immer noch im Zweifel ist wegen der Art, wie die Konvention falsch den anderen großen Thema - der Natur des Geldes. By the time of the convention, the great benefits of the continentals was nearly ignored; along with much of the rest of our hard won monetary experiences. Zum Zeitpunkt der Konvention, die großen Vorteile der Continentals wurde nahezu ignoriert; zusammen mit viel der Rest unserer hart erkämpften monetären Erfahrungen. Some wanted to emphasize that the continentals became worthless and rejected the idea of paper money altogether. Einige wollten betonen, dass die Continentals wurde wertlos und lehnt die Idee von Papiergeld insgesamt.

They ignored that paper money was crucial in giving us a nation; that abstract money requires an advanced legal system in place; that the normal method of assuring its acceptability is to allow the taxes to be paid in it. Sie ignoriert, dass Papiergeld war von entscheidender Bedeutung, so dass wir eine Nation, das abstrakte Geld erfordert eine moderne Rechtssystem in Kraft;, dass die normale Methode zur Gewährleistung ihrer Akzeptanz ist es, die Steuern zu zahlen sind. . .

The convention met from May to September 1787 but the money subject didn’t come up until August 16. Die Konvention erfüllt von Mai bis September 1787, aber das Geld Thema kam nicht bis zum 16. August. Remember, Jefferson and Paine were not there. Denken Sie daran, dass Jefferson und Paine waren nicht da. Franklin was too old to speak. Franklin war zu alt, zu sprechen.

A curious book on money appeared just then, written anonymously by Calvinist Minister John Witherspoon, - the only clergyman signer of the declaration of Independence. Ein neugieriger Buch über Geld erschien nur dann, geschrieben von anonym Reformierte Minister John Witherspoon, - der einzige Geistliche Unterzeichner der Erklärung der Unabhängigkeit. The book attacked government money and promoted Adam Smith’s view that only gold and silver are money. Das Buch angegriffen Regierung Geld und gefördert Adam Smith ist der Ansicht, dass nur Gold und Silber sind Geld. . .

The power for government to properly create money, long considered as a necessary part of sovereignty, was contained in five magic words - to emit bills of credit. Die Macht für die Regierung auf, richtig Geld schaffen, lange als ein notwendiger Bestandteil der Souveränität, wurde in fünf magischen Worte - zur Emission von Rechnungen des Kredits. This provision was already in the Articles of Confederation, but the Federalists - the merchant/commercial interest, largely responsible for calling the Constitutional Convention in order to strengthen the national government, fought to exclude this monetary power from the new government, arguing that it could not be trusted with it. Diese Bestimmung wurde bereits in den Artikeln der Konföderation, aber die Föderalisten - der Händler / kommerzielles Interesse, weitgehend verantwortlich für den Aufruf des Verfassungskonvents, um zur Stärkung der nationalen Regierung, kämpfte für den Ausschluss dieses monetäre Macht von der neuen Regierung, mit dem Argument, sie könne die nicht vertraut werden mit ihr. Some of them intended to get hold of the power privately as had been done in England. Einige von ihnen, die zu erreichen ist die Macht privat als getan wurde in England.

The supreme importance of the concept of money now becomes evident: For if money is primarily a commodity, convenient for making trades, which obtains its value out of “intrinsic” qualities, then it could be viewed more as a creature of merchants and bankers than of governments. Die höchste Bedeutung des Konzepts der Geld jetzt wird deutlich: Denn wenn Geld ist in erster Linie eine Ware, günstig für die Geschäfte, die erhält seinen Wert aus der "inneren" Qualitäten, dann könnte es sich mehr als ein Geschöpf der Kaufleute und Bankiers als der Regierungen.

But if the true nature of money is an abstract social institution embodied in law - obtaining its value largely through legal sanctions, then its more a creature of governments, and the Constitution had better deal with it adequately - describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. Aber wenn die wahre Natur des Geldes ist eine abstrakte soziale Institution, die in Recht - dessen Wert weitgehend durch rechtliche Sanktionen verhängt werden können, dann seine mehr ein Geschöpf der Regierungen, und die Verfassung hatte sich besser mit ihr angemessen - zu beschreiben, wie eine einheitliche Währung zu vorausgesetzt, kontrolliert und einigermaßen stabil gehalten werden, in einer gerechten Art. It was on this crucial question that the Constitutional Convention faltered. Es war in dieser entscheidenden Frage, dass der Verfassungskonvent ins Stocken geraten.

The delegates accepted Adam Smith’s primitive commodity definition of money as gold and silver and didn’t firmly place the monetary power into government, leaving it ambiguous. Die Delegierten akzeptiert Adam Smith's primitive Ware Definition von Geld als Gold und Silber und nicht fest, die monetäre Macht in der Regierung, so dass es zweideutig. Later they’d argue over what they had done. Später würden sie argumentieren, über was sie getan hatten. But the power would still exist, since it is as important as the legislative, judicial and executive powers. Aber die Macht würde noch bestehen, denn es ist genauso wichtig wie die Legislative, Justiz und der Exekutive.

I am suggesting that the nature of human affairs requires government to have four branches, not three; the fourth branch to embody and administer the monetary power. Ich bin was darauf hindeutet, dass das Wesen des menschlichen Angelegenheiten erfordert Regierung zu haben vier Niederlassungen, nicht drei, die vierte Zweigstelle zu verkörpern und zu verwalten, die monetäre Macht.

The Constitution trusted the people with the political power; but didn’t firmly place the monetary power in their government. Die Verfassung vertraut die Menschen mit der politischen Macht, aber nicht fest, die monetäre Macht in ihre Regierung. This (along with slavery) is the original sin of American politics. Diese (zusammen mit der Sklaverei) ist die Erbsünde der amerikanischen Politik. As a result the power was left up for grabs. Als Ergebnis der Macht blieb bis zum Greifer. Alexander Hamilton wasted no time in “grabbing.” Alexander Hamilton keine Zeit verschwendet in "Grabbing".

The Constitution went into effect in late 1789; Van Buren described Hamilton’s first move as Secretary of the Treasury, in 1790: “Hamilton assumed some $15 million of the state debts. Die Verfassung in Kraft trat Ende 1789; Van Buren beschrieben Hamilton der erste Schritt als Sekretär des Treasury, in 1790: "Hamilton davon ausgegangen, einige 15 Millionen Dollar von der staatlichen Schulden. . . an act. eine Handlung. . . neither asked nor desired by the states, unconstitutional and inexpedient. weder gefragt noch gewünscht von den Staaten, verfassungswidrig und unzweckmäßig. . . ” "

What was so bad about it? Was war so schlecht über sie? “A large proportion of the domestic debt (was held by) the soldiers who fought our battles, and the farmers, manufacturers and merchants who furnished supplies for their support. "Ein großer Anteil der inländischen Schuldenstand (war im Besitz) die Soldaten, die unsere Schlachten gekämpft, und die Landwirte, Hersteller und Händler eingerichtet, die Lieferungen für ihre Unterstützung. . . .When it became known to members of Congress, which sat behind closed doors, that the bill would pass. ., Als bekannt wurde, an die Mitglieder des Kongresses, die Samstag hinter verschlossenen Türen, dass die Gesetzesvorlage würde passieren. . . every part of the country was overrun by speculators, by horse, and boat, buying up large portions of the certificates for (pennies on the dollar).” Madison, attempted to have the law pay speculators less than the original holders, but was voted down. allen Teilen des Landes wurde Überschreitung von Spekulanten, per Pferd, Boot und, Aufkauf große Teile der Zertifikate für (Pennies auf dem Dollar). "Madison, versucht zu haben das Recht Spekulanten zahlen weniger als den ursprünglichen Inhaber, sondern wurde abwärts.

Next Hamilton and associates, having kept the monetary power out of government hands, moved to assume it themselves. Weiter Hamilton und assoziierten Unternehmen, mit der monetären gehalten Macht aus den Händen der Regierung, verschoben zu der Annahme, sie selbst. The Bank of North America was the only bank in the US, formed in Pennsylvania on Tom Paine’s initiative to assist the revolution. Die Bank of North America war die einzige Bank in den USA, in Pennsylvania über Tom Paine die Initiative zur Unterstützung der Revolution. Arguing that it was only a state bank, Hamilton suggested it come forward if it wanted to alter itself for the national purpose. Dem Argument, es sei nur eine staatliche Bank, Hamilton vorgeschlagen, sie kommen nach vorn, wenn es wollte ändern sich für die nationalen Zweck. Curiously, the bank took no steps toward this obvious increase in profit and power. Merkwürdigerweise, die Bank hat keine Schritte in Richtung dieser offensichtlichen Anstieg der Gewinn-und Macht.

Hamilton’s Federalists quickly put through legislation to charter the First Bank of The United States, as a privately owned central bank on the Bank of England model. Hamilton's Föderalisten ist schnell dahin, durch Rechtsvorschriften zur Charta der Erste Bank der Vereinigten Staaten, als ein privat geführtes Zentralbank auf der Bank of England Modell. The Bank would be issuing paper notes not really backed by metal, but pretending to be redeemable in coinage, on the one condition that not a lot of people asked for redemption. Die Bank wäre die Ausstellung von Papier stellt fest, nicht wirklich von Metall, aber so zu tun, zu Redeemable im Münzwesen, über die ein Bedingung, dass nicht eine Menge Leute gefragt, für die Erlösung. They really did not have the coinage. Sie wirklich nicht über das Münzwesen. The bank would do what they had blocked the government from doing. Die Bank würde tun, was sie blockiert hatte die Regierung aus tun. Print paper money. Drucken Papiergeld.

While gold and silver served as a smoke-screen what the bankers really counted on, were the legal considerations of the money. Während Gold und Silber als Rauch-Bildschirm, was die Banken auf wirklich gezählt, waren die rechtlichen Erwägungen des Geldes. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Sie wussten, dass alles, was erforderlich war, um ihre Papier stellt fest, Wert, war für die Regierung zu akzeptieren, sie als Zahlung für die Steuern. That, and not issuing too excessive a quantity of them. Das, und nicht die Ausstellung zu einem übermäßigen eine Menge von ihnen. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. Unter diesen Bedingungen wird das Papier stellt fest, sie ausgedruckt der dünnen Luft, wäre ein Anspruch auf alle vorhandenen Reichtum in der Gesellschaft.

And we see why the Bank of North America was not put forward for this purpose: the US government had owned 60% of it. Und wir sehen, warum die Bank of North America wurde nicht vorgelegt zu diesem Zweck: die US-Regierung hatte im Besitz von 60% des es. . . . The government would only own 20% of the new bank. Die Regierung würde nur eigene 20% der neuen Bank.

Just where did the money for first Bank of the US came from? Wo haben nur das Geld für die erste Bank der USA kamen aus? The $10 million share subscription for the banks shares, was oversubscribed within 2 hours. Die $ 10 Millionen Aktien Abonnement für die Banken Aktien, überzeichnet "war innerhalb von 2 Stunden. Less than 1/10 of it was ever paid in gold. Weniger als 1 / 10 der war es immer in Gold gezahlt. The rest of the payment was accepted in the form of bonds - the very government bonds that Hamilton had turned from pennies on the dollar to full value. Der Rest der Zahlung wurde in Form von Anleihen - die sehr Staatsanleihen, dass Hamilton hatte sich aus Pfennige auf den Dollar zu vollen Wert. So you see where the money for the bank actually came from - from the American people. Sie sehen also, wo das Geld für die Bank tatsächlich kamen aus - von dem amerikanischen Volk. That’s how private central banking started in America. Das ist, wie private Mittel-Banking in Amerika begonnen.

Thanks in large part to Jefferson’s efforts, the bank was liquidated in 1811. Vielen Dank im großen Teil zu Jefferson's Bemühungen, die Bank wurde in 1811 liquidiert. Three quarters of it was found to be owned by Europeans - English and Dutch. Drei Viertel davon wurde festgestellt, dass im Besitz von Europäern - Englisch und Niederländisch.

The 2nd Bank of the US - the bank from hell - operated illegally from inception, accepting IOU’s instead of the required gold in payment for its shares. 2. Die Bank von den USA - die Bank aus der Hölle - illegal betrieben von der Konzeption, zur Annahme von IOU's statt der geforderten Gold als Zahlung für ihre Anteile. So again the banker’s gold “requirement” turned out to be a masquerade. Also wieder die Banker's Gold "Anforderung" erwies sich als eine Maskerade.

This private central bank immediately embarked on a wild monetary expansion. Diese private Zentralbank sofort begonnen, ein wildes monetären Expansion. Beginning operations in April 1817, by July it had 19 branch offices and had created $52 million in loans on its books and an additional 9 million in circulating currency, based on gold and silver coin reserves of only $2.5 million. Anfang April in 1817, von Juli hatte es 19 Niederlassungen und hatte 52 Millionen Dollar in Form von Darlehen über seine Bücher und eine zusätzliche 9 Millionen in zirkulierenden Währung, die sich auf Gold und Silber Münze Reserven von nur 2,5 Millionen Dollar. This tremendous expansion caused a wild speculative boom. Diese enorme Expansion verursacht eine wilde spekulativen Boom. Then in August 1818, the bank turned abruptly and began an insane contraction, causing the panic of 1819. Dann im August 1818, die Bank sich abrupt und begann ein verrückt Kontraktion, so dass die Panik von 1819. It cut its outstanding loans and advances from a high of $52 million, down to $12 million in I819. Sie senkte ihre ausstehenden Darlehen und Vorschüsse von einem Höchststand von 52 Millionen Dollar, nach unten bis zu $ 12 Millionen in I819. Its circulating notes dropped from $10 million to $3.5 million in 1820. Seine Verbreitung nimmt zur Kenntnis, sank von 10 Millionen Dollar bis zu $ 3,5 Mio. in 1820. A massive wave of bankruptcies swept the nation. Eine massive Welle von Konkursen fegte der Nation.

The subsequent history of this bank and its fight to the death with President Jackson reads like a financial soap opera. Die anschließende Geschichte dieser Bank und ihren Kampf bis zum Tod mit Präsident Jackson liest sich wie eine finanzielle Seifenoper. The story of various state chartered banks is similar. Die Geschichte von verschiedenen staatlichen Chartered Banken ist ähnlich.

Meanwhile the US government acted responsibly In the aftermath of liquidation of the first and second bank; US Treasury notes were substituted in place of banknotes. Unterdessen die US-Regierung gehandelt Verantwortliches Handeln in der Zeit nach der Liquidation der ersten und der zweiten Bank, US-Treasury stellt fest, wurden danach den Platz von Banknoten. About $65 million were authorized and only $37 million actually issued. Über 65 Millionen Dollar wurden genehmigt und nur 37 Millionen Dollar tatsächlich ausgegeben. The US Treasury spent them into circulation. Die US-Treasury verbrachte sie in Umlauf. Initially they were all large denomination, paid interest; were redeemable in gold and required formalities to transfer. Ursprünglich waren sie alle großen Bezeichnung, bezahlt Interesse; wurden rückzahlbar in Gold und die erforderlichen Formalitäten zu übertragen. By 1815 they became bearer certificates with no redemption date, paid no interest and were in smaller denominations. Durch sie wurde 1815 Inhaberaktien Zertifikate mit Datum keine Erlösung, keine Zinsen gezahlt wurden und in kleineren Stückelungen. Thus they were nearly a true money form. So waren sie fast ein wahres Geld Form. The fact is that the US government has always acted responsibly in creating money. Die Tatsache ist, dass die US-Regierung hat stets verantwortungsbewusst gehandelt hat bei der Schaffung von Geld. Not so the private banks. Nicht so die privaten Banken.

Greenbacks were on balance our best money system to date Thanks to 100 years of misreporting, the image of the greenbacks coming down to us is as inflated or worthless paper money. Grünkragen wurden per Saldo unsere besten Geld-System auf dem neuesten Stand Dank der 100 Jahre Falschmeldungen, das Image der Grünkragen kommen auf uns ist so aufgeblasen oder wertlos Papiergeld. In fact, $450 million were authorized and $450 million were printed. In der Tat, 450 Millionen Dollar wurden genehmigt und 450 Millionen Dollar wurden gedruckt. Counterfeiters couldn’t duplicate the Greenbacks. Fälscher könnten sich nicht mit der Grünkragen. Every Greenback was eventually exchangeable one for one with gold coin. Jeder Greenback wurde schließlich ein für austauschbare ein mit Gold-Medaille.

But greenbacks were not promises to pay money later - they were the money. Aber Grünkragen wurden Versprechungen nicht zu zahlen Geld später - sie waren das Geld. Since they were not borrowed, they did not give rise to interest payments and did not add to any national debt. Da sie nicht ausgeliehen, sie gaben keinen Anlass zu Zinszahlungen und nicht in den alle Staatsverschuldung. The US Treasury printed them and spent them into circulation. Die US-Treasury gedruckten sie und verbrachte sie in Umlauf.

Economists usually harp on the Greenbacks dropping to 36 cents in gold, and they leave it at that. Ökonomen in der Regel auf der Harfe Grünkragen Drop auf 36 Cent in Gold, und sie lassen es an diesem. While that happened, its highly misleading. Zwar ist geschehen, und seine höchst irreführend. . .

What did happen was that in June 1864, Congress limited the amount of Greenbacks to $450 million. Was war geschehen war, dass im Juni 1864, Congress begrenzt die Höhe der Grünkragen bis zu $ 450 Millionen.

There was inflation, but remember 13% of the population was fighting a terrible war. Es war die Inflation, doch ist zu beachten, 13% der Bevölkerung war die Bekämpfung einer schrecklichen Krieg. 625,000 died. 625.000 starben. Greenbacks performed well despite being spent on destruction. Grünkragen gut, obwohl sie für die Zerstörung. They were also being abused by the bankers. Sie wurden auch missbraucht von der Bankiers. For every greenback created by Congress, the banking system created $1.49 in bank notes. Für jeden Greenback erstellt durch den Kongress, das Bankensystem, die 1,49 Dollar in Banknoten.

What if instead of being spent on destruction, they went into building infrastructure, and canals and roads? Was passiert, wenn anstatt für die Zerstörung, sie gingen in die Gebäude-Infrastruktur, und Kanälen und Straßen? Spending such money on infrastructure need not be inflationary. Ausgaben wie Geld für die Infrastruktur muss nicht inflationär. For example the Erie Canal lowered freight prices from $114 a ton down to $9 a ton. Zum Beispiel die Erie Canal gesenkt Fracht Preise ab $ 114 pro Tonne bis zu $ 9 a ton.

The great lesson of greenbacks is that in times of crisis - and other times too - our nation has power to do what is financially necessary, through our government. Die große Lektion der Grünkragen ist, dass in Zeiten der Krise - und zu anderen Zeiten - unser Volk hat die Macht zu tun, was notwendig ist finanziell, durch unsere Regierung. We don’t have to beg or borrow money from the wealthy and, create an astronomical national debt. We don’t have to tax the middle class into oblivion, or cancel necessary programs. We can carefully use the nations’ sovereign money power far more than we presently have been allowed to realize.

At the time of the greenbacks there were those who fully understood. Senator Howe said: “We must rely mainly upon a paper circulation; and . . . that the paper, whoever issues it, must be irredeemable. All paper currencies have been and ever will be irredeemable. It is a pleasant fiction to call them redeemable. . . I would not expose that fiction only that the great emergency which is upon us seems to me to render it more than usually proper that the nation should begin to speak the truth to itself; to have done with shams, and to deal with realities.”

The struggle between private versus public control of money continued throughout the 19th century. The greenbacks continued to constitute about a third of our money supply. Generally the private money power dominated. But in periods when the government exercised control, an excellent record was established- superior to that of private control. The bankers continued their pretense that gold was the basis of the system, and even the Federal Reserve in 1913 appeared to be a gold-based system. But immediately upon inception, we were pushed into warfare. Within 20 years Americas farms, cities, exchanges and money system were all wrecked, ending in the great depression. It was again left to our government to rescue the nation.

It’s forgotten today, but the Thomas Amendment passed with legislation in 1933, gave the President the power to create $3 billion in greenbacks if the banking system didn’t co-operate. . .

The de-funding of government at the local, state and federal levels, arises out of this disease of attacking government as the enemy.

This attack on government starts with Adam Smith. His purpose in smearing the English government was to keep the monetary power in the hands of the privately owned Bank of England. . .

To summarize the argument: The nature of the money power is societally derived, not one originating in the activities of private corporations. Because of its great importance to all, control over the process belongs under public authority. Both logic and history show that its not safe to delegate this power, and certainly not acceptable to allow its usurpation.

The current bailout

The demand for immediate action to avoid a meltdown is misplaced. Immediate and wrong action will accelerate the meltdown. There is only one thing Congress can do to inspire confidence and avoid a meltdown - that is to take deliberate and careful and good workable action to help resolve the crisis. In other words to fulfill its congressional duty to America. . .

Getting it right means requiring several conditions to protect the American people from the gang that’s been financially raping the nation; that gave us the unnecessary Iraqi war. It means facing the facts on where the banking crisis is and how it got there. It means examining the monetary and economic reforms of the Federal Reserve System that will assure that such thievery or foolishness won’t happen again; and taking back from those who improperly benefited from the tragedy and prosecuting them.

At the heart of the problem is that our money system has been privatized. Naturally it’s being run for the benefit of the “privates” in control, with minimal concern for the public interest. . .

Rather than borrowing the $700 billion being demanded, and ending up paying back about 3 times that amount after interest charges, The US government could issue the money the same way the banks do, instead of borrowing it from them. But while the banks issue credit that substitutes for money, the US would issue actual money. Our government has the power to create the money, in an account, or by simply printing it as greenbacks.

There would not be inflationary effects, because it was already believed that those moneys existed in the form of the real estate values and loans. In effect this would stop a deflation which would follow from writing down those assets and loans to their present market values. Some conditions would be needed to assure that the banking system did not use those greenback dollars for further credit creation, as that would be inflationary. In essence the greenbacks would not be “re-discountable” by the banking system to create more loans, but would be legal tender for all debts public and private. . .

What the administrations proposal is doing is almost identical to what Keynes did during the Great Depression. He insisted that the bailout be in terms of government going into more debt to the banking system, whereas the Chicago Plan by the greatest economists in the nation at that time, was promoting the government to create money (greenback equivalents) instead of debt. . .

Keynes won the argument but his program did not work and it was only WW2 and [with] wartime employment, creating tanks to be blown up, airplanes to be shot out of the sky, and ships to be sunk, that Americans went back to work and we worked our way out of the depression, and into more debt. That’s where this proposal leads. Keynes answer was that “in the long run we are all dead,” but not our posterity. Based on what happened following his program before, our descendants, and society that survives become enslaved.

Unless monetary reform is in the mix now, it could take a tremendous worsening of the situation to come up again soon. One articulate friend, George Romero, summed it up for me: “The private sector has failed. The public sector is expected to rescue them, and it will. Therefore the public sector should be in control of the money system to benefit the country.”

The Chicago Plan of the 1930s

Henry Simons from the University of Chicago created the proposal and prominent economists from other universities joined him in what became known as the “Chicago Plan.”Economists like Paul Douglas of the U of C.; Frank Graham and Charles Whittlesley of Princeton; Irving Fisher of Yale; Earl Hamilton of Duke; and Willford King of NYU, to name a few. One version was sent to all the academic economists â€“ about a thousand total. Of those responding, 235 from 157 universities agreed with the proposal; another 40 approved it with reservations and only 45 disapproved. So the plan had broad professional support. Variants of the Chicago Plan usually started by condemning the banking structure as foolish and harmful: “If the purpose of money and credit were to discourage the exchange of goods and services, to destroy periodically the wealth produced, to frustrate and trip those who save, our present monetary system (does that) most effectively!”

They dispensed with the gold standard as not a real standard, because the value of gold had changed violently up and down against commodities. From 1914 to 1917 wholesale prices rose 65% and, then increased another 55% to May 1920, So Gold coins lost over 75 % of their value against wholesale prices in the Fed’s first six years. Then by June 1921wholesale prices fell 56% against gold. “Hard money” advocates who believe that gold money has been stable should study these facts. One version of the plan quoted Roosevelt’s referring to gold as an “old fetish of so-called international bankers.”

The main features of the Chicago Plan were:

- Only the government would create money. The Federal Reserve banks would be nationalized, but not the individual member banks. The power to create money was to be removed from private banks by abolishing fractional reserves â€“ the mechanism through which the banking system creates money. So the plan called for 100% reserves on checking accounts which simply meant banks would be warehousing and transferring the money and charging fees for their services.

- The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. Lending was still to be a private banking function, but by lending deposited long-term savings money, not created credits. In this way they’d restrict an unstable practice known as borrowing short and lending long â€“ making long term loans with short term deposits.

- The proposal recognized the distinction between money and credit, which had been confused through fractional reserves and what was called the “real bills doctrine.” The confusion was seen as one of the causes of the depression, because when businesses reduced their borrowings on commercial bills which occurs during any downturn, parts of the money supply had been automatically liquidated. The Chicago Plan saw the instability of this â€“ that it aggravates a downturn.

Simon made this grand observation: “The mistake. . . lies in fearing money and trusting debt. Money itself is highly amenable to democratic, legislative control, for no community wants a markedly appreciating or depreciating currency. . . but money is not easily manageable alongside a mass of private debt and private near-moneys. . . or alongside a mountain of public debt.”

Some variations of the plan had the US government lending banks all or part of newly printed cash needed to achieve 100% reserves. This was a crucial part of the plan, because depositors were going to the banks and withdrawing their accounts, deflating the system.

This loaning of reserves feature also elegantly converted all the previously monetized bank credits into real US money on which the banks paid interest to our government. It post facto made them intermediaries, earning some reasonable spread for their loaning work.

Paul Douglas wrote: “This proposal will of course be opposed by the bankers from whom it takes the lucrative privilege of creating purchasing power. It would however insure the safety of deposits, give large revenues to the government, provide complete social control over monetary matters and prevent abnormal fluctuations in the capital market. At the same time it would permit the allocation of productive resources. . . to remain primarily in private hands. All in all it seems the most promising program for the reform of our monetary and credit system. . . ”

Marinner Eccles, who became Fed Chairman under Roosevelt, testified that the best course would be for the government to nationalize the Federal Reserve banks.

Congressman Jerry Voorhis made the case for hundred percent reserves and putting money into circulation by paying pensions and disabled persons. As late as 1945 Voorhis introduced legislation for a US Monetary Authority as our sole creator of money.

Maurice Allais, the great French economist, backed the plan and published a book on it in 1948.

Irving Fisher of Yale, wrote on it extensively and popularly well into the 1940s. . .

There was no understanding or support for the proposal among the electorate. Only Irving Fisher seems to have understood the necessity for popularizing the matter.

Simons himself got cold feet and shied away from promoting the plan, desiring to remain on a level of professorial discussion. He even threw a wet towel on Fisher who was promoting the reform suggesting that Fisher avoid popularizing the idea!

The Plan was mishandled politically. . . The last attempt at 100% reserves was when Senator Nye of North Dakota tried to place it in part of the administration’s 1935 banking reform legislation, but his amendment was defeated.

The FDR administration had its own banking reform bill and remained ambiguous on the Chicago Plan, never commenting on it even though the political climate and professional support for the plan was sufficient to get it passed, had they made some effort. Instead his Treasury Secretary Morganthau was trying to make minor adjustments without fundamentally challenging the banking system. . .

Can we learn from what John Maynard Keynes was doing during all this? He was squarely behind the bankers and against such real reform. Yet he knew that he had to break out of orthodox economics or the whole system was in danger of being overturned. Keynesianism was a way to allow banks not government to keep control over the money-creation process, and while the more narrow minded economists fought Roosevelt’s attempts to create money and jobs as inflationary, during the nations worst deflation, Keynes knew better.

The New York Times in December 1933. . . got Keynes to write an open letter to Roosevelt, which they published. Keynes wisely advised Roosevelt that “Only the expenditures of public authority” could turn the tide of depression. . .

However, Keynes inappropriately warned Roosevelt not to create the money for this, but only to borrow it, and wrongly advised him that there was already enough money in circulation, and that: “increasing the quantity of money. . . is like trying to get fat by buying a larger belt.”

Keynes was therefore not “revolutionary” except in relation to the utter backwardness of the financial establishment. He didn’t come close to a real solution, but essentially protected his class. The real question has always been whether the nation’s money should be created under law, by government, or under the private caprice of bankers.

DEALING WITH THE NATIONAL DEBT

Bob Blain, Progressive Review, 1994 - From 1790 to 1993, taxpayers were charged $3.2 trillion in interest on federal debt. . . . The original debt at 5.53 percent interest compounded for 204 years equals $4.4 trillion. The present federal debt is arguably the original debt enlarged by 204 years of compounding interest.

According to the Federal Reserve Bulletin, the total money supply (currency, travelers checks, demand deposits, and savings accounts) in the US economy in March 1993 was $4 trillion. The total debt of the federal government, state and local governments, corporations, farmers, home buyers, and consumers was in excess of $15 trillion. If the total money supply is $4 trillion, where is the other $11 trillion of borrowed money?

Here is another curious fact. We have been told for years that government borrowing to cover hundreds of billions of dollars of deficits would drive interest rates through the roof. Instead, interest rates have fallen dramatically. In March, 1993 they were between 4.9 and 2.2 percent, far below what they were in the early 1980s when federal debt was a small fraction of what it is now.

The explanation for these anomalies is that the missing money never existed. We never borrowed it, in the normal sense that it was turned over to us and spent. Most debt is not the result of people borrowing money; it is the result of people not being able to repay what they owed at some earlier time. Instead of declaring them bankrupt, creditors just add more to their debt.

The federal government has been adding interest to its debt for 204 years. James Jackson, Congressman from Georgia, predicted that this would happen in a speech he made to the First Congress on February 9, 1790. Jackson warned that passing Alexander Hamilton’s plan to base the country’s money supply on the existing federal debt of $75 million would “settle upon our posterity a burden which they can neither bear nor relieve themselves from.” He predicted: “In the course of a single century it would be multiplied to an extent we dare not think of,” He clearly saw that Hamilton’s plan would put in place an exponential process of debt growth. To support his warning he cited the experience of Florence, Genoa, Venice, Spain, France, and England.

Hamilton’s plan was for Congress to commit the country to pay interest on the debt until the debt was paid. In the meantime the debt certificates would circulate as money. He argued that this would turn a $75 million debt into a $75 million money supply. The problem was that interest payments would have come out of the money supply. This would reduce the quantity of money that remained in circulation — and cause recession — until new loans returned the interest money back into circulation. The history of federal government finance shows such periodic swings between debt reduction and recession to debt increase and recovery.

The power to deal with this problem that Congress has neglected all these years is the power “to coin money and regulate the value thereof.” It has overused its power “to borrow money on the credit of the United States.” According to the Federal Reserve, 98 percent of the US money supply is borrowed. Only 2 percent is coined.

The First Congress set the wrong precedent. It should have created $75 million in money and paid off the debt. With a population of 4 million people and an economy starved for a medium of exchange, that would have increased the money supply by $18.75 per person.

Why did the First Congress borrow instead of coin money? Newspapers at the time accused members of Congress of acting to serve their own interests. They sent agents into the countryside to buy up debt certificates that the general public thought were worthless. They then passed the Funding Act knowing that it would give themselves and their heirs a source of income that would grow exponentially with the debt. For every debtor there is a creditor. What is a $4 trillion debt for debtors is $4 trillion in claims for creditors.

To get out of this trap Congress has a range of options:

First, it could stop paying interest on the debt. Interest is the fuel that is exploding the debt. Cut off the fuel; stop the explosion. Since 1790 over $3 trillion in interest has been added to the original $75 million. Cutting interest would immediately cut the annual deficit by about $300 billion. Experience shows that all other conventional actions, no matter how painful, do no more than slow slightly the rate of debt growth. Then Congress could begin the process of paying off the debt.

A political problem with stopping the payment of interest is that people with money control politics. And many of them would have their interest income stopped. Insurance companies and pension funds are invested in federal debt and foreign holders would also be upset. Economically, however, we cannot continue to add compounding interest to existing debt. The biggest debtor is not the federal government. It is business corporations. It is impossible for them to increase the physical production of goods and services in order to keep up with exponential debt growth that is limited by nothing but arithmetic. Unlike the debt, the physical economy has limits.

The question holders of federal debt must ask themselves is this: Do we want to insist on more interest that will add debt to existing debt until the only option is debt repudiation and we lose everything? Or are we willing to stop where we are while we may still be able to recover our original investment plus a reasonable profit?

A second option is for Congress to create the money necessary to fund public works. As a sovereign government, Congress’ power is unique. It can create money debt-free and interest-free. Congress needs to stop thinking of itself as the same as other organizations that must take money in before they can spend it. Money does not grow on trees. It must be created. The only choice is whether to have it created as loans at interest from private banks or to have it created by Congress debt-free and interest-free.

How can Congress create money without causing inflation? Congress must regulate its value. The power to create money includes this regulatory power.

A good way for Congress to regulate the value of money is by funding projects at the current national price level. The current national price level can be calculated by dividing the most recent gross domestic product by the number of hours of work that produced it. For example, in 1991 the total gross domestic product was $5.6 trillion. The employed labor force produced it with 237 billion hours of work. So the GDP was produced at the rate of $23.95 per hour of work. By now the price level per hour is probably $25.00. So let Congress fund projects at $25 per hour. How this amount is allocated among labor, land, and capital can be negotiated.

How much money should Congress create? How about enough to reach full employment? We have about 9.5 million people actively looking for work. That includes a million managers and professionals; two and a quarter million technical, sales, and clerical people; a million and a quarter precision production, craft and repair people; over two million operators, fabricators and laborers; and 305,000 framers, foresters and fishermen. That’sa skilled labor force as big as many nations — all now idle. Employed at an average $25 per hour, ($50,000 per year), they would add $475 billion to the nation’s gross domestic product and reduce spending for unemployment compensation. The pie would grow as unemployment went down. Congress could start by creating, say, $50 billion, or $200 per person, in debt-free interest-free money, then fund $50 billion worth of works projects, monitor the results, and make adjustments as needed. Meanwhile the Fed could raise bank reserve rates, not interest rates, to make checking accounts more secure.

A third more conservative option is being proposed by an organization called Sovereignty, which believes that a country that borrows money loses its sovereignty to its creditors. Their proposal is intended to restore US sovereignty by reducing our dependence on borrowed money.

The Guernsey experience. . .

Guernsey is an island state located among the British Channel Islands about 75 miles south of Great Britain. In 1816 its sea walls were crumbling, its roads were muddy and only 4 1/2 feet wide. Guernsey’s debt was 19,000 pounds. The island’s annual income was 3,000 pounds of which 2,400 had to be used to pay interest on its debt. Not surprisingly, people were leaving Guernsey and there was little employment.

Then the government created and loaned new, interest-free state notes worth 6,000 pounds. Some 4,000 pounds were used to start the repairs of the sea walls. In 1820, another 4,500 pounds was issued, again interest-free. In 1821, another 10,000; 1824, 5,000; 1826, 20,000. By 1837, 50,000 pounds had been issued interest free for the primary use of projects like sea walls, roads, the marketplace, churches, and colleges. This sum more than doubled the island’s money supply during this thirteen year period, but there was no inflation. In the year 1914, as the British restricted the expansion of their money supply due to World War I, the people of Guernsey commenced to issue another 142,000 pounds over the next four years and never looked back. By 1958, over 542,000 pounds had been issued, all without inflation.

In 1990 there was $13 million in interest-free state issued notes. A visitor to the island that year later wrote:

“I returned from Guernsey last weekend. It is a fascinating little island. There are about 60,000 permanent residents on the island. The average family owns 3.3 cars, their unemployment rate is zero and their standard of living is very high. There is no public debt. There is a surplus of public funds which earn interest. The Guernsey Treasury increased the Ml of the island by 40 percent in the last three-year period, and this increase did not do anything to inflation. The price for a gallon of gasoline in England translates to about $5US whereas, the price in Guernsey is about $2US. Contrary to the teachings of current economics in all higher institutions, inflation is not related to the volume of money but rather to the size of the commercial debt.”

Sovereignty proposes that Congress create money and lend it interest-free on a per capita formula to tax-supported bodies for capital projects and to convert existing debt to non-interest-bearing debt. Since first proposed in January 1989, the Sovereignty loan plan has been endorsed by over 1,814 city, town, and county governments and school boards, as well as by the US conference of Mayors, the Michigan state legislature and the Community Bankers Association of Illinois, which represents 515 banks.

As loans, the money would be repaid, so money injected into communities would fund projects, then be removed. Of the three methods for putting money into circulation available to Congress, giving, paying, and lending, lending is the most cautious.

Benjamin Franklin attributed the economic success of the colonies to their creation of all the money they needed. He said that the root cause of the Revolution was the act of Parliament that prohibited the colonies from continuing to issue their own money. The moneylenders of England thought it more profitable that the colonies borrow their money.

We hear from Washington that we need to sacrifice to bring the deficits under control — cut consumption, save, and invest. When that slows the economy, we will be told to spend more to stimulate the economy. We have heard it all before. Neither method works. We need debt-free interest-free money to fund the work that needs to be done. It’s not sacrifice we need; it’s productive employment. Let Congress use its unique power to coin money and regulate its value to fund that employment.

Money is no more than an accounting device, a system of notes certifying that the bearer has done a share of the work and deserves a share of the wealth. Money’s backing is the goods and services produced by the labor force. By creating money Congress can activate the idle productive power of our people. And what they produce will add real wealth to the US Treasury and add nothing to the federal debt.

Sam Smith’s Great American Political Repair Manual, 1997 - A report of Guernsey’s States Office in June 1946 notes that island leaders frequently commented that these public works could not have been carried out without the issues, that they had been accomplished without interest costs, and that as a result “the influx of visitors was increased, commerce was stimulated, and the prosperity of the Island vastly improved.” By 1943, nearly a half million pounds worth of notes belonged to the public and was so valued that much of it was being hoarded in people’s homes, awaiting the island’s liberation from the Germans. About the same time that Guernsey started to fix its sea walls the town of Glasgow, Scotland, borrowed 60,000 pounds to build a fruit market. The Guernsey sea walls were repaid in ten years, the fruit market loan took 139. In the first part of the the 20th century, Glasgow paid over a quarter million pounds in interest alone on this ancient project.

How did Guernsey avoid the fiscal disaster that conventional economics prescribed for it? First and foremost by understanding that when you build roads or sea walls or colleges or houses, you are not reducing your society’s wealth. In fact, if you do it right, you are creating something that will add to its wealth. The money that was created was simply backed by public works rather than gold or “full faith and credit.” It was, in fact, based on something more solid than the dollar bills in our wallets today. In contrast, tacking on an interest charge to public works — as we do in the US — creates no new wealth, but merely transfers claims on existing wealth from debtors to creditors.

Have Your Say: WHAT BANKS, ACADEMICS, THE MEDIA AND POLITICIANS DON’T TELL YOU ABOUT MONEY
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Web Desing & Hosting UK , USA, Europe WOWEB - Web Design FAST GATEWAY - Web Hosting INFOTX - Web Hosting Guides and Resources ASHLEY GUEST HOUSE - Morecambe Guest House Skin up marijuana cannabis weed forum

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Web Desing & Hosting UK , USA, Europe

WOWEB - Web Design

FAST GATEWAY - Web Hosting

INFOTX - Web Hosting Guides and Resources

ASHLEY GUEST HOUSE - Morecambe Guest House

Skin up marijuana cannabis weed forum

Linux Web Hosting

Never Be Lied To Again!

Subliminal Secrets Exposed

Holographic Creation: Your Own Reality

Masonic Secrets Revealed

What You Aren't Supposed To Know

Conspiracy DVDs Cheap DVDs
Debt Consolidation