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Wednesday, November 19th, 2008 Miércoles, 19 de noviembre, 2008

The privilege of creating and issuing money is not only the supreme prerogative of government, but is the government’s greatest creative opportunity. El privilegio de la creación y emisión de dinero no es sólo la suprema prerrogativa de gobierno, pero es el gobierno de la mayor oportunidad creativa. By the adoption of these principles, the taxpayers will be saved immense sums of interest. — Abraham Lincoln Mediante la adopción de estos principios, los contribuyentes se guardarán inmensas sumas de intereses. - Abraham Lincoln

Most of what follows is the work of the extraordinary and admirable Stephen Zarlenga of the La mayor parte de lo que sigue es el trabajo de la extraordinaria y admirable Stephen Zarlenga de la American Monetary Institute Instituto Monetario de América . We have taken excerpts from various of his writings - including a 2003 speech to US Treasury staff - and blended it into one piece. Hemos tomado las citas de varios de sus escritos - incluyendo un discurso de 2003 a los funcionarios del Tesoro de EE.UU. - y mezclados en una sola pieza. 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. También se incluye un artículo que corrió de 1994 por Bob Blain y un extracto de Sam Smith del Great American Políticos de reparación manual, publicado por WW Norton en 1997.

Some history Un poco de historia

Stephen Zarlenga, American Monetary Institute - The money system is society’s greatest dispenser of justice or injustice. Stephen Zarlenga, Instituto Monetario de América - El dinero es la sociedad la mayor dispensador de la justicia o la injusticia. A good one functions fairly, helping create values for life. Un buen funciones de una forma justa, ayudando a crear valores para la vida. 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. Un mal, un injusto obstaculiza la creación de valores; da privilegios especiales para unos y desventaja para otros que causan las concentraciones injusto de la riqueza y el poder; conduce a las luchas sociales y, finalmente, la guerra y un millar de malas consecuencias imprevistas - física y espiritual. . .

One reason economists have failed mankind so badly is their poor methodology - an over-reliance on theoretical reasoning. Una de las razones economistas han fracasado tan mal la humanidad es su metodología pobres - un exceso de confianza en el razonamiento teórico. Alexander Del Mar the world’s greatest monetary historian noted: “As a rule economists. Alexander Del Mar la más grande del mundo monetaria historiador señaló: "Por regla general los economistas. . . 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.”. no tener la molestia de estudiar la historia de dinero, sino que es mucho más fácil de imaginar y deducir los principios de la presente imaginario conocimiento. ". . .

In England the struggle became the goldsmiths vs the monarchy representing society. En Inglaterra la lucha se convirtió en el orfebres frente a la monarquía que representan a la sociedad. Later it was the Bank of England vs. society. Más tarde fue el Banco de Inglaterra frente a la sociedad. Until then England’s money power was in the monarch’s hands. Hasta entonces el dinero de Inglaterra estaba en el poder el monarca de las manos. But from that point, Bank of England credits would be substituted in place of public money. Sin embargo, a partir de ese punto, el Banco de Inglaterra créditos sería sustituido en lugar de dinero público. This promoted a confusion between credit and money to this day. Esto promueve una confusión entre crédito y dinero para el día de hoy. But they are different things. Pero son cosas diferentes. Credit depends on the creditor remaining solvent. Crédito depende de los acreedores restantes disolvente. Real money does not promise to pay something else. Real dinero no promesa de pagar algo más. Money is on a higher order than credit. El dinero es de un orden superior de crédito.

Those behind the Bank of England obscured the real source of the bank’s power - its legal privilege. Los que están detrás de el Banco de Inglaterra oculta la verdadera fuente del poder del banco - su privilegio legal. Its notes were accepted in payments to the government. Sus notas fueron aceptadas en los pagos al gobierno. 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. Recuperación de la ciencia del dinero para el beneficio privado de un pequeño grupo producido resultados perjudiciales: 120 años de continua guerra dio lugar a una impagable deuda nacional conduce a una tributación excesiva horrores lo que al igual que la hambruna irlandesa de patata.

Before then, when a nation’s money system was used for taxation, the revenue generally aided the society. Antes de entonces, cuando una nación del sistema de dinero se utilizó para la tributación, los ingresos en general, con ayuda de la sociedad. 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. Sin embargo, el Banco de Inglaterra se concentró los recursos de la sociedad en las manos equivocadas, paralizando la posibilidad de que el gobierno funcione adecuadamente, dando lugar a un creciente desprecio del gobierno.

Today it’s still the bankers versus the society. Hoy en día es todavía de los banqueros frente a la sociedad. At base, the battle remains private money vs. public money. En la base, la batalla sigue siendo dinero privado frente a los fondos públicos. The outcome determines whether the money system operates to serve the few in control, or the whole society. El resultado determina si el sistema funciona el dinero al servicio de las pocas en el control, o el conjunto de la sociedad. . .

Mankind can live under various forms of government from dictatorship to republic, but the best systems are those in harmony with human nature. La humanidad puede vivir bajo diversas formas de gobierno de la dictadura a la república, pero los mejores sistemas son aquellos en armonía con la naturaleza humana. Likewise many things can be made into money, but the best will be the ones in harmony with the nature of money. Del mismo modo muchas cosas pueden hacerse en dinero, pero la mejor será la que en armonía con la naturaleza del dinero.

Remember: don’t confuse money with tangible wealth. Recuerde: no confundir el dinero con la riqueza tangible. Yes, commodities can be improperly monetized by law. Sí, los productos básicos pueden ser monetarios indebidamente por la ley. The result will make the money system hostage to the commodities situation; hostage to the people, companies, countries that control the commodity. El resultado hará que el sistema de dinero como rehenes a los productos básicos situación; como rehenes a las personas, empresas, países que controlan la mercancía. Ultimately it removes the monetary power from society and places it into the hands of the wealthy. En última instancia, se elimina el poder monetario de la sociedad y lo coloca en las manos de los ricos.

And don’t confuse money with credit - either private or public credit. Y no confundir con el dinero de crédito - ya sea público o privado de crédito. Yes private credits can be improperly monetized by law. Sí créditos privados pueden ser monetarios indebidamente por la ley. But that gives great privilege to those whose credits have been monetized, to the detriment of the whole society. Sin embargo, que le da gran privilegio para aquellos cuyos créditos han sido monetarios, en detrimento de la sociedad en su conjunto. The money system then becomes an engine of injustice - as it is now. El dinero que el sistema se convierte entonces en un motor de la injusticia - como lo es ahora. . .

How private central banking started in America ¿Cómo privado de banca central se inició en América

First Step: Our Constitutional Convention, considered two grand themes on humanity: First whether mankind could be self-governing. Primer Paso: Nuestra Convención Constitucional, considera dos grandes temas de la humanidad: en primer lugar si la humanidad puede ser autónomo. This American experiment is still in doubt because the Convention mishandled the other grand theme over the nature of money. Este experimento de América todavía está en duda debido a que la Convención mal el otro gran tema sobre la naturaleza del dinero.

They met from May to September 1787 but the money subject didn’t came up til August 16. Se reunieron a partir de mayo a septiembre de 1787, pero el dinero no sujeto llegó hasta hasta agosto 16. Jefferson and Paine weren’t there. Jefferson y Paine no existe. Franklin was too old to speak. Franklin era demasiado viejo para hablar.

A curious book on money appeared, written anonymously by Calvinist clergyman John Witherspoon. Un curioso libro sobre el dinero apareció, escrito anónimamente por clérigo calvinista John Witherspoon. The book attacked government money and promoted Adam Smith’s primitive view that only gold and silver are money. El libro del gobierno atacaron el dinero y promovido Adam Smith de la primitiva opinión de que sólo el oro y la plata son dinero. . . .

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. El poder del gobierno para crear dinero, considerado durante mucho tiempo una parte necesaria de la soberanía ya estaba en los artículos de la Confederación, pero los federalistas luchado para excluir a este poder fundamental del nuevo gobierno, argumentando que no podía ser de confianza con él. Some of them intended to get hold of the power privately as had been done in England. Algunos de ellos destinados a obtener el poder de la privada como se había hecho en Inglaterra.

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. La suprema importancia de la comprensión de la naturaleza del dinero ahora se hace evidente: Por si obtiene dinero de su valor "intrínseco" cualidades, podría ser visto más como una criatura de los comerciantes y banqueros que de los gobiernos.

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. Pero si el dinero es la esencia de una institución social abstracta la obtención de valor a través de la ley, entonces su criatura de un gobierno y la Constitución mejor que tratar con ella de manera adecuada. Describing how a uniform currency is to be provided, controlled and kept reasonably stable, in a just manner. Describiendo cómo un uniforme de la moneda es que debe prestarse, controlado y mantenido razonablemente estable, de manera justa. The Constitutional Convention faltered on this crucial question. La Convención Constitucional falló sobre esta cuestión crucial.

The delegates accepted Smith’s primitive concept of money and didn’t firmly place the money power into government’s hands, leaving it ambiguous. Los delegados aceptaron Smith's primitivo concepto de dinero y no firmemente lugar el dinero el poder en manos del gobierno, dejando ambigua.

But the power would still exist. Pero el poder que todavía existen. What I’m suggesting is that human affairs require government to have four branches, not three; the fourth branch to administer the money power. Lo que estoy sugiriendo es que los asuntos humanos exigen a los gobiernos de cuatro ramas, y no tres, la cuarta rama de administrar el dinero el poder.

The Constitution left the money power up for grabs. La Constitución dejó el poder el dinero en juego. Alexander Hamilton wasted no time in grabbing. Alexander Hamilton no perdió tiempo en el acaparamiento.

Second Step: The Constitution went into effect in late 1789. Segundo Paso: La Constitución entró en vigor a finales de 1789. Hamilton’s first move as Secretary of the Treasury, was to assume $15 million of the state debts. Hamilton del primer paso como Secretario del Tesoro, fue a asumir $ 15 millones de deudas del Estado. . . an extremely unpopular act. un acto sumamente impopular. Why? ¿Por qué?

The worthless debt was held by the revolutionary soldiers, farmers, manufacturers and merchants who furnished its supplies. El valor de deuda se celebró por el revolucionario soldados, agricultores, fabricantes y comerciantes que envió sus suministros. As Congress secretly passed the bill behind closed doors, the country was overrun by speculators, buying up the certificates for pennies on the dollar. Como en secreto el Congreso aprobó el proyecto de ley a puerta cerrada, el país fue invadido por especuladores, la compra de los certificados de centavos sobre el dólar.

Third step: Next Hamilton and associates, having kept the monetary power out of government, moved to assume it themselves. Tercer paso: Siguiente Hamilton y asociados, después de haber mantenido el poder monetario de gobierno, se trasladó a asumir ellos mismos. . .

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. Federalistas de Hamilton rápidamente a través de la legislación de fletamento el primer banco de los Estados Unidos, como una propiedad privada del banco central sobre el Banco de Inglaterra modelo. 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. El Banco se observa la emisión de documento no respaldados por el metal, sino que pretende ser rescatables en la acuñación de monedas, una sobre la condición de que no mucha gente pregunta por la redención. They never had enough coinage. Nunca había suficiente moneda.

Thus the real question was whether it would be private banks or the government that would issue paper money. Así pues, la verdadera cuestión es si sería la banca privada o el gobierno que emitiría papel moneda. Will the immense power and profit of issuing currency go to the benefit of the whole nation, or to the private bankers? ¿El inmenso poder y los beneficios de la emisión de moneda para ir en beneficio de toda la nación, ni a la banca privada? That’s always been the real monetary question in America. Que siempre ha sido la verdadera cuestión monetaria en los Estados Unidos.

Gold and silver served as a smoke-screen. El oro y la plata sirvió como una pantalla de humo de tabaco. What the bankers counted on were the legal considerations of the money. Lo que los banqueros se contó con las consideraciones jurídicas del dinero. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Sabían que todo lo que se necesita para dar su documento toma nota de valor, fue para que el gobierno acepta en pago de impuestos. That, and not issuing too excessive a quantity. Eso, y no demasiado la emisión de una cantidad excesiva. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. En esas condiciones, el documento toma nota de que impreso de la nada, sería una reclamación en toda la riqueza existente en la sociedad.

Just where did the money for first bank of the US came from? Sólo cuando no el dinero para el primer banco de los EE.UU. vinieron de? . . . The $10 million subscription for the banks’ shares, was oversubscribed within two hours. Los 10 millones de dólares de suscripción para los bancos acciones, se superó el plazo de dos horas. Only 1/10 of it was ever paid in gold. Sólo 1 / 10 del que nunca fue pagado en oro. The rest was accepted in the form of bonds - the government bonds that Hamilton had turned from pennies on the dollar to full value. El resto fue aceptado en forma de bonos - bonos del gobierno que Hamilton se ha convertido en centavos de dólar a valor total. The money for the private bank actually came from the American people. El dinero para la banca privada viene en realidad el pueblo norteamericano.

Thanks to Jefferson’s efforts, the bank was liquidated in 1811. Gracias a los esfuerzos de Jefferson, el banco fue liquidada en 1811. Three quarters of it was found to be owned by English and Dutch. Tres cuartas partes de ella se encontró a ser propiedad de Inglés y holandés.

AMI’s proposed reforms AMI reformas propuestas

- Nationalize the Federal Reserve System. - Nacionalizar el Sistema de la Reserva Federal. Reconstitute it in the US Treasury, to evolve into a fourth branch of government. Reconstituir en la Tesorería de los EE.UU., para convertirse en una cuarta rama de gobierno. Only the government would create money. Sólo el gobierno de crear dinero.

- Remove the privilege which banks presently have to create money. - Eliminar el privilegio que actualmente tienen los bancos para crear dinero. This is done through an elegant and gentle process which automatically turns all the previously issued bank credit into real American money. Esto se hace a través de un elegante y suave proceso que se activa automáticamente todos los emitidos con anterioridad el crédito bancario en dinero americano real. 100% reserves are reached not by calling in loans but by increasing reserves. 100% de las reservas no se llegó a llamar en los préstamos, sino por el aumento de las reservas. This would be neither inflationary or deflationary. Esto no sería ni inflacionista o deflacionista.

- 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. - Instituto para el intercambio automático de programas, la Constitución determina la creación de dinero del gobierno, a partir de los $ 2 billones que los ingenieros civiles necesidad de llevar nuestra infraestructura a niveles aceptables. From there we go forward carefully determining how to best run the monetary system. A partir de ahí vamos hacia adelante con cuidado la determinación de la mejor manera de ejecutar el sistema monetario. . .

What difference would reconstituting the money power in government make? ¿Qué diferencia reconstituir el dinero el poder en el gobierno hacer? 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. Gobierno dinero va a infraestructura, una mejor vida, mejores puestos de trabajo, la educación, la seguridad vial, agua más limpia; mejor atención de la salud, la seguridad social, etc Sociedad está facultada por ser capaz de dirigir el dinero para poder resolver problemas acuciantes y no en la especulación inútil. We no longer have to say we can’t afford it, when so many people and resources are unemployed!. Ya no tengo que decir que no nos podemos permitir que, cuando tantas personas y los recursos están en el paro!.

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. Estas tres reformas puede estar más cerca de lo que piensa, y en una situación de crisis si sólo el 5% de la ciudadanía tiene una toma de conciencia de la sociedad / naturaleza jurídica de dinero, que podría ser promulgado.

The need for monetary reform La necesidad de la reforma monetaria

The power to create money is an awesome power - at times stronger than the executive, legislative or judicial powers combined. El poder de crear dinero es un impresionante poder - a veces más fuerte que los poderes ejecutivo, legislativo o judicial poderes combinados. It’s like having a “magic checkbook,” where checks can’t bounce. Es como tener una "chequera mágica", donde los controles no puede rebotar. 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. Cuando controlada privada que puede ser utilizado para obtener riquezas, pero que es más importante que determina la dirección de nuestra sociedad por decidir a dónde va su dinero - lo que se financia y qué no. Will it be used to build and repair vital infrastructure such as levees to protect major cities? ¿Va a ser utilizados para construir y reparar las infraestructuras vitales, tales como diques para proteger a las grandes ciudades? Or will it go into warfare or real estate loans, creating asset price inflation - the real estate bubble. ¿O que entrar en guerra o préstamos de bienes raíces, la creación de la inflación los precios de los activos - la burbuja inmobiliaria.

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. Por lo tanto, la emisión de dinero el poder nunca debe ser alejados de gobierno democráticamente elegido y colocado ambigua en manos privadas, ya que es en los Estados Unidos en el sistema de la Reserva Federal el día de hoy.

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. De hecho la mayoría de la gente se sorprende al enterarse de que la mayor parte de nuestra oferta de dinero no es creado por nuestro gobierno, sino por los bancos privados cuando hacen préstamos. Most of our money is issued as interest-bearing debt. La mayor parte de nuestro dinero es como que devengan intereses de deuda.

We are borrowing this money system from private banks when instead we should own the system, not rent it. Nosotros los préstamos son el dinero del sistema de bancos privados, cuando en lugar deberíamos propio sistema, no alquilarla. 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. Nuestro gobierno tiene el poder soberano de emitir dinero (Art.1, Sect.8) y gastar en circulación para promover el bienestar general a través de la creación y reparación de la infraestructura, incluida la infraestructura humana - la salud y la educación - en lugar de abusar de los fondos del sistema para la especulación como la banca ha hecho históricamente. Our lawmakers must now reclaim that power. Nuestros legisladores deben ahora recuperar ese poder. . .

Unhappily, mankind’s experience with private money creation has undeniably been a long history of fraud, mismanagement and even villainy. Desgraciadamente, la experiencia de la humanidad con la creación de dinero privado ha sido innegablemente una larga historia de fraude, mala gestión e incluso villainy. Banking abuses are pervasive and self-evident. Banca abusos son generalizados y evidente. Major companies focus on misusing the money system instead of production. Grandes empresas se centran en el uso indebido de dinero del sistema en lugar de la producción. For example, in June 2005, Citibank and Merrill Lynch paid over $1.2 Billion to Enron pensioners to settle fraud charges. Por ejemplo, en junio de 2005, Citibank y Merrill Lynch pagó más de US $ 1,2 mil millones a los pensionistas de Enron para resolver acusaciones de fraude.

Private money creation through fractional reserve banking fosters an unprecedented concentration of wealth which destroys the democratic process and ultimately promotes imperialism. Dinero privado a través de la creación de la banca de reserva fraccional promueve una concentración sin precedentes de la riqueza que destruye el proceso democrático y, en definitiva, promueve el imperialismo. Less than 1% of the population claims ownership of almost 50% of the wealth, but vital infrastructure is ignored. Menos del 1% de la población reivindica la propiedad de casi el 50% de la riqueza, pero la infraestructura vital es ignorado. 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. La Sociedad Americana de Ingenieros Civiles le da un grado D de nuestra infraestructura y se estima que $ 1,6 billones que se necesita para llevarla a niveles aceptables.

That fact alone shows the world’s dominant money system to be a major failure crying for reform. Ese hecho por sí solo muestra el mundo del sistema dominante dinero a ser un gran fracaso de la reforma de llorar.

Infrastructure repair would provide quality employment throughout the nation. Reparación de infraestructuras proporcionaría un empleo de calidad en toda la nación. There is a pretense that government must either borrow or tax to get the money for such projects. Hay una pretensión de que el gobierno debe pedir prestado o fiscal para obtener el dinero para esos proyectos. But the government can directly create the money needed and spend it into circulation for such projects, without inflationary results. Sin embargo, el gobierno puede crear directamente el dinero necesario y gastar en circulación para este tipo de proyectos, sin resultados inflacionistas.

The false specter of inflation is usually raised against suggestions that our government fulfill its responsibility to furnish the nation’s money supply. El falso fantasma de la inflación suele ser planteadas en contra de las sugerencias de que nuestro gobierno cumpla con su responsabilidad de proporcionar a la nación de la oferta de dinero. But that is a knee jerk reaction - the result of decades, even centuries of propaganda against government. Sin embargo, que es la rodilla huevón una reacción - el resultado de decenios, incluso siglos de propaganda contra el gobierno. 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. Cuando uno examina la realidad monetaria de registro, queda claro que el gobierno tiene un registro superior y el control de la emisión de dinero que los emisores privados tienen. Inflation is avoided because real material wealth has been created in the process. La inflación es real, porque evita la riqueza material se ha creado en el proceso.

From Stephen Zarlenga’s 2003 speech at the US Treasury De Stephen Zarlenga de 2003 en el discurso del Tesoro de los EE.UU.

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. Tal vez el principal fracaso de la economía es su incapacidad, desde Adam Smith hasta el presente, para definir o descubrir un concepto de dinero en consonancia con la lógica y la historia. Economists rarely define money, assuming an understanding of it. Los economistas rara vez se define el dinero, en el supuesto de una comprensión de la misma. 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 sigue siendo argumentado si la naturaleza del dinero es un poder concreto, encarnado en una mercancía como el oro, o si se trata de una de crédito / débito emitidas por bancos privados. Does its value come from the material of which it’s made? ¿Tiene su valor provienen de los materiales de los cuales se hace? 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? ¿O es, como hemos llegado a la conclusión, un resumen poder social - una institución de la ley, porque el valor de haber aceptado en sus intercambios debido al patrocinio del gobierno? 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. La respuesta correcta conduce a conclusiones sobre el buen papel monetaria del gobierno, si el poder de crear dinero y el control debe ser presentada, como en la actualidad en una cierta ambigüedad privado emisor - Sistema de la Reserva Federal y sus bancos miembros - o debe ser reconstituido en su totalidad dentro del gobierno. An accurate concept of money will light the way to solving the present fiscal crisis. Un concepto exacto de dinero se iluminará el camino para resolver la presente crisis fiscal.

We have two basic approaches to understanding money: A theoretical method based on logic; and an empirical approach based on experience or history. Tenemos dos enfoques básicos para la comprensión de dinero: un método teórico basado en la lógica, y un enfoque empírico basado en la experiencia o la historia. Practitioners of the two methods arrive at very different conclusions. Profesionales de los dos métodos llegan a conclusiones muy diferentes. Theoreticians usually support private commodity money and private credit money. Generalmente teóricos básicos de apoyo privado de dinero y de crédito de dinero privado. Historians normally want a much larger role for government. Normalmente, los historiadores quieren un papel mucho mayor para el gobierno.

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. Vamos a comenzar con Aristóteles, que dio la culminación del pensamiento griego y experimentar en el dinero alrededor de 330 aC: "Todas las mercancías, por lo tanto, debe ser medido por algunos una cosa. . . now this unit is in truth, demand, which holds all things together. ahora esta unidad es en verdad, la demanda, que sostiene todas las cosas juntos. . . 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. pero el dinero se ha convertido en una especie de convención de la representación de la demanda, y esta es la razón por la que tiene el nombre Nomisma - porque no existe por naturaleza, sino por la ley (que en griego se nomos) y está en nuestras manos para cambiarlo y que sea inútil. "Por lo tanto, Aristóteles pide dinero a una criatura de la ley. Not a commodity from nature but an abstract social institution. No una mercancía de naturaleza abstracta, sino una institución social. Its essence is not tangible wealth in itself, but a power to obtain wealth. Su esencia no es tangible la riqueza en sí mismo, sino un poder para obtener riqueza.

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. De acuerdo con Platón y Aristóteles defendido fiat dinero para su República: "La ley ordena que ninguna persona privada deberán poseer o acumular oro o plata en lingotes, pero el dinero sólo aptos para el uso doméstico. . . . wherefore our citizens should have a money current among themselves but not acceptable to the rest of mankind. Por tanto nuestros ciudadanos deben tener un dinero actual entre sí, pero no aceptable para el resto de la humanidad. . . ” And: “Then they will need a market place, and a money-token for purposes of exchange.” "Y:" Entonces se necesita un mercado, y un vale de dinero con fines de intercambio. "

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. Así que tanto Platón y Aristóteles observó el principio - que la naturaleza del dinero es un decreto de la ley, una invención o la creación de la humanidad. 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. Este principio, parte de una ciencia perdida de dinero, debe ser ahora relearned en el Tercer Milenio, a fin de lograr el monetaria reformas necesarias para avanzar desde el borde de la catástrofe nuclear, para pasar de un futuro dominado por el fraude y la fealdad, hacia un mundo de justicia y belleza.

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. Este "público versus privado" batalla por el control del poder del dinero es parte de una gran batalla social en curso recurrente a lo largo de la historia el día de hoy. This factor shapes the most important outcomes determining how well a money system works. Este factor formas los resultados más importantes y determinar cómo un sistema de dinero de obras. A good system functions fairly; helping the society create values for living. Un buen sistema de funciones bastante; ayudar a la sociedad crear valores para vivir. 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. Un mal un obstruye la creación de valores; lugares de privilegios especiales en las manos de algunos en detrimento de los demás, y promueve la injusta concentración de la riqueza y el poder, y la discordia y luchas sociales.

Now it may be surprising, but the historical record actually shows that publicly controlled systems function much better than private ones. Ahora puede ser sorprendente, pero el registro histórico muestra que efectivamente los sistemas controlados públicamente función mucho mejor que las privadas. Furthermore, it shows that the concept of money - how money is defined - usually determines whether the system will be publicly or privately controlled. Además, pone de manifiesto que el concepto de dinero - ¿Cómo se define el dinero - por lo general determina si el sistema será pública o privada controlada. . .

Our American experience contains many of the best case studies for understanding money. Nuestra experiencia de América contiene muchos de los mejores estudios de caso para la comprensión de dinero. 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. Hemos sido un gran laboratorio monetaria - todos los solución fue juzgado en algún momento, y hemos sido una nación papel moneda de la época colonial. Our development was inseparable from it - without it there’d be no United States. Nuestro desarrollo es inseparable de ella - sin ella no desea ser no Estados Unidos.

English and Dutch laws forbade sending coinage to the colonies, placing them in continual distress. Inglés y holandés prohibió el envío de las leyes de acuñación a las colonias, poniendo en continuo peligro. The intent was to extract raw materials, not for the colonists to trade with each other. La intención era extraer las materias primas, no para los colonos a los intercambios comerciales con los demás. An early form of globalization. Una primera forma de globalización. The colonies had to devise monetary innovations. Las colonias tuvieron que idear innovaciones monetarias.

In the period 1632 - 92, seventeen different commodities were monetized by law at specified prices. En el período 1632 - 92, diecisiete diferentes productos básicos se monetarios por la ley en determinados precios. It didn’t work - everyone wanted to pay with the least desirable commodity, in the worst condition. No trabajo - todo el mundo quería pagar con la menos deseable básicos, en el peor condición. . .

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. Bancos de tierras privadas se han creado, pero rechazados por los colonos, que consideran una prerrogativa de dinero del gobierno, como lo fue en Inglaterra hasta 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. Luego, en 1690, cuatro años antes de que el Banco de Inglaterra, Massachusetts se embarcó en un curso radical y emitió papel de las facturas de crédito, el gasto en circulación. Rather than a promise to pay anything, they were a promise to receive them back for all payments to the commonwealth. Más que una promesa de pagar nada, eran una promesa de recibir de vuelta para todos los pagos a la Comunidad. The colony thrived. La colonia prosperó. Other colonies copied them and infrastructure arose. Otras colonias copiado y surgió la infraestructura.

In 1723 Pennsylvania’s system loaned the bills into circulation, charging interest on them and using it to pay colonial expenses. En 1723 Pennsylvania sistema de préstamo de los proyectos de ley en circulación, cobro de intereses sobre ellos y utilizarla para pagar los gastos colonial. Ben Franklin wrote: Ben Franklin escribió:

“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.” . "La experiencia, más que toda la lógica en el mundo, ha convencido plenamente todos nosotros, que el papel moneda ha sido, y es ahora de las grandes ventajas para el país".. . .

Some long lost principles of the science of money quickly resurfaced: Algunos perdieron a largo principios de la ciencia de dinero rápidamente volvió a:

- Money need not have intrinsic value; its nature is more of an abstract legal power than a commodity. - El dinero no es necesario que tiene un valor intrínseco, su naturaleza es más un resumen de la facultad legal que una mercancía.

- Accepting the government paper back in taxes was the key feature needed to give it circulating value. - Aceptar el papel del gobierno en los impuestos es la característica clave necesaria para darle valor circulante.

- The quantity of money in circulation had to be regulated to maintain its value. - La cantidad de dinero en circulación tuvo que ser regulado para mantener su valor.

- They observed that paper money helped build real infrastructure. - Se observó que el papel moneda real ayudaron a construir la infraestructura.

- Most importantly, the colonies did not issue more money than their legislatures authorized. - Lo que es más importante, las colonias no emitir más dinero que sus legislaturas autorizado. They have an outstanding record issuing currency. Tienen un pendientes de registro de la emisión de moneda. Of over a hundred colonial issues I found only one case of fraud. De más de un centenar de cuestiones colonial he encontrado un solo caso de fraude. 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. En Virginia, un Señor Robertson, que se suponía que iba a ser la quema de las notas antiguas como nuevas se imprimieron, fue darles lugar a sus amigos.

But in the battle for monetary dominance, the colonial monetary experience has been miscast as irresponsible inflation money. Pero en la batalla por el dominio monetario, la experiencia colonial monetaria ha sido miscast como la inflación irresponsable de dinero. This was the result of 18th century Boston’s medical Dr. William Douglas’ inaccurate writings. Este fue el resultado de Boston siglo 18 médicos del doctor William Douglas inexacta escritos. The error was corrected by Alexander Del Mar in 1900 in The History of Money in America, but was ignored. El error fue corregido por Alexander Del Mar en el año 1900 en La Historia de La Moneda en América, pero fue ignorado. It was authoritatively cleared up again by Professor Leslie Brock in 1976 and again ignored. Se autoridad aclarado de nuevo por el profesor Leslie Brock en 1976 y otra vez ignorado. Many economists, and especially the libertarians, still haven’t got the message that colonial government paper money was crucial in building the colonies. Muchos economistas y, sobre todo, los libertarios, todavía no han captado el mensaje que el gobierno colonial papel moneda fue crucial en la construcción de las colonias.

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. En 1764, los Lores de Inglaterra de Comercio y prohíbe todas las plantaciones coloniales de curso legal, y que se convirtió en la causa subyacente de la Revolución Americana, y no algunos impuestos sobre el té.

The continental currency became the lifeblood of the revolution. La moneda continental se convirtió en el alma de la revolución. $200 million was authorized and $200 million issued. 200 millones de dólares autorizados y $ 200 millones emitidos. The currency functioned well. La moneda funcionado bien. 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. A finales de 1776 fueron las notas sólo en un 5% de descuento en contra de la moneda, cuando el General Howe se hizo cargo de la Ciudad de Nueva York e hizo un centro británico de la falsificación. The Brits counterfeited billions; newspaper ads openly offered the forgeries. Los miles de millones de británicos falsificados; anuncios de periódico abiertamente ofrecen los documentos falsificados. . . In March 1778 after 3 years of war, it was $2.01 Continental for $1 of coinage. En marzo de 1778 después de 3 años de la guerra, que fue de $ 2.01 Continental por US $ 1 de la moneda.

The continentals carried us over 5 1/2 years of Revolution to within 6 months of its final victory. El continentals nos llevó más de 5 1 / 2 años de Revolución dentro de los 6 meses de su victoria final. Thomas Paine wrote: “Every stone in the Bridge, that has carried us over, seems to have a claim upon our esteem. Thomas Paine escribió: "Cada piedra en el puente, que nos ha llevado más, parece haber una reclamación a nuestra autoestima. But this was a corner stone, and its usefulness cannot be forgotten.” Pero esta fue una piedra angular, y su utilidad no se puede olvidar. "

Our constitutional convention considered two grand themes of humanity: First whether mankind could be self-governing or had to be ruled by authority. Nuestra convención constitucional examinó dos grandes temas de la humanidad: en primer lugar si la humanidad podría ser autónomos o tenía que ser gobernado por la autoridad. Often referred to as the American experiment. A menudo denominado el experimento americano. 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. Estamos todavía los resultados de aprendizaje, y una de las razones por las que todavía está en duda debido a la forma en que la convención mal el otro gran tema - la naturaleza del dinero. 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. En el momento de la convención, los grandes beneficios de la continentals fue casi ignorado; junto con gran parte del resto de nuestro ganado duro monetaria experiencias. Some wanted to emphasize that the continentals became worthless and rejected the idea of paper money altogether. Algunos querían hacer hincapié en que el valor se convirtió en continentals y rechazó la idea de papel moneda por completo.

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. Se hace caso omiso de que el dinero de papel es crucial en darnos una nación, que resumen el dinero se requiere un sistema jurídico avanzado en su lugar, que el método normal de asegurar su aceptabilidad es permitir que los impuestos que se pagan en él. . .

The convention met from May to September 1787 but the money subject didn’t come up until August 16. La convención se reunió entre mayo y septiembre de 1787, pero el tema dinero no llegó hasta el 16 de agosto. Remember, Jefferson and Paine were not there. Recuerde, Jefferson y Paine no existe. Franklin was too old to speak. Franklin era demasiado viejo para hablar.

A curious book on money appeared just then, written anonymously by Calvinist Minister John Witherspoon, - the only clergyman signer of the declaration of Independence. Un curioso libro sobre el dinero apareció sólo entonces, escrito anónimamente por calvinista Ministro John Witherspoon, - el único clérigo firmante de la declaración de la independencia. The book attacked government money and promoted Adam Smith’s view that only gold and silver are money. El libro del gobierno atacaron el dinero y promovido Adam Smith de la opinión de que sólo el oro y la plata son dinero. . .

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. El poder de gobierno a crear correctamente el dinero, considerado durante mucho tiempo como una parte necesaria de la soberanía, figura en cinco palabras mágicas - para emitir letras de crédito. 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. Esta disposición ya se encontraba en los artículos de la Confederación, pero los federalistas - el comerciante / interés comercial, en gran parte responsable de llamar a la Convención Constitucional, a fin de fortalecer el gobierno nacional, luchó para excluir a este poder monetario del nuevo gobierno, con el argumento de que podría no se confía con ella. Some of them intended to get hold of the power privately as had been done in England. Algunos de ellos destinados a obtener el poder de la privada como se había hecho en Inglaterra.

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. La suprema importancia del concepto de dinero ahora se hace evidente: Si el dinero es fundamentalmente un producto, conveniente para hacer oficios, que obtiene su valor de "intrínseco" cualidades, entonces podría considerarse más como una criatura de los comerciantes y banqueros que de los gobiernos.

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. Pero si la verdadera naturaleza del dinero es un resumen institución social consagrados en la ley - la obtención de su valor en gran medida a través de sanciones legales, su criatura más uno de los gobiernos, y la Constitución mejor que tratar de manera adecuada con ella - que describe cómo una moneda uniforme se previsto, controlado y mantenido razonablemente estable, de manera justa. It was on this crucial question that the Constitutional Convention faltered. Fue sobre esta cuestión crucial que la Convención Constitucional falló.

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. Los delegados aceptaron Adam Smith básicos de la primitiva definición de dinero como el oro y la plata y no firmemente a cabo la política monetaria en poder del gobierno, dejando ambigua. Later they’d argue over what they had done. Más tarde, que podría argumentar más de lo que habían hecho. But the power would still exist, since it is as important as the legislative, judicial and executive powers. Pero el poder que todavía existen, ya que es tan importante como las medidas legislativas, judiciales y ejecutivas.

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. Estoy sugiriendo que la naturaleza de los asuntos humanos requiere el gobierno a tener cuatro sucursales, no tres, la cuarta rama de incorporar y administrar el poder monetario.

The Constitution trusted the people with the political power; but didn’t firmly place the monetary power in their government. La Constitución confía en la gente con el poder político, pero no el lugar firmemente poder monetario en su gobierno. This (along with slavery) is the original sin of American politics. Este (junto con la esclavitud) es el pecado original de la política americana. As a result the power was left up for grabs. Como resultado, el poder quedó en suspenso. Alexander Hamilton wasted no time in “grabbing.” Alexander Hamilton no perdió tiempo en el "acaparamiento".

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. La Constitución entró en vigor a finales de 1789; Van Buren descritas Hamilton del primer paso como Secretario del Tesoro, en 1790: "Hamilton supone unos 15 millones de dólares de deudas del Estado. . . an act. un acto. . . neither asked nor desired by the states, unconstitutional and inexpedient. ni pregunta ni deseada por los estados, y la inconstitucionalidad de inconveniente. . . ” "

What was so bad about it? ¿Cuál es tan malo acerca de él? “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. "Una gran proporción de la deuda interna (se celebró por) los soldados que lucharon nuestras batallas, y los agricultores, los fabricantes y comerciantes que, proporcionado suministros para su apoyo. . . .When it became known to members of Congress, which sat behind closed doors, that the bill would pass. . Cuando se hizo conocido a los miembros del Congreso, que Sábado a puerta cerrada, que el proyecto de ley pasaría. . . 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. cada parte del país fue invadido por los especuladores, a caballo y en barco, hasta la compra de grandes porciones de los certificados de (centavos de dólar). "Madison, han tratado de la ley los especuladores pagar menos de los poseedores originales, pero se votó abajo.

Next Hamilton and associates, having kept the monetary power out of government hands, moved to assume it themselves. Siguiente Hamilton y asociados, después de haber mantenido el poder monetario en manos del gobierno, se trasladó a asumir ellos mismos. The Bank of North America was the only bank in the US, formed in Pennsylvania on Tom Paine’s initiative to assist the revolution. El Banco de América del Norte fue el único banco en los EE.UU., formada en Pennsylvania Tom Paine en la iniciativa para ayudar a la revolución. Arguing that it was only a state bank, Hamilton suggested it come forward if it wanted to alter itself for the national purpose. Argumentando que era sólo un banco estatal, Hamilton sugirió que presentar si se quería alterar por sí misma el propósito nacional. Curiously, the bank took no steps toward this obvious increase in profit and power. Curiosamente, el banco no tomó medidas hacia este evidente aumento en el beneficio y el poder.

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. Federalistas de Hamilton rápidamente a través de la legislación a la carta el primer banco de los Estados Unidos, como una propiedad privada del banco central sobre el Banco de Inglaterra modelo. 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. El Banco se observa la emisión de documento no respaldados por el metal, sino que pretende ser rescatables en la acuñación de monedas, una sobre la condición de que no mucha gente pregunta por la redención. They really did not have the coinage. Ellos realmente no tienen la moneda. The bank would do what they had blocked the government from doing. El banco hará lo que habían bloqueado el gobierno de hacer. Print paper money. De papel de impresión de dinero.

While gold and silver served as a smoke-screen what the bankers really counted on, were the legal considerations of the money. Si bien el oro y la plata sirvió como una pantalla de humo de tabaco los banqueros lo que realmente cuenta con, fueron las consideraciones jurídicas del dinero. They knew that all that was needed to give their paper notes value, was for the government to accept them in payment for taxes. Sabían que todo lo que se necesita para dar su documento toma nota de valor, fue para que el gobierno acepta en pago de impuestos. That, and not issuing too excessive a quantity of them. Eso, y no demasiado la emisión de una cantidad excesiva de ellas. Under those conditions, the paper notes they printed out of thin air, would be a claim on any wealth existing in the society. En esas condiciones, el documento toma nota de que impreso de la nada, sería una reclamación en toda la riqueza existente en la sociedad.

And we see why the Bank of North America was not put forward for this purpose: the US government had owned 60% of it. Y vemos por qué el Banco de América del Norte no se presentó para este fin: el gobierno de los EE.UU. había un 60% de propiedad de la misma. . . . The government would only own 20% of the new bank. El gobierno sólo propia del 20% del nuevo banco.

Just where did the money for first Bank of the US came from? Sólo cuando no el dinero para el primer banco de los EE.UU. vinieron de? The $10 million share subscription for the banks shares, was oversubscribed within 2 hours. Los 10 millones de dólares cuota de suscripción de acciones de los bancos, se superó en 2 horas. Less than 1/10 of it was ever paid in gold. Menos de 1 / 10 del que nunca fue pagado en oro. 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. El resto del pago fue aceptado en forma de bonos - el gobierno de los bonos que Hamilton se ha convertido en centavos de dólar a valor total. So you see where the money for the bank actually came from - from the American people. Así que ver dónde el dinero para el banco viene en realidad - desde el pueblo de los Estados Unidos. That’s how private central banking started in America. Así es como privadas de banca central se inició en América.

Thanks in large part to Jefferson’s efforts, the bank was liquidated in 1811. Gracias en gran parte a los esfuerzos de Jefferson, el banco fue liquidada en 1811. Three quarters of it was found to be owned by Europeans - English and Dutch. Tres cuartas partes de ella se encontró a ser propiedad de los europeos - Inglés y holandés.

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. El 2 º Banco de los EE.UU. - el banco del infierno - operado ilegalmente desde su creación, la aceptación de la IOU en lugar de las de oro en el pago de sus acciones. So again the banker’s gold “requirement” turned out to be a masquerade. Así que de nuevo el banquero de oro "requisito" resultó ser una mascarada.

This private central bank immediately embarked on a wild monetary expansion. Este banco central privado de inmediato se embarcó en una expansión monetaria silvestres. 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. A partir de las operaciones en abril de 1817, en julio de que había 19 oficinas y ha creado 52 millones de dólares en préstamos en sus libros y un adicional de 9 millones en moneda circulante, sobre la base de oro y plata moneda de reservas de sólo 2,5 millones de dólares. This tremendous expansion caused a wild speculative boom. Esta enorme expansión provocó un boom especulativo salvaje. Then in August 1818, the bank turned abruptly and began an insane contraction, causing the panic of 1819. Luego, en agosto de 1818, el banco convirtió abruptamente y comenzó una loca contracción, provocando el pánico de 1819. It cut its outstanding loans and advances from a high of $52 million, down to $12 million in I819. Es reducir sus préstamos pendientes y los avances de un máximo de 52 millones de dólares, hasta 12 millones de dólares en I819. Its circulating notes dropped from $10 million to $3.5 million in 1820. Toma nota de su circulante se redujo de 10 millones de dólares a 3,5 millones de dólares en 1820. A massive wave of bankruptcies swept the nation. Una oleada masiva de quiebras barrió la nación.

The subsequent history of this bank and its fight to the death with President Jackson reads like a financial soap opera. La posterior historia de este banco y su lucha a la muerte con el Presidente Jackson se lee como una telenovela. The story of various state chartered banks is similar. La historia de los diversos bancos estatales es similar.

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. Mientras tanto el gobierno de los EE.UU. ha actuado responsablemente en las consecuencias de la liquidación de la primera y la segunda banco; notas del Tesoro de EE.UU. fueron sustituidos en lugar de billetes. About $65 million were authorized and only $37 million actually issued. Alrededor de $ 65 millones fueron autorizados y sólo $ 37 millones emitido en realidad. The US Treasury spent them into circulation. Tesoro de los EE.UU. gastan en circulación. Initially they were all large denomination, paid interest; were redeemable in gold and required formalities to transfer. Inicialmente fueron todas las grandes denominación, pagan intereses; fueron rescatables en oro y trámites necesarios para transferir. By 1815 they became bearer certificates with no redemption date, paid no interest and were in smaller denominations. En 1815 se convirtió en portador de los certificados con fecha de redención no, no pagan interés y en las pequeñas denominaciones. Thus they were nearly a true money form. Así pues, son casi una verdadera forma de dinero. The fact is that the US government has always acted responsibly in creating money. El hecho es que el gobierno de los EE.UU. siempre ha actuado de forma responsable en la creación de dinero. Not so the private banks. No así los bancos privados.

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. Greenbacks estaban en equilibrio nuestro mejor sistema de dinero hasta la fecha Gracias a los 100 años de la difusión de información inexacta, la imagen de la greenbacks próximos a nosotros es como inflados o papel moneda sin valor. In fact, $450 million were authorized and $450 million were printed. De hecho, $ 450 millones fueron autorizados y US $ 450 millones se imprimieron. Counterfeiters couldn’t duplicate the Greenbacks. Los falsificadores no podrían duplicar la Greenbacks. Every Greenback was eventually exchangeable one for one with gold coin. Cada Greenback fue uno de canjeables con una moneda de oro.

But greenbacks were not promises to pay money later - they were the money. Greenbacks pero no se compromete a pagar el dinero más tarde - que se el dinero. Since they were not borrowed, they did not give rise to interest payments and did not add to any national debt. Dado que no fueron prestados, que no dio lugar a los pagos de intereses y no añadir a cualquier deuda nacional. The US Treasury printed them and spent them into circulation. Tesoro de los EE.UU. impresos y gastado en circulación.

Economists usually harp on the Greenbacks dropping to 36 cents in gold, and they leave it at that. Los economistas suelen insistir en el Greenbacks caer a 36 centavos en oro, y dejarlo en eso. While that happened, its highly misleading. Mientras que sucedió, su muy engañosa. . .

What did happen was that in June 1864, Congress limited the amount of Greenbacks to $450 million. ¿Qué es lo que sucederá es que en junio de 1864, el Congreso limitó la cantidad de Greenbacks a 450 millones de dólares.

There was inflation, but remember 13% of the population was fighting a terrible war. Hubo inflación, pero recuerde que el 13% de la población es la lucha contra una terrible guerra. 625,000 died. 625.000 murieron. Greenbacks performed well despite being spent on destruction. Greenbacks funcionado bien a pesar de ser gastado en la destrucción. They were also being abused by the bankers. También se está abusando de los banqueros. For every greenback created by Congress, the banking system created $1.49 in bank notes. Por cada billete verde creado por el Congreso, el sistema bancario creado 1,49 dólares en billetes de banco.

What if instead of being spent on destruction, they went into building infrastructure, and canals and roads? ¿Qué pasa si en lugar de ser gastado en la destrucción, que entró en la construcción de infraestructuras, y canales y las carreteras? Spending such money on infrastructure need not be inflationary. Gastar ese dinero en infraestructura no tiene por qué ser inflacionista. For example the Erie Canal lowered freight prices from $114 a ton down to $9 a ton. Por ejemplo, el Canal Erie bajado los precios de flete de $ 114 la tonelada a $ 9 la tonelada.

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. La gran lección de greenbacks es que en tiempos de crisis - y otras veces demasiado - nuestra nación tiene el poder para hacer lo que es económicamente necesario, a través de nuestro gobierno. We don’t have to beg or borrow money from the wealthy and, create an astronomical national debt. No tenemos que mendigar o pedir prestado dinero de los ricos y, crear una astronómica deuda nacional. 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 – 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 – 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 – 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 – 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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