On December 17th, 2010, Congressman Dennis Kucinich (D-OH) introduced one of the most radical monetary Bills presented to the House of Representatives since the Federal Reserve Act of 1913. Designated as Bill H.R. 6550, this proposed Act is also referred to as the ‘National Emergency Employment Defense Act of 2010’.
Kucinich’s Bill includes the following astounding objectives: “to restore the authority of Congress to create and regulate money… [and to] retire public debt…”
One needs to read that again.
Restore the authority of Congress to create and regulate money? Retire public debt?
Does that really say what it seems to be saying?
What a revolutionary Bill!
H.R. 6550 is much more far-reaching than Ron Paul’s valiant attempt to audit the Federal Reserve. This Bill would take us back 175 years to Andrew Jackson who killed central banking in the United States and became the last president to pay off the National Debt. And it would take us back to Abraham Lincoln who, 150 years ago, instructed the Treasury to bypass the banks and issue some 450 million debt-free ‘greenbacks’ to pay for the Union war effort during the Civil War.
Kucinich’s Bill, if enacted as written, would take the power of money creation away from the banksters and return it to Congress as the Founding Fathers had originally intended. And in no time, the National Debt would be fully paid off with debt-free, interest-free U.S. Treasury dollars.
Such a scenario has long been the stuff of banksters’ nightmares. According to a London Times editorial in 1865, alarmed at the success of Lincoln’s greenbacks, “[America] will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world…That country must be destroyed or it will destroy every monarchy on the globe.”
And if Congressman Kucinich and his sponsors are successful, America will indeed become prosperous without precedent in the history of the world. And the other nations of the world will follow suit.
The enactment of Bill H.R. 6550 is sure to create an epidemic of incontinence among the banksters throughout the world. The sale of toilet paper and adult diapers is sure to rise as the term “Cover your ass” takes on a whole new meaning. Wall Street especially will smell like an Arkansas hog ranch as the financial elite vacate their offices along with their bowels.
For those lucky enough to live in South Dakota, it would be interesting to mosey on over to Mount Rushmore and see if Tom Jefferson and Abe Lincoln have broken into huge smiles.
While Representative Kucinich is to be congratulated for his courage, intellect, and patriotism in presenting this Bill, special recognition should go to Stephen Zarlenga and his colleagues at the American Monetary Institute (AMI) for doing much of the groundwork over the past number of years. (Visit www.monetary.org for the text of H.R. 6550 and for a 32 page AMI precursor to the Bill.)
Stephen Zarlenga, co-founder of the American Monetary Institute, has 35 years experience in finance, securities, insurance, mutual funds, real estate, and futures trading and is the author of the widely acclaimed 700 page tome, The Lost Science Of Money. Zarlenga and the AMI have been working on the genesis of this Bill for some time. Representative Kucinich has been a regular attendee and speaker at AMI events in Chicago for the last few years and has incorporated their monetary reform document in his Bill, H.R. 6550.
This monetary reform is based on three crucial areas, all of which must occur if the reform is to be truly effective.
1. Incorporate the Federal Reserve System into the U.S. Treasury where all new money is created by government as money, not interest-bearing debt, and spent into circulation to promote the general welfare; monitored to be neither inflationary nor deflationary.
2. Halt the banks’ privilege to create money by ending the fractional reserve system in a gentle and elegant way. All the past monetized private credit is converted into U.S. government money. Banks then act as intermediaries accepting savings deposits and loaning them out to borrowers; what people think they do now.
3. Spend new money into circulation on infrastructure, including education and healthcare needed for a growing society, starting with the $3 trillion that the American Institute of Architects estimate is needed for infrastructure repair (roads, bridges, railroads, water systems, sewer systems, etc.); creating good jobs across the nation, re-invigorating local economies and re-funding government at all levels.
In Section 2 a), Findings, Kucinich targets the malfeasance and abysmal record of the Federal Reserve. The following selected paragraphs give a flavour of his controlled anger and serious intent.
(19) This ceding of Constitutional power [to the Federal Reserve] has contributed materially to a multitude of monetary and financial afflictions, including—
(A) growing and unreasonable concentration of wealth;
(B) unbridled expansion of national debt, both public and private;
(C) excessive reliance on taxation of citizens for raising public revenues;
(D) inflation of the currency;
(E) drastic increases in the cost of public infrastructure investments;
(F) record levels of unemployment and underemployment; and
(G) persistent erosion of the ability of Congress to exercise its Constitutional responsibilities to provide resources for the general welfare of all the American people.
(20) A debt-based monetary system, where money comes into existence primarily through private bank lending, can neither create, nor sustain, a stable economic environment, but has proven to be a source of chronic financial instability and frequent crisis, as evidenced by the near collapse of the financial system in 2008.
(21) Banks pyramided their value by spending money into existence, greatly inflating the value of bank holdings, inflating the value of their asset bases, enticing unknowing investors to participate in financing schemes like the bundling of subprime mortgages, and ultimately bringing undercapitalized banks and the entire financial system to the edge of ruin, creating circumstances where the taxpayers of the United States were called upon to save the banks from their own imprudent money-issuing practices, misspending and mis-investments. The banks’ ability to create money out of nothing ultimately became the taxpayers’ liability, and raises a fundamental question about a practice of money creation which threatens the wealth of the American people.
(22) Abolishing private money creation can be achieved with minimal disruption to current banking operations, regulation, and supervision.
(23) The creation of money by private financial institutions as interest-bearing debts should cease once and for all.
(24) Reclaiming the power of the Federal Government to create money, and to spend or lend money into circulation as needed, eliminates the need to treat money as a Federal liability or to pay interest charges on the Nation’s money supply to financial institutions; it also renders unnecessary the undue influence of private financial institutions over public policy.
(25) Under the current Federal Reserve System, the persons responsible for the conduct of United States monetary policy have been unaccountable to the Congress and the Nation, have resisted auditing by the General Accounting Office, and have claimed exemptions from some Federal statutes, including the Civil Rights Act of 1964, that apply to all agencies of the Federal Government.
(26) The conduct of United States monetary policy by the Board of Governors of the Federal Reserve System, and specifically the failure of Board members to safeguard the financial system against wholesale fraud and abuse of citizens, demonstrates the risks of maintaining a system wherein the power to create and regulate money has been delegated to private individuals who are unaccountable to the People of the United States in any way, even through their representatives in Congress.
(29) As our money system is a key pillar in maintaining general economic welfare and as the Federal Reserve System and its private banking partners has consistently failed to promote or preserve the general welfare, it is essential that Congress, in the name of protecting the economic lives of the American people and the long-term security of our Nation, reassume the powers and responsibilities granted to it by the Constitution.
Hear! Hear! All freedom-loving Americans would chant. This legislation should be studied and supported for the redemption it offers to us all, especially the poor and the down-trodden.
Not only Americans, but the entire world should sit up and take note of Dennis Kucinich’s revolutionary Bill. Citizens in other countries should download copies for their own political representatives and agitate for reform in their own countries. This Bill, if enacted, has the capability of creating widespread prosperity, peace, and goodwill.
Here in Ireland we are in the middle of a General Election campaign where there is much debate and controversy about banking fraud, the collapse of the economy, and the involvement of EU/IMF predators who are intent on eating us alive. Not one of our so-called future leaders of the State has presented us with an intelligent, effective alternative to the banksters’ grip of death.
And the mainstream media, with all its political debates, opinions, op-eds, and pontificating economics gurus, has not offered a single original or radical idea. Why not? Are they all so lacking in intelligence and innovation? Are they all so hopelessly under-informed about the history of banking and economics? Or do they all belong to the banksters, body and soul, and have been charged with keeping revolutionary new ideas out of the public domain?
Ireland sorely needs a Dennis Kucinich, or a single politician of integrity who will run with his baton. Is it possible to find such a creature among our gaggle of chancers and deadbeats? We’d better not hold our breath.
Nonetheless, let’s all hope that Congressman Kucinich prevails with this Bill and that it will not be defeated or emasculated by those in the pay or the influence of the Money Power.
With the enactment of Bill H.R. 6550 the world may not become a Utopia overnight, but it will certainly move us a lot closer to the joyous abundance of the Garden of Eden since the day Adam and Eve got the boot.