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Debt-Free United States Notes Were Once Issued Under JFK And The U.S. Government Still Has The Power To Issue Debt-Free Money

Most Americans have no idea that the U.S. government once issued debt-free money directly into circulation.  America once thrived under a debt-free monetary system, and we can do it again.  The truth is that the United States is a sovereign nation and it does not need to borrow money from anyone.  Back in the days of JFK, Federal Reserve Notes were not the only currency in circulation.  Under JFK (at at various other times), a limited number of debt-free United States Notes were issued by the U.S. Treasury and spent by the U.S. government without any new debt being created.  In fact, each bill said “United States Note” right at the top.  Unfortunately, United States Notes are not being issued today.  If you stop right now and pull a dollar out of your wallet, what does it say right at the top?  It says “Federal Reserve Note”.  Normally, the way our current system works is that whenever more Federal Reserve Notes are created more debt is also created.  This debt-based monetary system is systematically destroying the wealth of this nation.  But it does not have to be this way.  The truth is that the U.S. government still has the power under the U.S. Constitution to issue debt-free money, and we need to educate the American people about this.

Posted below are pictures of the front and the back of a United States Note printed in 1963 while JFK was president….

Notice that there is a red seal instead of a green seal on the front, and it says “United States Note” rather than “Federal Reserve Note”.

According to Wikipedia, United States Notes were issued directly into circulation by the U.S. Treasury and they were first used during the Civil War….

They were originally issued directly into circulation by the U.S. Treasury to pay expenses incurred by the Union during the American Civil War. Over the next century, the legislation governing these notes was modified many times and numerous versions have been issued by the Treasury.

So why are we using debt-based Federal Reserve Notes today instead of debt-free United States Notes?

It seems rather stupid, doesn’t it?

Well, that is what Thomas Edison thought too.

Thomas Edison was once quoted in the New York Times as saying the following….

That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.

Our current debt-based monetary system was devised by greedy bankers that wanted to make huge profits by creating money out of thin air and lending it to the U.S. government at interest.

Sadly, the vast majority of the American people have no idea how money is actually created in this nation.

In a previous article about money and debt, I explained how more government debt is created whenever the U.S. government puts more money into circulation….

When the government wants more money, the U.S. government swaps U.S. Treasury bonds for “Federal Reserve notes”, thus creating more government debt.  Usually the money isn’t even printed up – most of the time it is just electronically credited to the government.  The Federal Reserve creates these “Federal Reserve notes” out of thin air.  These Federal Reserve notes are backed by nothing and have no intrinsic value of their own.

When each new Federal Reserve Note is created, the interest owed by the federal government on that new Federal Reserve Note is not also created at the same time.

So the amount of government debt that is created actually exceeds the amount of money that is created.

Isn’t that a stupid system?

The U.S. Constitution says that the federal government is the one that should actually be issuing our money.

In particular, according to Article I, Section 8 of the U.S. Constitution, it is the U.S. Congress that has been given the responsibility to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So why is a private central banking cartel issuing our money?

As is the case with so many other issues, we desperately need to get back to the way the U.S. Constitution says that we should be doing things.

The debt-based Federal Reserve system is literally stealing the future from our children and our grandchildren.

Back in 1910, a couple years prior to the passage of the Federal Reserve Act, the national debt was only about $2.6 billion.

A little over 100 years later, our national debt is now more than 5000 times larger.

So why don’t we just admit that this system simply does not work?

Our current debt-based monetary system also requires very high personal income taxes to pay for it.

In fact, it is no accident that the personal income tax was introduced at about the same time that the Federal Reserve system originally came into existence.

Our children, our grandchildren and many generations after that are facing a lifetime of debt slavery because of us.

As I have written about previously, if the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

Neither the Republicans or the Democrats are proposing any solutions to this problem.  Rather, both parties are only trying to slow down the rate at which we are going into even more debt.

But the truth is that the federal government does not have to go into a single penny of additional debt.

How could this be?

It is not too complicated.

If Congress took back the power over our currency and started issuing debt-free money a lot of our problems could be fixed.

A basic plan would look something like this….

#1) The U.S. Congress votes to take back all of the functions that it has delegated to the Federal Reserve and begins to issue debt-free United States Notes.  These United States Notes would have the exact same value as existing Federal Reserve Notes, and over time all existing Federal Reserve Notes would be taken out of circulation.

#2) The U.S. Congress nationalizes all debt held by the Federal Reserve.  That would instantly reduce the national debt by 1.6 trillion dollars.  In fact, there are a few members of Congress that have already proposed this.

#3) A Constitutional amendment is passed limiting future U.S. government deficits to a reasonable percentage of GDP.  Any future deficits would not be funded by borrowing.  Rather, future deficits would be funded by newly created United States Notes.  Therefore, the federal government would never again accumulate another penny of debt.

And it would be important to inject new money into the economy from time to time.  When existing money is destroyed or when the population grows it is important to inject a certain amount of new money into the system in order to avoid deflation.

#4) The existing national debt would be very slowly paid off with newly created United States Notes.  The U.S. government spent over 454 billion dollars on interest on the national debt during fiscal year 2011, and over time this expense would go to zero.

If the national debt is paid off slowly enough, it would not create too much inflation.  I believe that it could be paid off gradually over 50 years without shocking the economy too much.

There are some that would object to any measure that would ever cause a small amount of inflation, but my contention is that we have created a $15 trillion dollar debt mess for future generations, and it would be absolutely criminal to pass that legacy on to them.

We created this mess, and it is our responsibility to clean it up.

While there is certainly a danger that we would have a limited amount of inflation under a debt-free monetary system such as the one described above, the reality is that we are absolutely guaranteed inflation under the Federal Reserve system.

Most Americans believe that inflation is a fact of life, but the sad truth is that the United States has only had a major, ongoing problem with inflation since the Federal Reserve was created back in 1913.

If you do not believe this, just check out this chart.

Sadly, the U.S. dollar has lost well over 95 percent of its value since the Federal Reserve was created.

So, yes, there would be a need for strict monetary discipline under a debt-free monetary system, but it would be hard to do worse than the Federal Reserve has already been doing.

And Congress could always slow down inflation using other methods.  For example, raising the reserve requirements for banks (which should be done anyway) would help keep inflation in check.

If the above proposals were adopted, the end result would be something that we could all live with.  The Federal Reserve system would be abolished, the national debt burden on future generations would be wiped out, the economy would not have to go through a devastating economic collapse that could last a decade or longer, and we could eventually make a fairly smooth transition to “hard money” if we wanted to after the national debt is gone.

Is there any other proposal out there that does all of those things?

There are many out there that would dispute some of the points above, and debate is good.  By engaging in debate, we can hopefully help educate the American people about the nature of money.

The key is to get rid of our current debt-based Federal Reserve Notes and replace them with debt-free United States Notes.

The American people need to understand that it is a lie that the U.S. government “must” borrow money from somebody else.

When the U.S. government borrows money, it slowly transfers wealth from the American people to those that lent it.

At this point, we have created a financial nightmare for future generations that is unlike anything the world has ever seen before.  We owe it to future generations to eliminate the debt problem without destroying the United States economy.  Adopting debt-free money would allow us to do that.

But sadly, neither political party is even talking about debt-free money.  In fact, most of the politicians in both political parties probably do not even know what debt-free money is.

So we need to get the American people educated about these things.  Because if we stay on the course that we are currently on, an economic collapse is inevitable.

  • Gary2

    I have a couple of these. COOL!

    • uncurable wound

      Hey Gary2,I dont have any of these,its not fair.You need to give me some of the ones you have!
      You have it,I dont.Therefore you OWE me at Least Half!
      Dont be Greedy Gary,help the needy!!!

      • Gary2

        Mine is only a 2 dollar silver certificate! I guess it was not what I thought.

        I will need to send to the government, have you apply for assistance for you to get 1/2 :).

      • 007

        Sounds like he needs to be taxed hard.

        • Mal R.

          And when he refuses, he should be ****** by an IRS agent with their super shotguns.

  • Old Man

    A bit more facts:

    1) Every Note was backed by gold – US Note and Fed Note until 1973 when Nixon cancelled it. Why did he cancel it? Because even with Fed at the time monopolizing money creation power, it was no able to issue enough to pay for Vietnam War debt. Removing gold-backing allowed the Fed to issue whatever amount to pay for any war, or anything for that matter by debasing the currency.

    2) It was the combination of both Fed took over fiat power, and money no longer backed by anything other than words, that thing got out of control. 2012-1972 = 40 years. 40 years is all it took to turn a superpower filled with surplus and great real wealth into a declining power filled with debt and gutted out industries.

    3) In the meantime, the Fed balance sheet has balloon to a dozen trillion, national debt to same, and financial derivative to dozens of trillion. Hey, that’s where all the money went!

    4) LEAP 2020, the European think tank, predicts the end of the US Fed may come by 2014-2015.

    • McKinley Morganfield

      Show me the gold…. The (supposed) gold reserves held in Fort Knox have been off limits since the late 1950s. That’s right, congress has been denied access to audit Fort Knox for 60 years.

      • uncurable wound

        I dont think the gold is in there either.
        The public was in there in 1974,Im not sure about congress?I think some reps were with the public,I remember seeing video footage of it.BUT that was a LONG time ago!
        Its Gone…

      • Malcolm reynolds

        Not really. Audited – no. shown – yes. The public was shown the the gold in the early 70s.

  • 007

    The Fed is so entrenched it is scary. You assume they will just roll over and let you shut them down. We are all passengers on a 747 jet and unfortunately the Fed is the pilot. It can just do a few minor interest gyrations and crash the plane. Oh yea, the Fed is the only one with a parachute and it is golden.

    • Nexus789

      More than than that. You are in a 747 with no tail fin, flying aimlessly, unable to steer, until a collision with something or the fuel runs out.

  • Sid Davis

    This piece is baloney. When the US Constitution was first drafted, Article 1, Section 8 gave Congress to power to coin money and regulate the value thereof, and to issue bills of credit. Bills of credit are paper money, so they would have had the power to print money if this provision was in the final draft. But after debate, the power to issue bills of credit was removed.

    The Colonies had tried issuing scrip with a similar disaster of boom / bust that the Federal Reserve System has. The Continental Congress issued scrip during the Revolutionary War also which promptly became worthless as all fiat does.

    So it is a blatant falsehood that Congress is authorized to PRINT money. They are only authorized to COIN money. And as further proof of the intent of the Constitution, Article 1, Section 10 prohibits the States from coining money, issuing bills of credit or MAKING ANYTHING BUT GOLD AND SILVER COINS LEGAL TENDER.

    The consequences of the federal government printing money and spending it into circulation would be the same hyper-inflation disaster as occurred in Germany and Zimbabwe. At least the current unconstitutional, unstable, unsustainable, fraudulent, predatory Federal Reserve System allows for private banks, including itself, to loan new money into existence. As bad as this is, because those who pay interest give up their wealth to the banks as they repay this indenture agreement, at least the repayment of debt and the payment of interest is a drag on the economy which moderates price inflation. The drag of debt repayment is the proximate cause of the current economic malaise.

    There are three choices that I see. One is continue with the current debt based system until the banks collapse and the money supply is mostly wiped out in the cascading defaults.

    The second is as this article suggest, allowing the federal government to take over issuing new money by spending it into existence, with even worse consequences that deflationary default. The second choice is to hyper-inflate and wipe out the capital of the economy.

    The third choice is for the US Mint to coin the gold and silver in possession of the government and distribute it prorata to the citizenry so that as the money supply implodes in debt default, the public has money to facilitate trade. This is the exact opposite of what FDR did in the 1930’s depression where he confiscated gold from the public and began fiat inflation. Of course 100% reserve requirements against the deposit liabilities of banks would be required to prevent banks from printing credit against this honest gold coin money.

    • Old Man

      At the time the US Constitution written, the concept of fiat money did not exist. That’s why it doesn’t say PRINT. But the intention is clear – Congress has sole power to issue money of any kind.

      The problem of US mismanagement of its money is not due to the Constitution. It is due to Congressional action – it handed over the entire monetary policy and system to private banks. The solution is simple.

      – Congress repeals the Fed act and end the Fed Reserve system.
      – Congress creates a central bank of America fully independent of all banks in the private sector.
      – Congress passes new laws specifying the sole role of the new central bank is to issue money with a target inflation of no more than 2%. Mismanaging this target will remove the head of the central bank by the president, who appoints them.
      – Any proposal to change the 2% inflation target must be approved by a super-majority of states.
      – New central bank has no mandate to promote economic growth and to regulate anything other than reserve requirement and long term interest rates.
      – New central bank is prohibited from buying Treasury bonds, and buying any securities of the private sector without specific legislative approval.
      – New central bank is supervised somewhat like a federal department – reports to the president but under strict arms-length rules, and subject to the usual Congressional oversight.

      • Sid Davis

        What do you think bills of credit and scrip were but printed debt money, a promise to redeem in gold and silver later? The Founding Fathers knew quite well what printed money was. They printed debt money on printing presses to pay for the Revolutionary War.

        Bills of credit and scrip were promises to pay later in gold or silver. If the authors of the Constitution debated and decided to not grant Congress the power to issue this debt money, by what sort of distorted thinking can you say that they intended to allow Congress to print fiat money, an even worse abomination than debt money?

        You are correct in that the intent is clear, and that intent was for only gold and silver coins to be money.

        You need to read the thoughts of Founding Fathers before you misrepresent them.

  • 007

    The scary part with the Fed is it is totally unaccountable. It can print money and give it out to whomever it wants. Who would know? You hear it loaned out 16 trillions during 2008. Is this really all? Did they really pay it back? What else is it doing? There is no audit or review of anything it does. I guess we should just trust them and take their word that they are behaving themselves.

  • Steven

    “So, yes, there would be a need for strict monetary discipline under a debt-free monetary system, but it would be hard to do worse than the Federal Reserve has already been doing.”

    Point granted. I’ve seen these ideas floated before; this sounds like what Ellen Brown has been proposing. My question, however is this: what assurance do we have that government would exercise the necessary monetary discipline, given the capacity to issue debt-free money. If the government can issue debt-free money, is there really good reason to believe the motivation to issue more & more money would simply disappear? If it did not–if the government simply printed money instead of private bankers printing money–then we might not have massive debts owed to the private bankers, but we would still have massive currency devaluation & inflation, would we not? Would we not have the same or possibly even more expansionist government? I suppose my question comes down to, Are politicians at the reins of government more trustworthy than bankers, in the absence of a bona fide gold standard? Thoughts from others?

    • Michael

      There is never any guarantee that the government would do the right thing.

      Especially our current government.

      However, I wanted to demonstrate to people that there are “out of the box” solutions that are worth discussing.

      Even if they are not realistic. :)

      Michael

  • Highspeed

    It will take someone like you Michael, or some true statesman to educate the people and the politicians. They will never listen to the masses. I have written my congressman and senators, and sadly all I ever get is a form letter full of blh, blah, blah. Most of the time the letters of response have nothing to do with why I wrote in the first place.

    This has nothing to do with the article, but I support Lowes. Tomorrow I am buying some 2×4’s and plywood as a part of my preps. I’ll still buy my 5 gallon containers at home depot, but, I gotta give some love to Lowes.

  • Cyrus

    The U.S. Bank Notes, silver certificates, silver coinage were part of the reason that JFK was assassinated. Find out some more info here: http://codgerville.wordpress.com/2011/12/15/it-is-not-a-brave-new-world-but-rather-a-world-only-for-the-brave/

    Here is a little known factoid about the Federal Reserve Act of 1913. The Fed must accept all coins minted at face value. There the Fed made no money off of silver coins and gold coins. AND, if you want to pay the federal debt tomorrow all you have to do is mint one $15,000,000,000,000.00 coin and they would by law be obligated to accept it as face value. PERIOD!!! It IS that easy.

  • End The FED Now

    Interesting. Sounds like the same move that President Lincoln did with the “greenback”, issuing debt-free money by the US Treasury. Also remember what both JFK and Lincoln had in common: they both were assassinated …think there’s a pattern here? The Banksters play hardball. When are we going to take back our government and our country? Isn’t there a candidate calling for sound money and ending the Federal Reserve? Oh, that’s right, Ron Paul. But, as Gandhi once said, “first they ignore you, then they mock you, then they fight you, then you WIN ! The Fed would soil itself. And then figure a way to put him in the same category as the above two Presidents.

  • Toomanyfakeconservatives

    If Ron Paul or anyone else in a position of power was to seriously challenge the Fed, there would be another “motorcade moment” or an untimely plane crash. No amount of votes will change this.

    • Lennie Pike

      True, then the same rules of the game need to apply to both sides.

  • https://www.preservationofwealth.net/Home/FindStore?aspxerrorpath=/moneyforu Jeffrey Waldrop

    https://www.preservationofwealth.net/Home/FindStore?aspxerrorpath=/moneyforu
    http://www.youtube.com/watch?v=zOXKBdKOn1k

    You best get the real money stored before it is is all revalued to what it should be

  • https://www.preservationofwealth.net/Home/FindStore?aspxerrorpath=/moneyforu Jeffrey Waldrop
  • David Gurney

    Of course,very few politicians will mention the ending of the Fed:They’re all well aware of what happened to JFK.

  • REED RICHARDS

    “Tebow Magic and Denver Broncos coralled by the forces of patriotism”

    What happened to the sainted Tim Tebow and the vaunted Denver Broncos? From the looks of that awesome first quarter and then the right on schedule second quarter meltdown, which always seems to happen on que as if read from a script, the average person would swear the fix was in for the Patriots to win that game………

    • xander cross

      I think that the NFL is staged, much like the NBA. Something is amiss here.

  • Tapper P.

    Lady Bird Johnson revealed before she died that her husband told her the night before JFK’s assassination that he ‘wouldn’t have to deal with that asshole any longer.’

    TPTB killed JFK, not some patsy.

    Why? The core reason was because JFK wanted to repeal the Federal Reserve Act and talk the power away from the foreign money masters. He actually signed off on the repeal. Forty-five minutes after JFK’s murder, LBJ restored the Fed.

    JFK was the last US President that was not a bankster puppet. Every single one since then is nothing more than a cardboard standee.

  • Martin

    Commies in Eastern Europe had similar powers to issue debt free money but all what they did is blowing up their economies with hyperinflation.

    For as long as government is allowed to borrow money (current situation) or allowed to print money at will according to its needs (what is proposed here) there is not a slightest chance for healthy economy to exist.

    Silver or gold is about the only common honest money.

  • Orange Jean

    Interesting article, Michael. Thanks for explaining it clearly (up until this point I had no idea what you were talking about every time you talked about “debt free money”).

    But then what happens when, instead of getting paid in actual physical dollars… you get paid by check or electronic money transfer, as so many of us do?

    How many of us routinely use either a credit card, debit card, or checks to pay for the things we buy every week?

    What is it we actually have in the bank, when we see our “bank statement”?

    What is it we are using when we pay our bills online or by check?

    How would we even know ????

    • Michael

      Orange Jean:

      There would still be physical dollars. They would just be debt-free United States Notes (like the ones in the pictures) instead of debt-based Federal Reserve Notes.

      Michael

      • Orange Jean

        Thanks for answering Michael, but maybe you misunderstood my questions. It sounds like you were saying IF we had debt free money those transactions would still be backed up by physical dollars.

        But under the current situation, are we to assume all those types of transactions (credit card, debit, and electronic or phone transfers) are backed up by those debt-ridden Federal Reserve Treasury notes?

        • Michael

          Hmmm I am not sure I understand the question.

          What I am proposing is that debt-free money would work the same way in our economy that debt-based Federal Reserve Notes do now.

          Michael

          • Orange Jean

            OK, I’ll try again (mind you this is all new to me, so maybe I’m misunderstanding something also)… I’ll use just one example. You show a picture of a United States note for $5 and tell us what the difference is between that and if we had a Federal Reserve note.

            Even if they started issuing US notes again, most transactions these days are electronic, not with physical dollars… so if they had US notes you’d have no way to confirm that’s what you were exchanging.

            If I have my employer put my wages in my credit union electronically, how would I know whether that was equivalent to a United States note or Federal note, or something altogether different (like Monopoly money)?

            Unless the entire monetary system replaced the current Federal Reserve notes with US notes. What kind of impact would that type of change have? Historically were both types ever circulated at the same time?

            ould a change like that be similar to what happened when the South lost and people who had Confederate money all of a sudden found it was worth nothing?

          • Michael

            The United States Notes would be used exactly like the Federal Reserve Notes are.

            It is just that when they are created they would not create additional debt for the U.S. government.

            Michael

          • Orange Jean

            Thanks for the clarification Michael!

  • RSteiner

    The state and the central banks have caused this crisis.

    http://in-other-news.com/2011/The-central-bank-and-the-economic-crisis

    In fact it is quite obvious – the state has never been bigger than today, how could that monster be not at fault when it has it’s hands literally everywhere?

    But maybe the powers that be want it that way:

    “You don’t ever want a crisis to go to waste”

    http://www.nytimes.com/2008/11/07/us/politics/07obama.html?hp=&pagewanted=all

  • shypuffadder

    We need smart people running the government – not the idiots we have now. And all we are offered are more idiots. Most government officials are ready to run home and spend the holidays with their alcohol, viagra, and extra-marital affairs while grabbing bags full of cash under the table. Since it appears that we are more than willing to accept leaders of this low caliber, we will continue to get what we accept.

    Every last member of the legislative, executive and judicial branches of government has been paid extremely well not to breathe a word about debt-free money because the .05% don’t want it talked about – keeping us ignorant is easy and extremely profitable.

    By the way, has anybody noticed that the decay and suffering is picking up speed? The price of food is skyrocketing, employers only want to pay employees enough money to get to work – the government bailed out the banks but they can’t subsidize the food so that this country can eat? Yet Wall Street has restaurants that charge thousands for a single dinner?

    Listen to the news… go Christmas shopping!! and everything will be fine. Put stuff on layaway and if you can’t pay it, SOMEONE will come along and pay it for you. Sheesh.

  • Tom Damon

    Why do you buy into the propaganda that deflation is bad ? Look at the computer industry – is deflation bad there ? Why is money becoming MORE valuable, a bad thing ? Why are falling prices so bad ? Just because the banksters tell you so ?

    Yes, SUDDEN deflation would be very disruptive, but a bit here and there ? It would be an economic boon to those who are net savers, while not so much for those who owe.

    • Michael

      Tom:

      I think that there is a lot of wisdom in trying to keep the value of money fairly stable and predictable.

      But it is okay if people disagree with me on that.

      Michael

  • Jake

    Is Ron Paul pushing the idea of debt free money?

    Where can I read more about this? I’m finding more and more folks who want to discuss this but we wind up pooling our ignorance rather than sharing our knowledge.

    I hire seasonal help for our business. Saturday evening after I paid everyone we sat in the kitchen talking about what they are going to do after HS graduation. Each one was looking in vain for permanent part time work. When I begin a discussion of economics with HS kids I tell them that my generation has left their generation with an impossible situation. When my concern is their future they get interested. I need to have logical,understandable solutions to give them.

    Michael, this was an invaluable post. Keep up the good work.

  • http://Www.mises.ca Redmond

    Whoever wrote this is a green backer – this doesnt work, never has, never will.

    The problem is the unlimited ability to print money that has been granted to the government.

    Check out Gary north on Ellen Brown – the top green backer

    http://www.garynorth.com/public/department141.cfm

    • Michael

      Redmond:

      I am not against “hard money”. I am just arguing for a way to transition from our current system to a new system in a way that does not cause societal collapse.

      If we go to “hard money” instantly, we will lock in a $15 trillion dollar debt for future generations that they will never be able to repay.

      And my proposal does not grant an “unlimited ability” to print money. Please note the constitutional amendment on the size of budget deficits.

      Michael

      • Rancher

        Michael,

        Isn’t trying to maybe pay off the national debt over 50 years or more….dumping iy on thr future generation?

        • Michael

          We could certainly do it before then. It depends how much you want to “shock” the global financial system.

          I would love to hear a proposal that would pay off the debt quicker than that without plunging us into a global depression.

          Michael

  • William

    The Federal Reserve Bank is a private bank owned and controlled by its member banks for the benefit of these member banks. Thus, JP Morgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, etc. are the FED, as well as foreign banks like BIS, and the Rothschild and Seif banks, just to name a few. These financial institutions have TOTAL control of the US Congress. Be sure to reelect your IDIOT in the US House and US Senate in Nov of 2012. The Federal Reserve Bank is UNCONSTITUTIONAL, and has been so since 1913. Wilson was blackmailed into signing the legislation that created the FED.

  • Paul76

    IN #3 above, shouldn’t that read “…newly created United States Notes…” and not Federal Reserve Notes??? As you’ve gotten rid of the Fed in #1 and gradually removed the notes from circulation, surely you wouldn’t create “new” Federal Reserve Notes, would you?

    • Michael

      You are right – a few people caught that typo and I am thankful for that.

      I proof these articles the best that I can, but sometimes a few things still slip by me. :(

      Michael

  • Ludwig von Mises

    “Paper money eventually returns to its intrinsic value — zero.” Voltaire

    The above monetary postulation, like many others, seems, speciously so, like a workable idea. Sadly, said theory is conceptually flawed, because it fails to factor in human nature as it relates to banking, fiat money and government spending.

    1) Banking: Human nature, being what which it is in reality, will not allow the inveterate banking-cartels to relinquish their monetary control without a mortal fight to the finish (think Nicholas Biddle-vs-Andrew Jackson) so the assumption that there can be any smooth transition from the banking cartels to the congressional cartel is childish at best.

    2) Fiat money: From the first time since the Romans attempted the use of fiat money until today, it is a proven historical fact that all mediums of exchange lacking intrinsic value will inevitably fail. The paper/digital dollar is currently backed by gunpowder ( viz. the largest military in history and the amerikan police-state) however, that non-free market method of doing business will not be enough to support the dollar forever; And certainly not the fifty years that the author of this blog posits as necessary for a return to U.S. solvency. Long before 50yrs passes, the ignorant masses will demand that the government trade goods and services for their votes. And the collectivists-interventionist politicians will gladly inflate the money supply in order to pay for said goods and services in exchange for the aforementioned votes..

    3) Government spending: Nothing will change until it must. Collapse before change, that’s human nature. In 1971 the dollar went fully fiat, and it’s already failing. Do you really think that 50 more years with a paper currency is going to work out? The author wisely foresees the economic collapse ahead. My advice is to stick to that theme and think in terms of what happens afterward.

    For an exceptional perspective on human nature as it relates to economics and politics, then I would suggest that the very well intentioned author read Human Action: A Treatise on Economics, by Ludwig von Mises.

    Finally, gold, silver and copper can only be official money if government gunpowder backs it or, at the very least, discontinues to back the paper/digital/fiat dollar.

    All of the above and more is precisely why amerika needs a doctor who can help straighten things out with honest money.

    Dr. Ron Paul 2012.

  • Roopods6

    President Andrew Jackson waged a war against the bankers and had multiple attempts to assasinate him. President Abraham Lincoln was assasinated for the same reason that President Kennedy was. They can issue silver certificates redeemable in silver. Or they can just issue them the same way the private bank of the Federal Reserve does, out of thin air. Except there just wouldn’t be any “interest” charged on their issuance.

  • mark

    How do we continue to pay the interest of 454 billion and fund the rest of the promised payouts without printing huge piles of money? I agree to end the Fed and print our own money. The cuts needed in government spending are huge and the riots that would follow the cuts would also be huge. To me this would be better that a flat out collaspe, but most American voters will not vote for someone that will cut off or reduce their government welfare checks. In order to reduce the interest payments, hair cuts will have to come or if we do pay off the debt slowly, the holders of the debt will take a hair cut on the interest or not be paid interest on the principal balance owed to them. The quote from Edison sums it up about the interest payments and this is one form of welfare that we should cut out. I am not against someone being rich, but do it on your own and not on the backs of the taxpayers. That meams if you want to be rich, get your shovel out and turn over some dirt yourself or that of your employees and not the taxpayers. Holders of government debt will take haircuts in the future. So if you like short hair buy governments bonds.

  • http://leibowitzsociety.blogspot.com Leibowitz Society

    Unfortunately, we are entering into the early stages of a new Dark Age and there is no recognition even of this anywhere in the media or political circles as everyone fights over the scraps the previous generations have left behind.

    Visit The Leibowitz Society at http://leibowitzsociety.blogspot.com/2011/12/deep-kimchi.html for discussion related to the long-term survival of information crucial to civilization and human life.

  • http://www.FedUpUSA.org Stephanie

    Bill Still, Libertarian candidate for POTUS is absolutely talking about debt-free money. Not only that, it is the primary focus of his campaign!

    http://Still2012.com

  • Kevin2

    JFK messed with two cornerstones of the “Power Elite” the Federal Reserve and the Military Industrial Complex (Vietnam).

    The President is very powerful. The “Power Elite” are very very powerful.

    Any President post JFK understands and complies with the limitations set upon them.

    • liberranter

      The President is very powerful. The “Power Elite” are very very powerful.

      The second part of your statement is true, but not the first. The former is merely a figurehead for the latter.

  • http://lastdayrapture.blogspot.com/2011_08_01_archive.html TK

    THE FOUNDATION OF LIES

    That is right! Our representatives have functioned on a foundation of lies. To think that we can create $$$ without having to borrow it. What simplicity, what truth, what a great way to live.

    If things keep going the way they are, our children will be slaves to the banks (check out Greece!). We as Americans must return to a constitutional government that issues debt free money. There is no other choice but to be slaves to the banks. No other way.

    And there is only one candidate who you can trust that wants to end the fed, Ron Paul!
    He has been saying the same things for over 35 years. A vote for Ron Paul is a vote to end slavery and return to the constitution!

  • Ed

    What you suggest has been done before, Mississippi scheme and others, with disastrous results.

    The requirement that the government borrow money before it spends it, implies that the money exists and has wealth backing it. That requirement would be suspended under you scheme.

    It is important to understand the difference between money, currency, and wealth.

    The problem with our economy is that not enough wealth is being created. Money is easy to create if it is paper, not so easy if it is gold. Wealth is the goods and services that people value. Money is a convenient storage alternative to commodities. But using paper money means the government can spend money it creates without any additional wealth backing it.

    We are at the point now that no one is the US is willing to loan the Fed gov money. So Fed spending continues only because the Fed Reserve Bank is creating new money and using it to buy treasury securities.

    One day Americans will wake up and realize that their bank account balances are all zero. That was the result of the Mississippi scheme. Is that the wake up you intend?

  • http://realcurrencies.wordpress.com Anthony Migchels

    This is a good start.

    I’ve been following this blog for quite some time and wondered when we would get to this.

    However: even better would be interest free credit.

    Just leave the National Debt (and also all private debt) where it is, but cancel all interest payments.

    The debts would have to be repaid, and new credit can be created, as fast as the old credit is being payed off.

    The problem is not debt, it is interest.
    http://www.activistpost.com/2011/10/problem-is-not-debt-it-is-interest.html

    For an analysis of the limitations of debt free currency (although MUCH better than what we have now and MUCH better than gold):
    http://www.activistpost.com/2011/10/reassessing-greenback-and-other.html

    I’m happy to see that debt free money, even though less effective than interest free credit, is getting so much airtime lately.

    People are starting to get close.

    The Occupiers are occupying banks, people are taking their money out of the Biggies.

    The multitude is closing in on the target.

    Five years ago I expected to take all this with me to the grave.

  • Rancher

    OK…50 years?? Why not much faster?

    Then being in truth…the Feds will probably resist any dethroning and the politicians are not going to rock the boat… Just what are we suppose to do?

    Talking about it and learning about is somewhat pointless. Why? Because no one running for office is saying we truly must fix this problem with the true intent to do it. Even if elected those one or two people are outnumbers by several hundred entrenched politicians and the Fed. I fear if they try they will suffer a terrible and regretful accident and be greatly missed. Get the hidden meaning ;-0

    So in truth as my wife and I say to each other daily … we (the general population) are so screwed it ain’t even funny. Now that is the truth. So Micheal just what does the general population person do to insulate themselves as close to 100& as possible? Reading and talking just will fail.

    • Michael

      Rancher:

      It is true that none of the things I talked about in the article will be implemented. But sometimes I like to talk about what is possible, even if it is not realistic. I want people to understand that there are “out of the box” solutions.

      I agree with you – a horrible economic collapse is coming and the years ahead are going to be incredibly chaotic. American is never going to be the same and people need to get prepared. I have talked a lot about preparation in past articles and hopefully people are getting ready.

      Michael

      • Senator Ozmo

        Michael,

        One of the sad things is people don’t know how to be prepared anymore. People don’t know how to do the most simple of things our fore fathers knew. I know I’m guilty of this and am taking the time to learn new things as well. One example is I don’t know more anyone who keeps thier own garden.

        I agree bad things are coming and people refuse to look at what is actually happening around them. I know I’ve been following this blog site for a little bit now on a regular basis and am starting to prepare. For those who say they cannot afford it, Start SLOW, buy 1 or 2 cans of (take your Pick) more than you would, Buy an extra bag of flower, sugar as you can afford it. In no time you’ll have a good supply.

        Michael thank you for your time in what you do.

        Ozmo

        • Michael

          Ozmo – that is great advice for everyone out there.

          Michael

      • Rancher

        Michael,

        I believe we have an mutual acquaintance up here in Idaho. I figure sooner or later you will realize, if not already, getting ready is done here. That is other than any finally steps on this matter….

        Many readers here have cash on hand. I know of friends much the same. Cash not credit cards. I have read your articles for awhile now along with my wife. We read many others. Sadly many take the reader back to their investment firm .Ha ha ha However I am curious what you suggest folks with American cash paper money do with it now and if not now…when. If not now then what is the trigger to get rid of it and what to do with it then. I have years of TP so we are fat there ;-)

        I know this, we are all but out of the stock market (have been for years) and if not soon will be. Like in 1-3 weeks or when the next spike up happens. I would only consider local bank CDs if they paid great interest on 6 month terms, with instant cash out on demand. Being interest rates have not moved worth the risk it stays secured away.

        Currency exchanges sound so strange as weekly the field changes of nations conditions as their dirty little secrets get out. At some pint can you simply address what you feel are the only real life choices for people. It would be nice to switch from talking about what could happen but never will…. for just a while on what will and how not to get cut off at the knees.

        I hope some of this makes sense?

  • Antonio Gonzalez

    But America can’t do that, it is not free.

  • Joe Yudichak

    The debt will go away but you are now trusting polititions to control our money. Inflation will still be with us and probably worse. The polititions protect themselves,with their main concern being buying votes. Boom and bust will still be with us. Health care will be “free” – right.

    • Michael

      Joe:

      You make a valid point. That is why I included a constitutional amendment limiting budget deficits in there. That would help control spending.

      However, we must realize that under our current system we face the twin dangers of out of control debt and out of control inflation.

      Michael

      • Joe Yudichak

        Michael,
        I agree a constitutional amendment would help until a national emergency like war, financial breakdown or anything politicians need money for.
        It may work better than what we have now but I’ll go with Murray Rothbard and a free market in money. I do doubt that will ever happen so maybe being a “greenbacker” is the only way out. I hope not.
        Joe

      • liberranter

        Constitutional amendment? Please, Michael. If we’ve learned nothing else over the last few decades, it’s that the Constitution, to the political class, is indeed nothing more than George W. Bush’s “********** piece of paper,” something that they (figuratively) wipe their as$$es with, if they pay any attention to it at all. A “constitutional amendment” limiting budget deficits will be ignored just like every other clause or amendment of that document not to the Ruling Elite’s liking (see the 9th and 10th Amendments, for just two examples).

        As for money, ONLY a return to a gold standard, in which every dollar issued is either a gold coin or a paper/digital certificate tied directly to and redeemable for a fixed amount of physical gold, will solve our monetary and budget problems. Allowing the irresponsible, self-aggrandizing, special interest-owned and controlled political classes to issue fiat currency (as opposed to specie currency), no matter what label they put at the top of the paper, will eventually bear the same disastrous results as have been born out of Fed control, albeit through different mechanics and different underlying reasons from the current situation.

        • Michael

          Actually I do not believe that any of the things I proposed are “realistic”, but sometimes I like to show people that there are “out of the box” solutions that are theoretically possible.

          And I am not against “hard money”. What I do believe is that we cannot lock in $15 trillion in debt for future generations at today’s ridiculously low gold prices. That would consign future generations to a lifetime of debt slavery.

          We made this $15 trillion mess and it is our responsibility to clean it up.

          Am I wrong?

          Michael

          • liberranter

            No, Michael, you’re certainly not wrong in wanting to see the mess mopped up. I absolutely agree that this will HAVE to be done. Sadly, there will be no pain-free way to do it. ALL OF US will suffer in the years to come, no matter how “wealthy” we think we are under today’s economically distorted conditions – conditions that are the direct result of nearly a century of Fed machinations and tampering with the economy to the point that no one really knows what “wealth” is anymore. Indeed, we might all wind up “starting over” (i.e., “from the bottom”) in terms of wealth accumulation, an admittedly very unpleasant prospect for anyone to consider. Yes, gold prices are through the roof right now, but remember that if it had not been for the Fed’s irresponsible, CRIMINAL printing of worthless fiat dollars over the last several decades (the result of the U.S. Congress’s CRIMINAL abdication of its constitutional obligations), worthless paper and digits backed by NOTHING TANGIBLE WHATSOEVER, counterfeit “currency” that has so thoroughly distorted the value of everything that no one can really assign meaningful monetary values to anything anymore, gold prices would not be at the ridiculous levels that they are now. Since we have no REAL currency in which to measure the value of anything, it stands to reason that certain intrinsically valuable and durable commodities like gold will skyrocket in price as what passes for “currency” becomes ever more worthless as more of it is created out of thin air. Again, there is no ideal solution this problem. However, a political solution is a non-starter, as it is the political classes and political machinations that created this whole mess in the first place and will do so again, immediately, if a fiat money system of any type is allowed to prevail.

            While I certainly wouldn’t pretend to know the whole solution to the problem, a return to hard money is the ONLY way to end and prevent a recurrence of the mess we’ve made over the last century. Unless someone finds a way to artificially synthesize gold or silver, precious metals are going to remain the most durable and desirable media of exchange, just as they have been for most of human history until certain foolish and arrogant people of ill-gotten wealth and power thought they had a better idea. That “we” collectively allowed them to impose this “better idea,” against the tide of common sense has brought us to where we are today.

  • C#

    Good, clear article.

    However, I wonder whether we ought to pay back the Federal Reserve at all, since they are operating illegally in the first place.

    • Michael

      Yes, you are right – any debt that we owe to the Federal Reserve should not be paid back. Instead, it should be instantly nationalized and wiped out.

      Michael

      • Rancher

        Exactly what would happen then. To gold/silver. To the current value of the dollar stateside. Then what about about import/exports? Finally taxes?

        • Michael

          As far as taxes go, I believe they should be as low as possible.

          And under a debt-free money system I believe that the income tax could eventually be abolished.

          Unlike others, I think a smooth and orderly transition from our current system to a new monetary system would be best. Of course it will never happen, but I think we could go from debt-based money to debt-free money to “hard money” over a period of 30 to 50 years without destroying the economy.

  • karen

    The Savings of Millions of People Are Going to Vanish in Less Than 12 Months
    by Mac Slavo
    SHTF Plan

  • Sylvia

    When each new Federal Reserve Note is created, the interest owed by the federal government on that new Federal Reserve Note is **not also created at the same time.

    ** Is this a typo?

    • Michael

      Not a typo – what I was trying to illustrate is the fact that the amount of debt that is created is greater than the amount of money that is created.

      Michael

  • Nidster

    Thanks, this is good info, but when you wrote,
    “When the U.S. government borrows money, it slowly transfers wealth from the American people to those that borrowed it.” should it not read ‘it slowly transfers wealth….to those who lent it’…thanks

    • Michael

      Yes you are right.

      Thank you for catching that one. :)

      Michael

  • Older man

    A note to “Old Man”
    Look up the video “The Money Masters” and watch it. It’s a very detailed, informative documentary the explains the monetary system from long ago until now.

  • karen

    Celente Warns of 2012: Economy Will Crash, Banks Will Close, Chaos Will Ensue, Military Will Take Over

    • Rancher

      Karen,
      What will the military be paid with? So what if banks close? Myself I have little need of them and if they close you will no longer get their bills sent to you nor be able to pay bills. It sounds like a mess which those with the cash/coins will dominate?

  • Broadside

    There is no meaningful economic distinction between a Federal Reserve Note and a United States Note because both are legal tender. The heart of the proposal though — financing the federal government’s massive deficits solely by issuing new currency — would trigger a wave of inflation that would destroy the US economy. In contrast, borrowing is the least destructive way to finance the federal government’s current account deficit.

    • Michael

      I think people are missing the part where I talked about a Constitutional amendment to restrict budget deficits.

      If the deficits in the future are much smaller than they are today, that would mean that the danger of inflation would also be much lower.

      Anyone that suggests that the U.S. government should continue to borrow gigantic amounts of money does not understand our monetary system and does not understand what is about to happen to our financial system.

      Michael

  • http://www.lulu.com/product/ebook/judiths-struggle/18659148 Buzzy Watts

    Half-rate bread and circuses keep us from realizing what is going on, and the worst of these is the Christmas holiday (or rather, what it has become). Modern, consumerist Christmas is the most offensive thing they’ve done to Christ since they crucified him. As he states in Matt 18:6, “But whoso shall offend one of these little ones which believe in me, it were better for him that a millstone were hanged about his neck, and that he were drowned in the depth of the sea.” This is of course what modern Christmas is all about–getting children hooked on consumer culture so that 30 years down the road, they’ll trample a Wal-Mart greeter to death during a Black Friday stampede or do something comparably obscene.

  • mondobeyondo

    JFK paid the ultimate price for taking a stand against the Federal Reserve. And that is why no other President since JFK has even tried to fight the Fed.

    Ron Paul definitely would. But, the banking and media conglomerates that really run this country are trying their hardest to ensure he never gets elected. The game is rigged, folks.

    • liberranter

      Ron Paul definitely would. But, the banking and media conglomerates that really run this country are trying their hardest to ensure he never gets elected. The game is rigged, folks.

      Spot on, Mondo. This is why I get so annoyed with my fellow libertarians who chant the “Ron Paul in 2012″ line. Sadly, this includes libertarians who, like me, are lifelong non-voters who recognize the game for the rigged scam that it is and who should certainly know better.

      Much as I would LOVE to see Ron Paul put in a position of power where he could do some good for all of us, common sense and decades of observing history in action tell us that it’s not going to happen.

      • Jake

        Come’on Liberranter, make it happen :)

  • BladeMcCool

    If the Fed system is stupid, why are we using it? Why are any of us paying income taxes and supporting this sham system? You think they have the resources to stop ALL of us from abandoning their system? The problem is we are weak of mind and spirit and we do not create the new better systems we could be using. We could create private money systems and just start using them to conduct human enterprise, but we do not. We continue to allow them to have physical control of the natural resources and dictate how those resources will be used from their centrally planned central bank cartel. People in geographic unison must conspire to use other money … until then, we will keep paying for our own slavery.

    • Kevin2

      “Why are any of us paying income taxes and supporting this sham system?”

      Because if you don’t the power of the state takes away your assets and throws you in prison.

    • MarathonMan

      “why are we using it?” Because once it is put in place, the people that ultimately benefit (big bankers) can pay off whoever they want to keep the wealth coming to them. Plus it allows the government to reach leviathan size and pay for all those benefits that keep politicians in power. The privately owned central bank construct allows constant debt expansion, constant government expansion, and growing ranks of poor to keep voting to create more debt. The incentives it creates ensures its continuation.

      “I care not what puppet is placed on
      the throne of England to rule the Empire, …
      The man that controls Britain’s money
      supply controls the British Empire.
      And I control the money supply.” Baron Nathan Mayer Rothschild

  • Don Levit

    Michael wrote:
    Any debt that we owe to the Federal Reserve should not be paid back. Instead, it should be instantly nationalized and wiped out.
    Is the debt owed to the Federal Reserve part of Intragovernmental Debt or Debt Held by the Public?
    Do you think it would be easier to nationa;ize and wipe out Intragovernmental Debt, rather than Debt held by the Public?
    Don Levit

    • Michael

      Don:

      Part of the problem is that a lot of the debt held by the government is supposed to help pay future Social Security bills. So if we instantly wiped out that debt we would have to find another way to help make up the difference for Social Security.

      As far as debt owed to the Fed goes, that debt could be instantly wiped out with no harm to anyone.

      Michael

    • Kevin2

      All money is created out of debt. Those Federal Reserve Notes are actually IOUs. Remove the Debt and you Remove the Currency. Don’t Remove the currency and you don’t Remove the Debt.

      The Federal Reserve does not “Store Money”. It loans out money to the member banks. Don’t pay the debt and there is no money to loan. No money to loan and you have no economy.

      The “system” they set up is like inventing a cigarette that both gives you cancer and keeps you alive.

      • Michael

        Very well said Kevin2.

        What I am trying to do is to figure out a way to transition away from this system that is keeping us alive without killing us in the process. :)

        Michael

        • Rancher

          US? Did you mean us like in all of us? Like the USA “us”? Are you kidding? There is no “us” when 50% of the people don’t pay income taxes. There are no “us” when people would rather sit around than honestly move to where there is work and work.

          Me.. when I think of the term “us” what comes to mind are those who have worked smart and hard or are currently do so.

          Any plan to continue on this path of rewards lazy, bad and entitlement behavior will always lead back to the wealth the few have earned. That is not an option in my book. I wold leave this country before it takes the wealth I sweat for to reward others. It might be better to define just who the “us” is in the general use of “us”.

          The almost 50% of non tax payers certainly see themselves as the “us” and “us” other few as their cash vows. Not to mention the “occupiers” who do not want to pay back their student loans now. Let the more wealthy eat it. Being some of…”us”

    • mondobeyondo

      I wish it were that simple.

      Unfortunately, the Fed has its own Mafia squad, its own financial hitmen and financial collection agency, better known as the Internal Revenue Service. They are well known for making sure you pay them what you owe.

      You can always refuse to pay income taxes if you desire. But, umm.. there will be consequences and repercussions. The IRS are not known for being gentle souls.

  • don forrest

    the fault, dear brutus, lies not in the stars, but in ourselves, that we are underlings.

  • http://ocii.com/~dpwozney/dollar.htm David Wozney

    Debts are still involved with the United States Note because on it is written “This note is legal tender for all debts, public and private” (in capital letters).

    Paper money does not have any value unless some type of debt is associated with it.

    Money without debt can exist in the form of coins valued by instrinsic metal content.

  • Amerikagulag

    Andrew Jackson shut down the central bank. It got him killed. James Garfield wanted to shut it down and it got him killed. Lincoln wanted to shut it down. It got him killed. Then there’s JFK who wanted to shut it down and it got him killed. Are we seeing a pattern yet? Are we getting the picture yet?

    “Give me control of a nations currency and I care not who makes its laws.” Baron Rothschild
    Dissolving the FEd is the ONLY path to financial stability. ALL of the countries in the EU have similar central banks.

  • Amerikagulag

    Andrew Jackson shut down the central bank. It got him killed. James Garfield wanted to shut it down and it got him killed. Lincoln wanted to shut it down. It got him killed. Then there’s JFK who wanted to shut it down and it got him killed. Are we seeing a pattern yet? Are we getting the picture yet?

    “Give me control of a nations currency and I care not who makes its laws.” Baron Rothschild
    Dissolving the FEd is the ONLY path to financial stability. ALL of the countries in the EU have similar central banks. Are we seeing a pattern here???

    • Michael V

      Andrew Jackson served two terms as POTUS. He as not assassinated, but attempts were made on his life. Interesting thing is, it was during Jackson’s term (1829-1837) that the US debt free for the last time. Jackson died in 1845.

    • Bluecollar Scholar

      Correction, President Andrew Jackson did have an attempt on his life while in office. But, he was not assassinated.

  • will-work-for-food

    http://en.wikipedia.org/wiki/Executive_Order_11110

    In January, 1911, Senator Aldrich =1 911
    presented to a group of businessmen in Washington his plan to reform the nations banking & financial institutions

    WTC 911

    911 emergency#

    Just connect the dots

  • Mark McBee

    This was why they assassinated JDK.

  • McLintock

    President Jackson died after he’d left the Presidency. The attempt on his life occurred in 1835. He died in 1845.

    http://www.whitehouse.gov/about/presidents/andrewjackson/

    http://en.wikipedia.org/wiki/Andrew_Jackson

    The danger in repressing the power of the banks and businesses is not in their strength, but in the weakness of public servants that covet riches more than their honor.

  • Leroy Sylvania

    Yes, JFK was starting to issue United States Notes. What was one of the first orders of President Johnson would a good follwo up story

  • http://www.TotalCollapse.com TotalCollapse.com

    Stocking Up For Doomsday: It’s Not Just For “Crazies” Anymore…

    http://totalcollapse.com/2011/12/19/stocking-up-for-doomsday-its-not-just-for-crazies-anymore/

  • Leroy Sylvania

    Here is something to think about. What backs up out money today? Is it gold or silver? No it is backed up by the our sweat.

    • Bill

      And by our military

  • ShockNAwwwd

    Author, what are you french? What’s all this “we” talk? I didn’t borrow it? I wasn’t consulted, neither were my children or anybody I know. THEY got THEMSELVES in that “mess” so THEY have to clean it up. Let “nature” work it out. You do bad business, you go out of business. Why do people keep voluntarily financing their own problems? The “system” wont shut down, because it’s not working as it is. Stop making excuses for why you’re scared to stop paying bullies.

    Did anybody consult you about expenditures? Did you approve anything? Did you or people you may know get “bailed out?”

    It always amazes me that men would make such statements as to “we have to…”. It’s like the “green” promotion. “We have to do our part,” but people doing business as corporations are still doing business as usual, while passing the new “green tax” to the consumer.

    If you’re going to own it then either pay it and shut tfu, if not then STOP PAYING these liars, theives, and murderers and they’ll be out of a job.

    There. Problem solved. No protesting, no bloodshed, or whinning. Simple business principle. “I don’t like the job you’re doing, YOU ARE FIRED! Don’t let the door hit you on the way out.”

  • Tatiana Covington

    Issuing debt-based money like that, builds positive feedback into the system. It is mathematically impossible to pay the existing debt, without creating even more such debt, leaving one more indebted than when one started.

    “Positive feedback makes any system oscillate out of control.”–Heinlein

  • Bob

    As you pointed out, only Congress is empowered to issue money. The Federal reserve actually issues “Bills of Credit”.

    There are many definitions for a dollar now. I recommend that you adopt the earliest one where an ounce of Gold was defined as $20. I recommend reading “The Miracle on Main Street” by F. Tupper Saussy

    The governments use of “Bills of Credit” is unconstitutional and I believe it makes the whole government unconstitutional. It means the governments authority is revoked until the violations are corrected.
    ~Bob~

  • http://www.kofflersales.com Sandy Koffler

    While I agree with that debt free noney may be the the only solution to the solving the massive debt problem, it is mind boggling to consider the level of decific Congress might run up if no testrained by having to borrow the money to pay for deficits

  • Cinderella Man

    Wow, Michael what a stunning article! If the govt. can print its own currency like it says in the Constitution, then the Federal Reserve is playing us taxpayers for a bunch of fools! I cant believe that a private central bank has the right to steal away this country’s wealth and all the politicians except for the Pauls and a few others dont even care! This is an outrage! We need to go back to issuing our own currency. Whoever thought of this idea to print money then charge it back to the citizens with interest make Bernie Madoff look like a priest!
    Hey good news today! My man Ron Paul is leading in Iowa despite all the haters like Rush Fatbaugh and Chris “commie” Wallace! People are starting to realize that this country is sick and we have the doctor that has the cure. VOTE RON PAUL HE IS OUR ONLY HOPE, IF YOU CARE ABOUT THE FUTURE OF THIS GREAT COUNTRY WRITE HIM IN IF NOT ON THE BALLOT!!! DONATE TO HIS CAMPAIGN IF YOU CAN AFFORD IT, I DID ON FRIDAY! TOGETHER WE CAN STOP THIS EVIL EMPIRE FROM TAKING US ALL DOWN! NDAA HAS THE RIGHT TO DETAIN YOU INDEFINETLY, AND WILL SHUT DOWN THE INTERNET SITES LIKE THIS WILL BE GONE! ACT NOW DONT HESITATE!!!! RON PAUL 2012!!!!

  • William Sinkewicz

    With nearly half of the U.S. population on the govt. dole, it will be politically impossible to change the system without an economic collaspe and what arrises out of the ruble, politically, will not be very friendly to individual freedom.

    • primrose

      “BINGO” ~ We have a winner.

    • Nathan Davis

      And where we are headed now is better, if we keep the fed reserve in place we will not have a future. Debt based money is sucking the life out of our country…

  • http://theeconomiccollapseblog.com stu johnson

    I’ve been reading this blog for a few months and I’ve been a prepper for some time, limited by lack of money even though I’m working 2 jobs(1 full time plus some OT and 1 part time). I’m just a working guy. I haven’t voted for years cause it seems like it just doesn’t matter. But I’m going to vote for Ron Paul! If,if he were to get in I would be afraid that the scum(rich banker type) would have someone, not connected to them of course, kill our beloved Ron Paul and then it would be so tempting to cast a whole lot of new votes IN LEAD. I just had to vent some frustration, that felt good. It feels like I was born already in a trap. Now that I wrote the lead thing I suppose the nsa is gonna have a satellite hovering over my humble home. By the way, food and other prepps are only short term, thinking about resupply a while after a major TEOTWAWKI event drives me crazy:) Thank You for the very informative blog.

    • Michael

      You are welcome, and I am glad that you are enjoying the site. :)

      Michael

    • McKinley Morganfield

      Stu,

      We all feel the need to vent from time to time. We’re in a bizarre era. For the most part the political class is so focused on ‘I, me, mine’ they see no personal down side to the rapidly approaching rendezvous with the wall of debt. The banksters likewise are focused on the short term and their scams to fleece the serfs. Amongst the serfs only a small percentage (2%?) realize the economy is about to slam into the wall of debt.

      Keep prepping, day by day, week by week. Stay alert and take comfort in the knowledge that there are somewhere around 5 million Americans who see what you see and are prepping too.

  • Okie Dan

    Abraham Lincoln’s Greenback was deflinitely inflationary. Give the government to create fiat money and the government has the power to buy everything with worthless money. Give the banks the power to create money out of thin air and the banks will own everything. Let money be made from gold and precious metals and money will flow to producers who will invest their money into employing more laborers to make greater profit. The nature of money is to move from consumer to producer. The nature of fiat money is to allow the cartel creating money, whether banks or government, to create money continually so they may continually spend and still not have less money than when they started spending. I do not trust either the politicians or the bankers to create honest money.

  • http://www.planorperish.com Gutter Economist

    Inflation would be greater with debt free money.

    Consider the following example:

    Existing condition
    The USA has no currency but wants $1 trillion dollars
    China has $ 1 trillion dollars available to lend
    Total dollars in circulation = $ 1 trillion

    Option A (borrow from China)
    The USA would get $ 1 trillion dollars from China
    China would get an IOU for $ 1 trillion dollars from the USA
    Total dollars in circulation = $ 1 trillion

    Option B (print debt free money)
    The USA would print $ 1 trillion dollars
    China would keep their $ 1 trillion dollars
    Total dollars in circulation = $ 2 trillion

    (more money in circulation) / (existing goods and services) = higher prices

    There is actually a better system than debt free money.

    BALANCE THE BUDGET

    (1) With a balanced budget, the government would not have to borrow and pay interest.

    (2) It would not be necessary to end the Federal Reserve.

    (3) It would be necessary for members of congress to exercise fiscal discipline.

    (4) To pay off the National Debt, tax revenue would have to exceed spending resulting in a fiscal surplus.

    (5) Republicans would have to quit replacing taxes with debt.

    (6) Without fiscal discipline by members of congress, no system would work.

    • ScoutMotto

      This would not be the case with commodity backed money. You can’t just make a trillion dollars out of thin air with gold and silver for money. Also if China had that kind of money to lend, you can bet there was real labor backing that money. It was not issues as an interest-bearing debt. I doubt that our government would even from China if we had commodity-based debt-free money.

      We would not need to borrow it because we would not be servicing high interest payments to other creditors. As the current system stands, if our government does not continue borrowing, the money supply will shrink due to continued loan repayments, and commerce would grind to a halt with no money to circulate.

      • ScoutMotto

        I really need to proofread my posts.

        This would not be the case with commodity backed money. You can’t just make a trillion dollars out of thin air with gold and silver for money. Also if China had that kind of money to lend, you can bet there would have to be real labor backing that money. It would not be issued as an interest-bearing debt. I doubt that our government would even borrow from China if we had commodity-based debt-free money.

        The US would not need to borrow it anyway because we would not be servicing high interest payments to other creditors. As the current system stands, if our government does not continue borrowing, the money supply will shrink due to continued loan repayments, and commerce would grind to a halt with no money to circulate.

    • Taeonu

      Existing condition
      The USA has no currency but wants $1 trillion dollars
      China has $ 1 trillion dollars available to lend at 5% interest
      Total dollars in circulation = $ 1 trillion

      Option A (borrow from China/Saudi Arabia)>/b>
      The USA would get $ 1 trillion dollars from China
      China would get an IOU for $ 1 trillion dollars
      plus 5% interest from the USA
      Total dollars in circulation for 1 year = $ 1 trillion
      Total dollars owed to China at the end of the year = $1 trillion plus $50 billion in interest.

      The USA SPENDS the money it borrows. Where does the money come from to pay back China the $1,50,000,000,000 the USA owes them? A 105% income tax? It would have to pull that $1 trillion out of circulation to pay it back to China, and that would crash the economy. Since the USA can only borrow to create money, they call up their good friend Saudi Arabia.

      Saudi Arabia buys Treasury Bonds for $1 trillion plus $50 billion to pay the interest on the loan to China.

      USA has $1 trillion dollars in circulation.
      China has $1 trillion dollars plus $50 billion in circulation.
      Saudi Arabia has an IOU from the USA for $1 trillion 50 billion plus 5% interest

      After only 1 year, we’ve double the number of dollars in circulation and we still owe Saudi Arabia $1.05 Trillion.

      To keep it simple, let’s say we alternate back and forth borrowing from China to pay back Saudi Arabia and vice versa.

      After 10 years:
      USA has $1 trillion dollars in circulation.
      China has over $6.4 trillion dollars in circulation.
      Saudi Arabia has over $5.1 trillion dollars in circulation.
      Saudi Arabia
      also has an IOU from the USA for over $1.6 trillion that it will have to borrow from China in the 11th year plus 5% interest.

      Total US dollars in circulation after 10 years = $12.5 trillion

      Option B (print debt free money)
      The USA would print $ 1 trillion dollars
      China would keep their $ 1 trillion dollars
      Total dollars in circulation = $ 2 trillion

      Total dollars in circulation after 10 years = $2 trillion

      How is this hard to understand? What if the only way to make a payment on your credit card was to use your credit card. Think you’re ever going to pay off that credit card? That is the situation the United States is in. It can only borrow money to pay for anything – including the interest on it’s debt.

  • Cinderella Man

    Why do you keep censoring me? Its starting to bother

    • Michael

      I am not censoring you.

      Michael

  • http://chasvoice.blogspot.com/ Charleston Voice

    Outstanding Video – The Nazi Banksters’ Crimes – Ripple Effect

    http://chasvoice.blogspot.com/2011/12/outstanding-video-nazi-banksters-crimes.html

  • http://chasvoice.blogspot.com/ Charleston Voice

    John Maynard Keynes: Bolshevik, Lavender, Pervert, Pedophile

    http://chasvoice.blogspot.com/2011/11/john-maynard-keynes-bolshevik-lavender.html

  • http://EconomicCollapse Already Gone

    the people of this country voted in the politicans who are responsible for letting this mess be created in the first place.there is nobody else to blame but the voters of this country period.As a society we fell asleep at the wheel and we are still asleep at the wheel
    and the possibility of waking up in time looks dimmer and dimmer every passing day so what is to be will be. This problem goes way beyond the ability of alot of people to comprehend.Alot of high powered bankers are rumoured to be buying
    freeze dried food in large quanities and have not hidden the fact that this financial collapse is a done deal,if these individuals are
    also preparing then it is time for everybody to get serious about what is going to go down.

  • 007

    For those planning to vote Democrat in the hope that they will preserve the government hand outs and checks, get ready for a rude awakening. While they profess to want to preserve the hand outs, they know a wave of inflation from the money printing is going to rapidly destroy the value of your government checks.. Every month your government check buys less. Yet, they tell you there is no inflation. But you know better.

    Have you noticed your government checks have not been adjusted up for the effects of inflation? Even worse, the Democrats think you are so stupid you won’t notice.

    Well get used to this Democratic scam and expect it to get much worse in the near future. The Democrats are hard at work cutting your future cost of living increases. They even have a new way to underestimate inflation (called chained CPI) to insure inflation outpaces your government checks. In a very short period of time your government check won’t even buy a bag of dog food. This is a big part of how the Democrats plan to pay down the government debt. They intend to pay it on your back.

    I am not a big Republican fan. I am an economic conservative. The Republican party needs to continue to clean house and get rid of the big spending RINOs. However, we need to turn our economy around and fast. The Republican conservatives do have the right concept at least. We need less taxes, less regulations, trade reform and a business/employer friendlier environment. In the end your best chance of survival will be a real job to take care of yourself and your families.

    The Democrats are hopelessly committed to driving our country into a socialist collapse. Therefore, we must continue to reform the Republican party, but vote Republican. Drive the socialist Democrats out of office once and for all.

    The Democrats are stealing your government checks each month and are laughing at you. Those clinging to their government checks, they could care less. They believe you are too afraid to seek a chance for a better life. The Democrats consider you nothing but useful idiots that they can count on to allow them to cling to power and continue this fraud.

    How long will you put up with this? They already have you paying for this fraud.

    The sad truth is the coming wave of inflation is going to make these socialist transfer payments all but worthless. T

  • ScoutMotto

    Excellent article, Michael. Even if we took away the conspiracy element, the federal reserve notes are simply a mathematical equation that doesn’t work. We need a return to what is Constistutional, which is what worked.

  • http://militantjeffersonian.com Republicae

    United States Notes were issued from 1862 all the way up to 1971, the fact that they were issued during the Administration of JFK is nothing special.

    The idea that JFK was assassinated because he issued Executive Order 11110, as if that had anything to do with issuing new Silver Certificates, or new United States Notes can be readily dispelled simply by reading his Economic Report to Congress in 1963, where he explains Executive Order 11110. Here is a portion of that report:

    “I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, silver serves no useful monetary function.
    In 1961, at my direction, sales of silver were suspended by the Secretary of the Treasury. As further steps, I recommend repeal of those Acts that oblige the Treasury to support the price of silver; and repeal of the special 50-percent tax on transfers of interest in silver and authorization for the Federal Reserve System to issue notes in denominations of $1, so as to make possible the gradual withdrawal of silver certificates from circulation and the use of the silver thus released for coinage purposes. I urge the Congress to take prompt action on these recommended changes.” JFK

    If you are old enough to remember it was in 1963 that the first $1 Federal Reserve Notes replaced $1 United States Notes.

    I’ll answer the quackery about the so-called “debt-free” money later.

  • Lennie Pike

    Everything starts to make a lot more sense when we realize just who are the actual people behind the federal reserve.

    Jesus identified their ancestors in John 8, 31 – 47. They were spoken of also in Revelation 3, 9.

    • William

      You are CORRECT! This group of people also financed the Russian Revolution, which established Communism in the USSR, leading to the deaths of about 66 million, mostly Orthodox Christians.

    • jake

      Lennie,
      Pike from the mad world movie is hilarious! i own the movie and watch it now and again. Sorry to get off topic, but i have never known another person (outside my family) who has even heard of it let alone seen it. Thanks for making your pic one of Pike “its a big double-ya i tell ya!”

  • Mark

    The JFK conection is not true. He never tried to end the Fed, here is a good write up on this issue. http://s6.zetaboards.com/Bill_Still_Reforum/topic/1176961/1/

  • mondobeyondo

    “The Congress shall have Power…to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

    To provide for the Punishment of counterfeiting the Securities and current Coin of the United States…”

    Among many other things mentioned in Article 1, Section 8 of the Constitution.
    It also gives the precise measurement of silver for a U.S. dollar. I can’t remember how many grains of silver, I’d have to Google that. But there are specific measurements of gold and silver.

    Wow, had to read that paragraph again…”To provide for the Punishment of counterfeiting the Securities and current Coin of the United States…”

    The Fed has been COUNTERFEITING the Coin (dollars and all other money). So what is the PUNISHMENT for Ben Bernanke and Co.?? Why aren’t Paul Volcker and Alan Greenspan in prison? It’s unconstitutional! But they’re getting away with it!

    And the “current Coin”? Try finding a pre-1965 dime or quarter in your pocket change. Or a pre-1982 penny.

  • Justin O’Buddy

    Michael,

    I see 2 fundamental problems with this “solution”, even if the Gov’t behaved themselves otherwise (your amendment idea)

    1. Issuing “notes” of any type is creating debt on the publics back, albeit non-interest bearing if done with US Notes as suggested. Since we ;had a massive trade deficit, we would have no choice but to inflate and inflate some more. This would have to be fixed simultaneously.

    2. If we only had to deal with the FED, it might work, but we must deal with the other central banks of the world as well. They would either treat it the same as bonds, by charging us interest, or we would lose our reserve currency status with the rest of the world and US Notes would only be good for internal commerce. Since we don’t make (industrial production) anything anymore we could look forward to empty shelves in every store. We could also look forward to $8-12 minimum for a gallon of gas, even if we could would out the details of international trade (see item 1 above).

    • Michael

      Justin:

      You are absolutely right about the trade deficit. I should have included some discussion about the trade deficit in my article. The trade deficit MUST be fixed.

      And you are right about losing our reserve currency status. But I would never be in favor of any system that keeps us enslaved to the Fed. We are going to lose our reserve currency status at some point anyway.

      Michael

  • http://gmail David J. Sanchez

    A very good book to read is, “JFK and the Unspeakable, Why He Died and Why It Matters”, by James W. Douglass. It points out how he also aggravated tensions between himself and the CIA/Pentagon forces when he decided against launching preemtive attacks in Cuba against the Soviet Union and before his trip to Dallas, Texas he announced to a number of associates that he would not commit U.S. forces to a long ground war in Vietnam. There were a number of reasons why the powers that be wanted to eliminate this articulate statesman. After his death we the American people are paying the price to this day. God Bless us and hopefully someday we will realize that we need to educate ourselves to the reality of which Dr. Ron Paul candidate for President of the United States of America speaks as he runs for the Executive Office.

  • John

    I spoke to a debenture banker who knew what Kennedy’s plans were. She believes JFK was assassinated by the bankers. They were going to completely nullify Fed Reserve Notes and issue the new currency to everyone…1’s, 2’s and 5’s were already in circulation and 10’s and 20’s were on the press. His plan was to exchange all currency 1 for 1. If you had more than a certain limit amount (I don’t know what that number was) then you would have to prove where you obtained the money. If you could, no problem. If you couldn’t then it would be for 1 for 2 exchange as this was probably money from ill-gotten gains. He would then take this money and pay off the national debt. Close down the Fed Reserve Bank. He had an executive order

  • Nathan Davis

    Thomas Jefferson was against a central bank, he was also the author of our Constitution, I think that he knew what was best for our country. We have just lost our way, time to get back on the right path…Fire congress, end the fed, and vote Ron Paul 2012…

    • Okie Dan

      Jefferson was the primary author of the Declaration of Independence and was against the Constitution because it had no Bill of Rights and would lead to an overly powerful centralized government. He helped rectify this by becoming the primary author of the Bill Rights. Both in his attempt to cure the ills of the constitution’s tendencies towards centralization and in what he did primarily write I agree with the jiist of what you say, including Ron Paul in 2012.

  • http://scoop.it/t/secular-curated-news-views plasmaborne

    Lincoln Kennedy were both killed by the banking interests of the 1% for issuing debt free Treasury Notes.

  • Sebra Leaves

    Thanks for reminding us.

  • Sebra Leaves

    We should ask Kucinich and Ron Paul if their plans to take back currency control includes the issuance of debt free dollars.

    • Libertarian777

      clearly you have no clue.
      Ron Paul wouldn’t ‘take control’ of the currency.

      He would implement competing currencies and let the FREE MARKET decide which currency rules.

      Kucinich on the other hand is a greenbacker

    • EdL

      We already issue debt free dollars. They are dollar coins.

  • Hangemhi

    Kevin2 is on to something – as are you Michael. Try looking at it this way – the “debt” isn’t really debt if it can be nationalized and paid off. Right? I mean if you had a printing press, would you ever be in debt?

    Once you realize that Michael’s proposal is possible (maybe not realistic) we as a nation can simple stop calling it “debt” because it really isn’t. Certainly not the kind of debt you and I have when we get a mortgage or credit card. More on this idea:

    – American consumers send China (worthless) dollars – they send us real goods in return. China prints their own money, so when a Chinese manufacturer trades his U.S. dollars in for Yuan, the Chinese gov prints up (worthless) Yuan and now the government owns the (worthless) U.S.dollars. To fool their population into believing the U.S. Dollar means anything to a country with it’s own currency and it’s own printing press it turns around and invests in U.S. Treasuries. Now Americans think we are worse off and Chinese think they are funding us. But isnt that backwards???

    The Fed allows this charade because they know the Chinese will never need the U.S. Dollars back (again, because they have their own currency) and the Fed can pay the interest on this so-called “debt” by printing new (worthless) U.S. dollars. So ask yourself…… does this “debt” matter? Is it even “debt” when a printing press can fund it? Note too that this money mostly does not make it into the real economy – it does in china but not here unless the chinese government buys the empire state building or Pebble Beach or some hard asset.

    Now how about U.S. treasuries that grandma buys, or that pension funds and hedge funds buy? Is that “debt”? No, it isn’t for the same reason – because the Fed can print to pay it back (ask yourself if your debt would be debt if you also had a printing press – of course not). This is more like a gift – a guaranteed safe haven investment for any willing buyer.

    Once you change what you call the “debt” you can see that it can grow forever – see Japan. Rogoff is WRONG, the reason hyperinflations happened when debt to GDP reached a certain level was when the debt was owed it another currency. So if we owed the Chinese in Yuan we would be in major trouble. If we owed the Chinese in gold – or in gold backed money – we would be in major trouble. And we would have to print to pay for it because they would want their money back. But they don’t need U.S. Dollars and we don’t owe them yuan or gold.

    So lighten up everyone, we are not in real “debt”. Yes, our economy is in trouble, and deficits do matter, and we have done some serious malinvestment and the banksters are robbing us blind, but we are NOT saddling our grandchildren with U.S. Government debt, and we are NOT about to enter a hyperinflation.

  • Don Levit

    Hangemhi wrote:
    Now how about U.S. Treasuries that grandma buys or that pension funds and hedge funds buy? Is that debt? No, because the Fed can print to pay it back. A guaranteed safe haven investment for any willing buyer.

    As far as grandma and the pension funds go, they actually paid real dollars for that debt. I would call that “funded” debt. Hedge funds I am not sure about, but if they do not pay full price up front as grandmad did, that is “unfunded” debt.
    A good example of unfunded debt is Medicare Part D, which is funded 75% by general revenues. This is an immediate budget expense, and increases the deficit.
    Do you think Part D federal expenses is funded or unfunded debt?
    Or, to you, does it make a difference?
    I liked what you said about a willing buyer. What if the federal government itself is the willing buyer?
    Don Levit

  • Libertarian777

    FIAT currency is the ISSUE. Whether issued by the Fed or the Treasury, if it’s FIAT it will be inflated.

    Stop with this Ellen Brown, Gertrude Coogan, Bill Still Greenbackers nonsense.

    A dollar was defined as 371 grains of silver.
    US silver certificates are what the counterfeit FRNs were modeled after (look at a silver certificate and look at a $1 FRN, they look the same).

    If you need any more proof of the greenbacker fallacies read this:
    http://lewrockwell.com/north/north1075.html
    http://mises.org/resources/5812/Gertrude-Coogans-Bluff-Greenback-Populism-as-Conservative-Economics

    Greenbackers still believe in central economic planning, except instead of the Fed doing it they want the US treasury to do it. There IS NO DIFFERENCE.

    • Lennie Pike

      That was a lie.

    • Lennie Pike

      Probably sounded like the truth to you though.

  • cedarx

    I would like to add that the Federal Reserve

    is a SECRET organization !!!!

    The owners of the Federal Reserve will

    not “allow’ their identity to be known !!!!

    • fuktwittertwattter

      Why would they show their identity to earth scum like you? They are God’s Chosen People and have all rights and you US American Public are their Slaves!

  • D. Devil’s Advocate, Esq.

    If Congress is our putative savior in this debt crisis, we are well and truly fooked. Sh-ite Mussel-ams, who birthed the Beast from Jekyll Island in the first place? With the executive branch as midwife and big business handing out the cigars?

  • Allen

    One way or the other we are going to get out of this mess. You know why? Because a lot of us are waking up. And the people that are younger than us are watching and waiting and understanding. And by the time my little brother (he’s 14. I’m 31) gets my age we will have figured this thing out.

    Of course, we need the military on our side and a lot of them are waking up too. This is the most exciting time to be alive.

  • Bob Marshall

    Too many have come to depend on the government to take care of them.look at credit card debt in America today. Both congress and millions of citizens have the same problem. Spending on credit is out of control. Sooner or later, the bills become due.

  • Nathen

    Why have a money system period I believe the term rescource based economy is possible. jacque fresco seems a truely intelligent human being. I see some flaws in his solution ,but I do think greater risk usually means greater reward.

  • Edward

    I read all the comments……whew……It is definitely interesting. Hoover is the one President that signed a paper from congress in the middle of the night , turning the Federal Reserve into a private bank, which also in the” paper” he signed, turned loose all power of regulation, no regualtion? Ha!, then I own you, is the way it is right now

    • Brent Bergeron

      “On September 8, I requested the governors of the Federal Reserve banks to endeavor to secure the co-operation of the bankers of their territory to make some advances on the security of the assets of closed banks or to take over some of these assets, in order that the receivers of those banks may pay some dividends to their depositors in advance of what would otherwise be the case pending liquidation. Such a measure will contribute to free many business activities and to relieve many families from hardship over the forthcoming winter, and in a measure reverse the process of deflation involved in the tying up of deposits.”

      —Herbert Hoover

      October 18, 1931

  • John

    Americans own at least $10 trillion of US debt. There never has been any intention of repaying this debt. Every time a treasury bond is redeemed it is replaced with a brand new one. That $10 trillion in debt is also $10 trillion in American citizen’s assets. And those assets will be passed to our children and grandchildren. Why? Because we will all die and our children and grand children will inherit those assets. So ho is leaving $10 trillion in assets to our children a bad thing? The United Staes can never ‘runout of money”. It can always create as much fiat money as it needs. On the other hand, greece can run out of money because the euro is like being on a gold standard.

    • fuktwittertwattter

      Should we move to the EU? Is it better there?

  • Brian

    Dude. I hate the fed as much as anyone. But debt free notes issued by congress? Come awn ma’an! Inflation would be horrendously worse! How bout this: competing currencies and congress not allowed to issue a thing…

  • Steve

    Andrew Jackson, Abraham Lincoln, James Garfield, Senator Lewis T. McFadden, John F. Kennedy, Moammar Ghadafi.

  • Steve

    The upper class prints money out of thin air and then hands it out to….themselves!

  • Steve

    In the Argentina they have flea markets where the medium of exchange is not money…..but BARTER! WAKE UP! WAKE UP! WAKE UP! WAKE UP!

  • http://www.huffingtonpost.com/scott-baker Scott Baker

    I just came upon this site.
    I am deeply involved in trying to get the country back to its constitutional roots and responsibility to “coin Money” (Art. 1, Sec. 8).
    Here is a petition to do exactly that:
    http://www.change.org/petitions/end-the-debt-crisis-with-debt-free-united-states-notes
    Here is a fellow monetary reformer who, like me, has written articles on the subject, but also filed a lawsuit (my petition is exhibit B), against Treasury & Geithner for several factual misstatements that prevent the full realization of seigniorage (>$52 billion, just to start):
    http://tompainetoo.com/ (See v. Treasury pulldown).
    I am advising him, and he me.
    The case is real. There is a court date. The gov’t is trying to dismiss it on “lack of standing” and other non-factual grounds – because the facts are against them!
    Take back the Money Power! Re-issue U.S. Notes!

  • freedom

    this idea would be great unless our trusted leaders have already squandered all our gold supply, making our u.s. notes as worthless as the current ones. i realize the fed notes are only held up by a facade of lies and deceit, but the sheeple have already been trained to accept that system. i believe the only effective means to establish a better economic future is through either a revolution resulting in a political cue or an economic breakdown in which a new system is built from the bottom up.

  • http://goo.gl/NFK0A Communal Award

    Just print up your own money exclusively for your friends/family/community.
    Hitler did the same.
    http://goo.gl/CKppN

  • JohnBevington

    So if I understand it right, all coins are debt free money? Whereas bills are put out be the Federal Reserve.

  • http://twitter.com/rybroca Ryan Brock Campbell

    Pay the debt back? It’s fraud! We must use Glass-Steagall to separate the fraudulent debt from our legitimate debts–the majority is fraud. Let Wall st. sink into the Atlantic or the toilet which ever they’d like. They don’t do a damn think but suck our blood. Then open the Constitutional 3rd Bank of the Untied States. Upgrade our infrastructure. Get back to a machine tool/manufacturing base, pick up where J.F.K. left off with NAWAPA. Then get back into space.

  • Michal

    It is a simple idea, but very powerful and very inconvenient for banking system. Current Debt-base money system is a way to control society. It will be a solution for modern problems such as poverty, medicine shortage in developing countries, space exploration, clean energy etc. Regards from Poland ;)

  • Mary w Spaulding

    I am a single working mother and I’m in so much debt that all I do is cry about how to feed my kids and pay my bills. I am beginning to think that death is the only way out. I’m in 20,000 in debt and I really don’t know what to do. I can’t get assistance here in Kentucky because I have a job. Seems like I can’t win for loosing.

  • Karmin

    Do not forget that President Kennedy was assinated six months later after issuing the debt free notes. The program was abolished and never talked about again.

  • F-em

    Who is owed all this money?
    JUST default and be done with it.

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