The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

The Prepper's Blueprint

The Mystery Of The Shemitah
Don't Buy Survival Food Until You Read This - If you stockpile the wrong foods, you could be setting your family up to starve. It sounds harsh, but the truth is too many people with good intentions are making critical mistakes with their food stockpiles. Watch this video now >>
Gold Buying Guide: Golden Eagle Coins

Recent Posts

Archives

What If We Adopted A System Where The Banks Did Not Create Our Money?

What if there was a financial system that would eliminate the need for the federal government to go into debt, that would eliminate the need for the Federal Reserve, that would end the practice of fractional reserve banking and that would dethrone the big banks?  Would you be in favor of such a system?  A surprising new IMF research paper entitled “The Chicago Plan Revisited” by Jaromir Benes and Michael Kumhof is making waves in economic circles all over the globe.  The paper suggests that the world would be much better off if we adopted a system where the banks did not create our money.  So instead of a system where more money is only created when more debt is created, we would have a system of debt-free money that is created directly by national governments.  There have been others that have suggested such a system before, but to have an IMF research paper actually recommend that such a system be adopted is a very big deal.  At the moment, the world is experiencing the biggest debt crisis in human history, and this proposal is being described as a “radical solution” that could potentially remedy some of our largest financial problems.  Unfortunately, apologists for the current system are already viciously attacking this new IMF paper, and of course the big banks would throw a major fit if such a system was ever to be seriously contemplated.  That is why it is imperative that we educate people about how money really works.  Our current system is in the process of collapsing and we desperately need to transition to a new one.

One of the fundamental problems with our current financial system is that it is based on debt.  Just take a look at the United States.  The way our system works today, the vast majority of all money is “created” either when we borrow money or the government borrows money.  Therefore, the creation of more money creates more debt.  Under such a system, it should not be surprising that the total amount of debt in the United States is more than 30 times larger than it was just 40 years ago.

We don’t have to do things this way.  There is a better alternative.  National governments can directly issue debt-free currency into circulation.  The following is a brief excerpt from the IMF report

At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher’s claims.

Why should banks be allowed to create money?

That is a very good question.

Why should sovereign governments ever have to borrow money from anyone?

That is another very good question.

Our current system is designed to enrich the bankers and get everyone else into debt.

And is that not exactly what has happened?

Taking the creation of money away from the bankers would have some tremendous advantages.  A recent article by renowned financial journalist Ambrose Evans-Pritchard described some of these benefits…

One could slash private debt by 100pc of GDP, boost growth, stabilize prices, and dethrone bankers all at the same time. It could be done cleanly and painlessly, by legislative command, far more quickly than anybody imagined.

The conjuring trick is to replace our system of private bank-created money — roughly 97pc of the money supply — with state-created money. We return to the historical norm, before Charles II placed control of the money supply in private hands with the English Free Coinage Act of 1666.

Specifically, it means an assault on “fractional reserve banking”. If lenders are forced to put up 100pc reserve backing for deposits, they lose the exorbitant privilege of creating money out of thin air.

The nation regains sovereign control over the money supply. There are no more banks runs, and fewer boom-bust credit cycles.

So why don’t we go to such a system immediately?

Well, the transition to such a system would undoubtedly be a major shock to the global financial system, and most people try to avoid significant short-term pain even if there are tremendous long-term benefits.

More importantly, however, is that the bankers have a tremendous amount of power in our society today, and they would move heaven and earth to keep a debt-free monetary system from ever being implemented.

You see, the influence of the bankers is not just limited to the big banks.  Our largest financial institutions (and the people who own them) also have large ownership stakes in the vast majority of the big Fortune 500 corporations.  In essence, the big banks are at the very pinnacle of “the establishment” in the United States and in almost every other major country in the western world.

And the vast majority of all political campaigns are funded by “the establishment”.  It takes an enormous amount of money to win campaigns these days, and most politicians are extremely hesitant to bite the hands of those that feed them.

So don’t expect any changes to happen overnight.

One proposal that has actually been put forward in Congress is to cancel all of the government debt that the Federal Reserve is currently holding.  Right now, the Fed is holding more than 1.6 trillion dollars of U.S. government debt…

That would seem to make a lot of sense.  That would immediately wipe more than 1.6 trillion dollars from the U.S. national debt without any real harm being done.

But “the establishment” would be horrified if such a thing happened, so I wouldn’t anticipate it happening any time soon.

Hopefully we can get the American people (along with people all over the globe) educated about these things so that we can start to get millions of people pushing for change.

A debt-free monetary system is superior to a debt-based monetary system in so many ways.

For example, if the U.S. government directly spent debt-free money into circulation, it could conceivably never need to borrow a single dollar ever again.  If the government wanted to spend more money than it brought in, it would simply print it up and spend it.

Of course the big danger with that would be inflation.  That is why it would be imperative for there to be a hard cap on what the government could spend.  For example, you could set the cap on spending by the federal government at 20 percent of GDP.  That way we would never end up looking like the Weimar Republic.

And the current federal debt could be paid down a little at a time using newly created debt-free dollars.  This would have to be done slowly to keep inflation under control, but it could be done.

That way we would not hand a 16 trillion dollar debt to our children and our grandchildren.  We created this mess so we should clean it up.

Theoretically you could also do away with the federal income tax if you wanted to.  Personally, I would like to see the federal government be funded to a large degree by tariffs on foreign goods.  That would also have the side benefit of bringing millions of jobs back into the United States.

Our system of income tax collection is just so incredibly inefficient.  It costs us mind boggling amounts of time and money.  Just consider the following stats from one of my previous articles

1 – The U.S. tax code is now 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements.  Imagine what our society would look like if all that time was spent on more economically profitable activities.

3 – 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.

4 – There have been 4,428 changes to the tax code over the last decade.  It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.

5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

6 – Our tax system has become so complicated that it is almost impossible to file your taxes correctly.  For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.

7 – In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household.  All five of them came up with a different result.

8 – The IRS spends $2.45 for every $100 that it collects in taxes.

For long stretches of our history the United States did not have any income tax, and during those times we thrived.  It is entirely conceivable that we could return to such a system.

At this point, the wealthy have become absolute masters at hiding their wealth from taxation.  According to the IMF, a total of 18 trillion dollars is currently being hidden in offshore banks.  What we are doing right now produces very inequitable results and it is not working.

In many ways, inflation would be a much fairer “tax” than the income tax because inflation taxes each dollar equally.  Nobody would be able to cheat the system.

But if people really love the IRS and the federal income tax, we could keep them under a debt-free money system.  I just happen to think that the IRS and the federal income tax are both really bad ideas that have never served the interests of the American people.

In any event, hopefully you can see that there is a much broader range of solutions to our problems than the two major political parties have been presenting to us.

We do not have to allow the banks to create our money.

The federal government does not have to go into more debt.

We don’t actually need the Federal Reserve.

There are alternatives to the federal income tax and the IRS.

Yes, it is very true that no system would be perfect.  But clearly the path that we are on is only going to lead to disaster.  U.S. government finances are a complete and total nightmare, and this mountain of debt that we have accumulated is going to absolutely destroy us if we allow it to.

So somebody out there should be proposing a fundamental change in direction for our financial system.

Unfortunately, our politicians are just proposing more of the same, and we all know where that is going to lead.

  • Rodster

    I don’t ever see that happening as TPTB are pushing for a new world order and the banksters want a piece of that. ;)

    • truecolours

      The banksters are a tiny minority on this planet. They are a self absorbed bunch with a propensity to in-fighting and can be overwhelmed by the People – an educated, sober/mature, awake People. e.g. Iceland to them to shove it and we can too. We need to educate the Obama “phone lady” that her current lot in life is not the way to go. Shouldn’t be too difficult to turn her around. . .just repeat the message over and over and feed her treats when she salivates.

      • http://www.marijuanaparty.ca Blair T. Longley

        Yeah, the banksters are a tiny minority, but collectively they are a group of trillionaire mass murders. They can make money out of nothing now! Therefore, they can easily buy up control of any opposition group that becomes significant, and/or pay to have those groups discredited or destroyed.

        As this article understated that problem: “the bankers have a tremendous amount of power in our society today, and they would move heaven and earth to keep a debt-free monetary system from ever being implemented.”

        The banksters will try to do anything possible to discredit or destroy anybody who challenges their ability to make money out of nothing, and force everyone else to accept that!

        The established systems are the result of the methods of organized crime taking control of governments. That is now a runaway fascist plutocracy juggernaut, which is going to turn most people into road kill.

        Any REAL alternatives must be based on an alternative murder system, to back up the alternative money system, since the debt controls depend on the death controls.

        It is theoretically easy to come up with ideal solutions. However, they have no practical ways to be implemented. Instead, the established systems of global electronic fiat money frauds, backed by atomic bombs, are going to start genocidal wars, followed by democidal martial law.

        More of my useless bla, bla, blah about these topics can be found at:

        http://www.marijuanaparty.ca/forum/showflat.pl?Cat=&Board=CMPmarijuanaparty&Number=5378&page=0&view=collapsed&sb=5

        and my favourite free video on this topic at:

        http://www.marijuanaparty.ca/article.php3?id_article=445

        That is all useless B.S. because the funding of the political processes is the central problem, and the more you know about that, the worse it gets! I have been working on these problems for several decades, and my conclusions have made me become 100% objectively depressed. The pessimists have all the evidence, and logical arguments on their side. The optimists have only nice sounding theories, and irrational hope, on their side.

    • http://schiffblog.blogspot.ca/ Jon

      Agreed bitcoin is a viable option. Bitcoin, gold and silver there you go you’re safe from inflation.

  • Paul

    That money should only be used to pay for infrastructure that will then be state-owned. It could also be used to buy shares of companies, e.g. struggling banks.

    • jaxon64

      spoken like a true national socialist party supporter

      • Nexus789

        Spoken like someone that is selfish, totally unaware and has no ability to reason and understand even the most obvious issues. Has it actually occurred to you why the system will fail systemically. Obviously not.

        Other than cheque accounts, deposit accounts, basic and highly regulated loans banks add NO value. They are thieves.

  • Paul

    But you still need tax income to pay for consumption items like street lighting, wars and social security.

    • Bri 3D

      Income tax does not pay for any of that.

      • Nexus789

        Social security is paid for via Federal tax receipts and street lighting via local or city taxes. Wars are not they are unfunded.

    • vspoils

      No, income taxes are not necessary in this monetary system. The goverment (we, the people!) collects low interest from the loans it makes to either private or state banks or the private sector, and it goes back to the treasury to pay for infrastructure. The amount of currency for large projects is put into the system as needed and then if there is a surplus of currency it is then retracted afterwards. But this system is beautifully simple, in that what is put in is spent into the economy not borrowed as it is today. Fiat currency is preferred as long as it is generated by the people’s Treasury and not by private central banks as the Federal Reserve does. That system bleeds the economy and inevitably collapses every 80 years or so. The amount of currency needed for a healthy economy would be probably based on population and/or GDP, but I am not an expert. There can be some other taxes and tariffs, but definitely not income tax, which many of us realize is unconstitutional anyway. I implore everyone to read Bill Still’s and Ellen Brown’s books and watch their videos. They make it crystal clear this is the ONLY way to go. Our Founders knew it, and the Rothschilds knew it, which is why they have been hell bent on destroying it.

    • Gerald

      You do realize that there was a time when the
      country ran just fine without an income tax.

  • Paul McKirdy

    You only have to look at the situation here in Ireland to see how the banking system works concerning the sovereign debt of a country. back in 2008 the banks in Europe were about to collapse because of the crash of Lehmann Bros in the US. The big banks and speculators in Germany and France had bought heavily in bonds from Irish banks who in turn had bout heavily in Lehmann Bros. When the Irish banks lost the payments from the US they were unable to pay the other banks and that then meant that they were about to crash, bringing down Europe. The ANSWER, make the Irish people take the fall by being forced to BORROW a huge sum from the IMF, ECB and EU to prop up the Irish banks making them then able to pay the German and French bondholders. These were speculators who gambled and lost. This proves the power that the bankers have over the economies of the world. if you or me made a massive bet in Vegas and lost we would be told tough luck but these guys gambled and then insisted on getting their stake money back with interest and also now have us in debt to them at the same time so are now being paid double.

  • markthetruth

    It’s called cheating and stealing !!!!!!!!!!!!!!!

    Congress and senate did it to with insider trading with no consequences.

    For them money grows on trees.

    There will always be a cheater at the top. And who will stop it.

    the end.

  • tappedops

    Read history… in short the masses end up self -sufficient… ending in happiness and prosperity…do you want THAT on your concious… i didnt think so…

  • tappedops

    conscience…sorry

  • CAPTAIN RON

    The banksters are the new world order…

    • Nexus789

      Bankers are precursors of global destruction.

  • http://www.zapruder.nl Democraatus

    It would at least be a step forward. The next step would be to check the government’s power to create and spend money at will.

    Economic Collapse Blog, when will you do an item on Bitcoin?

  • CAPTAIN RON

    Futhermore… and not to promote someone elses website… go to RT.com… click on programs… then Max Keiser… “The Keiser Report”. He puts the worlds financial fiasco in perspective… in laymans terms.

  • Gary2

    Tax the rich and spread the wealth. 90% of this countries problems will be solved with a better distribution of wealth and income.

    the 1% richest hold 43% if America’s Financial wealth, the richest 10% hold 72%,

    the richest 20% hold 93% of financial wealth… the bottom 80% holds a Whopping
    7% of America’s financial wealth, the bottom 50% holds about 2.5 to 3%.

    that
    shoots the hell out of that “Middle Class” BS. …..here IS NO MIDDLE CLASS..!!

    what we have here is a threat to national security.. mentally ill OCD wealth
    and power Hoarding Psychopaths, so much money has been hoarded in off shore
    accounts and Wall Street speculation, that raises the cost of living to the
    bottom 80% every day, that there isn’t enough money left in circulation to
    fuel an Economy. that is why there is a recession.http://www.amazon.com/Family-Secret-F.

    • Michael

      Gary:

      Wouldn’t you prefer a system where there are no income taxes at all?

      Michael

      • Rodster

        Nah, Gary2 is stuck on stupid. “Tax the greedy to feed the needy”. :)

        • Gary2

          Its tax the wealthy to keep us healthy

      • Gary2

        that is not a realistic option. Hypothetically then I would say no one wants to pay taxes. How about this:

        In the grossly unequal United States, our most typical — or median — adult now holds just $38,786 worth of wealth. Half of American adults have more than this $38,786, half have less.

        Japan’s most typical adults have a net worth of $141,410. In France, a nation with wealth much more equally distributed than in the United States but not as equally distributed as Japan, that typical adult holds $81,274 in wealth.

        In other words, a typical Japanese household today sports more than triple the wealth of a typical U.S. household, and typical French households have twice as much wealth as their American counterparts.

        Average Japanese and average French don’t work any harder than average people in the United States. They just live in societies that do a much better job of sharing the wealth that work creates.

        Maybe one day Americans will live in a society that shares. Maybe one day our Presidential candidates will even talk about sharing.

        • Michael

          Gary:

          Government redistribution is not the answer.

          Rather we need to dramatically shift the balance of power in our economic system away from the big corporations and toward small businesses and individuals. Empowering people to make their own money is the answer.

          Michael

          • Randome-11

            You should precise, governement redistribution in the USA is already happening, has since 1913, through the federale reserve.

            “Free trade” is also wealth redistribution to an extent, depressing wages in the US and other western countries, so the profiteers of the current society could get more into their pockets.

            The wealth is gone, there is not much left to redistribute. Banks and privates have a few billions in offshore accounts but if all this money is put back in the system, then you have inflation.

          • Walter

            All government engages in redistribution. There are thousands of laws and actions that create winners and losers. Even a ‘free market’ system where the government pretends to simply stand back and referee is creating winners and losers.

            Same thing would happen without government. Monopolists would ‘redistribute’ wealth by their sheer power. (say monopolists want to transition an economy from coal to oil, or a public transport systems to an automobile system–they just use their power and do it–although now they use their control f government to do so)

            So, in summation, we need redistribution in a modern economy unless we go to an agrarian economy where people can live off the land. It’s the only fair thing to do if we are going to use money.

            That’s why I think the minimum income is absolutely necessary. Everyone should get something like $25,000 Greenbacks or Continentals every year. This ‘redistribution’ is the fairest redistribution of all. It’s done on a per capita basis and is done with our money supply so the effects are distributed throughout the whole economy (and most average people will benefit more than be hurt by inflation).

      • http://yahoo.com richard swank

        MICHAEL, AS MUCH AS I RESPECT YOUR OPINIONS EXPLAIN TO ME HOW THIS COUNTRY COULD RUN WITHOUT TAXES. ESPECIALLY MAINTAINING OUR MILITARY.

        • Michael

          Richard:

          We could still fund the military.

          You would be surprised how much money really hefty tariffs could bring in.

          If we didn’t want to have an income tax, the difference could be made up by other forms of taxation or by an “inflation tax”.

          Michael

          • Paul

            The moment you introduce those hefty tariffs, you sold the last Coca Cola in China.

          • Michael

            Considering the fact that they sell four times as much stuff to us as we sell to them it won’t be a huge loss for us.

            Michael

          • Randome-11

            “The moment you introduce those hefty tariffs, you sold the last Coca Cola in China.”

            Shut down “free trade”, there is nothing “free” about it.

          • Walter

            But you don’t even need tariffs.

            The government could create every dollar it spends by ‘printing’ it. Easy.

            So every soldier gets his paycheck electronically deposited into his account via the government, or Greenbacks given to him(the new/old dollar after we kick the Federal Reserve to the curb). Every contractor gets paid the same way.

            Easy. No tariffs needed. No taxes needed.

            So that is $1 Trillion every year that we now either raise taxes for or issue bonds for. Of course we should be spending probably 1/10th to 1/20th of that, but whatever, the death merchants have convinced us over $1 Trillion is normal.

      • ScoutMotto

        Yes.

      • Grumpy

        I’m sure Gary2 would still want to tax the rich, even if income taxes were completely unnecessary. He thinks people that work hard to accumulate capital (which would be the ONLY way to do so under this type of financial system) owe him a living because he’s not capable of doing something productive (like working for an honest wage or creating and running his own business) to improve his own life. With him (and many others like him), it’s ALWAYS the other guy’s fault, and he’s NEVER culpable for his personal circumstances.

      • jox

        I’ve never read the idea of having the government printing the money it needs, without collecting taxes, and generating inflation as a form of tax that cannot be avoided. It should be complemented with IRS tax, because inflation affects equally to everybody, while normally you want progressive taxes that charge more to the wealthy. Anyway I find the concepts of debt-free money, 100% reserve for deposits and inflation as a tax very interesting.

      • Paul76

        Gary would prefer a system where he (and others who think like him) get to tell US what to do. We work, he “shares” our wealth! In a society run by the Garys of the world, woe unto us who only want to be left alone to succeed or fail without interference from government!

    • Scott

      And that has what to do with the topic? Take your failed ideology elsewhere.

    • Matt R

      You assume that money ‘hoarded’ by individuals or corporations is not being put to good use. Please note that a large majority of money held in banks is being reinvested into individuals and businesses via new loans, investments in securities (which are essentially loans to businesses), etc. This is the whole idea of the invisible hand. The only way that money is hoarded is if that rich millionaire took all his money and hid it under his mattress- but even then he would need to use it from time-to-time to pay for groceries (invisible hand), car payments (invisible hand), house payments (invisible hand), etc etc. which can only go to benefit the people that work for those companies that the rich millionaire is paying. This produces increased economic value.

      BTW, I find it interesting that if that millionaire does sit on all that money, he’s just sitting on a big pile of paper. It only has value because we use it as a trade mechanism. I think we may find in coming years that true value and riches lie in physical assets (land, crops, water, etc) thus the run on farm acreage we’ve seen the past few years.

      • Paul

        An IPO is an investment. Trading shares is just gambling.

    • Witness the End

      Gary,

      Don’t be a “glass half empty” person! As an American, you probably hold more wealth than 90% of any one person on this planet. I’m sure there are 5 or 6 billion people you would look at what you have with a wish to spread YOUR wealth.

      • Paul

        Whats better – empty or half empty?

        Full or half full?

        LOL

        • Paul

          so half empty is more optimistic than half full?

      • Gary2

        My glass is not 1/2 empty it has fallen off the table and is broken into pieces!

    • SuperBigHuge

      Wealth is not distributed. Wealth is earned.

  • http://www.conservativemormonmom.blogspot.com E B

    This is certainly very interesting and something that Americans don’t gnerally understand and also something the media doesn’t help us understand. Spending more time on the topic of the Fed, etc. is valuable, so please devote more time to these if possible.

  • some fool

    This infinite growth monetary paradigm has to stop. We live on a FINITE planet. The whole economy is a pyramid scheme!

  • some fool

    Socialism, Communism, Fascism, Free Enterprise Not one of these acknowledges that we live on a planet of limited resources. ALL of them are based on the assumption that the planet has infinite resources.

    • http://lnx-bsp.net/ Tel

      Free enterprise allows individuals who a concerned about future resource shortages to stockpile resources today (e.g. buy up oil property and just sit on that oil). This stockpiling presumes that with limited resources in future the price will be higher (so the individual makes a profit) and also it encourages careful usage of those resources.

      Ultimately, every limited resource will run out, regardless of the system, but a Free Enterprise system at least gets the most out of those.

      Problem is that if speculators start to stockpile resources, the media and the government freak out and attempt to punish them for what they do with their own private property. People like Gary2 start moaning about spreading the wealth. There are people who just can’t tolerate the idea they might not get instant gratification.

    • Ajisdragon

      No Money, No Taxes – Resource Based Economy focused on creating abundance (which we already do) and creating access (which money currently does). http://www.thevenusproject.com/; http://www.thezeitgeistmovement.com/

  • http://www.themoderatevoice.com Marc Pascal

    What you are advocating is the basis of Modern Money or Monetary Sovereignty that better explain economics and monetary policy. You can check out such sites as the following: Naked Capitalism,
    http://www.nakedcapitalism.com/
    http://pragcap.com/ http://rodgermmitchell.wordpress.com/
    http://pragcap.com/understanding-modern-monetary-system
    http://michael-hudson.com/
    http://jessescrossroadscafe.blogspot.com/
    These are just are starting point needed by every citizen to understand this subject.

    Please understand that the Federal Government is still the source of all money – it is not the same as a household, business or a state or local government that needs dollars and must work, earn or tax to get them to pay bills. Even under the current system, as a sovereign nation and issuer of the world’s reserve currency, the U.S. creates dollars out of thin air and anytime it wishes. We really don’t need to create debt first thru the Federal Reserve.

    You can still have a viable, liquid, fair, and honest banking system in a country without debt-based public spending. Europe should do the same because the member countries are in debt and cannot create Euros – their sovereign debts were principally the result of assuming bank losses and making them public debts.

    Michael, you covered this subject at least twice during the past year. Best wishes for you, your family and all your readers. I blog regularly on The Moderate Voice (TMV). Marc Pascal

    • Michael

      Thank you Marc. :)

      Michael

  • some fool

    Debt is destroying the next generations. I hope after this election there will be a revolution that will get Ron Paul into office. We need to end the fed or we might be 100 trillion in debt in 10 years.

  • Gary2

    Minnesota-ballot question to raise taxes the richest 2%.

    http://taxtherichest.com/

    Love this–maybe the other states will finally tax the GD rich and spread the wealth.

    • Rick

      So what happens when you run out of rich people? You may want to take a closer look at those socialist European economies. They’re broke, they ran out of rich people. The answer is simple END THE FED & we would no longer have the massive debts created by interest on MONEY they PRINT OUT OF THIN AIR. Read the article. No more need for income tax to pay for that so called debt they dump upon the working class. The IRS is nothing more than a collection agency for the privately owned federal reserve bank. Corporate tax pays for the military & your local taxes pay for your infrastructure, schools & emergency services. Income tax goes directly into the pockets of the private bankers that own the federal reserve bank. Who are they? It’s been a secret since the system was enacted in 1913. Wonder why they don’t want us to know? I believe it was Henry Ford that said if the people understood how the fed really works it would start a revolution overnight.

  • Gary2

    Michael–how can you justify this:

    Consider the six Walmart heirs, who possess more wealth ($93 billion) than the bottom 41% of all Americans combined. But don’t ask them to cut into that pie by paying a living wage to their employees, or provide health insurance, or develop a pension plan. Au contraire– they get corporate welfare in the form of Medicaid for their part-timers and tax breaks and subsidies too numerous to mention.

    How can you not agree with taxing the rich and spreading the wealth.

    • Malcolm Reynolds

      “How can you not agree with taxing the rich and spreading the wealth.”

      Because it’s communism. Because it always ends in mass slavery, mass poverty and govt sponsored mass murder.

      I dunno. How can you agree with that garbage given the failures over and over in recent history?

      BTW, those heirs are giving huge to the bamster. Still wanna steal their wealth?

      • davidmpark

        Yes, he would still want to tax the rich.

        Guys like Gary2 aren’t capable in their own minds, as they abhor the fact that the mind is so important, to create wealth using ability and talent of their own. Those folks that want to tax want something that they shouldn’t take (steal) for their own reasons.

        To put it bluntly; it’s a religion of anti-humanism or death worship – depends on which drugs their high on or the mental illness. It’s evil.

        They like everything that ruins wealth, intelligence, life, and humanity.

        Can’t have debates with these zealots: it’s their faith and they will act on it regardless of consequences or outcome. Part of that is it must be imposed forcefully on others: Income and capital gains taxes (tithing), government expansion (priests), schools (clerics and churches), abortion and birth control (sacraments) must be forced by the power of the gun on non-believers. Just like Jihadists.

    • ScoutMotto

      “How can you not agree with taxing the rich and spreading the wealth.”

      Simple, Gary. It is immoral and unjust to take from those who do earn and give to those who do not. I’m all for helping the poor, but I want to make the choice of donating funds to them, not have government take it from me and disperse as they please.

      It is simply wrong to take from the earner and give to someone else.

  • Eisenkreutz

    Tax imports of goods and wealth that is transferred out of the country. End the Fed, aboolish the IRS and the income tax and leave decent people alone.

  • Eisenkreutz

    “Corruptissima re publica plurimae leges”

    -Tacitus

  • http://www.survivalschool.us Jay

    So, the suggestion is to replace a system where consumers have somewhat free choice in banking to one of depending on a large federal government?
    Predictions for a 100% reserve banking system “Chicago Plan”:
    1). Politicians would manipulate the reach of the new Plan to favor their voters & their friends.
    2). The system of releasing money from the government to banking reserves would be inefficient and distributed based on most favored companies – maybe banks that claim to be “green”.
    3). Credit availability would get extremely tight.
    4). Credit would get very expensive because the banks costs will necessarily go up. Duh.
    5). The system would start fairly well & be destroyed by whichever party is in power just after the Plan launches.

    How about fixing the original source of the problem? Allow banks to make sensible loans based on ability to pay & reign in the gambling of derivatives. Fewer destroyed lives (borrowers) & a better economy sound good to me.

    It’s disturbing to think that people believe that debt can simply be waved away and everything be better, more free, and beneficial to us regular folks. That is “personal bankruptcy is beneficial” thinking and those people find later how horrible it can truly be.

    BOTTOM LINE: I don’t trust bankers, but I trust politicians and big government MUCH LESS. Let’s fix the root cause of this mess instead of trying something untried.

    • Malcolm Reynolds

      “So, the suggestion is to replace a system where consumers have somewhat free choice in banking to one of depending on a large federal government”

      You do realize the fed came into existence in 1913 right? You do realize that choosing a bank has 0 to do with money creation right? You do realize that govt controlled money creation before the fed and that govt wasn’t ‘a large federal government’ right?

  • Shamaka

    Back after the 2nd world war, the German Mark was regularly changed.

    An individual was able to change a limited amount of money to new Marks and the old ones became worthless. Since Uncle Sam did this to the Germans, so perhaps Obama can reissue dollars (say Emerald backs instead of greenbacks) and any currency not changed or hoarded offshore could be made worthless. This way companies that cry poor and dont pay their fair share of tax will have a choice. Pay their way or loose all their hidden gains. Those individuals who have been using tax havens, and cry poor (thus unethically getting government handouts) would have to declare their money and pay tax or it would go too!

    • Malcolm Reynolds

      “and any currency not changed or hoarded offshore could be made worthless. ”

      You do realize that the vast majority of money is digital not currency. money that’s “hoarded offshore” is going to be affected by your dopey plan how?

      • Randome-11

        “You do realize that the vast majority of money is digital not currency.”

        EMP pulses.

  • Shamaka

    I forgot to mention that companies like Apple and others who are trying to twist the government’s arm to get tax cuts would have to “think differently”.

  • Mondobeyondo

    Latest dispatch from Mondo’s humble abode:

    No gas, no water, no electricity at my house. Couldn’t pay the bills. I’m broke. Desperately searching for any means of income, or at least enough cash to get the juice (electricity) restored.

    Typing this missive in a dark house using the battery on my laptop. Feels like I’m camping out at home. Hope to get this situation fixed tomorrow… somehow. Needless to say, I f…. hate this.

    I was ready for this, but it is still a major league inconvenience. For those of you who DO have power, etc. – and are not ready… oh brother. You need to get ready. Seriously, you do. Because what I’m going through is just an inconvenience. It may someday be a normal occurence. Ugh. (expletives deleted)

    Hope to be back online on a regular basis very soon… going offline for now. Need to conserve power.

    Hopefully in another 24-48 hours, things will be back to normal.

    • Michael

      Mondo:

      This is heartbreaking to hear. I don’t even know what to say.

      My wife and I will be praying for you.

      If anyone down in Arizona knows of any work that is available, please post it here. Mondo really needs a job.

      Please keep us updated as to what is going on.

      Michael

    • Paul

      dont have McDonalds? That’s where Chinese kids go for homework and saving light and aircon costs.

    • Someone who cares

      I’m really sorry about your situation. I will pray for you.

    • none

      I wuold call the cities 311? help info number.

      GOOG NEWS:

      Also would contact the local mission. They can give you emergencey aid.

      In Indiana you jwould qualify for a food stamp card. It looks like a credit card so you will not get embarresed.
      Also possibly a cash assistance from state or local area.
      The local missions have heard these stories a lot.

    • Gary2

      vote for mittens and he will cut taxes on the rich. Lets see how that works out for you.

  • http://brotherjohnf John

    The IMF is an arm of the new world order. I have not read all of the document but it says “Seigniorage” is a good potential tax source, as well as “Distortionary tax rates.” I suggest everyone read this document, with a good dictionary at hand. I think its going to envolve the “faciltaters of this new deal” taking everyones everything. I smell a rat.

  • Seen

    “So why don’t we go to such a system immediately?

    Well, the transition to such a system would undoubtedly be a major shock to the global financial system, and most people try to avoid significant short-term pain even if there are tremendous long-term benefits.

    More importantly, however, is that the bankers have a tremendous amount of power in our society today, and they would move heaven and earth to keep a debt-free monetary system from ever being implemented.”

    Well, the populace is largely indoctrinated into believing the present system works for them when in reality; the debt incurred through borrowing and monetization as well as through various taxes and inflation act as a hindrance on class mobility effectively disabling the ability for those in the lower classes to climb the ladder. Especially after the designation of Too Big To Fail, the Working Class is truly the Working Caste. The Middle Class is who gets hammered through 70,000 pages of taxes, inflation, and increasing overhang in regards to regulations while the Upper and Political Class are effectively waived/bypassed for the majority of taxes. Many people simply fail to understand that the Political Class and Upper Class are in bed together against the Middle Class and uses the increasing/swelling Lower Caste to advocate taxes on the Upper Class who largely are TBTF and fiefdoms of the political class for campaign contributions and etc. Even the USSR knew that inflation was the main drive to protect Soviet Elites and Soviet’s governmental fiefdoms.
    Inevitably, these TBTFs are inevitably are politically and protected by government, and their actions make it quite plain that they want a large Lower Class, no Middle, and just the upper and political class at the top, which the political class acts as a buffer and scapegoat should the protectorate rises. Another issue is that the global economic system backed by a global currency would less likely be accepted in lieu of the greenback and effectively would hinder global governance. Additionally, the short-term shock is mostly what people of all stripes would worry about while the Upper Class will happily use the near-term shock as justification to cement the present debt-based system for a longer period.

  • Wake up

    income taxes (robbery), VAT taxes (robbery), carbon taxes (robbery), sales taxes, quantitative easing or currency devaluation (robbery), debt default (robbery) and costs and fees to comply with endless regulations that their sold out crony’s in government conjured up (robbery).

    • Paul

      it depends. In Germany there are energy taxes for decades now. They make energy usage expensive. Ergo people save. They insulate houses, which creates local jobs. Solar collectors on the roof help to save heating energy, and are made in Germany. Triple glazed windows are made in Germany and keep the heat inside. If you want to renovate your house with energy saving measures, you get very cheap loans ( 1% p.a.) with 10 years fixed rate.

  • chiller

    The IMF plan is nothing new and one I have deep reservations with especially coming from the IMF. To me, the IMF “plan” reeks of a 1 world banking scheme run under the guise of government control. So long as the IMF includes themselves in the removal from the banking system, then there might be hope. In order for it to succeed, any and all bastions of the old system must be eliminated. No toe holds must remain to allow them to slide their way back in. The kind of money we’re talking about is enough to warp the mind of the strongest individuals.

  • Paul

    Learn from the tax Code in Hong Kong.
    Household: max 15%; companies: max 17%

    That’s about it. Households can finish their tax declaration in 10 minutes.

    Then spend your time on more important things: making money, playing with your kids, shopping, going to the beach.

    • Paul

      oh, BTW Hong Kong has a surplus, no debts.

  • Chris

    Anything proposed by the IMF is likely to be seriously flawed and have a hidden agenda. You should be very wary of rushing to embrace a new system thinking it will be better on what the IMF tells you. Do you really think that such a new system or any other that the IMF proposes will really be of benefit to the many and not just the few as the previous one.

  • http://lnx-bsp.net/ Tel

    The IMF cannot be trusted, this is a more interesting idea…

    http://barnabyisright.com/2011/07/07/the-peoples-nwo-every-man-his-own-central-banker/

    The other interesting idea is Bitcoin, of course, the two may usefully be combined.

  • Bill

    That’s an excellent idea, but the elephant in the room is that governments would be responsible for creating money. It’s a step in the right direction, but it’s still fiat money. Rather than putting a cap on government spending, (which is a good idea, by the way), why not link the money supply to something tangible. Perhaps not gold, but perhaps a “basket” of tagible items like gold, silver, and other precious metals.

    There’s a commonly held belief in economic circles that in order for the economy to “grow”, the money supply has to grow. In fact, one of the measures of economic growth is inflation! Think of the benefits of a ready, steady money supply…

    1) The prices of goods and services would be stable and only change due to changes in supply and demand.
    2) Money saved would not depreciate in value over time, thus ending the need to constantly spend money on “assets” and instead people would feel better about saving their money for things they really need like housing and retirement.
    3) Tax rates would be stable and predictable, and all of the complex gimmics could be taken out.
    4) Small businesses wouldn’t have to worry about leveraged buyouts by large corporations, and they wouldn’t have to worry about putting themselves into debt in order to expand. Instead they would be able to expand because people like their products and/or services. (What a concept!)
    5) There would be less of an incentive to ship jobs overseas because labor costs would be stable, as will the general cost of living.

    Utopia? I wouldn’t go that far, but it would go a long way to stabilize our country and the rest of the world.

    • Dezmo

      Yeah…. But how do you prevent deflation or shortage of money supply that is bound to happen with population growth?

  • Ralphieboy

    Gary2 sounds s little bitter. A little class envy. Perhaps?

    The “punishing the producers” meme is a bit stale. Guess what? Most of us with money worked our collevtive asses off for it. I started as a construction laborer. Have aldo been a janitor, garbageman, underground hardrock miner. I spent 30 hard years building a business, providing good employment to many. So now that I am a one percenter, i am evil?

    Indeed, I find ways to legally avoid paying more tax than I need to. WHy should I be punished for being a successful producer who provides well paying jobs?

    NO worries. Slap even higher taxes on me, and I will simply shut down my business. I really do not need to keep working.

    Indeed, there are a few super wealthy bankers who are ammoral NWO wannabees. NOT such good guys. But a hateful , envious approach is directly proportional to the accusers own miserable failures in life. I find that the most spiteful people out there are those that have made wrecks out of their own lives through a serious of bad and sometimes very stupid choices.

    THE fractional reserve central banking system is an economic scourge, no doubt. Frankly I do not believe we eill ever have an orderly return to sound bamking. A COLLAPSE WILL COME FIRST. That said, any human being with ethic, initiative and a bit of talent can still do well long term. A key is to stop blaming others and the system, get off your butt, and get into action.

    • Paul

      I doubt you are a 1%er. With 30years hard work, even if you built a construction company you won’t be accepted in the ranks of the walmarts. You can’t get rich with hard work alone there is always some cheating involved.

  • I am Tyler Durden’s contempt for the system

    You realize that the assertions of moving away from the fed are one of the underlying reasons why JFK was assassinated, don’t you?

  • Agorist

    All this looks like to me is moving control of the money and the economy from one central authority to another. Do you really want to put any more power in the hands of government? To allow the money supply, etc. to be placed at the whim of politicians or the largest voting block? What’s to prevent their “voting themselves largess” as so eloquently stated by de Tocqueville?

    I’d prefer “money” being created by private MINTS from silver and gold in standard sizes (grams?), verified by private auditors, and accepted or not by each individual. Let the market work. Don’t try to run it from above.

  • BITCOINEER

    use BITCOIN !!! Problem Solved.

  • Donald Wilson

    Nice dream there powers that be will Never allow it. The end.

  • vspoils

    I beleive that the way to avoid a massive shock is to simply allow US Treasury notes to compete alongside the evil Federal Reserve (private central bank) notes. Kennedy tried to do it and look what happened to him. Lincoln did it and look what happened to him. Wm. H. Harrison opposed the bankers and look what happened to him. James Garfield was planning to do it and look what happened to him. Andrew Jackson did it and they shot him too. The message is clear. Do it and die.

  • ceryl

    Hi,
    I think that “The Establishment” means group of people.
    And just who are they supposed to be?
    The people who invented Religion and therby hijacked our brains.
    Religion or God worshiping makes us mindless,dumb and thinking less.

    If you think , that these religion inventors only run banks in order to control the rest of people then you are wrong.

    The courts — which deliver justice as per the fancy of “The Establishment” or more correctly religion inventors.

    The schools for general people— All the curriculum of all the PUBLIC schools in USA is designed to produce mindless puppets or more appropriately obedient servants devoid of any creativity.Teachers are hired on the basis of stupidity and person of questionable character.

    The colleges—-To put them under federal reserve debt for most of there life.American colleges doesnot teach how to create but how to screw, thanks to the cunning religion inventors as professors.
    More and more universities in America teaches human sexuality for corruption of youths in the name of education.Porn watching,masturbation,writing sex stories are openly encouraged as part of curricula.

    And the list goes on .
    But above three points affect our lives severly.
    IT IS INSTITUTIONALIZED SLAVERY HERE IN AMERICA AT THE HANDS OF CHURCH & GOD INVENTORS.

    WE CAN ALSO CALL THEM AMERICAN TALIBAN.

  • Mustard Seeds

    DREAM ON!!!!

    The banks are LOVING the wealth they are able to generate at will. It has reached a crescendo. Total banker nirvana. They’ve got everybody by the short hairs, and they know it. They own the politicians and the courts and every “regulating” or “watchdog” agency in this country.

    We never really escaped feudalism. We just modernized it into neo feudalism.

    The banks are the kings. They own everything that has a mortgage. They own every corporation. Through those corporations they control every resource. Our businesses, homes, food, water, medicine, education, entertainment, clothing, EVERYTHING!

    The corporations are the barons and the IRS are the knights. The barons make sure we, the serfs, earn our privilege to live in our little fiefs. Think you own your fief? Try not paying YOUR taxes to the IRS knights for the king. You will end up fiefless and maybe even imprisoned!

    Barons don’t pay taxes. Only the serfs.

    The military is nothing but a bunch of indentured servants. Just like the rest of us.

    The system is the same.

    The sad thing is most of the serfs like being serfs….especially if they get a little bone thrown at them like a nice car or a comfy fief.

  • Gary2

    Or this Michael:

    The USA as a whole is still rich – the GDP keeps increasing. However, voodoo economics has diverted all the growth and income to the top. So, instead of broad prosperity, we have a 3’rd world model of super-rich and peons.

    If 10 people gain $100,000, or if one person gets $1,000,000 and nine get nothing, the group has had the same increase in wealth. This is why we need to tax the rich and spread the wealth.

    • JustanOguy

      Gary 2,

      Maybe you should take a look at Washington D.C. personal incomes doubling since 1998 to see what taxing the rich is going to get for you.

      Just because you tax the rich more does not mean that you are going to get anything out of it.

      The rich are getting richer because of the system currently in place. The rich know what good debt is and what bad debt is. 99% of the poor and middle class use debt to buy cars, big screen TV’s and other garbage that will be worth a fraction of what was paid to obtain them by the time they are paid off.

      Thinking that taxing the rich more is going to solve anything is EXTREMELY naive. All it means is that the Government will have more money to go out and spend it on garbage. Just look at what the Government did with $800 Billion in borrowed money from China.

      While past results are no guarantee of future results, it’s a pretty darn good indicator of what you can expect.

      Obviously, the vast majority of Americans fall into the poor or middle class category and just look at who they vote for. Clearly NO CLUE about money management skills.

      • OLdFART

        Economics education in US public schools is practically nonexistant. They only teach the poop that Gary2 spews.

    • Malcolm Reynolds

      Think Nelson.

      Haa Haa!

    • Randome-11

      “However, voodoo economics has diverted all the growth and income to the top.”

      Not voodoo economics, communism, redistributing the wealth is communism. :D

  • badbrian from grass valley

    Michael, what a wonderful article. The banksters will never allow anything like this to come about. The world’s moneylenders will continue to tighten their grip on the productive people of the world thru their proxie’s, the human rulers of the world. Conditions will only improve when God’s Kingdom by Christ Jesus intervenes in man’s corrupt affairs and puts an end to nationalistic human rulership. When True Christians pray for God’s Kingdom to come’ for his will to be done on this Earth’ we are asking for the rightious King Jesus to rule over us. When Jesus was a human among humans he proved by how he dealt with his fellow man and women just what kind of a king he would be. We all need to show Jesus and his Father that we want to be subjects of the Kingdom of God by the way we live our lives and obeying God as ruler just as King Jesus set the example for us to follow. God Bless you all!

  • MeMadMax

    Unfortunately, any of these changes require a complete collapse of the current system before the new one can be installed…

    Our government is lax to make any changes unless its an “emergency”, only then does crap hit the fan…

  • ScoutMotto

    The banking elite are evil as all get out. I will say this for them, that what they have accomplished is impressive. I don’t condone any part of it, nor want any part of it, but it incredible what they have accomplished. Horrifying too.

    I vote for the abolition of the income tax. It was never part of the founders vision to steal the compensation for labor from the workers. It is unjust to take from those who earn and give to those who do not earn.

  • John
  • http://secondmoneysystem.webnode.com/ Rod

    We have to dramatically change the paradigm if we are ever going to pull humanity out of the grip of the banksters. All we need to do is get rid of one specific concept and then all the problems go away.
    Check out: secondmoneysystem.webnode.com for what that one concept is and a potential solution.

  • Mike

    Michael,

    I certainly favor a system where the government created money, along with a balanced budget amendment.

    But I don’t see how it would end bank runs. people would still have their money in banks, and if there was some sort of panic and everyone wanted to withdraw their money, bank runs would result.

    • Michael

      But if there was no fractional reserve lending, banks would always have to have 100% reserves on hand so there would not be any running out of money.

      Michael

  • something very wicked comes this way

    seems like the economic collapse is accelerating;

    DuPont cutting 1500 jobs; profit forecast slashed
    Reuters – ‎16 minutes ago‎
    (Reuters) – DuPont (DD.N) slashed its earnings forecast, reported a lower-than-expected quarterly profit and announced 1,500 job cuts on Tuesday, signs that demand for the chemical company’s lucrative paint and solar products is slipping around the world.

    Report: Bernanke Told Friends He Plans to Leave the Fed in 2014
    By Matt Egan
    Published October 23, 2012
    FOXBusiness
    Read more: http://www.foxbusiness.com/business-leaders/2012/10/23/bernanke-probably-wont-stand-for-third-term/#ixzz2A8spKs1k

    Oil price drops near $86; pump prices down again
    The Associated Press – ‎15 minutes ago‎
    (AP) – 1 minute ago. NEW YORK (AP) – The price of oil fell to a three-month low as big corporations cut earnings forecasts, raising concerns about economic growth and oil demand.
    San Francisco Chronicle

    UPS Posts Lower Profit, Revenue
    Wall Street Journal – ‎48 minutes ago‎
    By BOB SECHLER · United Parcel Service Inc. reported a drop in third-quarter earnings despite a rise in package volume, as soft international trade and a growing preponderance of low-priced shipments from online shopping damped results.

    Stocks, Commodities Slump
    Wall Street Journal – ‎13 minutes ago‎
    By CHRIS DIETERICH. NEW YORK—A series of weak corporate earnings reports in the U.S. refocused the attention of investors on the fragile global economic recovery, sinking stock and commodity prices while driving investors to the safety of Treasurys.

    Corporations threatening layoffs if Obama wins
    White Mountain Independent-4 hours ago
    Corporations threatening layoffs if Obama wins Karen Warnick – The Independent White Mountain Independent | 0 comments. So are we living in a dictatorship?

    Sony announces 2000 more layoffs
    Yahoo! News (blog)-Oct 19, 2012
    Working at Sony (SNE) can’t be very much fun at the moment, as the company on Friday announced another round of layoffs that will reduce its workforce by … by Brad Reed-More by Brad Reed

    Alcatel-Lucent to cut 5490 jobs worldwide
    Reuters-Oct 18, 2012
    Union representatives in France on Thursday pledged to fight the 1,430 job cuts in France and called on the government to intervene, creating another …

    Newsweek ending print edition, job cuts expected
    Boston.com-Oct 18, 2012
    SmartMoney, for example, announced in June that it was shuttering its print publication in favor of a digital format. Dow Jones & Co., a unit of News Corp., said at …

    The presidential election and the risk of economic collapse
    Fox News-Oct 22, 2012
    The global economy is teetering on collapse, and the presidential election may … services and the principal reason the American economy is growing slowly.

    Stay tuned more to come

  • Washington

    What a Return to the Gold Standard Would Mean for You 08/30/12

    http://www.dailyfinance.com/2012/08/30/gold-standard-return-how-it-affects-you/

  • none

    Good News: Micheal.,,, I think?

    I watched a special on P.B.S.
    It interviewed a guy who wrote a book called.
    “The next wave”? Think it was.

    Basically, it showed how using a smart phone was more secure than going into a bank and using a U.S. Passport.

    Also by using a smart phone you could basically stop credit card fraud.

    Sorry,,, this could very easily happen in the next five years.

  • john jackson

    The writing is on the wall. The collapse of the US Dollar is 6-8 months away. Other nations have already stopped using the dollar in international oil trades. The dollar is dead, we just don’t know it yet. You owe it to yourself and your family to prosper from these unprecedented events:

    http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=e6b01db8

  • Winston

    Michael,
    Do you really think TPTB(who control the banks) are going
    to give up their ‘skim’ off the top of the whole monetary
    system without a fight.
    As they also control the President,Congress and the US armed
    forces,its going to be one hell of a conflict.
    Its really only 400 families that control the whole world,but
    they are inbred psychopaths who would rather everything is destroyed
    rather than give up control.
    ********************* are the only way forward or homo sapiens are
    finished,an evolutionary dead end.

    • Michael

      Of course the powers that be are not going to give up control.

      I just wanted to point out that there are other solutions that are possible.

      Michael

  • none

    Might have posted this before?
    It shows how fast the economy can implode.
    About 4 hours?
    http://www.youtube.com/watch?v=uPREuFcYKmM

  • JustanOguy

    You are certainly right about educating people about how money is “created”.

    The fact that we have so many voters that re-elect politicians that support bailing out the big banks and failing businesses with more public debt shows that we all have a long, long, long way to go.

    Now that Washington D.C. and Wall St. are one in the same, it’s going to be even more difficult unless there’s a major collapse…. and even then there will be a lot of spin on how it happened.

    Fact of the matter is that 90% of Americans don’t even know how the Bond System works.

    Face it… the vast majority of Americans still think that housing values tanked because of the economy or the economy tanked because of housing. Lol..

    Little to zero clue about the debt (money) that was created that pushed home values up to unsustainable levels and then even more debt was created to “save” home values.

    What a joke..

  • Pastor Glenn

    I have a terrific idea for Gary2. Go ahead and be an example for the rest of us, Gary2. Please.

    Since it is absolutely true that a huge portion of the world – the vast majority – live on less than $1 a day, why don’t you sell everything you own, and give it to the poor in the rest of the world, and live on $1 a day yourself?

    Of course you’ll have to live in the streets.

    But you’ll be showing everyone else that you’re absolutely serious about everyone else doing what you keep saying THEY should do, if you do it yourself.

    Go ahead.

    In the meanwhile, just for an example, my wife and I work hard. I take no money from the church where I am assistant Pastor. We are a generous church; we pay the Pastor a living wage. We also set aside 10% of what the church takes in to give to the poor.

    On top of that, Gary2, my wife and I take 80% of what is left over (because – amazing as it sounds – we live WITHIN our means) every month and send it to a Christian charity which runs a Christian orphanage in a very poor rural ex-communist country in Eastern Europe. This is because, despite this 2nd world nation being wealthy enough to be ‘accepted’ into the EU, it cannot provide for its own citizens and must rely upon the benifiscence (gifts) of Christians from afar. Mostly “ugly Americans”.

    Stick that in your pipe and smoke it, Gary2.

    • Gary2

      as a church you get many tax breaks that us taxpayers subsidize. You as a church are getting a free ride and your pastors parsonage is also tax free. Pay your fair share or STFU!

      Stick that in YOUR pipe. I for one am sick of churches getting tax free status.

  • Timo45

    Have you ever heard the saying not worth the continental. That statement is from the America history. It was one of the first currency we used in America. But it was over printed and mass inflation came to America. That happen many times in early America history. The problem is we the people have to get educated about our money system so the government wont over print our currency not matter what the needs are. The goverment have to learn how to save just like every one else. Because of this in the constition it was strong mandates about devauling our currency. It even states if anyone devaule our money they deserve the death penality. Because thats how important it is not to over print currency. Yes the federel reserve needs to go because we don’t need to be paying to create our money but we must also learn how important it is for government not to over print our currency.

    • Walter

      Well, that’s the simplified version. The system was under attack by the bankers from the beginning and they eventually won and got to write the history. Look who appears on the Federal Reserve Notes–people who advocated this type of money, or at least opposed the privately controlled banks, like Andrew Jackson, Ben Franklin, and Abraham Lincoln.

      The system needs to be accepted by everyone as payment and the Continentals did not take as the Greenbacks did later. Plus, the inflation didn’t look as bad as some people have made it out to be. Plus, we don’t know if the ‘inflation’ was necessarily bad. We would have to compare the cost of good inflation to the average income to get an idea. In general, this system is going to be more efficient because it doesn’t allow bankers to skim off the top so it leaves more goods and services for average people.

  • Pastor Glenn

    Yes; this country (and all the others) would be better off without franctional reserve, without the IMF, without the banking system as it currently is.

    In fact, truth be told, we live in a system which is entirely and totally bogus – illegal, in the United States.

    Because the Constitution states very clearly that Congress shall coin monies; and that said monies must be silver (or gold).

    So since over the past 99 years, this has not been so, clearly this means the Constitution has been ignored by the Washington DC crowd (all the while letting the power center revolve around New York and the banksters).

    So if the Constitution is being ignored, doesn’t that mean there is no law at all? You cannot have a house without a foundation.

    So what then? It’s called “natural law” and it actually stems from New Testament Biblical law, which stems from Old Testament law.

    However, if we go back to adhering to our American Constitution, and get rid of 99% of the laws on the books; make Congress a part-time citizen gig; disallow any monies from going to re-election campaigns (but only give stipends out of the public purse to anyone willing to run for office); have elections which last a few weeks at most; and go back to real in-hand silver and gold money, then this country might have a chance.

    In other words, realistically speaking, we’re screwed as a nation.

    Which is one reason that everyone should take a real good look at the actual true spritual benefits of true Biblical Christianity.

    Because when everything else is ‘gone’ that’s all we’ll have left as a people.

    Borrowers (Americans) are always slaves to lenders (mostly Chinese).

    • Walter

      Pastor Glenn,

      The Constitution does not require a gold standard. You are mistaken. It is the exact opposite! I encourage you to look into this and evaluate the sources that wish to leave you with this false impression.

      The federal government has every right issue fiat money not backed by gold or silver. It did so when Lincoln was president. However, the states are prohibited from “coining” money or sanctioning legal tender unless its backed by gold or silver.

      If anything, one could argue that the Federal Reserve System was an unconstitutional transfer of power and is unconstitutional on those grounds.

      Our society needs to explore this hidden American history of its money.

  • Pastor Glenn

    Those of you who do not think we can function as a nation without an income tax had better read up on the history of this nation from 1776 through 1912. It functioned without an income tax!

    The Constitution actually states that the little funds that the Washington government needs for defense, should be obtained by tariffs of imported goods (which would go a long way towards bringing jobs back to our country), and also federal excise taxes.

    For example, until January 1, 1965, there was a federal excise tax on new cars of about 5%. It may even still exist on new tires, or at least it did some years ago.

    Those are legal, Constitutional taxes. Taxes on ‘consumption’ – everyone ‘consumes’ things.

    Everyone should help pay towards the defense of the country. Why do we have almost 1/2 the people ‘mooching’ off the rest? It’s legalized theft.

    A people busy at work also don’t have time to rob one another, do they?

    Work gives us a purpose in life. It is not a curse – God gave Adam ‘work’ to do before the fall of mankind into sin, after all! Think on that!

  • Chris

    Call me cynical but i wouldn’t trust anything the IMF proposes. In exchange for writing off the debt do the government have to impose mandatory microchipping of the population with a chip that doubles as a tracking and payment device?
    A lot of Goldman sachs people have already gone into government haven’t they so the new system would still be in their grubby hands.
    A few weeks ago you had a comment from a wall st insider i think who said the coming system would be ‘mark of the beast’. Is this what you will end up being a cheerleader for?
    Gold man sachs said once they were ‘doing God’s work’ but which god?
    Alternatively Hitler had to sacrifice his SA for the SS in the ‘night of the long knives’ maybe this is the bit where the Masonic bankers having done ‘their work of ages’ get sacrificed for the imposition of the new system?

  • Richard

    One word about this IMF piece endorsing controlled opposition..

    * * *

    Greenbackers

    * * *

    Definition of greenbackers: useful anti-free market idiots for unlimited government.

    Kind regs from / Amsterdam (clip) /, Holland,
    Richard

    R3V ON!!

  • Edward Whiteeagle

    Michael,

    I have created a new world economy that will allow every person on our planet to be equal with each other. I would love to send you a copy of the short paper I have written on the subject. I had a dream and in the dream I was told that it was the only system that would work in the long run. My goal is to find influential people who can help move the idea along. Anyway, write me back and I will send you a copy. have a great day!

    Edward

    • nowwthen

      I would like to donate seventeen trillion dollars to help you get started. Where do I send the money?

  • abneryokum

    It appears many people need help thinking ‘outside’ the box. Some videos that may help. Secrets of OZ, Money As Debt & Money As Debt 2, ‘Thrive’, ‘American Dream’, and more.

  • J

    What will be needed in the near future is a “Right To Life Income” New born persons will recieve $30,000 and will be activated on their 15th birthday only after a test is passed. With the coming technological singularity, displacement of people in the work place will increase. This will be a good safty net for socitey. As far as the Debt-free issue, it will HELP big time for the transitions that will be taking place. It will be a New World Order without 1984!

    • Walter

      So, kind of the opposite of that dystopian futuristic movie where a device in your body kills you once you run out of money so people are constantly seeking out money to live?

      I like it.

  • broncobuster

    it will only happen thru armed revolution people must kill all banksters and politicians then you could have a chance to reset money….otherwise you all wasting time and words.

  • Old Manl

    Give any party monopoly power to issue money and sooner or later you will get monopoly corruption from that party.

    The world has seen governments with sole money-issue power (mostly dictatorship). We all know how dictatorships ended up.

    Central banks with unchecked money power will be the same as government with same. Absolute corruption will result. The latest example is the Federal Reserve.

    So the trick is to give BOTH government and central bank money-issue power. And control both by legislation, or even by constitution. One of the key controls is to prohibit both party to borrow money from each other.

    That is, government gets its money only from taxation and other services income. Government can issue money under strict conditions, to finance emergencies such as war, but not finance any domestic commercial activities. Central bank issue money as debt ONLY to the commercial banking system, earn income from that, and never to be bailed out by government.

    As to regulation, the government regulates the central bank under law. The central bank only regulate the money it issues to commercial banks. I mean commercial & retail banks, NOT investment banks or insurance companies.

  • SidDavis

    Here are the problems:

    1. It doesn’t work. The Colonies and the Continental Congress tried issuing scrip, and created a boom bust cycle, the boom being caused by the spending of the new money, and the bust being caused by higher boom prices, and the depressing effect in the few cases where the scrip was retired with species. In every case the scrip depreciated relative to gold and silver, and some people got screwed while others made out like bandits. If the government issues all our money, as is proposed, by spending it into circulation, the money loses value, and effectively those who suffer the loss of the value of the money they hold are taxed disproportionately, i.e., some of their wealth is transferred to the government. This is blatantly dishonest. The eventual outcome would be hyperinflation.

    2. Such a system where government can create and spend their own money provides for unlimited government. If you think government has overwhelmed your life now, and made a mess of the economy, just wait till they can spend on anything they can dream up without the restraint of borrowing or raising taxes. Since government spends very little to protect freedom, and plenty to subjugate you, what little freedom you have left would quickly disappear.

    3. It does not stop banks from creating money unless they are required to hold 100% reserves against deposit liabilities. Banks have over history created credit, whether it is in the form of bank notes or checking account balances. So long as they are not run, they can get away with keeping a reserve only equal to a fraction of their deposit liabilities. Simply having the federal government print their own money would not stop the practice of banks creating credit and loaning it out, which is essentially the system we have now.

    The only honest monetary system, one which would limit government in size to what they could get away with taxing us, would be one where we use gold and silver coins (and electronic receipts for coins on deposit), separate deposit banks from lending institutions, and require deposit banks to maintain 100% reserves against deposit liabilities. Such a system would minimize booms and busts, keep prices in line with actual supply and demand for goods and services, and limit government to what they could pay for with tax without causing revolt. And such a system would deprive bankers of the outrageous wealth they extract from us via the current government granted privilege of issuing money.

  • Ralphieboy

    Response to Paul:

    Actually I am in the top one percent. I am in the oil business, not construction. And I did it hinestly, not having to cheat. I did build it, never tanking a penny from a bank or the government. Fact is, most people buy into the paradigm that you have to eork your way up working for someon else, and that you must graduate from some ivy league svchool to hsve the contacts. Not so.

    One of the wealthiest oil men I know had only a third grade efucation. He started working in his teens as a roughneck, then eent off to fight in WW II. He spent many long and hard years working as an oilfield mechanic. But he listened and learned the business. Today he is worth multi millions. By the way, he also did not have to cheat.

    My point is that people are wrong to generalize and lump all wealthy people together into a stereotype of greedy, dishonest pigs. Most liberal media and left wingers wsnt you to think this so they can convince you that wealth is born of special privelage, ivy league schools, wealthy parents et all. But the reality is that most wealth in the USA is from people with humble backgrounds that worked hard, educated themselves, and took risks. This sterotype is also fostered to create doubt in the American Dream.

    Don’t believe any of their bullcrap and negativism. As bad as the economy is now, there are yet great gems if opportunitu out there. If I were just starting today, for example, I’d be heading to the great Bakken basin in South Dakota, or any one of the new oil and gas plays un the USA. No reason an able bodied man or woman nneeds to rot at home, full of sell pity, whining about the lack of work and the evil fat cats that are keeping him down. BULLCRAP to that. Throw your clothes in a grocery bag, get in your beater car, and go where the jobs are. That’s whatI had to do in the 1973 recession, when I livedin my car for weeks on end, taking Manpower jobs until I got a gig working as an underground hardrock miner. The pay was great, I saved my money, and this grubstake allowed me to start my first business a few years later, nevdr to be a wage slave again. Now, that’s freedom. We all have the choice to cast off our self imposed chains if we are thoroughly willing to work hard and take the risks.

  • Bob

    I love the debt-free/nationalized currency money system. I’m not clear on how the system would handle elasticity with the currency, for example when the money supply needs to exand temporarily due to seasonal demands such as Christmas. Inflation could be run at 0% in such a system. Note that there would need to be a taxing mechanism to take excess money out of the system incase inflation occurs. Maybe a sales tax or fair tax.

  • howard479

    If the government is allowed to spend as much as it can print I do not see how this is “any better” than the current system other than we would be paying interest on debt. It would still be inflationary. If the government issued paper currency backed by a hard commodity, then we would have someplace to start.

  • salamis

    Those who control the money control, let’s say the rest. Known wisdom.

    Therefore governments as all others are controlled by those who have the most.

    The controlling by money is still widely underestimated. It always will permeate all structures and dominate them that are not aligned to that fact.

    Why for the money if not bringing away obstacles quick and easy.

    If governments turn in the banking scene – a layer more to bribe is in the offer.

    Therefore, the fight goes against the power of money and the self-determination of people what they have to pay and what not.

    No other pass to overcome tptb.

  • In Gold We Trust

    Ending fractional reserve banking is a very good idea, but bringing back Treasury-issued paper notes is a very bad idea.

    With money substitutes no longer earning interest, people using a Fisher dollar would have absolutely no protection against the depreciation of its value due to inflation. Congress would also be able to spend more and run up bigger deficits under this system, making inflation worse.

    A better solution is to couple a gold standard with the 100% reserves requirement. One could then get the benefit of eliminating the business cycle without the threat of politicians running the printing press unchecked for their own benefit.

    • Gerald

      There would definitely need to be some astute and honest ones at the helm of the money supply. (Good luck with that one right? lol) As a body(population) grows so does the need for the blood(currency) supply or else the body becomes anemic(deflation). Why not, with each birth, inject a specified amount of money into the system?

  • Gerald

    This idea of a system that does not have a central bank create money seems to be presented as something new. Is it really a new concept? How was money created during the times of our history when there were no private central banks?

  • Anthony Rago

    Good article on a subject I have thought about and discussed for some time now. Getting rid of the FED is a great idea and the IRS as well. We can support the nation via higher corporate taxes, higher tarrifs and I am sure there are other great ideas for national income. We can reduce the budget by ending war. Much of the problem is due to very finite fossil fuels and the subsequent making of war in order to control those dwindling reserves. If we went to cold fusion like E-CAT which allow us to provide massive amounts of heat (which can easily be turned into electricity) using hydrogen and nickel. We have 350 million years of world supply of those elements by the way. We all know of other free and/or extreemly inexpenive forms of alternative energy vis a vis Tesla and what he proposed and proved.
    The ubber rich aren’t concerned with hoarding dollars but in having power. Control of the worlds energy, food and water is power and they just use finance to accomplish this. If we control our own money supply – it begins the adventure of taking complete control from the psychopaths which now have it.
    Look, it is simple really – we just can’t afford to continue the way we have been and going where we have been really quickly going – namely WWIII.
    JFK wanted to end war completely – world wide and also took on The FED with executive order 11110. And the coup really ramped up then with bullets put into that great man. Everyone should see “Dark Legacy” and “Ethos” for a change in their world view. Oh, and “The Money Masters” wouldn’t hurt either.

  • Ken

    BIG YES! The American colonies printed and spent into thier economies interest free money called ‘script’ It was so successful that there was no unemployment and business was booming.
    When the Bank of England wanted to stop it thru the Stamp Act and other means the colonies revolted.
    When Ben Franklin was in England touring the country he was asked about the ‘American Poor Houses’ and the unemployed poor. His responce, ‘we have none’.
    It is time for another revolution and kick out the bankers!

  • Ajisdragon

    We need to move beyond the monetary system and create a resource based system that is based on actual resources and actual value. Money is obsolete…and so is the monetary system that supports our “anti” economy. Health Care that’s a growth industry but is really sick care, green washing pollution for profit,pink washing breast cancer for profit. It’s all part of the system of capitalism and money. Time for real change.

    http://www.youtube.com/watch?v=bwJaLFMf7IA
    http://www.thevenusproject.com/

    http://www.youtube.com/watch?v=4Z9WVZddH9w
    http://www.thezeitgeistmovement.com/

  • flek

    After Lincoln issued “Greenbacks”

    “The London Times” printed the following:

    “if that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in th history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe.”

    And so, we allowed the Federal Reserve to be created. What a swindle.
    And which group of people controls the Federal Reserve? Who owns it?
    I find it very sinister that a certain group of people..about .002% of the global population controls so much and impoverish. You know…the ones that create a nation within a nation.
    Maybe dual citizenship…but one loyality and it isn’t to America.

    Debt free currency and no personal income tax. No more foreign aid. Then the nation will prosper again. Otherwise we’ll sink just like the stupid socialist (closet communists) Europeans. And stop stupidly fighting wars that benefit one little country in the middle east.

    • Gerald

      Very interesting quote. Do you have a reference for this?

    • Walter

      Great comment. Agree with everything except the socialist comment. Part of the reason we went from issuing Continentals to installing the Federal Reserve is that the .02% you refer to control our discourse.

      Many if not most of the solutions to our problems are socialist. We would be better advised becoming more socialist and less capitalist, to the extent those words have any meaning.

      Our history has been hidden and our words abused beyond meaning.

      • Flek

        Walter: More socialist? Socialism is institutionalized stealing.
        Eventually you run out of other people’s money, as to what’s happening in Europe.
        Also the government control of production..well that speaks for itself, government run anything is usually a failure.
        Ludwig Von Mises did a great slaying of the socialist dragon. Give him a read at mises.org

        Gerald: The quote is from a 1865 editorial in the London Times.
        Here’s two more quotes…see we’ve known for a long time the Federal Reserve and banking system is the real problem

        The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the Government ever since the days of Andrew Jackson.

        — President Franklin Delano Roosevelt, November 23, 1933, in a letter to Colonel Edward Mandell House

        Some people think the Federal Reserve Banks are U.S. government institutions. They are not . . . they are private credit monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will.

        — Congressman Charles McFadden, Chairman, House Banking and Currency Committee, June 10, 1932

        And now consider the lawsuit article scrubbed from CNBC concerning 43 Trillion!

        http://www.marketwatch.com/story/major-banks-governmental-officials-and-their-comrade-capitalists-targets-of-spire-law-group-llps-racketeering-and-money-laundering-lawsuit-seeking-return-of-43-trillion-to-the-united-states-treasury-2012-10-25

        -flek

  • Bruce Wayne

    We already had that type of system in the past and it did not last because of greed………….remember, the Bible says the problem is greed, not bankers. How about people who are land owners who do nothing but overcharge their tenants for rent. Or slave drivers who pay such low wages that people need to work 20 hour days for weeks on end like those who sent our jobs to china…………..many of those people have apologized for slavery of the africans……..Or politicians today who bring illegal immigrants to work for themselves as domestic slaves and then pay them with taxpayer dollars…….Colin Powell is one of those type today

    • Rick

      Yep, greedy bankers

  • Glench

    Banks should never have been allowed to list their shares on the public market. Directors operating these entities answer to the share holders most of whom probably have zero deposits in the banks they own the shares in, they just demand the highest dividend payments on their investment.

    Back in the 70’s and 80’s banks valued their customers deposits, usually paying about 5 % a year even to customers with only a few hundred bucks in the bank (I was a kid back then)…. Nowadays banks reward their depositors by paying them next to nothing in interest…

    Banking institutions should be delisted from public exchanges… banks must be forced back into operating as a business that makes profits via loans, based on the amount of customers deposits they hold…

    Banks would be forced into paying depositors more interest on their deposits, based solely on the income they receive from lending money out. If a bank makes stupid mistakes the taxpayers should not have to bail them out, they have the right to ‘go under’. On the other hand if a bank makes wise decisions, they’ll be able to attract more customers (depositors) by paying higher interest rates to them.

    • Rick

      Won’t be long & you will have to pay the banks to keep your money there. They already have their lobbyist pushing it.

  • Flek

    Maybe banks should be nothing more than a safe place to store ones wealth.
    And not make much of a profit at all except a monthly fee for said storage.
    Like a storage unit.

    Lending institutions could lend money, again, for a flat fee and no usury interest rates that change like the wind or whim. Credit cards could be linked to lending institutions since it’s an on demand loan. The biggest problem with those things is that people are rather stupid with them. They easily get themselves into financial hell by borrowing way past their incomes.

    There’s also a logical disconnect with credit cards. If you pay back the full amount every month your credit rating suffers….because the bank can’t make much profit.
    Credit cards are profitable because most fools can only make the minimum monthly payment
    creating a black hole from which they may never escape.

    However if something like Bitcoin takes off more than it has, then there will be no need for a middle man, and no transaction fees. And no government could control it since it’s a peer-to-peer transaction. Bitcoin is very enticing if it can be robustly secure from hacks.

  • Anon Econ

    So, it’s not entirely true that inflation taxes each dollar instantly. The person who first introduces the next newly minted dollar (B) actually receives in goods and services in trade the value of the last dollar (A) previously printed. But when that same new dollar (B) is spent by the last consumer in the chain the value of that dollar (B) is worth, again, the value of the last dollar printed (C), which is far less than when dollar (B) was first introduced at which point it was worth the amount of the last dollar printed (A) when dollar (B) was printed.

  • BladeMcCool

    I will use Bitcoin+Gold+Silver instead of shitty central bank money.

    • Micky

      Wow very nice call. Those are the three forms of money that I am recommending at the moment as well. I believe you will protect yourself nicely from inflation.

      http://ericsprott.blogspot.ca/

  • heshey

    John Kennedy tried exactly that and was dead within six months. Google Presidential Directive 11110.

    • http://militantjeffersonian.com Republicae

      Actually, JFK didn’t try the same thing, read what he really did which was to empower the Federal Reserve to issue small denominated bills, taking silver certificates out of circulation. Instead of protecting the last vestiges of sound money, JFK actually promoted just the opposite. The whole myth is promoted by the idea that EO 11110 gave the Treasury the authority to issue bills directly, which by the way it was already doing side-by-side with the Federal Reserve since 1913. If you read JFK’s Economic Report to Congress in 1963 you will see exactly what JFK was doing, and it had absolutely nothing to do with what is commonly propagated by the myth you are speaking about.

  • Dennis Ward

    Hey folks, I hate to dash all your preconceived notions about money; but here goes . . . I am a private researcher in California that has researched tax laws, monetary systems and banking for 20 years. The biggest fraud ever perpetrated in modern history, is the illusion that when you by a home or anything else on “credit”, and sign the alleged “Note” or “application” for a credit card that the bank is actually loaning you money or something of value. The Note/application is the money, the escrow company is in cahoots with the banksters and the Note is indorsed and deposited into a transaction account and then the bank issues an EFT back to the account of the escrow company for the amount of the Note to close the escrow. $100,000 in, a $100,000 out, account balance zero = account closed. The bank loaned nothing, just check the “Moneynet Daily transaction Log report” for the close of escrow and you will find a statement showing the complete transaction including the amount owed as $0.00! They convinced you they were loaning you money when in fact it is all an illusion! It is the biggest fraud in the history of mankind.

    Then they get you to send them money every month for 30 years thinking you are paying off “your loan” when in fact you are paying their tax they owe to the IRS on the transaction and the salary of all of those over paid Executives who are laughing all the way to their private banks in the Caribbean on their private jet or 120 foot yacht. If you would like a much more detailed account backed up with documents, laws and court cases please feel free to contact me. All of this so called debt is literally an illusion! No one in this entire universe has ever loaned you, me or anyone else a dime of anyone’s money or credit from any bank on this planet. EVER!! THEY CAN’T, IT IS AGAINST THE LAW TO DO SO. WE ARE THE CREDIT, WE CREATE THE MONEY AND THE SUBSTANCE USED WITH OUR SIGNATURE TO FUND THIS ENTIRE SO CALLED “CABAL”. WE ARE THE PROBLEM AND THE SOLUTION. WE JUST HAVE TO WAKE UP! THIS MONETARY SYSTEM (FED) MUST BE COMPLETELY ABOLISHED, AND RETURN TO A ASSET BASED MONETARY SYSTEM.

    Dennis Ward

    • Jace

      Mr. Dennis Ward,

      You are right. Please tell me what I can do, I’ll do whatever it takes. How can we get in contact?

      Jace

      • Kheseph

        Educate yourself and
        Take all money out of bank and get all friends and family to do same
        Default on all unsecured debt and get all friends and family to do same
        Buy silver and get all friends and family to do same
        10% do this and it’s over

    • RobertB

      Well, the simplest analysis of this situation is that the person who sold the house (let’s say he owns the house clear) has had the funds from the sale of the house deposited to his account by the bank. You are the mortgagor so you pay back the bank, plus interest of course, for the use of the money. The person who sold the house spends the money in his account, or maybe just collects interest. The funds are his to use as he pleases.
      Eliminate the bank, and if you can pay ‘cash’, your payment is just deposited to the home owner’s account.
      It’s all about the debit and credit thing.

    • Lorraine

      Dennis thanks for this information I would like to have a more detailed account with documents, laws and court cases. I will probably be fighting my mortgage company on this same issue in the near future

  • Mad Max

    This is a good idea but It doesn’t go far enough and it certainly won’t fix all our other problems. We have to think much bigger or we’ve had it. At best this is just a band-aid.

    FIGHT THE CAUSE – NOT THE SYMPTOM

    OsiXs (Revolution 2.0)

  • therooster of Christ

    Real-time (floating) bullion based payment systems already exist as private and competitive payment processors that send your fully backed digital title (the currency backed by weight) from A to B as simply and as easily as PayPal send dollars from A to B. We already have a grass roots and decentralized market solution to debt currency. What we don’t have is an abundance of marketing and we cannot rely on the financial apex of power to endorse that particular cause. The support for bullion based payment system must be grass roots and bottom-up. We must be as wise as serpants.

  • http://www.westcoastladybugs.com RUSS SMITH

    Hi!, Patrons Of The Economic Collapse:

    As the human race moves from one conceptionalization of the Universe to another, through pain, wars, chaos & finally sacrifice, we are learning something whether we like to look @ it that way or not & that is that we were created for heaven on Earth. Nothing else was ever meant to suffice and satisfy all OUR human conditions but we’ll get there sooner or later regardless. Are the Bankers’ economic policies regarding fractional reserve banking facilitating OUR human needs and helping US live heaven right here on Earth….NO!! Then to live heaven here on Earth that system will fade away sooner or later will it not?
    Jesus, while Rome was filling the hearts/minds of men & women in every kingdom everywhere with fears which was their daily experiences, came preaching “fear not little flock; for it is your Father’s good pleasure to give you His kingdom.” Then, once He had eliminated fear, He was found preching: “Ask and you shall receive my JOY; that your JOY may be full.” He preached that, once you eliminate your fears from your nervous system/consciousness and replace your nervous system with His kind of JOY, you are entering into His and OUR Father’s kingdom or the abode where God wants US to live OUR lives and so the common people gladly accepted Him; while He remained a threat to those who rulled over the socialized consciousness of the masses. The religious leaders didn’t like Him overulling their postion not to heal on the Sabbath Day etc. but He did it anyway. It sure ruined His reputation with them didn’t it and so they sought to kill Him but it sure kept Him at ONE with the wishes of His/OUR Heavenly Father. The Banksters have no more of a chance to keep US locked out from OUR heavenly Father’s wishes for US to live Heaven on Earth regards OUR finances than did those religious leaders who tried to keep OUR Lord & Savior from healing on their Sabbath Day or the Romans who instituted daily fear among the masses over whom they rulled. Nobody and I mean nobody can fool OUR nervous systems can they, because OUR nervous systems register OUR experiences moment by moment don’t they? If we brig JOY into people’s lives we can be sure we are doing the will of OUR heavenly Father; but not when we deliver fear into their lives right? We are to be the light of this world meaning JOY and NEVER bring hell on earth to others as measured by fear. When Bankers and/or Politicians can arrange otherwise, then they will have taken over the Universe which is highly doubtful isn’t it? He tried to deliver JOY across the board to all educational classes, ages, colors and/or beliefs. JOY, the common denominator registering as heaven on EARTH for all peoples of all times forver here on EARTH as it is in HEAVEN. OUR human nervous systems will NEVER stop demanding the reliefs that only JOY can administer!! Go for it America!! Surely, excessive debts, unemployment, underemployment, war and other myraids of chaos are not designed to bring US JOY are they?

    RUSS SMITH, CALIF. (1 BROKE State)
    resmith@wcisp.com

  • Bill

    “The Freedom News Hour” with Walt Theissen on the Progressive Radio network explores this topic in detail.

    http://prn.fm/2012/10/25/freedom-news-hour-102512/#axzz2AOzvdWZ9

  • Steven

    Gold and Silver coin and bullion is money.
    Bitcoin, electronic and paper currencies are not money and should be destroyed and expunged for the moral and material good of humanity.

  • RobertB

    Ambrose Evans-Pritchard is not the best person to quote on matters like this – all he ever wants to do is print money no matter what happens that may upset the status quo, and anyone, any government, who does not wish to prop up the currently unsustainable situation is cruel and selfish because they do not want to turn their citizens into slaves to serve some foreign nations that spend to much and work too little. If we look to the principle of self-interest for guidance it is clear that he, and people like him, are only interested in protecting their own bank account and pension at the expense of the tax-paying public by bailing out banks and ultimately, countries, so they can continue their vote-buying expenditures ad infinitum.
    As to the solution of having elected politicians decide how much money to print and decide how much it’s worth (because someone has to decide how much it’s worth), this is possibly the most ludicrous idea one could conceive. The ideas presented here are consistently centralist, surely the best recipe for failure, and the only solution for the predictable result is invariably tyranny, in the form of single-party rule, price and wage controls, currency controls and all the things that we usually see in a closed economy. Now imagine a whole world of closed economies.
    The problem is that most people have no idea what money is or what gives it value. Local banks used to create their own money, and the success or failure of the local bank determined what your money was worth: failures took place depending on the integrity of the local bank (and a lack of integrity was usually exposed by the (un)willingness of people to accept their money in exchange) but the whole system was not jeopardized by the failure of local banks. Only the creation of a central bank and political interference could ensure the collapse of a whole system of banking. The only possible purpose of a central bank could be for the clearance of cheques – but then, private firms could do that just as well.
    So: elimination of central banks, taxes at 10% of gross income (just move the decimal place one to the left, no calculator and no administration or tax codes required), no deductions for anything, businesses same thing – 10% of net profit, and the government spends what it gets, no borrowing. If there’s not enough tax revenue, the government shrinks accordingly and the displaced workers become productive workers. The tabula rasa for such a system to arise will be enabled by the final collapse of the whole rotten mess that has been created by central banking in the last hundred years, for nothing can save what has been created. From chaos comes order, but only through the actions of individuals.

  • St Udio

    all the federal & state lands and resources are the underlying value for a gov’t currency…
    normal inflation would address the issue of creating more currency…

    the unexpected need for more currency by the Federal gov’t would require taking either some public land or resource and converting it into private taxable asset… this would be done by a gov’t facilitator not a debt driven ‘bank’

    thus the current system of money creation and financial loop-de-loops would be ceased

    • RobertB

      This (confiscation of land and improvements) was tried during the French Revolution and resulted in hyperinflation, caused by the issue of ever increasing numbers of assignats, the final result being a collapse of the value of the assignat to zero.
      Also, there is no such thing as ‘normal inflation’, actually there is no such thing as inflation without fiat currency. There may be price fluctuations, but this is not inflation. Occasional brief anomalous price distortions have occurred in history whereby too much gold due to a sudden influx has caused general price increases, but this is equally the result of an insufficient supply of goods to match the increased availability of gold. It is soon remedied by an increased supply of goods, eagerly supplied by those wishing to obtain gold.

  • Gary Lee

    Why involve a government at all? People should work, trade, and create what ever they can find a market for and accept whatever they want to as fair compensation without a government taking a cut. Like Larken Rose writes in his book “The Most Dangerous Superstition” the most dangerous superstition is that government will do anyone any good other than their own drive for power, control and enslavement of the population.

  • http://militantjeffersonian.com Republicae

    Today, this country is currently subjected to what can be considered a dual-tiered fiat monetary system, as opposed to a single-tier system. Of course, the purpose of a dual-tier system, as initiated by the Lincoln Administration, was to create a market for government bonds by organizing debt into a currency system. A dual-tier system, while definitely unstable, is however, far more stable than a single-tier system of direct issue by either a government or banking authority. While there are many Quasi-Greenbackers who promote the single-tier system today, the fact of the matter is that if such a system were to be implemented it would begin a rapid decent into economic chaos. First, there would be nothing to support the system, such as the current debt market, while that sounds like a good thing and it is in many ways, it is not a good thing when you are dealing with a fiat currency that is based upon the Full Faith and Credit of a government which is rapidly loosing all credibility and the first thing that all fiat currencies need to be successful is faith in the future value of such currency.

    If we are suggesting that the government is any better equipped to issue and manage such a currency than their current Banking partners then we are surely dreaming. The problems we are now facing is not due to banks, it is due to a devious partnership between government and banking that has created a government organized, government sponsored patronage system where the hideous ideology of Mercantilism can and does flourish. The government should not be in the money issuing business anymore than the banks should be in it, the role of government within the Constitutionally limited authority is very specific and provides us with the proper workable solution if we would only take heed. As long as government can issue money, whether directly or through its patronage system of central banking then money is no longer the titled property of the holder, but of the government itself.

    At one time, your money was your property, it was, by reason of your possession of it, real titled property. Today, that is not the case, for instead of money we have government authorized, bank issued money substitutes which are the property of the government and are only payable in the same government authorized paper money substitutes…in other words, an official notification of a government debt obligation but nothing else. Thus, no matter if the central bank issues the paper substitute or the government issue it directly, the results will be the same, it will be nothing more than a money substitute easily controlled, managed and maintained by official authority…it will still be nothing more than an official notification of a debt obligation. By the way, it would also do nothing to solve the debt crisis, imagine putting both the power to spend and to issue the money in the hands of the government. That is one reason the government, and bankers for that matter, hated gold and silver money, they were so restricted by that money, for it required budgetary control and responsibility.

    • R. T.

      Right on! We cannot return to any kind of fiat money system. It has to be backed by hard currencies or things of value to avoid easy manipulation.

  • mogar

    I highly doubt that we would be fixing anything by giving the government the power to create money out of thin air. I don’t see how that is any improvement over the current system. We need to use something that the government cannot conjure out of thin air. Gold and silver seem like the rational answer to an asset based monetary system.
    It is not who prints the fiat currency that is the problem it is the fiat currency itself that is the problem. This is nothing but a fiat currency reset in a bid to buy another 40 years.

  • Bob Marshall

    UN International Momentary Fund? Is that because U.S. taxpayers are responsible for 305 of what is placed in this fund and without the U.S. participation, the U.N. would not existent.

  • http://ToddBMarshall.blog.com Todd B. Marshall

    My comments to this article can be found at:

    http://toddbmarshall.blog.com/2012/10/27/what-if-we-adopted-a-system-where-the-banks-did-not-create-our-money/

    Todd B. Marshall
    Plantersville, TX
    ToddBMarshall.blog.com

  • http://www.stmartinsystems.com Gary Kuhn

    Public money was used successfully at least 20 times in the US until 1862. Abe Lincoln issued 450M$ of public money to fund the Civil War. He invented “greenbacks”. This is not new. It’s an old fight between private money and public money. Every time public money was used the bankers went berserk. They bribed legislators to restrict its use, they demonitized all monies they did not control, like silver. They single-handedly shrank the money supply to force borrowers into giving up liened assets. Over and over. 225 years we’ve put up with this. There are no USD’s. There are only FRNs (federal reserve notes). Listen to Bill Still or read Ellen Brown. This is *not* new. And it’s a very good idea. Don’t be fooled by arguments about specie currency. Specie currency can never be expanded at the rate you want to grow your economy. In other words, specie currency is an invitation to the fraud
    called “fractional reserve” – since they can’t keep up with the growth of the economy, they pay for legislation which allows them to grant you credit and increase the money supply with new account balances that are *not* backed by specie. You then end up forced to pay “principal” which never existed, and “interest” on principal which never existed. Some public moneies have been mis-managed (Weimer) but many have not. Many N American colonies successfully managed public monies, like Franklin’s colonial script. It was the prohibition of public money which was a major cause of the revolution in the colonies. Again – this is a good idea, help us get it passed and make it work!

  • KD

    YOu are fundamentally wrong. Fiat currency is NO DIFFERENT FROM THE ARBITRARY VALUE “assumed” to anything that would back money.

    Fiat money IS the solution, because money is valueless, and used only to separate.

    the part you are having trouble wrapping your brain around is that it makes equality possible.

  • Paris

    What if we the people set up a debit card system backed by precious metals accounts?
    What if your dollars could be instantly converted to silver/gold and viceversa?
    The technology exists. Does the will to circumvent the banksters exist?

  • http://www.PublicCentralBank.com Kent Welton

    Hi,
    Thank you for this very important paper. Coming from the IMF, it illustrates that we are on the verge of ridding this world of the scourge of private central banking and debt-money slavery.

    Kent Welton,
    PublicCentralBank.com

  • Gord

    All this talk is great to think about , but how will these “new” ideas be implemented and transitioned too without all ending up as “alive ” as JFK to see it to fruition. Let’s face it there is no avoiding the train over the cliff syndrome. Most will die and the few left will have to first survive, bury the dead and finally erect a memorial and update the history books, all the while starting a new system that we live within our means.

  • bert

    What can you do? Join the Thrive Movement for soulutions.

  • roneel

    Hmmm… then the question comes… who’s gonna print it then? government? don’t you think the central bank is a part of the government! You better search for the problem lies at the bottom… all the best.

  • Markus Szunners

    If United States Notes were in circulation, can people still borrow money? Can Congress charge interest?

Ready Made Resources
Shocking Forecast
Thrive Life
FEMA Hates This

Austin Coins
High Blood Pressure?
FINCA BAYANO
Survive After Collapse

Silver.com

Camping Survival
GunMagWarehouse.com
SFC_The-Video-They-Tried-To-Ban_125
Print Friendly and PDF
Facebook Twitter More...