Money Reform Think Tank: Join in the Debate!

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” --Buckminster Fuller

Most legislation is formed in advance by “think tanks” funded by special interests, but nobody funds experts to think about how to reform the money system itself.   Now, however, we have the Internet, where we can banter ideas about in “virtual” think tanks without funding.  Getting anyone to pay attention, of course, is another matter; but before we even get to that stage, we need to agree on a plan.  I’ve gotten a great deal of feedback on this subject by email, so am opening it up to blog comments.  What should our money system look like and how should it work? Give your feedback here.  Comments on the book “Web of Debt” and articles are also welcome!

Note: This page has gotten a bit long and unwieldy.  Please keep entries short and to the point!  Better still, please continue the debates using our new forum.

1,978 Responses

  1. I agree with what the “Man from Down-Under” writes about the “Web of Debt” He is one of those people with an instinctive capacity for “judgement”. Unfortunately a similar capacity for “judgement” does not appear to move our “leaders” in the US or around the world. See my book entitled “The Demon Money” available in Amazon Kindle..

    • Your book is excellent. Thanks, James!

      • Yes. Please see

        • Thanks. I checked it out. If “Does a true medium of exchange value a common asset? Yes” means that money needs to be backed by a commodity, I disagree. I agree with Ellen Brown that money is credit and can be based solely on government authority. A nation can help itself by issuing tickets (tokens) for people to use as a medium of exchange.

    • As long as bankers control the creation of “money”, as a debt to the society, there is only one way we can go.
      The fundamental principles of DEBIT banking are the cause of all the economic grief, as we can never repay a debt for which there is actually no money with which to pay it.
      I read many comments here about what people suggest could be done to rectify the horrific catastrophe now galloping toward us, but, sadly, there are few who have recognized that it is the actual economic system which is wrong.
      We have money created by profit making organizations with share holders, therefore those immoral groups, the bankers, are intent solely on how much they can get their grubby little hands on at the average citizens cost.
      The debit banking system is an ultimate expression of corrupt, immoral, criminal behaviour, as the recent bank bail outs clearly show, and yet the governments, (supposedly there to protect the people,) and the politicians crawl, like mangy dogs, pawning at the feet of these thieves who have illegally claimed ownership of OUR money. But, as this is now the most apathetic age ever to debase our planet, who cares. She’ll be right mate, someone else will fix it.
      It is only the citizens, you and I, who can demand change.
      Will we? Bet no one does, that takes integrity and balls, something sadly lacking amongst our political leaders and social hierarchies.

      • Money as we know it (as a physical object) has been having these consequences for thousands of years. (Read any history of any nation for any time period.) For a different perspective and a unique solution see .

      • Great !!! Finally some one who understands what the problem is. Unfortunately about 75% or more of the puplulation in the world have no clue what so ever about whats going on in the financial world. Todays financial structural problems around in the world and the adherent unemployment of more than 60 million people USA and Europe) are caused by the International bankers, and the FED included. Close down the FED and get the Federal Governments to control all the money and get the money backed by tangeble things, not by the blue sky. It is a matter of quick action now before the world will run into severe problems, usually called “war”.

        • Tying money to “tangible” things is a step back into the 19th (or earlier) Century. Money has evolved from measure of a scarce commodity to an information system, which reflects 21st Century reality. There is no longer scarcity when it comes to providing physical and security needs.Saying there is not enough money is like saying there aren’t enough zeros to put into a computer.

    • Where we went wrong and how to fix it.
      FREE, yes no money required. Download this book :
      “The Role of Money” by Frederick Soddy (written in 1926, 1931)

      Then read a fools interpretation:

      But always, ” ***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC), Hindu Prince, founder of Buddhism.

  2. Absent in the comments is that money has become a global phenomenon. Full service commercial banks operate globally. They do not just enable foreign trade. Their counterparty transactions locked up the system when confidence in ultimate repayment failed, as in 2008. That could easily happen again; might be very likely. Breaking up banks might not stop this. Smaller institutions caught in such a network would lock up the same way.

    Good question is the extent to which the Fed can really control the money supply in a global system. Global banks can draw on the monetary systems of multiple central banks. They may even be able to “manufacture new money” through global trading mechanisms.

    Most of our discussions, and economic theories, presume central banks controlling money supply, interest rates, and bank reserves for separate closed system economies, but if that is less and less true, then what?

    Doc Hall
    Hondo, Texas

  3. “Money Reform Think Tank: Join in the Debate!

    WEB OF DEBT BLOG” really enables me contemplate a somewhat extra.
    I personally admired each and every individual portion of this post.
    Thanks for your time -Lynwood

  4. I think rehashing old ideas is a good thing, but I don’t think we are going back far enough in history.

    Andrew Jackson became president in 1828. He was a general and he led the Battle of New Orleans during the war of 1812. Jackson was determined to end the power of the central bankers over the United States.

    In 1832, Andrew Jackson’s re-election slogan was “JACKSON and NO BANK!” An early renewal bill for the Bank was passed early. Jackson vetoed the bill and made a speech concerning this event. In January 1835, Jackson paid off the entire national debt. This is the only time in U.S. history that this has been accomplished. He was the only president to do this.

    The USA enters the period known and the “Free Banking Era”. The only banks in the U.S. were those chartered by the states. The Federal Government neither chartered banks nor regulated the existing state banks. The Free Banking Era was during the years of 1837 to 1862. The Supreme Court ruled Briscoe vs. Bank of Kentucky that state banks and the notes they issued were constitutional.

    President Abraham Lincoln needed money for the war and went with his Secretary of the Treasury Solomon P. Chase, to get loans. The banks in New York offered the Union loans with a 24 to 36% interest. Lincoln refused. An old friend of Lincoln’s, Colonel Dick Taylor of Chicago was put in charge of solving the problem of how to finance the war. His solution is recorded as this.

    “Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes… and pay your soldiers with them and go ahead and win your war with them also.”

    So Lincoln pushed through the Legal Tender Act of 1862. Under that act, the U.S. government printed debt free money. This debt-free money was known as “Greenbacks” because of the green ink on the back that was used. The US printed $450 Million dollars in interest-free “Green-backs” from the period of 1862 to 1864.

    The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks for banks, and created the United States National Banking System. They encouraged development of a national currency backed by bank holdings of U.S. Treasury securities and established the Office of the Comptroller of the Currency as part of the United States Department of the Treasury and authorized the Comptroller to examine and regulate nationally chartered banks. The legacy of the Act is its impact on the national banking system as it stands today and its support of a uniform U.S. banking policy.

    The Federal Reserve has taken over in 1913. and now the nations money is controlled by private bankers. In the last 100 years gold has played a different role in regards to it’s relation to the Federal Reserves monetary policy.

    According to history the best solution in fixing the nations monetary policy seems to be taking the Federal Reserve away and returning the control of money to the government. This needs to be done on a global level before everyone becomes enslaved by these private central banks.

    • Nicely stated, Marcus. You summed it up well. Sovereign governments of sovereign people should not have to borrow their money at interest from private bankers. This has been the case in the USA since 1913, 100 years ago. But private bankers took over the sovereign money in Europe 200 years ago, after Wellington defeated Napoleon at Waterloo. We are well along the road to economic slavery to private and corporate interests now, and I see no end in sight. History buffs might want to read “Tragedy and Hope”, a history of the modern times by Professor Carroll Quigley. It’s on Amazon, or “Google” it.

      • I don’t doubt that what you write about Europe is true Jere, but at least some European governments apparently regained the ability to borrow from their own central banks, only to be forced to borrow from private banks again in the early 70s. I never tire of this little French video about it, it’s so well done:

    • The Fed did a big good turn when it was first formed in 1913 by establishing and printing “notes” used by banks to show how much money, ie gold, was due the bearer of the note. This was a huge improvement over the bank specific notes that circulated prior to 1913. However, these notes printed by the Treasurer were just that, notes or paper. Then came FDR! He declared the notes were no longer backed by gold, thereby creating our present fiat money system where now the Treasure prints real money and essentially gives it to the private banks. The Fed does pay for the printing cost, currently 9.7 cents for a $100 bill. And yes, our monetary system needs to be changed. The Fed will be 100 years old this year.

      • Charles, absolutely wrong that the Feds did a good turn when they were first formed. They were the cause of the great depression and the manipulation that caused most Americans to lose everything; when there was not reason for the depression to last for any length at all, or even occur. It was all a manipulation. Don’t give the Feds credit for anything. They are all crooks that are only looking out for themselves. The continuation of the fraud needs to be removed from any connection to our money supply. We should not be on a central banking system at all. Look at the countries like Iceland and Hungary. When you remove them from power (CB); and charge those who have created crimes against your people; things change for the better. Their economies are growing and creating true wealth for their countries.

    • Excellent Historical Breakdown. I think the founding forefathers would be horrid to see what came to be in today’s Wall Street runned globalized bank owned economy. The idea of governments controlling its own money is the essence of American sovereignty. We’ve lost it to a globalized marketplace. The creation of state banks as in the bank of North Dakota for all 50 states would be a great first step. Creating separated federal greenback currencies for all of those 50 states would be another great step…

      Legally, this all very doable is it not? Creating a state bank is nothing more than creating a charter correct? As long as you can get the backing of the local governments, there is no reason to think that there would not be a way to get the ball rolling… Comments on this idea?

      So how far removed would it be to create a new currency online instead of in paper form for a state bank… Banking right now is basically managing accounts on computers is it not? What is the next step?

      • Sort of Nationalising the money supply and taking it away from Private banks, A good thing in my view, it might get things done and money will then be used to do a job rather than an being end in itself. There would have to be proper oversight but it could be done. Any takers?

  5. Everybody who posted on this article has made excellent and spot on observations. I would simply add that our world could be a virtual paradise if we did have things like nationalized banks, and something that a lot of people aren’t aware of, and that is free energy. Back at the turn of the century Nikolas Tesla invented and constructed Wardenclyffe Tower in Shoreham, Long Island. It was to function as a telecommunications facility and broadcast electrical power. However J.P. Morgan, who financed the project pulled the funding when he and others discovered that this would kill the goose that laid the golden eggs, and probably ruin their plans for control. I suppose you can imagine a world with unlimited energy. No more auto gas bill. No more electric bill. The cost of goods and service would be a lot cheaper since there would be no energy cost. We could even desalinate water at a very high rate and solve our water problems around the world. The only thing left to do would be to equitably share our natural resources. However; here’s the rub. I think while everybody makes a great point, to speak about changing the system is really beating a dead horse. On our current perceived course there is no way anybody is going to change things. The problem is just too intrenched. There is no way, even if through revolution ,would we be able to rid ourselves of the problem of the “shadow elite”. I’m afraid our fate is in the hands of the Almighty if you are a believer, if not, then I suppose things like what is written on the Georgia Guide Stones is what you have to look forward to, and a complete totalitarian society, the likes of which we have never seen before.

  6. I actually found this specific blog , “Money Reform Think
    Tank: Join in the Debate! | WEB OF DEBT BLOG” lehelmakara.
    com , really entertaining and the post was indeed a very good read.
    Thanks for the post,Darren

  7. Reading your book now and it’s amazing but I’ve been following some links that are amazing. We know John Wilkes Booth assassinated Lincoln and he was conferacy sympathizer and the Confederacy was supported by the Bank of England.
    We know Richard Lawrence tried to assassinate Andrew Jackson. Now Lawrence was crazy but his main objection to Jackson was about his not chartering the national bank. Jackson also suspected a former friend and supporter, Senator George Poindexter of Mississippi, who had used Lawrence to do some house painting a few months earlier. In the great national controversy of that period, the rechartering of the national bank, Poindexter supported the rechartering of the bank, a position that again placed him in opposition to President Jackson.
    Lawrence’s interrogation revealed that he got his ideas from attending congressional debates, newspapers and talk among the people. Clay spoke before packed galleries in the Senate, lamenting Jackson’s imperial ways, “…collapse will soon come on and we shall die- ignobly die- base, mean and abject slaves, the scorn and contempt of mankind…” Equally dire, House Democrat Samuel Beardsley said, “…perish credit, perish commerce…give us a broken, a deranged, and a worthless currency, rather than the ignoble and corrupting tyranny of an irresponsible corporation.”

    Those banks just keep popping up.

  8. Not only most people but unfortunately the very politicians who pretend to understand it as well. Plus the money people who understand only their part of it in order to exercise power without responsibility.

    • I was looking for your comment money is not call medium ifvexchangevfor no reason to put on my facebook page

  9. An Alternative to Capitalism (since we cannot legislate morality)

    Several decades ago, Margaret Thatcher claimed: “There is no alternative”. She was referring to capitalism. Today, this negative attitude still persists.

    I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to my essay titled: “Home of the Brave?” which was published by the Athenaeum Library of Philosophy:

    John Steinsvold

    “Insanity is doing the same thing over and over and expecting a different result.”
    ~ Albert Einstein

    • Sounds okay, but “Insanity is doing the same thing over and over and expecting a different result” often doesn’t apply. I’ve tried it– sometimes you just keep doing the same thing and you do get different results. “If you throw enough spaghetti against the wall some of it is bound to stick,” and “never give up!” are also good aphorisms.

  10. Before we propose an alternative to the current financial system we need to define what we mean by the word “money”. Any takers? I might start the ball rolling by comparing “money” to “theatre tickets”. If you have 500 seats you need to have 500 tickets – the number of tickets needs to based on the number of seats – no intrinsic value but important in their representation – too few will send the theatre broke – too many they’ll be fighting over seats!

    • you might like this. and more generally, and (here you can request a free pdf copy by emailing

      More generally, you can review the whole web:

      Money is only an annotation of value and its current definition is nonsensical.

      • Much appreciated, Marc – thank you for your reply. I like the way you have put it all together in a tutorial/presentation form – currently going through it. I have recently been thinking that there desperately needs to be education on the money question so it is very timely that you have sent me this info. Education needs to be targeted at all age groups – from kindie to adult – any educators out there? – the objective being to build a strong base over time from which support can be drawn should a strong leader emerge. Perhaps (with respect to the leaders of the past) this why others have failed.

        • You are welcome Mal, please pass the link along the real root of the problem is that everyone is possessed by a false paradigm of money based on a definition of money that confuses logical functions with physical properties. I believe that both bankers and the public at large are victims of this false paradigm both trying to make it in an impossible game that can only fail because it is based on impossible beliefs. No matter how much you try to optimise management of the flying-pig farm, pig flight will never improve ;-)

    • The “theater ticket” analogy seems okay for a start in that it illustrates the key point that not making enough of it is silly as it is at basis fiat. A main weakness I see off hand is that such theater tickets are not fungible. The fed and banks create credit money with which they can buy anything and loan at interest. Such power does not belong in private hands. I’m not much of a fan of the “define this term” approach. Better, I think, is to go with Wittgenstein and look at how the word is used in the real world. Ellen Brown’s new book The Public Bank Solution shows that much of the world is already making use of a better alternative, leaving arguments about theory largely moot.

      • Definition is everything without clear definitions there can be no contract of value. And theater tickets are fungible in that one is equivalent to another of the same quality and type. Also, the relevance of the discussion on whether banking should be private or public is moot until you have decided what money is and hence what functions so called “banking” are to perform. There is no doubt that representing value in the market is a fundamental right. The public function should be limited to that of defining and enforcing open standards in value representation but not as a control of access and expression of value, that is up to the people not any private or public “authority”.

        • disagree

      • Thank you for your reply, ErnieM. I think it is a valid point that you made to consider how the word “money” is used in the world at large . It could be of value in identifying peoples’ assumptions as to the nature of money and provide insight as to where education needs to be targeted…

        • We must be careful not to become too philosophical about money. It’s basis is in fact very simple if Occam’s Razor is wielded. Money is not called a medium of exchange for no reason. It is in fact a measure of the amount of work we all do for each other. But there is nothing that humanity does better than to complicate things beyond sense and reason- then refuse to learn by mistakes but to carry on complicating the issue by having the system run by “professionals” who base their living on this confused mess.
          Any change will have to deal with these “professionals” who ,of course have the ear of the politicians and the media. We need to bypass these people, come up with a viable alternative and splash it over the internet and make everyone think.

          • Yes, I agree – use the KISS principle in all things. People do sometimes tend to complicate things unnecessarily – when I worked in the professional world I found this happened all the time for two reasons: 1) to provide a smoke-screen to protect someone’s turf 2) because the person didn’t really know enough about the subject. I always found the ones that REALLY knew their stuff to be humble, open and able to give an explanation that even I could understand!

            And yes, professionals (and politicians and the business world) will have to be dealt with but hopefully if we approach this bottom up they will be no match for the tsunami heading their way!

            • > Money is not called a medium of exchange for no reason. It is in fact a measure of the amount of work we all do for each other >

              Wish This definition preceded every use of the word m o n e y

  11. Money is not a thing of nature but of law. Money is what government says it is. Legal tender is what the law says must be accepted as payment of both public and private debt. Since the U.S. Supreme Court ruled in the Affordable Health Care law suit affirming that Congress only has the power to regulate commerce but it does not have the power to compel it, only public, or government issued currency can be legal tender.

    The Federal Reserve Law specifies the order of payment of revenue as follows: first, operating expenses of the system; second, a 6% return on stock; and third, the U.S. Treasury. Since no government agency has stock holders, the Federal Reserve System is a privately owned, for-profit syndicate. So, its currency cannot be legal tender under the U.S. Constitution.

  12. I want to post a direct link to this quote received in email from webofdebt this am. I can’t find it when I click the blog.

    Nulego: “Money is not called a medium of exchange for no reason. It is in fact a measure of the amount of work we all do for each other”

    • Hello peggydobbins
      My e mail address is

  13. Money can be a unit of measure but currently is not because it is confused with being a commodity of variable value. Money is not a physical medium nor is it a physical store of value, those designations are questionable allegories derived solely from the presumption that money is an effective measure. But if money were a measure those allegories would cease to hold and money would cease being our divine carrot.

    We tolerate the current definition of money via a stack of false assumptions that we never question because we are too busy dealing with the headaches caused by this insane definition. We can and must begin our critique of money from general logical and mathematical axioms, because if we start by assuming the current ones from economics and finance, we will continue to be led down the garden path.

    If the truth be known, conventional economic and finance theory is of zero value, other than serving as PSYOP it is a mesh of absurd circular logic that only appears reasonable precisely because we unwittingly assume its founding axioms unquestionably. But if you look at this presentation here:, it should become evident how the current operative definition of money, can not serve as a rational foundation for anything.

    There in lies the solution to the current crisis, if money is not a rational thing then no contract in good consciousness can be executed on its basis. We must stop the killer machine and found our future on a rational definition of money and its function where money serves a needed function see this:

  14. When the Fed first went into business following enactment of the law in 1913, the government provided a very useful service by printing notes for the banks providing banknote uniformity across the land. But these notes were just paper showing how much money the bank owed the bearer. That was a great improvement from before the Fed when each bank printed their own notes. But then, in the early 1930s, in the early years of the great depression, a strange thing happened and no one noticed. FDR did away with the gold backing but the government still printed the notes which were now fiat money, and gave them to banks as they do right up to this day. Many complained about loss of gold backing but no one seemed to acknowledge or complain about the government printing and giving money to the banks, the flip side of the loss of the gold backing issue. And the government does not really give it to the banks. The banks pay for the cost of printing, currently 9.7 cents for a 100 dollar bill.

  15. I am a huge fan of Ellen’s and think her book should be required reading for all. How does everyone feel about what to do concerning the forces that will argue against it? Has Ellen or the publishers been threatened or harassed in any way?

  16. The core incentive boosting credit supply without an incentive for avoiding credit risk was unvaile precisely. But the alternative has been still an ordinary banking scheme. All the refinancing transactions undelying REPO and derivates and all the “too big to fail” financial corporations has been lurking predators for public banking institutions and their cients’ money. A “still money” concept as a unique and all-national banking system is much better covering all the desired effects without risky coexistence with money-suckers and not harming anyone either involved or not.

  17. Thanks Victor.
    It is staggering, the economic ignorance which pervades our political systems, and the unwillingness of media to present alternate ideas to rectify social problems.
    We are witnessing the introduction of a global SOCIALIST state, and the United Soviet State of America is the leader in economic dictatorship.
    The Commonwealth bank, in Australia, just announced a profit of 7,000, million dollars, $7,000,000,000,000 profit for the last year, which is a pretty good margin, and that was at we, the citizen’s expense, none other.
    Why then do we not nationalize the banks and direct those phenomenal profits back into the community they stole it from?
    It is definitely a more profitable business than mining, illegal drug sales, (who launder their prophets through banks,) I.T., and surely American and European banks have similar profit margins.
    The only resolution is to nationalize banks, support Ellen’s concept of local, not for profit banks, owned by the community, and giving the community access to THEIR money at no cost through interest.
    The Commonwealth bank, of Australia, was originally established as the “PEOPLE’S BANK”, and was not allowed, according to their constitution, to charge more than 1 and one half percent interest, which was purely to cover costs.
    Then we will witness an incredible growth in industry, though it essential we all move away from manufacturing industries toward food and continuously renewable commodity industries, and let every citizen benefit from a truly constructive, progressive financial system.

  18. Victor Chen, when you say “get rid of the Fed”, I wonder to whom your imperative is directed. Certainly I can’t do it, so it must not be me. That is, the problem with all such engines (as they said a few hundred years ago) as yours is that, while the recommendation is eminently sensible, it is so far removed from reality – which is that the federal government has no desire to implement it, nor does anyone else in the financial elite – that you’re absolutely lacking a mechanism with which to realize your plan, or a federal government which could be relied on to put it into effect toward the ends you seek. What are you going to do about that?

  19. Consider the Global Resource Bank model.

  20. Hi all, every living organism grows to the point where it cannot sustain itself any longer, it just withers and dies & the next generation is born. Our managerial system is way too large to be of any use to the 98% of good honest people of this amazing planet. We all know that the only way is to be brave, chuck out the mobile, google, and do not patronise the system that serves only to enslave us. The only way forward is small and true, serve each other in smaller communities, may our problems be solved by common sensed human beings living together in smaller communities. Our elderly & sick can be taken care of, while the fit help each other to have stress free lives full of worth. We can all at least think of designing our own lives, we don,t have a contract to be tied to the hidden elite ones, do we ? Nothing will happen on the grand scale without the input from these hidden agendas. Small communities will prosper, ( not financially ) over time, spiritually humans will grow, Get out the big cities ! these are breeding grounds and will eventually be our prisons, block the roads, the rails, add a few drones and there we have it. We can all think smaller if we really try, eventually a lot of small groups free from jealous thought, will be impossible to control. Kind regards Dave Bates

  21. I note that some states are seriously considering state banks. I also note that the State of New York wants to look like they are considering it, while holding it in a committee for two years!
    Well, New York probably doesn’t know much about banking….. Yeah, that must be it

  22. DG, I agree with 99.9% of what you say. We are on the same page.

  23. Capital punishment! For those deliberately violateting the public good. Reguardless of social stature.

  24. In reference to Toto from “The Wizard of Oz”: There is a Latin phrase “non bene pro toto libertas venditur auro” which translates to English as “liberty is not well sold for all the gold.”

    • Today on NPR there was a piece casting doubt on the idea that the Wizard of Oz is a monetary allegory ( It seemed like a poorly done hit piece to me, with inaccuracies such as that the populists wanted silver and gold (precious metals) so that they could be prosperous, suggesting at the end that it is really about homosexuality.

  25. After I initially left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and from now on every time a comment is added I recieve 4 emails with the same comment. Perhaps there is an easy method you are able to remove me from that service? Appreciate it!

  26. We are Followers of the Devil Worshipers that we put in office. The easiest way to create jobs and solve most of the problems of the world, is to end the Federal Reserve and confiscate all the property and money the owners have stolen in the past one hundred years, which will equal, at lease 100 Trillion Dollars. Than we can fix all the bridges, roads, clean water, FDA, science, make Banks State Owed, and many more things. A person robs a few slices of Bread to feed his family and goes to jail. A family and their friends that have stolen our Justice, Homes, Education, Health, Money, Future, and kills people, and we allow it to happen. We Americans like sheep just follow, allowing our Politicians to be controlled by these Thieves. Jesus Christ tried to put an end to them 2000 years ago when he Turned Over the Tables of the Money Exchangers, and we say we are followers of Christ when we are not. We are Followers of the Devil Worshipers that we put in office. I lived in California many years ago as a young man and thought, people in California were so much more knowledgeable and advanced than people in other parts of the country. Now I am not so sure because this woman knows what she is talking about and I don’t think she will be voted in. Just look at Ron Paul results in California,

  27. 30 repairs fix the system

    1. repudiation of fraudulent debt to bankers

    2. institute permanent national money created by fiat (from “thin air”)

    3. originate all new money exclusively in citizen’s primary bank account as free and clear household sector dividend

    4. seperate banking from money creation, ending the fractional reserve banking system and requiring that money creation and distribution to households be a Federal function and the chartering and regulation of banks be a function and responsibility of the states

    5. require that banks lend only funds entrusted to the bank by money owners for that purpose

    6. eliminate the federal income tax which penalizes productivity and initiative, and replace it with direct taxes equally applied individually imposed for each item of public service approved by Congress, with also a direct excessive wealth tax services including inheritance tax

    7. require that the risk of all bank financed transactions be shared between borrower and lender, so banks can only recoup 1/2 of principal in event business loss resulting in default

    8. elimination of all national banks, allowing the states to regulate banking while government regulates the money supply dividend to households

    9. ending of foreign investment here and American investment abroad

    10. severing the domestic monetary unit from the international dollar — allowing the Federal Reserve leave the country taking the international dollar with it

    11. regulate foreign trade to ensure that imports in the course of a year are paid for by exports, i.e., balanced trade

    12. abolish the corporation as a structure of American business enterprise, breaking up all corporations into single proprietorships or partnerships

    13. eliminate the Internal Revenue Service, tax collection being taken over by the US Treasury and enforced by US marshals — impose an excess wealth tax

    14. end all deficit finance by government — require that all government goods and services be funded by direct taxation and fees

    15. elimination of all trust foundations with all good causes being funded for current expenses only and non-profit corporations

    16 expand and conscientiously enforce anti-trust and anti-monopoly law and regulation extending these especially to mass-media with the understanding that monopoly in media is an infringement of everyones right to free political speech where the minority view always has the possibility, through persuasion, of becoming the majority, which is not the case when a few people own all mass-media

    17. limit the ownership of rental properties, news media, the number of homes and the total acreage individuals, and businesses may own

    18. requiring by amendment to the Constitution that only uncommitted electors be chosen to the electoral college which both find elect the best qualified president (as the Founding fathers intended), the repuation, character, knowledge of public issues, good and wisdom of the electors who select our presidents being the crition upon which electors will be compared and chosen

    19. end the popular election of Senators, once again having the State legislatures choose US Senators for their respective states

    20. legalize addictive drugs and provide them at cost to addicts so that organized crime will not capture the billions of dollars supplied to households through the new money dividend and so the monopolists high-price incentive to push drugs will be 100 percent eliminated

    21. while debt to international lenders will be repudiated, money owed to creditor states, like China and Japan may be settled by 1) letting China have all presently American owned shares of industrial assets in China sometimes up to 49 percent of Chinese industrial firms 2) giving Alaska to Japan for settlement — even as we hope that with the perfection of American Populist Social Credit the people of Canada would be willing to sever all ties with the United Kingdom so that her provinces would become new states of the United States — with the possible exception of Quebec which would become a French speaking independent state — this exchange could also be part of an international settlement that would resolve disputes over the ownership of islands among Japan, China and Russia.

    22. the calling back of all American military forces on foreign lands, bringing home all military equipment useful in providing for the defense of the United States

    23. ending the American standing army, turning over all military equipment and personnel to the 50 states with the Federal Government only controlling a centralized command structure to be activated only in time of declared war which alone allows the Federal Government to nationalize national guard units

    24. disarm the Federal Bureau of Investigation and eliminate both the Central Intelligence Agency and the National Security Agency eliminate the Department of Homeland Security, Department of Education

    25. end all Federal government aid to all nations while permitting Americans to give charity and aid to those in need of their own free will

    26. deny jurisdiction to admiralty law, withdraw from NATO, the IMF, the World Bank, the World Trade Organization, Basil Accords, and from the United Nations until the National Security Council is abolished and terminate all treaties with the state of Israel in keeping with an American policy of non-entanglement in disputes among nations. The US can however subscribe to the jurisdiction of an international court for the resolution of international trade disputes.

    27. end all Federal gun control laws — leaving this matter to the states in their conforming to the Bill of Rights

    28 disallow all members of the bar from practicing law in United States Courts, the United States courts themselves creating its own tests and qualifications for pleading before the bench of American national courts

    29 by constitutional amendment enact 12-man jury nullification in American courts and the principle that juries decide when the letter of the law oversteps the spirit of the law and whether precedent shall or shall not be upheld

    30 ability to practice law should be open to anyone who passes the federal law exam, possibly with lawyer specialties enabling a person to qualify for pleading specific narrow ranges of law. A very high percentage of the common people should be qualified to practice law.

    • Fine ideas, Mr. Eastman, worthy of discussion! As for “3. originate all new money exclusively in citizen’s primary bank account as free and clear household sector dividend” I like the idea, but somehow it seems to me that work as a source of value should be, as a matter of justice, rewarded with original money. Perhaps government work?

      • Remember the board game Monopoly? Money is dealt out before the game starts and you collect $200 each time you pass “Go.” Money is the “infrastructure” that makes product markets and labor markets possible. If the state or a private organization has the power to create fiat money and introduce it only for work performed — that is too much power for anyone to have. Remember, circulation of new money robs everyone a little by inflation — since the economic pie is at that moment still the same size. This is theft, so to remedy that everyone gets the same amount of new money. This takes care of distribution of first “spender power.” Save the good old Puritan Ethic for after the money starts circulating. That, or else Congress and Rothschild get to pick who gets new money and for doing what. LaRouche and Zarlenga are good with a “thin-air” funded New Deal — but I favor consumer sovereignty. It is not a handout. It is the People’s infrastructure for doing business.

        • Thanks, Dick.

          I like the idea of a dividend, but don’t think govt. creating money necessarily creates inflation or is theft. If the money is created for society as a whole, all can benefit. If there is some elasticity, like unemployment and other idle production factors, more can be produced with the added stimulus of government spending and there should be no inflation. I also like social credit being infrastructure–it sure would work better than just money to banks.

          Belief in a strong work ethic is not necessarily Puritan. I think it makes for a more dynamic and healthy society. It’s a competitive world and a country with a strong work ethic will eat the lunch of a country that has abandoned it. Best to keep the idea of working for a living, I think.
          On the other hand, I just this and it makes me think maybe you’re right: get money into people’s hands!

          • More dollars chasing the same amount of goods and rate of spending (velocity) not changing, more M must result in higher prices, at least in the short run. That is good inflation. In the longer run the increased purchasing power, business revenue and profit will call forth more production and inflation will give way to good deflation.
            To benefit society as a whole new money must circulate among society as a whole. I’m with you on that. Also agree that no group has monopoly on work ethic. I’d like to zero in on this concept of “creating money for society as a whole”. Creating it most cheaply by taking it from thin-air is good. But for it to be for society as a whole depends on how and where the new money is introduced. QE money only going to those swapping securitized mortgage bundles for it is not new money getting to the parts of society who hurting in this deflation.

            • Thanks for the enlightening answer. “But for it to be for society as a whole depends on how and where the new money is introduced” is something I can agree with. There is justice in getting paid for work AND there is justice in getting a fair share of the free pie which should be there for everyone, not just the wealthy. I now see social credit as having a place in a general outlook on “unearned income” in society. We’re not likely to get rid of the unearned income of the rentier class (described so well by Hudson in The Bubble and Beyond) any time soon, but maybe it should be balanced by institutionalized unearned income for ordinary people.

              I just watched this and it brought me yet closer to your view.

  28. An effective budget solution: tax speculation 0.1%

    “Unbalanced minds cannot balance budgets!” —Lyndon LaRouche
    The solution to the national budget deficit that actually helps people, instead of killing them, is a tax on the damaging financial speculation that drains the wealth out of the real economy.

    A 0.1% tax on financial speculation is a tiny little tax, only $1 on every $1,000 of transaction, compared to the “great big” taxes such as, say, the GST ($100 on every $1,000).

    BUT… it will raise a massive amount of money: $135 billion in one year—enough to cover the $123 billion of deficits that Hockey is projecting over the next four years!

    This is because the scale of financial speculation that it will tax is mind-boggling.

    Australia’s annual gross domestic product is $1.4 trillion; by contrast, the Australian Financial Markets Association (AFMA) annual report reveals that for the year 2012-13 total turnover of all financial markets was more than $135 trillion!

    Virtually none of this $135 trillion turnover had anything to do with the real economy: government bonds, which the government issues to borrow money, accounted for $1.7 trillion of it; turnover in shares on the stock market was $1.15 trillion; and foreign exchange on the import and export of goods and services was $620 billion.

    The balance of over $130 trillion was in all manner of speculation in derivatives—futures, options and swaps—and speculation in foreign exchange (only 1.4% of foreign exchange trade relates to import/export).


    The 0.1 per cent speculation tax is a win-win: not only will it raise more than enough tax revenue, it will kill the speculation it is taxing.

    A tax of $1 on every $1000 will not be a burden on genuine investors in stocks and bonds and genuine foreign exchange transactions.

    It will, however, destroy the “business model” of the financial speculators, who rapidly buy and sell and buy and sell on massive volumes in order to skim profits from driving down prices for producers and driving up costs to consumers. It will end this unproductive, predatory and parasitical paper-shuffling that is draining the life out of the real economy.

    Consequently, it will be a short-term source of tax revenue, but the real economy—farming and manufacturing production, skilled trades, etc.—will, freed from this burden, be able to prosper, which will expand the normal tax base.

    That this 0.1% speculation tax will solve the current budget deficit is a bonus; its intention is to protect the real economy from financial predators, like the CEC’s other policies of a Glass-Steagall separation of retail from investment banks, and national banking.

  29. I endorse your idea but reject some of your thinking. Specifically, taxes do not really pay for anything. They simple flush money from the economy. Since the bean counter rule is enforced, spending = taxes + treasuries sold, the govt does not add to now subtract from the money supply in the economy but by taxing, selling treasuries and spending the govt can move money around in the economy and tax policy should be based on that fact. Selling treasuries takes idle money from the economy, the type of money that should be removed by taxes. So your notion is good and your target is good but I really think we need to discard the notion that taxes “pay” for something.

  30. I wonder how much speculation is financed with loans from the government-backed credit cartel? Should not government-subsidized speculation be abolished too?

    And while we’re at it, why is ANY credit creation in the private sector subsidized by government? So the most so-called credit worthy can steal the purchasing power of the less so-called credit worthy? So the banks can drive the population into debt? So we can suffer dangerous boom-bust cycles?

    Or is the purpose of government to get its cut from thieves and to toss a few stolen crumbs back to the victims?

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