Prophetically, GM named one of its now-extinct brands the Firebird. Like the fabled Firebird, GM could be reborn as something else. We now own a car company. To finance its transformation into something better, we just need to own a bank.

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5 Responses

  1. Ellen, It seems like your articles keep getting better and better. This one seems to rise to new educational heights.

    You’ve taken a very good idea of Moore’s, except for the funding part, and transformed it into something… well… transformational. Brilliant.

    Of course this is the “third way” that all public infrastructure projects could be financed without either raising taxes or the national debt. And to do it all we would need do is return to constitutionally mandated congressional control of money and its regulation.

    All we would really need do is repeal the 1913 Federal Reserve Act, which is probably unconstitutional anyhow, and “federalize” the Fed – make it what most people have been deceptively led to believe it is now – a federal agency.

    Of course it would also help to reorganize the privately owned Federal Reserve Districts and Banks, because they would no longer be “banks of issue”, or the institutions that originate money as debt. Their roles would be somewhat reversed, and would probably have to borrow a very low interest rates from the US Government, to be able to re-lend the money to lower tiered banks or state banks.

    If the fractional reserve system of money multiplication were curtailed, and eventually eliminated, other public sources of money issuance would have to take their place, or there would soon be a shortage of money, but those public sources could be at either no interest, or very reduced interest, depending on the risk factors involved.

    Under such a system real prosperity could again return to America, and poverty could actually become rare, and eventually a memory.

    Full employment could become a reality instead of an unobtainable Utopian dream.

    It would lead to a stable currency system with no deflation or inflation worth mentioning. People would again start saving, because inflation would no longer eat up their saved dollars, as is now the case.

    Such was the original promise for America envisioned by Paine, Jefferson, Franklin, Madison, Adams, and the extraordinary founding fathers who wrote the Declaration of Independence and US Constitution.

    Dennis Kucinich is sponsoring a money reform bill in the House that was written by the American Monetary Institute, and may be examined there by all who are interested. I urge readers to write their congresspersons and senators in support of such legislation.

    You, Ellen, and others like Stephen Zarlenga of the American Monetary Institute, are striving to educate Americans “against all odds” to the root causes of our economic disease: the private money system. I applaud you, and all such “voices in the wilderness”.

    I hope this article finds the wide readership it so richly deserves.

  2. Trying to implement a public bank and usurp the banking cartel is going to take a miracle. My suggestion; pray for a miracle. At no time in history are the words “ask and it shall be given”, become more poignant. It’s always darkest before the dawn. Having said that Michael Moore will be coming out with a new movie in October. I don’t know the title but it will be on the recession. Here, in Moore’s own words, is the thesis for his film:

    The wealthy, at some point, decided they didn’t have enough wealth. They wanted more—a lot more. So they systematically set about to fleece the American people out of their hard-earned money. Now, why would they do this? That is what I seek to discover in this movie.

    Notice that Moore isn’t seeking to explore what caused the recession. He already knows that. It was all those evil rich people. That, in Michael Moore’s mind, is fact hardly worth investigating. What he sets out to illuminate is why these mustache-twirling black hats would do that.

    I can’t wait to see the film. Moore says that when people are leaving the theater they are going to be asking the ushers “where are the torches and pitchforks”. Sweet!

  3. I, for one, am excited to see this movie.

  4. Ellen,

    Your article on financing GM and this nation is a joy to read. It concluded, in my view, with remaining concern that no matter the model we use for financing economic output under a monetary system of production, the monopoly supplier of any money must also supply its protection from hyperinflation.

    None of the models you mention ever took the direct action of indexing saved money accounts. This is done here and abroad with some inflation-protected bonds. The protection works. We should extend it to cash savings.

  5. Repeating the above sentiments with a slogan to boot:

    .Put Our Money Where Our Mouth Is:
    Guarantee the Value of Savings

    All the money reformers form Jesus to Stephen Zarlenga, Ellen Hodgson Brown, Major Clifford Hugh Douglas, Rodney Shakespeare, and perhaps hundreds or thousands of distinguished people alive and dead, in free nations of the Western world, have agreed on one point:

    ….. No nation may put into circulation money enough to satisfy its citizens without limit.

    The limit, they all agree, is the price and affordability of necessities that most of its citizens have to buy.

    So, in a nutshell, we must have a money system that is fairly immune to hyper-inflation. And all of us (money reformers) are convinced in our own mind that our system will do the trick.

    So let us put our money where are mouth is:
    ….. Let us promise that money saved under our system will not lose purchasing power over time.
    ….. In other words, TIPS indexing adapted to cash savings accounts.

    Nothing could be easier or simpler. If we did it with debt-based money only, we would have to apply a rate of interest to money borrowed (in order to index savings balances) that was far below 1%.

    Other rates of interest would not necessarily be that low.

    ….. If we did it with CB liquidity infusions, it would be easier.

    The question would be asked, what of the power of money to summon willing work, and to produce the supply that money will buy–if the money is to be as advertised?

    This remains to be seen. Ellen’s examples of debt-free money in the past augur well for a trial of indexed savings.

    Signed: John Gelles, email for many years:
    …………… indexed-savings@sbcglobal.net

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