REP. KUCINICH WANTS CONSTITUTIONAL MONEY

[Ichingcarpenter]

By Mark Anderson -

Rep. Dennis Kucinich (D-Ohio) on Sept. 21 introduced the National Emergency Employment Defense Act (NEED), H.R. 2990, which would remove the power of creating money from the privately owned and controlled Federal Reserve System and restore to Congress to constitutionally create money interest-free. The bill closely reflects the American Monetary Act (AMA), model legislation developed by the American Monetary Institute, which is headed by noted money historian Steve Zarlenga.

Kucinich has persisted in pursuing legislation to make the historic change of converting to interest-free government money spent into circulation—as the Constitution mandates—instead of being borrowed into existence from the private banking system at ruinous interest.

H.R. 2990 “would . . . reassert congressional sovereignty and regain control of monetary policy from private banks,” according to Kucinich, and the bill would “address our structural economic problems directly by creating over 7 million jobs,” when “the nation struggles with long-term unemployment at rates not seen in generations, and as infrastructure crumbles across the nation.”

Fractional-reserve lending—money lent beyond what banks have in their reserves, using a multiplier effect—would be eliminated, and the nation’s endangered infrastructure would undergo an unprecedented overhaul to account for much of the proposed job and money creation.

A fact sheet from Kucinich adds:

“The conflict of interest between private ownership of the 12 Fed banks and management of our nation’s monetary policy is ended by incorporating the Fed into the Treasury. The Fed is put on a budget and made accountable to the American people;


SNIP...............

http://americanfreepress.net/?p=800

[sam11111]

1. how much of the Debt is a result of the Fed and "ruinous interest" mentioned above?

I want to learn more of this aspect. The Fed has always been murky.

[TexasTowelie]

4. The private banks are receiving substantial subsidies in the form of "interest".

Interest on the national debt: The federal government must make regular interest payments on the money it has borrowed to finance past deficits — that is, on the national debt held by the public, which reached $9 trillion by the end of fiscal 2010. In 2010, these interest payments claimed $196 billion, or about 6 percent of the budget.

http://www.cbpp.org/cms/index.cfm?fa=view&id=1258


If $196 billion is not impressive enough, think about the multiplier effect of that money as it flows through the economy.

Furthermore, that $196 billion is for only one year (2010). Even though the interest payments were smaller in prior years, there is also an exponential effect that would have built up throughout the decades if this subtle redistribution of wealth to private banks had not occurred.

Then there are the other issues that are harder to quantify--the effects of being able to spend more money on education, infrastructure and social welfare programs, increased exports due to a weakened dollar...

The money in those banks belongs to the people. If would be interesting to see what would happened to the big banks if there was an organized movement by people with bank accounts to withdraw their liquid assets and stuff it in the mattress for a week or so.

[n2doc]

2. Giving more control of ANYTHING to congress right now is a bad idea n/t

[philly_bob]

3. Worth a long look, but I'm not sure if it's a good idea.

Would love to see Congressional hearings on the subject.