I think Mr. Greider is on the right track, but I would just take it a step or two further. If the US Treasury can print bonds, then why can it not print currency as US Treasury notes? It has in the past. The current system of selling bonds to the Federal Reserve, a private international banking cartel, delivers a paycheck in the form of interest to them without them having performed any service, other than a few keystrokes.
If, on the other hand, the US Treasury prints the notes, the Federal Reserve notes could be retired in a few years without the need for interest payments to the Treasury. The same amount of cash would be in circulation, but without the need to pay a premium to the Federal Reserve and its owners for the use of the money.
I belive that the new US Treasury notes should not be backed by gold or silver. I belive that is a slippery slope, because the international banking families/cartel already own most of the gold, and would prove to be an insurmountable obstacle to any move in that direction. Besides, any paper currency requires faith by the people, not a mythical storehouse of gold somewhere.
Banking laws should also be changed, gradually raising the capital requirements from the present 8 percent to 100 percent when the Federal Reserve notes are fully retired. Why should bankers have the special privilege of multiplying our money supply and collecting interest on something created out of nothing, when no other institution has that privilege?
As need for capital for capital projects arises, Congress, or the states for that matter, with Congressional approval, could simply authorize the additional cash to be created for the projects. And the money supply could be grown gradually over time as required by the growth of the ecconomy.
Within a year or two at most, the need for the private banking cartel known as the Federal Reserve could be reduced to the perfunctory tasks of handling check-processing or some other nominal functions--or, better yet, eliminated altogether, with any remaining duties or functions transferred to the US Treasury.
By this method, we will reduce our need to pay interest on the outstanding bonds, as they will have been paid off with the new US Treasury notes, not requiring interest payments. And, more important, our government's insatiable need for cash to make those interest payments will be reduced to zero. It is even possible that we will be able to reduce our tax liabilities in the process. Now, would not that be a novel idea?
Of course, there are many nuances to be considered, but in essence, it would not be at all painful or disruptive, or jeopardize our standing in the world financial markets, if we were to make this fundamental change. After all, China has rejected the idea of a private central bank. Why can we not do the same?
We just need to do it! And not let the international banking families/cartel scare us away from taking the necessary actions.
Robert E. McCoy
La Canada, CA
Aug 1 2009 - 5:31pm