GIVE CONGRESS AN ALLOWANCE
Controlling Out of Control Spending:
We need to give Congress an allowance and not a credit card that “We the People” get stuck paying. My solution works on the principle of they can’t spend what they don’t have. My three step solution is simple.
1. I advocate a Constitutional amendment creating a “Monetary branch” of the Federal government. This branch would replace the Federal Reserve system and the IRS. This branch would take from Congress the power to create currency and levy taxes. Currency creation and maximum taxation would be regulated in the same Constitutional amendment that created the monetary branch.
2. Congress’ only source of funds would be the “Monetary branch“. The Monetary Branch would distribute funds to Congress as allowed by the new Constitutional amendment creating the “Monetary branch“.
3. The “Monetary branch” would be run by a board of 50 governors (each the president of a State Reserve bank). One governor appointed by each state governor for a lifetime appointment. Each bank governor would undergo a statewide popular vote of confidence each year. If the people of a State do not have confidence in their banking governor they will have the power to remove them.
This system gives States the power to give Congress an “allowance“. This will prevent Congress from manipulating the currency and the economy. This plan puts the States in control of the purse strings of Congress and not private banks.
Currency and Banking Reform
There are many people that ask me what what am I going to do about good people who are losing their houses? There are others that ask me when will I endorse gold as a currency? Both can be solved by fundamentally transforming our banking system and the way we produce currency.
The fractional reserve banking system was modeled after an unethical system of deception developed by goldsmiths. What started out as loaning out more paper money than there were gold reserves was legitmatized by governments when they saw the potential that they could control society as long as they controlled the banks. The banks control the people and guide the markets, deciding winners and losers, through a system of debt.
There is no free market as long as the banks instead of the people decide winners and losers based upon their wants, needs, likes, and dislikes within the marketplace.
Basing our monetary system upon an ethically honest system is what we all should strive for.
The barter system was such a system but it did not flourish because bankers made far more money under the fractional reserve system. Gold created the fractional reserve system and it is not an elastic currency and because it is rare it is easy to manipulate and control. While it would be a better system than what we now have…..it is not a sound basis for a currency.
A much better system is a sovereign currency based upon the productivity of the people and one that is easy to understand.
Under my system the Federal Reserve would be abolished and replaced with the United States Reserve and Trust. Each state would have a state reserve based upon the bank of North Dakota model. The USRT could only loan to State Reserves.
Let’s compare what we have now to what I propose for a home loan:
Under the current system a $100,000 fixed interest rate home loan at the end of 30 years will cost the homeowner in excess of $200,000.
Under my system the $100,000 loan is charged simple interest of 10% up front and let’s say another $5,000 to service the loan over the 360 monthly payments that will be made. So you pay $15,000 up front to get the $100,000 loan and your payments are calculated as $100,000 divided by 360 which equates to a $278 per month payment.
Under my system you pay $115,000 over 30 years for a house with a $278 monthly payment.
The system we have now you pay over $200,000 and end up with a payment over $600 a month.
My system put $85,000 back into your pocket.
My system is a productivity based supply side debt free currency and put the creation of money into the hands of the people and not the government or bankers.
My golden rule “for money to have value it must be earned and not just simply printed”.
Currency is created as needed through promises to be productive (loans). Just as what happens now you sign a loan agreement that you will pay back the loan and this forces you to be productive to earn money to acquire something you desire.
The way this works is that you go to the bank for a loan and it has no cash left to loan. Let’s use the $100,000 home loan in this scenario. This loan will cost $115,000 total. $100,000 will be printed and forwarded to the bank and $15,000 will be printed by the government and spent into the economy by the government on projects that will help maintain and expand the economy.
Money is not “just” created. The people control the money supply by their labors and willingness to earn. My system also reduces the need for taxes and no one can corner the market on labor unless they want to try to enslave all Americans.
While this is a simplified version of currency creation and a new banking system you can quickly see how this puts more money in your pocket and halts the process of us borrowing from overseas countries that places us further into debt.
Background information and education on the concepts in my solution