Monetary Reform Task Force

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Policy Winners Newsletter considers US Note revival

Posted by dr.ron45 on May 7, 2014 at 4:35 AM Comments comments (1)

The May 2014 Policy Winners Newsletter published by Keith Rodgers is devoted to a consideration of the possibility of BRINGING BACK THE GREENBACKS, or more broadly of restarting debt-free government created money as was successfully done during the Civil War period.  Six researchers and writers, including myself, commented on this issue.  I have copied my comment below, and if you want a copy of the whole newsletter, just contact me using the Contact Form on the last page of this site and I'll send you a copy.

Ronald Davis, Assoc. Professor at San Jose State University, teaches topics in management science and decision analysis which he has applied to the subject of monetary reform. A white paper and a detailed legislative proposal are found on his web site, His comment follows:

On rational grounds the choice between debt-based borrowed money creation by the Fed and debt-free output based congressionally authorized money creation by the Treasury is clear: why pay for what you can get free? Creating debt-free money, whether in the form of US Note paper money or its electronic equivalent which we call US Money, is obviously superior to creating interest-bearing debt, so long as the Constitutional provision to regulate the value of money is observed. Elementary math based on Irving Fisher’s fundamental money exchange equation shows that regulating the value of money (i.e. keeping the CPI nearly constant) requires that money supply growth rate be tied to real output growth rate, as shown by the White Paper at our site. The formula relating the two (in times of constant money velocity) shows that money supply growth rate should approximately equal real output growth rate in order to keep CPI growth rate close to zero. This leads to the realization that the true and correct backing for fiat money creation by the government should be seen as the real output of the economy, that is, the very goods and services which change hands through transactions using the money supply. Therefore, the inflation prevention requirement can be accomplished by applying modern stochastic optimal control technology to appropriate macroeconomic models rather than via the interest charge disincentive to create money through debt creation. A money supply feedback control law based on the relevant macroeconomic variables will suffice to prevent inflation in the modern context (no such theory existed in 1913 when the Fed was created). In fact, the little islands of Guernsey and Jersey in the English Channel have been issuing debt free government issued money for nearly 200 years now in a responsible way, with excellent results. If they can do it without math models, then we can surely do it with NASA’s space age technologies.

Therefore we wholeheartedly agree with the drive to “bring back the Greenbacks” and believe that this can be done by coordination of money creation and debt creation. That is, if increases in debt-free money creation by the Treasury are accompanied with decreases in bond issues by the Treasury then net inflation pressures can be kept in check. A bill to reintroduce the US Note issues that provides for compensatory decreases in bond issues would therefore be non-inflationary, and therefore an excellent first step forward towards more substantial initiation of US Money issues in electronic form. The rate of issue needs to be discussed of course, but the $50 billion per month rate suggested by the editor of this newsletter seems very reasonable as a first step. It will eliminate a good fraction of the budget deficit for the current year, and if continued for at least one additional year it will also enable the setting aside of the budget sequestration cuts that have done so much damage to the economy and our military preparedness. Our proposal includes issue of sufficient new US Notes and electronic US Money to refund all allocations cut since sequestration began.

This first step should be followed up with subsequent steps that include government money creation in electronic form, i.e. US Money as well as US Notes. Our EMERGENCY US MONEY STIMULUS ACT of 2014 provides for the replacement of the $85 billion per month quantitative easing by the FED with a balanced increase in US Money issues. The quantitative easing stimulus goes to the financial sector, in contrast, the US Money issues can be targeted at all of the budget items that have been cut by sequestration, as well as infrastructure projects, education, health, and safety net expenditures. This will have a very positive effect on bringing unemployment down and pushing GDP growth up in a way that quantitative easing has failed to accomplish.

Additional elements of our longer range plan include the creation of an independent Monetary Control Authority that would coordinate the various forms of money creation in such a way as to maintain CPI at nearly constant levels, something that historically the Fed has not been able to do. Eventually, US Money could comprise a very significant portion of the money supply, and its debt-free issuance would have saved the American people a great deal in their tax burden, since there is no interest charge for a debt-free issue.


Posted by dr.ron45 on December 21, 2013 at 6:35 PM Comments comments (1)

It is with some satisfaction that I read the recent WSJ article about the recent decision of the Federal Reserve Board to cut back on Quantitative Easing 3 (QE3) from its current $85 billion per month level at the rate of $10 billion per month.  In effect, the Fed has decided to comply with the provisions of the EMERGENCY GREEN MONEY STIMULUS ACT of 2013 voluntarily.  In fact the 2013 version of the act provides for a cut back of $7 billion per month, and they have upped that to $10 billion per month.  I couldn't believe my eyes when I read the news.  

Of course to keep the economic recovery on track, or better to accelerate its progress, it is essential to offset the QE3 cutbacks with an equal and opposite ramping up of debt-free interest-free green money that is simply spent into circulation to support growth in the economy and a reduction in unemployment.  Towards that end, I have therefore revised the schedule of green money issues to conform to the announced QE3 tapering so that green money issues increase dollar for dollar as QE3 expenditures decrease.   I have also appended an argument showing why this green money substitution plan is non-inflationary.  The revision is now posted as the EMERGENCY GREEN MONEY STIMULUS ACT of 2014 from the home page of this site.  Please download and distributed as indicated on the Political Action page or as you see fit.

In order to reach current and future decision makers in government, it will be necessary to ramp up Monetary Reform Task Force activities considerably in 2014.  This will require voluntary contributions from concerned citizens such as yourself.  Therefore, a donation button has been appended to the Political Action to enable you to put your money where your mouth is.  Pick your own amount based on your personal situation, but notice that the current budget items total to approximately $4000.  Give as generously as you can to get Congress to step up to the plate and do it's part of the job.  Replacement of QE3 with GREEN MONEY STIMULUS is the best way to set the budget sequestration aside, eliminate the debt ceiling increase habit, and put the economy on a stable path towards robust growth without inflation and a decreasing national debt.  The Guernsey and Jersey Islands have been managing hybrid money systems for almost two centuries now.  We have to wake our leaders up to the fact that we can do it to.  In fact, we can do it better because we have computational and mathematical modeling and analysis techniques that go far beyond anything available on those tiny British Island protectorates.  One thing they have that we don't though is the clear thinking and common sense to understand that if you can created it yoursefl free of charge, it makes no sense at all to go out and borrow it at interest from banking interests that have little concern for the quality of life in the country where you live.  It's time our leaders understood this, and start creating free green money instead of borrowing expensive bank money.  If done according to the constitutional guidelines for regulating the value (i.e. buying power) of money, the benefits will be enourmous and the cost next to zero.


Posted by dr.ron45 on October 24, 2013 at 2:20 PM Comments comments (0)

Due to the failure of Congress to avert budget sequestration cuts, and due to their apparent inability to deal with the budget/debt dilema that exists at present. we feel compelled to offer our new version of the former Green Money Stimulus Act that is renamed the EMERGENCY GREEN MONEY STIMULUS ACT of 2013.  For those new to the site, GREEN MONEY refers to coin, paper, and electronic bank deposit money that is CREATED AND ISSUED by the government without debt or interest obligation.  It is the modern version of the Greenback paper money issued under the Legal Tender Acts of the 1860s that facilitated victory in the Civil War during Lincoln's administration.  Creation and issue of this money, when regulated to be in tune with the growth in the real output of the economy, is non-inflationary and enables the funding of public works projects and safety net expenditures that would otherwise be impossible without higher taxes.

The notes section for this draft legislation (download from home page of this site) identify five huge benefits accomplished by this bill:

(1) First it terminates the sequester cuts that have been hampering growth and services this year since their inception, and provides that US Money be used to replace funds previously cut due to sequestration.

(2) Secondly, it eliminates the need for any further debt limit increases during the remainder of the Obama administration by paying down the bond debt to the Federal Reserve Banks in four quarterly installments. This will reduce the national debt by approximately $1.6 trillion. A nation that creates its own money does not have to maintain a continuous program of borrowing to sustain itself.

(3) Thirdly, it provides a steady stream of debt-free funding for government programs in the years ahead that will enable gradual elimination of the national debt without debt default. Moreover, use of borrowing as a funding source will diminish to the point that it is used for exceptional circumstances only, approved by Congress on an exception basis.

(4) It reduces inflationary pressures by reducing both bond sales AND quantitative easing expenditures for each dollar of new green money created and spent into circulation. Net inflationary pressures will be reduced to as little as half as much as if the current regime (without green money issues) continues.

(5) The green money issues replacing quantitative easing may be used for public works projects, education, basic and applied research, funding of the US Postal Service and the Office of Technology Assessment, VA and social security benefits, health care, and grants to failing states, thus stimulating the creation of jobs and increasing the growth rate of national real output of the economy.

Due to the short time frame, before February 2014 rolls around, it is not feasible to build a popular "movement" to promote this elegant solution to all major problems with the US economy.  All one can hope to do is to educate and persuade key people in Congress.  Three likely supporters are Elizabeth Warren (D-MA), Bernie Sanders (I-VT), and Alan Grayson (D-FL).  Others who should see the draft legislation are the future members of the Monetary Control Agency listed on that page at this site.  Of course the President should see it as well, but good luck trying to get it to him.  The strategy is to flood Washing DC with copies of the bill so that discussions will start in the halls of Congress.  Your part is to contribute to the flood.  The clock is ticking, there is not much time left.



Posted by dr.ron45 on February 24, 2013 at 5:55 PM Comments comments (0)

The Green Money Stimulus Act button on the home page takes you to my latest thinking on how to avert the budget sequestration and halt the increase in national debt, at least in the short term.  The unique thing about it is that there are NO NEW TAXES required, and NO NEW SPENDING CUTS either!  The whole thing is done by replacing new bond selling with new Green Money creation, and replacing old bond buying with more Green Money creation.  Since the whole process is one of substitution rather than augmentation, there is NO NET INCREASE in money supply beyond what would occur by continuing the current system.  Hence the inflation red flag cannot be waived.  Such a claim is so amazing to those who have not studied green money mechanics that I have provided for Congress to insert their favorite new revenues and spending cuts, as long as they can be approved by both sides of the aisle.  So Democrats would have to stop calling for new income  taxes (new Green Money takes their place) and Republicans have to stop calling for draconian cuts in the social safety net.  Optional headings for uncontroversial revenues and cuts are provided because everyone expects that reducing the deficit requires a combination of new tax revenues and entitlement spending cuts.  But  in reality, new Green Money issues to replace current and previous borrowing is enough on its own to set aside both the budget sequestration and the debt ceiling debate.

Projected deficit reduction for the first year is $120 billion, $35 billion more than the $85 billion cuts scheduled under sequestration, and in ten years the deficit reduction would total $2.388 trillion, about three times the amount required to set aside budget sequestration.  It delivers sequestration set aside with NO new taxes, NO spending cuts, and NO net inflationm all at essentially zero cost (Green Money is created without borrowing or interest obligation),  How can you beat that?  Meanwhile, national debt declines for 7 quarters in a row eliminating any need to increase the debt limit and providing time to plan new measures to keep it headed down towards the debt free status enjoyed by the British Island Protectorates Guerney and Jersey in the English Channel.  The Canadians used Green Money to finance their participation in WWII, and their national debt remained essentially flat from 1935 until 1975 as a result.  And here at home, Abraham Lincoln used Green Money ("greenbacks") to win the civil war and push through the 13th Amendment.  Green Money is not a new idea, it's been around a long long time, and it has worked in all cases where new issues were regulated to be in proportion to the needs of trade and commerce, or to the "readl GDP" as we say today.  

So to stop the sequestration and national debt default, please alert the key decision makers to the low cost solution promoted here.  Why do it the hard way when you can do it the easy way? Failure to introduce Green Money into the solution now may have dire consequences, which are totally unnecessary if we but get Green Money flowing again (at a responsible rate).  March 1 is just a few days away, no time to waste.

$740 billion down, &760 billion to go!

Posted by dr.ron45 on January 14, 2013 at 4:45 PM Comments comments (0)

The Budget Control Act of 2011 tasked the "Super Committee" with finding ways to reduce the deficit over the next ten years by $1.5 trillion or more.  The Revenue Deal just passed at the beginning of this year accomplished $740 billion of that, leaving a balance of $760 billion that must be accomplished by March 1 in order to avert the sequester cuts that were provided by the BCA of 2011.  I have just posted my Deficit Reduction Act of 2013 that would accomplish at least $2.27 trillion in deficit reductions with US Green Money, almost three times the amount needed to set aside the sequester cuts.  And all without new income tax hikes or cuts to entitlement programs!  New pages have also been posted showing a comparison of US and Federal Reserve Notes, a bar graph showing Net Interest in comparison with other major programs, and data pertaining to spending and debt growth rates.

Mitch McConnell, John Boehner, and others are fond of saying, with great confidence, that the government in Washington DC has a spending problem that needs to be fixed.  But the government numbers posted on the web tell a different story.

I just published a couple of government charts on the new "Debt and Spending Growth" tab together with some of the downloadable data provided by a link at the sites indicated.  Disregarding the forecasts and just looking at the historical data for the period from 2008 to 2012 leads to the conclusion that as a percentage of GDP, the growth rate in debt (8.825% per year) is almost TEN TIMES greater than the growth rate in spending (0.8925%).  And the increase in spending, which has decreased from its high in 2009, is largely explained by the bailouts that required extraordinarily large outlays, most of which has been paid back now.  So the message from the data is that the US GOVERNMENT IS BORROWING TOO MUCH!  "It's a borrowing problem, stupid, not a spending problem!"

One of the reasons that we are borrowing too much is that we continue to have a debt-based monetary system.  As the economy grows, there needs to be more and more money to facilitate the growing number of transactions each year, so monetary expansion has to keep pace with growth in real output (GPD).  If the only way to expand the money supply is to borrow it, then of course the debt must keep growing exponentially at a rate pegged to the interest rate and the real GDP growth rate.  Hence, to break the vicious cycle, it is necessary to relearn the lessons of history that tell us that properly regulated debt-free government issued money leads to a much better result than continued reliance on debt-based money.  Ben Franklin brought prosperity to the colonies with government issued money; Abraham Lincoln won the Civil War with government issued money; the Canadian government maintained an almost constant national debt from 1935 to 1975 with government issued money; and the British Island Protectorates Guernsey and Jersey off the coast of France have been issuing government money with zero national debt and zero unemployment for almost 195 years!  The threat of inflation can be blocked by modern macroeconomic models and control theory technology that will make it possible to control inflation by regulating monetary expansion rates.  The amazing prospect of zero debt, zero unemployment, and zero inflation is within our grasp, but only with government issued debt-free money.  In view of the impending March 1 deadline, the time to get those greenbacks flowing again is now!

Updates of the White Paper and the Open Letter to the President will be posted soon.

Circumventing the Fiscal Cliff (without green money)

Posted by dr.ron45 on December 29, 2012 at 4:15 PM Comments comments (0)

Since we are now down to the wire and noone I sent email to has mentioned the green money solution which I believe to be most effective ($1 trillion in deficit reduction just by partial funding of deficits with green money instead of selling bonds to the Fed), it becomes necessary to make the deal in a less than optimal way.  Here's my formula for success.

1.  Take Boehner's $800 billion in tax reforms

2.  Cut Fossil Fuel subsidies by $200 billion

3. Cut Black Ops by $500 billion

Total deficit reduction: $1.5 trillion! Mission accomplised.

Why do they make this problem so hard?  It can be done easily without raising tax rates on anyone and without cutting a dime from any of the entitlement programs.

Surely subsidizing dirty fuels is less of a priority when clean alternatives are coming on line.  Surely defense budget activities above the ground are of greater priority than activities below the ground and below the sea.  An extremely credible whistle blower with very high clearances revealed in 1995 that black budgets at that time were about $500 billion PER YEAR.  By now at nominal 3% growth rate that would be above $800 billion PER YEAR.  Cutting that by a measley $50 billion per year would be at most a 10% cut, more likely less than 7%.    They can handle the cut alot better than our senior citizens can.

If you can get the word to our Congressional and White House leaders in time (just copy and paste), maybe this unnecessary debacle can be averted.


The Greening of Monetary Base

Posted by dr.ron45 on December 19, 2012 at 2:15 AM Comments comments (0)

In the last few days the first major milestone in the proposed monetary reform process has taken more definite form. I now see the goal of the first phase as the total "greening" of M0, the monetary base for our money system in the USA. This consists of paper currency and Federal Reserve Bank credit created by the Federal Reserve Banks when they loan money or buy securities. A quick rereading of the quote from Thomas Edison in the White Paper should make it clear that, even under a fractional reserve system, the monetary base at least, should be created entirely by the government, without debt or interest oblication.

Progress toward that goal has two parts: (1) order the Federal Reserve Banks to stop creating monetary base, the expansion of same to be performed instead by the US Treasury Department through the issue of US Notes (greenbacks) and through the creation of new US Bank Deposit money spent into existence on budget items approved by Congress; and (2) replace existing monetary base with green money instead on a substitution basis, dollar for dollar.

For the first part, it turns out that the US debt held by the Fed has grown by about $1 trillion over the last 10 years, about $100 billion per year. Since there are nominally 252 trading days per year, new green monety issues would have to be $100 billion per year ois about $400 million per trading day. By replacing Fed monetary base with green monetary base on a dollar for dollar basis, there is no net increase or decrease in the inflationary pressure due to this substitution. But since there is a reduction of borrowing when green money is used instead, these issues would decrease deficits by $1 trillion over ten hears.

For the second part, suppose the US debt owned by the Fed (roughly $1.7 trillion) were to be purchased in 16 equal quarterly installments of $106.25 per quarter with the stipulation that the money would be held in its "surplus account." and returned to the treasury periodically according to their usual practice.. This would reduce the debt by $1.7 trillion in four years, and would generate $425 billion per year in revenues to the US Treasury. Together with the $100 billion in green money expenditures direct into the economy, that would be $525 in deficit reduction for each of the first four years, or $2.1 trillion by 2017. The new green money issued during the following six years would bring the 10 year deficit reduction to $2.7 trillion in all, much more than needed to set aside the sequestration budget cuts. If the buy back schedule were accelerated to be done in six quarters (1.5 years), with the "excess surplus" being paid back to the Treasury quarterly, then the debt ceiling would not have to be raised again during that period.

Notice that this green money creation schedule sets aside the sequestration cust and delays any debt ceiling increase all without ANY new tax revenues or ANY new program spending cuts. This painless "deficit reduction" is only possible with green money issues. However, since this will be quite unbelievable to people who have not had time to think about the new green money dimension for monetary policy, the suggested bill still includes Republican tax revenues and Democratic spending cuts, although only to the extent necessary to fund new stimulus expenditures. These are left in simply to make it seem more realistic to folks currently in Congress and in the White House.

Since Gurnsey Island has been crfeating its own money for almost 200 years now, Canada did it for around 40 years, and Lincoln funded the Civil War with greenbacks that circulated seamlessly with other money forms for over 100 years, it takes no great leap of the imagination to see that green money can avert the economic collapse that folks in the Prepper Movement are fearing. A nation that creates its own money is not in danger of default or collapse. People need the confidence that the money is not going to run out, and the stock market is not going to crash. The time for the return of the greenbacks has arrived. Let's not miss this golden opportunity. Please see that the involved leaders get the message in time.

Fiscal Cliff compromise proposal posted

Posted by dr.ron45 on December 6, 2012 at 3:05 AM Comments comments (0)

In the disciple we call Decision Sciences,  the first step in the process is to correctly frame the decision problem.  The first two proposals for avoiding the fiscal cliff (first by the White House, and the reply by the House GOP) show that this first step has not been done correctly.  If you take a close look at the Budget Control Act of 2011, it provides that the sequester cuts will go into effect only if at least $1.2 trilllion in budget cuts have not been passed by congress in time, i.e. the end of this year.  It is not necessary to provide for a $2.2 trillion deficit reduction, and it is certainly not necessary to provided for a $4.4 trillion reduction either.  Only $1.2 trillion is required.

So instead of each saying the other's proposal is totally unacceptable, they should be noticing that the elements for a compromise has already been reached, and get busy and get the details worked out in time.

The basic idea is to take the House GOP tax reform revenues, and the White House cuts, put them together and see if the resulting total deficit reduction is greater than or equal to $1.2 trillion.  Plain and simple.  Well, here's what you get:

House GOP tax reform revenues:  $800 billion

White House cuts:                            $600 billion

White House expenditures:          -$200 billion

House GOP CPI revenues:            $200 billion


Total:                                                  $1.4 trillion

Viola!  So the President was right when he said this isn't very hard, it should take only a week or so!  Amazing!

The president just has to put aside the idea of increasing tax rates on the upper incomes (not really necessary), and the House GOP has to set aside the idea of decreasing tax rates on the upper incomes (not really appropriate).  Fair's fair.

So click on the new button on the home page, print out the one page summary of the compromise deal, and forward to as many government officials as you have time for.  Maybe we can get them to the negotiating table again and get the deal done in time.  Promoting green money can wait until next year.

Monetary Authority Membership List Posted

Posted by dr.ron45 on November 14, 2012 at 5:40 PM Comments comments (0)

The countdown to the Fiscal Cliff is on! Awakening the President and the Congress to the GREEN MONEY option is a huge task, one that I cannot accomplish on my own. Your help is needed, and it is so easy. Just send out the Greenback Renewal Act and the White Paper showing the rationale behind it to your Congressmen and Senators, the President, and the would be members of the Monetary Authority should the proposed act pass. This committee is comprised of the people in Washington DC who are most responsible for fiscal and monetary issues anyway, so it is a good place to start. The names of the individuals who would serve on the Monetary Authority are listed on the new page of that name for your convenience.


One of the most prevalent objections raised to GREEN MONEY issues is that then we will have a Santa Claus Congress and much too much money will be issued and the money will devalue and become worthless in no time at all. A quick perusal of the potential membership list will show why this is not really a concern under the proposed setup. Firstly, the Congressional members include some of the most fiscally conservative members of Congress who would be absolutely opposed to excessive issues of GREEN MONEY to greatly expand government expenditures, Paul Ryan being the very first on the list. Even if most Congressional members wanted to fund pork barrel projects for their constituents back home, the Executive Branch and Federal Reserve members would be quite to object based on the need to preserve the value of the dollar for everyone. And finally, the committee includes members who regularly work with mathematical models of the economy which can be augmented with the Inflation Tolerance Inequality derived in my White Paper. These members, including the Director for Macroeconomic Forecasting from the Council of Economic Advisor and the Director of the Division of Research and Statistics from the Federal Reserve System, are required under the Act to perform computer simulations of any policy which might be adopted by the Monetary Authority as a whole. Hence an inflationary expansion beyond the Inflationary Tolerance adopted by the Authority simply could not be adopted as policy. Historically, the tiny island of Guernsey has been able to keep inflation under control, as Canada did also when it issued it's own money for about 40 years before they joined the BIS network. If these other countries can keep inflation under control without the use of mathematical models, then certainly the US can with its highly developed modeling capabilities.


In short, the structure of the Monetary Authority makes excessive inflationary monetary expansions extremely unlikely. Also, because of the quarterly policy update cycle, any errors on the side of excessive inflation can be rapidly corrected. For all of these reasons, inflation is just not something to worry about under the Greenback Renewal Act.

Spire Law Group Press Releases

Posted by dr.ron45 on November 5, 2012 at 3:10 PM Comments comments (0)

If you go to the Spire Law Group LLP website at you will find the following quote

"A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion , no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men. " ~ WOODROW WILSON

President Wilson was the one who went along with the formation of the Federal Reserve System by signing the original Federal Reserve Act into law immediately after passage on Dec 23, 1913 so that it could begin operation first thing January 2014. In the quote above, he presents his covert apology for having done so, this quote refering no doubt to the Federal Open Market Committee and other bankers connected with the FOMC (commercial banks become members of the FRS by buying stock in their regional Federal Reserve Bank, and all 12 Fed bank presidents sit on the FOMC).

On their home page you see this headline: Global Money Laundering Network of U.S. Banks Revealed by Spire Lawyers’ Investigation and if you follow the "in The News" link you get to a PRwire article entitled

Major Banks, Governmental Officials and Their Comrade Capitalists Targets of Spire Law Group, LLP's Racketeering and Money Laundering Lawsuit Seeking Return of $43 Trillion to the United States Treasury

PR Newswire (

Wow, that's about 2.5 times the whole National Debt (or GDP), It's unclear how much of that belongs to private homeowners and how much by the US government, but it would seem that $3 Trillion would not be an exorbinant fee for Uncle Sam in return for returning the other $40 Trillian to the rightful owners. No wonder the recovery is so slow!

But here's the point in this context: If a group of individuals and commercial banks can rip off that much money, do you think that the Federal Reserve is going to settle for a measley $12 Billion Surplus Account? The loan amounts from the GAO-11-696 report indicate that the Fed has its own "Off-Book" accounts around the world where it stores "excxess earnings" that are not returned to the US Treasury every year as they say they do. Recovering even a small part of that money would eliminate the need for sequestration cuts or debt limit increases, and hence warn off the ill effects of the financial double whammy that is heading our way at the moment.

For those still unconvinced that the "fiscal cliff" is worth worring about, take a look at what Simpson, Bowles, and Blankfein have to say about it on YouTube:

Green money is without a doubt what these folks are looking for. I'll be posing a list of potential future members of the new Monetary Authority in a couple of days where you can send the Greenback Renewal Act of 2012 so the "announcement effect" can be reaslized before New Year's Day!