Monetary Reform Task Force

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EMERGENCY GREEN MONEY STIMULUS ACT of 2014

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.



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

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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.


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 spire-law.com 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 (http://s.tt/1r0wJ)

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: http://www.youtube.com/watch?v=cDYroKIxMoc&feature=related

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!