|Posted by dr.ron45 on October 24, 2013 at 2:20 PM|
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.
Categories: Fiscal Cliff / Debt Ceiling