Nationalize the Federal Reserve

"American Monetary Act"

proposed by Stephen J. Zerlenga

from the article

President Obama: Nationalize the Fed and Create Our Own Money

by Doug Page, www.dissidentvoice.org/, February 7th, 2009

 

(1) The Federal Reserve Act of 1913 effectively ceded the sovereign power to create Money delegated to Congress by the Constitution to the private financial industry.

(2) This cession of Constitutional power has resulted in a multitude of monetary and financial afflictions, including an uncontrollable national debt, excessive taxation of citizens, inflation of the currency, drastic increases in the cost of public infrastructure investments, excessive un- and under-employment, and erosion of the ability of Congress to exercise its Constitutional responsibilities to provide for the common defense and general welfare.

The Secretary of the Treasury, following targets established by a 9 member Monetary Authority appointed by the President with the advice and consent of the Senate, shall directly issue all money, called United States Money, the nominal unit being the U.S. Dollar. This money shall be legal tender, backed by the full faith and credit of the United States.

The Act stops the creation of money by private banks. Fractionalized Reserve Banking is prohibited and banks can loan only the United States Money they actually have on deposit.

The Federal Reserve System (but not the local banks) is nationalized as a Bureau within the U.S. Treasury.

The United States would no longer borrow money. The Secretary of the Treasury shall issue United States Money as needed in lieu of public borrowing.

All existing money shall be exchanged for United States Money.

U.S. Money can be loaned to local banks which can continue to loan United States Money but with maximum charges not to exceed 8%. Banks can loan only U.S. Money.

The U.S. shall pay off the principal and interest of the national debt as they came due with directly issued United States Money.

The U.S. would use directly issued United States Money to rebuild the nation's infrastructure.

The United States could loan United States Money interest free to states and local governments.


Banks watch

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