Stephen Zarlenga, Huffington Post - Never in 225 years has the full faith and credit of the United States been held to ransom. But also never in 225 years has a solution been ready that can resolve this problem: the monetary reform bill HR2990 introduced into the 112th Congress by Dennis Kucinich.
For the 95th time in the last 67 years, Congress and the president are confronted with passing legislation to raise the "debt ceiling."
What citizens should know is that our country can pay off its debt as it comes due; can put millions of people back to work rebuilding our crumbling infrastructure; can provide debt-free federal support for cash-strapped State governments, and end the so called great recession by putting cash in the hands of all our citizens through a citizens dividend. This gives small businesses what they need most - customers with cash to spend on their goods and services. All these things are made possible by the HR 2990 bill introduced by Dennis Kucinich and co-sponsored by John Conyers.
The bill accomplishes this by adjusting our money system from one of "debt money created by banks" when they make loans, to one of "money by law" created as money, not as debt, by our government. That power is already vested in Congress by the Constitution; "The Congress shall have the Power To... coin Money, regulate the Value thereof..." (Article 1, Section 8).
Congressmen should re-introduce and pass H.R. 2990, The National Emergency Employment Defense Act that Congressmen Kucinich and Conyers sponsored in the last Congress.
The banking class and their economists have spread confusion over the nature of money. The confusion is largely responsible for the present misdirection of our leaders. So they allow the destruction of the American middle class, and of our democracy, our privacy and civil liberties. Even the planet is now threatened by degradation of Earth's environment.
Throughout our history, great leaders such as Benjamin Franklin, John Adams, Thomas Jefferson, Andrew Jackson, Martin Van Buren, Wright Patman, Henry Gonzalez and Dennis Kucinich have confronted banks over the main question in our nations past: Who should have the power to create money - the banks for the enrichment of their "elite" owners, or the people through their elected representatives, to promote the general welfare and benefit our entire society.
Congress squabbles but the present system just can't relieve or solve the problem -- because the debt money system itself is the problem!
How The NEED Act Solves the Problem in 3 major steps:
1) The Federal Reserve is incorporated into our government, where people think it is now. A new Monetary Authority is established to avoid both inflation and deflation.
2) Simple accounting rule changes will prohibit banks from creating what we use for money by decisively ending fractional reserve lending. Banks would lend real money they have or receive from savers. This is what people think happens now.
3) Government creates and spends new money into circulation for infrastructure, education and health care; starting with the $2.2 trillion the engineers say we need to make our infrastructure safe, over the next 5 years. This alone will create over 7 million good jobs quickly.