This Monetary Reform Bill Will Surely Loosen The Banksters' Bowels

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On December 17th, 2010, Congressman Dennis Kucinich (D-OH) introduced one of the most radical monetary Bills presented to the House of Representatives since the Federal Reserve Act of 1913. Designated as Bill H.R. 6550, this proposed Act is also referred to as the 'National Emergency Employment Defense Act of 2010'.

Kucinich's Bill includes the following astounding objectives: "to restore the authority of Congress to create and regulate money... [and to] retire public debt..."
One needs to read that again.
Restore the authority of Congress to create and regulate money? Retire public debt?
Does that really say what it seems to be saying?
What a revolutionary Bill! H.R. 6550 is much more far-reaching than Ron Paul's valiant attempt to audit the Federal Reserve. This Bill would take us back 175 years to Andrew Jackson who killed central banking in the United States and became the last president to pay off the National Debt. And it would take us back to Abraham Lincoln who, 150 years ago, instructed the Treasury to bypass the banks and issue some 450 million debt-free 'greenbacks' to pay for the Union war effort during the Civil War.
Kucinich's Bill, if enacted as written, would take the power of money creation away from the banksters and return it to Congress as the Founding Fathers had originally intended. And in no time, the National Debt would be fully paid off with debt-free, interest-free U.S. Treasury dollars.
Such a scenario has long been the stuff of banksters' nightmares. According to a London Times editorial in 1865, alarmed at the success of Lincoln's greenbacks, "[America] will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world...That country must be destroyed or it will destroy every monarchy on the globe." [1]
And if Congressman Kucinich and his sponsors are successful, America will indeed become prosperous without precedent in the history of the world . And the other nations of the world will follow suit.
The enactment of Bill H.R. 6550 is sure to create an epidemic of incontinence among the banksters throughout the world. The sale of toilet paper and adult diapers is sure to rise as the term "Cover your ass" takes on a whole new meaning. Wall Street especially will smell like an Arkansas hog ranch as the financial elite vacate their offices along with their bowels.
For those lucky enough to live in South Dakota, it would be interesting to mosey on over to Mount Rushmore and see if Tom Jefferson and Abe Lincoln have broken into huge smiles.
While Representative Kucinich is to be congratulated for his courage, intellect, and patriotism in presenting this Bill, special recognition should go to Stephen Zarlenga and his colleagues at the American Monetary Institute (AMI) for doing much of the groundwork over the past number of years. (Visit for the text of H.R. 6550 and for a 32 page AMI precursor to the Bill.)
Stephen Zarlenga, co-founder of the American Monetary Institute, has 35 years experience in finance, securities, insurance, mutual funds, real estate, and futures trading and is the author of the widely acclaimed 700 page tome, The Lost Science Of Money. Zarlenga and the AMI have been working on the genesis of this Bill for some time. Representative Kucinich has been a regular attendee and speaker at AMI events in Chicago for the last few years and has incorporated their monetary reform document in his Bill, H.R. 6550.
This monetary reform is based on three crucial areas, all of which must occur if the reform is to be truly effective.
1. Incorporate the Federal Reserve System into the U.S. Treasury where all new money is created by government as money, not interest-bearing debt, and spent into circulation to promote the general welfare; monitored to be neither inflationary nor deflationary.
2. Halt the banks' privilege to create money by ending the fractional reserve system in a gentle and elegant way. All the past monetized private credit is converted into U.S. government money. Banks then act as intermediaries accepting savings deposits and loaning them out to borrowers; what people think they do now.
3. Spend new money into circulation on infrastructure, including education and healthcare needed for a growing society, starting with the $3 trillion that the American Institute of Architects estimate is needed for infrastructure repair (roads, bridges, railroads, water systems, sewer systems, etc.); creating good jobs across the nation, re-invigorating local economies and re-funding government at all levels.

In Section 2 a), Findings , Kucinich targets the malfeasance and abysmal record of the Federal Reserve. The following selected paragraphs give a flavour of his controlled anger and serious intent.
(19) This ceding of Constitutional power [to the Federal Reserve] has contributed materially to a multitude of monetary and financial afflictions, including—
(A) growing and unreasonable concentration of wealth;
(B) unbridled expansion of national debt, both public and private;
(C) excessive reliance on taxation of citizens for raising public revenues;
(D) inflation of the currency;
(E) drastic increases in the cost of public infrastructure investments;
(F) record levels of unemployment and underemployment; and
(G) persistent erosion of the ability of Congress to exercise its Constitutional responsibilities to provide resources for the general welfare of all the American people.
(20) A debt-based monetary system, where money comes into existence primarily through private bank lending, can neither create, nor sustain, a stable economic environment, but has proven to be a source of chronic financial instability and frequent crisis, as evidenced by the near collapse of the financial system in 2008.
(21) Banks pyramided their value by spending money into existence, greatly inflating the value of bank holdings, inflating the value of their asset bases, enticing unknowing investors to participate in financing schemes like the bundling of subprime mortgages, and ultimately bringing undercapitalized banks and the entire financial system to the edge of ruin, creating circumstances where the taxpayers of the United States were called upon to save the banks from their own imprudent money-issuing practices, misspending and mis-investments. The banks' ability to create money out of nothing ultimately became the taxpayers' liability, and raises a fundamental question about a practice of money creation which threatens the wealth of the American people.
(22) Abolishing private money creation can be achieved with minimal disruption to current banking operations, regulation, and supervision.
(23) The creation of money by private financial institutions as interest-bearing debts should cease once and for all.
(24) Reclaiming the power of the Federal Government to create money, and to spend or lend money into circulation as needed, eliminates the need to treat money as a Federal liability or to pay interest charges on the Nation's money supply to financial institutions; it also renders unnecessary the undue influence of private financial institutions over public policy.
(25) Under the current Federal Reserve System, the persons responsible for the conduct of United States monetary policy have been unaccountable to the Congress and the Nation, have resisted auditing by the General Accounting Office, and have claimed exemptions from some Federal statutes, including the Civil Rights Act of 1964, that apply to all agencies of the Federal Government.
(26) The conduct of United States monetary policy by the Board of Governors of the Federal Reserve System, and specifically the failure of Board members to safeguard the financial system against wholesale fraud and abuse of citizens, demonstrates the risks of maintaining a system wherein the power to create and regulate money has been delegated to private individuals who are unaccountable to the People of the United States in any way, even through their representatives in Congress.
(29) As our money system is a key pillar in maintaining general economic welfare and as the Federal Reserve System and its private banking partners has consistently failed to promote or preserve the general welfare, it is essential that Congress, in the name of protecting the economic lives of the American people and the long-term security of our Nation, reassume the powers and responsibilities granted to it by the Constitution.
Hear! Hear! All freedom-loving Americans would chant. This legislation should be studied and supported for the redemption it offers to us all, especially the poor and the down-trodden.
Not only Americans, but the entire world should sit up and take note of Dennis Kucinich's revolutionary Bill. Citizens in other countries should download copies for their own political representatives and agitate for reform in their own countries. This Bill, if enacted, has the capability of creating widespread prosperity, peace, and goodwill.
Let's all hope that Congressman Kucinich prevails with this Bill and that it will not be defeated or emasculated by those in the pay or the influence of the Money Power.
With the enactment of Bill H.R. 6550 the world may not become a Utopia, but it will be closer to the beauty of the Garden of Eden than it's ever been.
[1] This quote is attributed to Lord George J. Goschen, Director of the Bank of England and later, Chancellor of the Exchequer.
This is blatantly false. Ever heard of the saying "not worth a continental"?

Congress was given authority only to mint coin, and metal reserves would back the dollar. Giving congress full control of the issue of fiat currency would lead to hyperinflation and economic destruction.
President Camacho

What Broseph said. If Congress has presided over horrific domestic policy, foreign policy, and fiscal policy, what makes you think they would great on monetary policy? The bankers already have the ear of Bernanke & co., but at least the singular accountability of the Fed chief places some restrictions on how brazen he can be. The legislators would just be bought and sold like cattle by Wall Street (as if they already aren't) anytime they want a little more juice.

As bad as the Fed has been I think they know enough to avoid hyperinflation... that's bad for Wall Street too. They fuck with the controls just enough to prop the stock market up and siphon away wealth from savers, but I don't think you will see Zimbabwe-style hyperinflation resulting from their policies. Over the next 4 years, the QE policy will probably cause something like 3-5% REAL annual inflation (higher than the 1-2% they always claim)-- compounded, I'm thinking around 12-20% inflation over Obama's second 4 year term-- combined with stagnating wages, and, at some point (maybe 2013, maybe 2014, etc), a significant stock market correction down 25-75% from this year's high.

And furthermore... this bill is from 2010? From Dennis Kufagnich? How is it relevant?


A stock market correction might be in the cards. But QE infinity is supposed to prevent that, and QE has been pretty good at it. Also, corporate profits of the listed companies are doing pretty well. I wouldn't be surprised if it ended up at all-time highs over the next couple of years.

We will see how the federal fiscal situation gets handled. I think this will be the biggest factor in how the markets perform, even more important than QE. America is going broke, fast.

Team Zissou
Broseph President Camacho

This is what the Austrian school still has not addressed. The only thing they've done is recycle some old essays by Mises and Rothbard. Even Shostak hasn't analyzed it thoroughly. I'm not qualified to analyze everything downstream and it seems nobody at would either.

Also, don't count on corporate profits going down so long as we're importing a million consumers a year.
Do those consumers have any more disposable income than the natives?

Or is the bulk of them going to be in minimum-wage service sector jobs (if they're even employed) and siphoning off Uncle Sam's boob as well?

I'm even less qualified than anyone here to comment on economics, but I just don't see where the revenue (corporate or government) is going to come from other than firing up the printing press.

If it's true that consumer spending drives a significant portion of the economy (and I'm sure that's a debatable assumption) then that's almost played out as people approach the limit of personal debt they can accumulate to finance their lifestyles and of course they have no savings to fall back on, though to be fair, why save anything with lame-o interest rates and inflation that makes saving anything a fool's game to begin with?

I suppose you could argue productivity increases would buttress things, but I have a feeling we're approaching the limits on "productivity" too, what with both parents working with no time for anything else. There are only so many hours in the day and so much that efficiency can be improved.

While you can't predict game-changing inventions, innovation seems flat over all, limited to improvements in cell phones and software, so I can't see people standing in line for iPhone 7-14 are going to shore up the whole thing.

Speaking of boobs, nice sig picture.

I'm reading about self issued credit. It would solve the problem of the government hyper-inflating the currency.


Paul Grignon, the creator of the popular "Money as Debt" documentaries, joins Economics 101 to discuss his solution for an alternative currency. Digital Coin operates as a system of unique digital objects that function as self-issued credit. The value of this is measured relative to a "Perpetual Coin" unit of measure and fluctuates based on demand for that individual's goods and services. For much more information on this fascinating idea, please visit the Digital Coin website:

Team Zissou
Corporate America has gotten very good at making money off millions of low-end transactions. Ultimately your instincts are correct though. There's no way the new workforce will match the living standards of the old. Nor will they pay the taxes necessary to support retired engineers, academics, middle-management, etc.

Sweden and Germany in particular may give us a preview of how this sort of thing turns out.