Thursday, April 28, 2016

It's all connected, and so much is broken...


Whenever I present my list of the broken systems in the USA, I usually get 100% agreement. Maybe you have something to add? And all the systems are connected in one way or another. My broken systems list includes:

Our education system
Our healthcare system
Our mental health system
Our immigration system
Our border security
Our economic system
Our money/currency system
Our business/capitalistic system
Our welfare system
Our gun control system
Our political system
Our social systems
Our infrastructure system (roads, bridges, water, etc.), estimated at this writing to need $3.6 billion to fix. (http://www.budget.senate.gov/democratic/public/index.cfm/repairing-our-infrastructure \ http://www.infrastructurereportcard.org/ )

Our toxic/hazardous waste system, estimated at this time to need $300 billion to cleanup. https://www.epa.gov/superfund )

Most people agree that it will take a lot of money to improve or fix our brokenness. The one system that impacts all the others is the money system: we currently use a privately owned central bank, the Federal Reserve, which is not Federal, nor does it have a reserve. The "Fed" along with the private banking system has a monopoly on creating almost all our money. To me, the crime in this is that all the banking system has to do to control us is to wait until we are desperate enough to go deeper into debt, and they continue to profit on our hardship. 

I think President Lincoln had the right idea when he bypassed the banks with the Legal Tender Act of 1862. He needed money to win the Civil War, and the banks wanted to charge him over 25% interest. His advisor, Edmund Dick Taylor made this recommendation.

On 16 January 1862, Taylor met privately with President Abraham Lincoln at his request. Taylor suggested the issuance of treasury notes bearing no interest and printed on the best banking paper. Taylor said "Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes... and pay your soldiers with them and go ahead and win your war with them also. If you make them full legal tender... they will have the full sanction of the government and be just as good as any money; as Congress is given the express right by the Constitution." 
—https://en.wikipedia.org/wiki/Edmund_Dick_Taylor

This money was called United States Notes, later called Greenbacks, and was created debt-free by the Treasury. It existed until about 1996, which gave the USA a dual currency system: the Federal Reserve system that perpetually keeps us in debt, and the US Notes, which had the potential to get us out of debt if Congress had expanded their use. 

Current status according to the Treasury: https://www.treasury.gov/resource-center/faqs/Currency/Pages/legal-tender.aspx

It is also interesting to note that around $400 million US notes were printed, and about $240 million are still outstanding—where could they be? Here is the Treasury report, broken down into each denomination of dollars, the current bulletin issue: https://www.fiscal.treasury.gov/fsreports/rpt/treasBulletin/treasBulletin_home.htm

Our needs are so great, and the bankers are watching as we sink lower, maybe it's time to bring back the greenback?