THE AMERICAN ECONOMY

There is the usual buzz about things "picking up" in

December, 2013, as there has been since America "came out of the recession" in 2009. Certainly, there are prospering areas of the economy. That is automatic, as the Federal Reserve set as its singular goal the rescue of the great banks. After years of borrowing at almost zero interest and investing in conservative debt instruments at higher interest, the banks have healed nicely.

In turn they extend credit to a coterie of privileged borrowers among the strongest international corporations, becoming still wealthier. The recipient corporations can increase their activity, helping a coterie of lesser corporations increase their business and bottom lines.

However, since the world has been shaped by bankers and corporate magnates into one that is dependent on masses of people buying things, the relative economic health of the world depends on people who have disposable credits to buy things. The people generally don't have much money to buy things, so they will not buy much.

In the world constructed by the bankers, money is overwhelmingly the product of debt. A Federal Reserve Note is a debt instrument, which is different from others in that bankers have rigged it so that it only promises to pay in its own kind at par. There is a hidden interests which becomes part of the national debt. The FRN dollars are exchangeable credits which can be used to discharge a given obligation in the form of the price of an item. In this they are similar to bearer bonds, which is a form of debt invented by the Rothschilds around the mid-Nineteenth Century. The equality of FRN dollars and the price of the good create the potential exchange. One does not have to buy.

If one does not have the requisite FRN dollars, then one will certainly not buy the item.

It is this difficulty that keeps the economy sluggish. Eventually, the huge amount of bank money will create a "cash is trash" mentality, as its trickle increases into a flood.

However, with job-creation primarily in low-paying service jobs, the "rainy season" is not in sight.

Incidentally, by merely changing the manner in which money enters the economy, the nation could be spared the Fed's "scientific management of money."

If a body of skilled money technicians within an agency within the Treasury issued interest-free money and monitored its aggregates, then the beginning of the end of banker tyranny would be at hand. Congress would legislate the usage of certain excise taxes, while doing away with the income tax altogether. It would provide a limited delegation of taxing power to the agency within the Treasury. Using money creation and money extinction (excise taxes) mechanisms, it could create a vibrant economy which yearly would include less debt.

Working with this agency within the Treasury would be other associate agencies to invest in start-up businesses, in homes and other real estate, in infrastructural construction, etc. In this way the national government would be partnering with entrepreneurs and home-buyers, while offering to each partner a "rent-to-buy" sort of mechanism whereby the government is repaid fairly (no interest) for its funding of the project.

Admittedly, this process would greatly increase the national money and asset values. These should be increased as a natural function of growth. There is a scarcity of money in the economy. It is bankers and their allies who want money to be scare, as the buying power of their own money goes up in scarcity.

Working people have always wanted more money available, because they are the ones who suffer from scarcity. Rich people rarely believed that any working person should have anything other than a subsistence wage. (Witness the relentless chiseling of "help"). However, less august businessmen know that their products won't sell, if ordinary people cannot earn enough to buy them.

If a government serves the people, it has to inject the money - the life-blood of the economy - through non-usurious means, into projects that are useful, needed and/or require maintenance. 

Further, no business or government unit would pay for health insurance, medical requirements or retirement pensions. All of that would be paid by the government. This money would circulate freely in the economy, and it would be spent mostly on goods and services.

If a wholesome equilibrium was threatened, then the agency within the Treasury would place user excise taxes on various things, drawing out of the economy the unwanted liquidity.

For example, a user tax on every bridge in America might exist as a routine tax. Every license plate would bear an individual code that was readable by adjacent scanners. A tax record would be maintained in a central location. A portion of the fees would be shared with the State involved upon collection.

If the Treasury established national banks across the nation and if each citizen was issued a checking account (no savings, as no usury paid) and if these were all linked by a central computer, the collection and paying of funds between government and citizen, citizen and citizen, business and citizen, and government and business could be handled in a very rational manner. No longer would banks be gouging the very people who put money in them as deposits.

This is but a sketch of the correct approach. I've written on this subject for years. President Obama always had the potential to change America, but could not summons the courage.

The salvation of America awaits a great man who will implement these and associated changes to restore the nation, healing it from the injuries it has suffered at the hands of those who would sell it for pottage.