Historic Kucinich bill to reform U.S. monetary system
[Extracted from a posting in the UnderstandingMoney email network]
On September 21, 2011, U.S. Representative Dennis Kucinich introduced a Bill in Congress to reform the U.S. monetary system. The details can be seen at http://kucinich.house.gov/UploadedFiles/NEED_Act_FINAL_112th.pdf.
The following are some of the highlights of the proposed Act:
- An end to fractional reserve banking and the Federal Reserve.
- A Monetary Authority created under the Secretary of Treasury, with quasi independence.
- No borrowing by the government. All money spent into circulation.
- “The Monetary Authority shall pursue a monetary policy based on the governing principle that the supply of money in circulation should not become inflationary nor deflationary in and of itself, but will be sufficient to allow goods and services to move freely in trade in a balanced manner.”
- All deposits in depository institutions treated as transaction money and earn no interest. Lending involves transfer of actual deposits, with a maximum interest rate of 8%.
Media release from Dennis Kucinich:
Kucinich Proposes Landmark Jobs Plan Bill To Put 7 Million Americans Back to Work, Rebuild Infrastructure WASHINGTON – September 21 – As the nation struggles to deal with long-term unemployment at rates not seen in generations and as infrastructure crumbles across the nation, Congressman Kucinich (D-OH) today introduced a dramatic new proposal to address our structural economic problems directly by creating over 7 million jobs.
The National Emergency Employment Defense (NEED) Act of 2011 would allow the federal government to directly fund badly-needed infrastructure repairs and fund education systems nationwide by spending money into circulation without increasing the national debt or causing inflation.
“Today, nearly 25 million Americans are either unemployed or cannot find a job on which they can live and support their families. FDR‘s response to such circumstances was the New Deal. Today, we need similarly bold solutions,” said Kucinich. “We need a solution that will revive our economy in a sustainable way that will put millions of American back to work.”
―There should be work for those who are able to work. Government must become the employer of last resort. The private sector is not providing the jobs. When the private sector fails to provide the jobs, the government has a moral responsibility and a practical responsibility to step forward to put the country back to work.
―The ability to coin money is an inherent power under Article I, Section 8 of the United States Constitution. The NEED Act would control inflation because it will enable the government to invest in America by creating infrastructure, which is real wealth. Inflation is caused when new money is created without the creation of new wealth,‖ explained Kucinich.
The proposal would also establish fiscal integrity, reassert Congressional sovereignty and regain control of monetary policy from private banks.