FAQ

Q: Is the Federal Reserve part of the US government?

A: No. The Federal Reserve is a private bank as has been put forth by much research as well as decisions coming from the Supreme Court of the US.

 

Q: Can we solve the debt problem by balancing the budget?

A: No. The budget deficit is NOT the cause of the national debt and therefor changing the budget will not end the debt and expectations that the budget can even reduce the debt more than temporarily is to ignore the dynamics of money, as it's currently designed, and population growth. The CAUSE of the debt is the source of the nation's currency, but budget deficits DO exacerbate an already bad situation. The budget deficit determines how fast the nation's debt grows, but one should first ask why the nation is even $1 in debt before asking why it's $18 trillion in debt. The budget deficit also doesn't cause new debt money to be generated except when the government sells bonds to the Federal Reserve Bank (private bank) to cause reserves to be increased.

The bond game, or mill game as we like to call it, is the government's process of reborrowing repeatedly, essentially without repaying, money that's already circulating (created as debt money to individuals and corporations via fractional reserve lending), and then spending that reborrowed money back into the stream so it can be borrowed again just like a backwards mill would scoop water out, use it, and then put it back. Each time it reborrows the money it adds a new sum to the national debt. We can also call this process "insanity".

That being said, the budget is very important because in it lies our nation's priorities and unwritten goals and that topic will be covered at some point in the near future.

 

Q: Is fiat currency a bad thing that only leads to inflation and problems?

A: No. Absolutely not! Improper regulation of a fiat currency can and likely will lead to such things, but a properly designed, distributed, and regulated currency is likely THE best option for any sovereign nation or locality. Many examples of very successful fiat currencies can be found thoughout history, including the tally stick, the worgl experiment, Guernsey, and others. The colonial scrip and greenback as well. While properly regulated, these currencies all performed their intended tasks and performed them well. The town of Worgl is probably the best example. In the middle of the Great Depression, this town thrived, had no inflation, and accomplished much. Their downfall came when the national bank got involved and shut them down.

The US should and must have a well-regulated, constitutional, debt free, sovereign currency, and the nation must allow cities and towns within its borders to utilize their own locally-sovereign, supplementary currencies good for trade within their city/town limits.

 

Q: Won't this ruin our position in international trade and remove the dollar from the equation?

A: No. The US dollar's value is now controlled by the bankers who run most nation's currencies. This doesn't strengthen the dollar, it ensures the dollar is always standing on a carpet being held onto by the bankers who can pull that carpet from under us at any time they wish.

We are not advocating an elimination of the dollar. We're advocating a replacement of the current debt dollars with what can be termed credit dollars. US Notes were issued as bills of credit, not as IOU's.

Also note, that the US currency (i.e. the dollar), or the currency of ANY nation, was never supposed to serve as an international currency. It's supposed to serve and support and facilitate trade within our borders. A well regulated, properly supplied and distributed currency, concurrently with properly designed and implemented local economic tools and models, will bring about a renaissance in this nation the likes of which has never been seen before, and it will bring about a much stronger USA.

 

Q: I'm still having trouble understanding how that will come about. Will there need to be a bill passed by Congress to do this?

A: Yes, there will probably need to be at least one bill passed and definitely at least one revoked. The Federal Reserve Act will need to be revoked. There already is a credit based legal tender on the books, the United States Note, but it is not used. It is possible, I believe, that we can simply start using that. It would be my preference (Scott Keller), to have that currency at least slightly redesigned to include an expiration date to encourage its circulation. Not exactly sure how that expiration date would be done, so we'd need to get some people on board that are good with that kind of thinking to lay out details.

It is possible, if we can find a congressman to help introduce it, to start writing a bill NOW and get it introduced to the House, that will make the shift.
 
To make a change to the national currency, this movement of ours will need to grow much larger than it is now, but after 2 1/2 months I'd say we're not doing too bad and we do seem to be accelerating. The more people get involved, the faster that will happen. We need to have a local group formed in every district in the US to be most effective.
 
BUT!!!
 
On a LOCAL & STATE level, we can NEUTRALIZE the debt much faster and easier than we can stop it and end it nationally.
 
To neutralize it, all we really NEED to do is get a supplementary local currency created that is officially recognized and accepted by the local government for things like taxes and utility payments, etc. If we add to that a set of local co-ops, it would be a 1-2 punch that would knock out financial difficulties completely on a local level. Almost every local need can be handled in this manner and it wouldn't matter much how the rest of the country is doing. But if MANY cities and towns follow suit, the Federal Reserve Bankers would be largely de-fanged.
 
Isn't the Federal Reserve a government agency? After all there is the board of governors and the chairman is appointed by the President:
 
Answer:
 
No. The Federal Reserve is a private institution, completely independent of any and all government agencies and branches. Its regional branches are owned by shareholder/member banks and Congress is repeatedly on video complaining that Congress has no control whatsoever over the actions and inner workings of the Fed.
In fact, there are specific threats on video by various Fed chairmen against the economy of the US if there is any "meddling" attempted by Congress into the "affairs of the Federal Reserve".
 
From Quora, 2/26/2016: Claims/Questions:
  1. Unlike the states, counties, cities, businesses and people, the U.S. is Monetarily Sovereign ( –Monetary Sovereignty: The key to understanding economics )
  2. The federal government cannot run short of its own sovereign currency
  3. The federal government's so-called debt never has been unsustainable.
  4. For 75 years, debt-worriers repeatedly have made claims about disaster, claims that never have materialized in the history of America.
  5. Every depression in U.S. history, and most recessions, have been introduced by deficit growth reductions. Every depression and all recessions have been cured with deficit growth increases. (–To understand economics, you must understand Monetary Sovereignty. Most economists and politicians don’t. )
  6. Reductions in federal deficit spending have far greater negative impacts on the middle- and lower-income groups (the 99%) than on the rich (the 1%)
  7. Thus, those who plead for debt reduction are doing the dirty work of the rich by pleading for an ever widening gap (–The Gap, the whole Gap and nothing but the Gap . . . so help me . . .. ) between the rich and the rest.
That is the truth and those are the facts. I have given you everything you need in order to learn.
Now tell me again.
  1. Specifically, what are your claims? Is the federal debt unsustainable? At what level?
  2. What are your supporting facts?
  3. What are the differences between Monetary Sovereignty and monetary non-sovereignty.
 
Response:
  1. Monetary sovereignty of a nation means that the government of that nation creates the currency. That is not the case in the US. EVEN IF, we assume that the Federal Reserve itself is a government agency, which it is not, there is still the issue of 97% of the currency in circulation in the US that has been created via fractional reserve lending via private member banks. The US is NOT sovereign and does NOT have a sovereign currency beyond coins.
  2. The US doesn't have a sovereign currency, therefor your #2 is nonsensical.
  3. The US debt is increasing exponentially. The only reason people are even noticing now is the enormous size it has grown to. Money itself, or even debt, by itself is not unsustainable. What's unsustainable is the destruction of natural resources that is required to keep up with the escalating public debt that is required to sustain the system in its current form.
  4. For x number of years, 75 or whatever, people have been warning about the consequences of the above. Absolutely. And the warning is starting to show true in the steady growth in the division and decline being seen across the country, especially in big cities like Detroit.
  5. Every depression and recession is caused by one thing, and one thing only. The contraction in the money supply available to those who conduct trade (or would conduct trade if the money supply was available). Hording by banks and the investor class, and the contraction of debt issuance, is at the heart of it. It is a well circulated fact that bankers are the ones who cause the panics, the recessions, the depressions, and every other economic calamity.
  6. Deficit spending is a requirement in a sovereign nation with a sovereign currency since it is how currency gets into circulation. That currency enters circulation via banks, on the terms of the banks, requires the government to borrow what it otherwise would have created. Most government debt is accumulated in the sale of bonds to the public, not to the Fed, including to foreign nations like China which print their own money, exchange it for USD's, and then use those USD's to buy bonds. This is in effect accumulating a SECOND layer of debt as they are accumulating debt by borrowing from what is already a river of debt.
  7. Debt reduction is in effect a removal of currency from circulation in the existing system. There is only one way to eliminate the debt without ill effects and that is to replace the bankers' money with sovereign debt free currency as per the Constitution.
  8. Monetary NON-sovereignty is what we have now. We don't have even a fiat currency as the government doesn't create it. Banks do. The BANKS are what's sovereign in this nation. Many congressmen are on video testifying to the fact that Congress not only doesn't create the money, but they have absolutely no control over its issuance and any attempts by Congress to reign in the Fed are met with threats by the Fed chairman him/herself.
 
 
 
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