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Congress has the constitutional power to coin (create) new "legal tender money" - why doesn't it use this tremendous power?? Congress can create this new "legal tender money" backed by our country's excellent historic credibility and its tremendous wealth (not gold or silver). It can then give this money directly to the US Treasury to pay our government's bills without going through the Federal Reserve System which just creates more national debt (this system has been a multi trillion dollar debt disaster).
Article 1, Section 8 of the U.S. Constitution says - Congress shall have the power to "coin" (create) money and regulate thereof.
("coin" as a verb means to "create" - to "coin" a new original phrase means to "create" a new original phrase. The same goes for the creation of money.)
We must stop depending so much on tax revenue to run the government and let Congress create enough new money to run the economy properly. We can also begin to pay off the debt created under the Federal Reserve System.
As long as the GDP wealth and dollar remain strong there is little danger of inflation in monetizing this wealth. Maintaining the proper strength of dollar is essential to controlling inflation. Give everybody a substantial tax cut and make up the difference in lost tax revenue by creating "United States Notes" dollars only. Let Congress authorize no debt "United States Notes" as our legal tender and stop printing "Federal Reserve Notes" as legal tender. Monetize the tremendous wealth of the U.S. with "United States Notes" (no debt dollars).
We are the richest nation in the world ($80 trillion dollars total wealth , $17 trillion annual GDP wealth) we've got to modify or get rid of the Federal Reserve System - its killing our nation with massive debt ($18 trillion in debt and rising) plus a flock of resessions and major depressions. Its a bad system letting our country be run by bankers. We've got to monetize our wealth by stopping the issuing of "Federal Reserve Notes", instead and only issue tax free "United States Notes".
The "United States Notes" are issued directly to the Treasury to pay the government's bills.
As long as the GDP wealth and dollar remain strong there is no danger of inflation in monetizing this wealth without creating more national debt. Maintaining the proper strength of dollar is all that is required. Right now the U.S. has two types of fiat dollars. Both are "legal tender money" and valid and backed by the wealth of our nation. Using the Federal Reserve s
System the U.S. has run up trillions of dollars of unnecessary debt. The treasury bonds must be redeemed with interest. The brokers who sell these bonds profit greatly!!
Fiat money is not redeemable by the U.S. nor backed by gold or silver - it is legal tender of our country and backed by the entire wealth and credit of the U.S.A. All American products, businesses, workers' labor, etc. are for sale in exchange for the dollar IOUs. Americans stand ready to exchange their products, services, labor, food, businesses, stocks and bonds, real estate, etc. in exchange for the American dollar. America is for sale (at the right price)!!
The U.S. has two types of legal tender money. The "United States Notes" are issued directly by the Treasury to the public create no Federal debt. By using the Federal Reserve Notes the U.S. has run up trillions of dollars of unnecessary debt and made the dealers who sell these Treasuries to the public tremendously wealthy.
Why can't we use the "United States Notes" to pay for our infrastructure, etc. and doesn't add to the deficit instead of "Federal Reserve notes" which adds to the multi trillion dollar national debt which must be redeemed with interest. The Federal Reserve system has been disaster for the US - but not for the bankers - they love it.
The US Treasury Department explains the following reason for printing Federal Reserve Notes instead of
United States Notes.
The US Treasury Department says: "United States Notes" (characterized by a red seal and serial number),
originally issued in 1862, were the first National currency. Federal Reserve Notes were not issued until
the creation of the Federal Reserve System in 1913. Both types of notes were redeemable in gold until 1933,
when the United States abandoned the gold standard.
Since then, both currencies have served essentially
the same purpose, and have had the same value. Because United States Notes serve no function that is not already adequately served by Federal Reserve Notes, their issuance was discontinued, and none have been placed into circulation since January 1, 1971.
!NO FUNCTION??? A BIG LIE!! "The Federal Reserve notes" are DEBT DOLLARS that put the U.S. in over $18 trillion dollars in debt and rising (a total disaster) whereas the "United States Notes" would create NO DEBT for the USA. Congress has the Constitutional power to create money and put into circulation without using the Federal Reserve System . Something fishy is going on here!! WHY DO WE HAVE ALL THIS UNECESSARY FEDERAL DEBT HANGING OVER OUR HEADS???
Both the the "United States Notes" and the "Federal Reserve Notes" are legal tender money, both are still valid and have equal value. But they are not the same. U.S.notes are backed by the total wealth and credibility of the USA and are not redeemable by the government. The "Federal Reserve Notes" are debt notes and must be repaid with interest.
Our congress has the constitutional power to create as much money ("United States Notes" dollars)
as the country needs to pay its bills and commitments (WITHOUT CREATING DEBT) as long as the "legal tender dollars" are backed by the good credit and wealth of our country.
America's tremendous wealth is a product of the partnership of government with the capitalists. The government creates the opportunities and infastructure for the capitalists. From the hard work of small
farmers eking out a living to the large corporations creating trillions of dollars of wealth, together they create the total wealth of our nation. Capitalism is the life blood of our country BUT must be controlled and regulated so they won't run amok.
This why communism failed! The communists either stifled or killed their capitalists. Without the
capitalists their economic system was doomed! China has finally figured this out after watching the
Hong Kong capitalist system soar and has adopted a capitalist economic system.
As long as our nation maintains its tremendous wealth it can issue as many of "United States Notes" as
it needs to pay its bills without using the Federal reserve system and thereby creating more debt. This wealth can be used to pay for whatever are the needs of the country (infrastructure, defense, tax cuts,
health care, etc..)
The wealth created is a product of the; capitalists, the workers and the government that creates the
opportunities for the capitalists to use. The creation of more wealth is made possible by the capitalist
taking advantage of an opportunity to create something of value and alot of hard work and imagination.
The USA is a land of opportunity for these capitalists!
Under our present Federal Reserve system economists generally agree that large budget deficits with rising
government debt are bad for the economy. The Democrats have proposed a mix of spending cuts and increased
revenue in the form of higher taxes on the wealthy while the Republicans have rejected raising taxes and
want to achieve deficit reductions through spending cuts and reform the large "entitlement" programs of
Social Security and Medicare.
I say neither solution is any good. The excess wealth created by our capitalist's tremendous productivity
(rising GDP) should be invested in spending these billions of new dollars on any project that is needed
without creating more national debt is the way to go by using "United States Notes" rather then
"Federal Reserve Notes".
Since the foreign investors together own trillions of US dollars they want to keep the value of these dollar
investments as high as possible. It is in their interest to keep the value of the dollar high and stable.
Too much supply of dollars could cause high inflation with the value of the dollar depreciating for both
the foreign and domestic holders but we are far from this condition. Although gold is a solid very valuable
metal its supply is finite and it is only a commodity.
A lot of people thought the Yankee dollar was headed into the toilet because of the easy money supply but so far it has remained strong and is actually at the present time becoming too strong relative to other
currencies. Its only a piece of paper with some numbers (an IOU back by our government as its "legal tender"). It pays no interest but dollars are the legal tender of the USA and are accepted by law in all commercial and government transactions.
So where does the strength of the dollar come from? Dollars are simply IOUs authorized by the US Congress.
The constitution gave Congress the power to coin (create) them. When the Fed (Treasury) prints dollars they are actually printing IOUs. Dollars cannot be considered as government debt - they pay no interest and never
need to redeemed by the government.
US Dollar is the "legal tender" of the USA - instruments of trade used for commercial and government
transactions. This means we (the American people) are pledging under US law - all products, businesses,
workers' labor, etc. in exchange for the dollar. Americans stand ready to exchange their products, services,
labor, food, businesses, stocks and bonds, real estate etc. in exchange for the dollar IOUs.
US dollars are backed by the total wealth of the USA! America is for sale (at the right price)!! If the
Fed puts too many dollars in circulation then demand warrants, the dollars value may fall relative to the
value of other nations money. Apparently they have not done this because the dollar's value is not falling.
Our capitalists have created so much new wealth that our GDP is growing stronger every year
at the present time.
Although gold is a solid very valuable metal, its supply is limite and its value does vary. Back in 1980 its value fell from around $8oo dollars to about $200 in a steep decline. I doubt if there is enough gold in the world now to back the trillions of dollars circulating.
Since the Japanese and Chinese and oil producing countries together own trillions of US dollar IOUs they
want to keep the value of these dollar IOU investments as high as possible. It is in their interest to
keep the value of the dollar high and stable. If the IOU dollar holders start dumping their dollar IOUs
too fast their whole dollar investment would tumble, so why would they do that? If anything - they would
be delighted if the dollar's value increased.
Besides who would they dump them too?? As long as the US maintains its high credibility this will never happen. Most foreigners are happy to accept the American dollar IOUs because of their credibility value (its the reserve currency of the world). America is for sale - you can buy most everything with the dollar IOUs. The exchange rate with foreign currencies remains strong.
The foreign dollar holders get nervous when they think the Fed is printing too many dollars. This goes on all
over the world, the holders of large amounts of US dollars want to keep them as valuable and stable as
possible. The trouble with the dollars like gold is that they pay no interest. That is why when the
treasury bonds are put up for auction the dollar IOUs holders gobble them up even though they are paying
ridiculously low interest (the demand for these bonds is very high).
Under the Federal Reserve System the US treasury bonds are government debt and must be redeemed at maturity by the goverment plus interest ($18 trillion dollars and rising).
Donald Louis Hamilton - author of "The MIND of Mankind" and much more.
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