Friday, October 03, 2008

Benjamin Franklin's Solution

by Dr. Ellen Brown:

Nationalization has traditionally had a bad name in the United States, but it could be an attractive alternative for the American people and our representative government as well. Turning bankrupt Wall Street banks into public institutions might allow the government to get out of the debt cyclone by undoing what got us into it. Instead of robbing Peter to pay Paul, flapping around in a sea of debt trying to stay afloat by creating more debt, the government could address the problem at its source: it could restore the right to create money to Congress, the public body to which that solemn duty was delegated under the Constitution.

The most brilliant banking model in our national history was established in the first half of the eighteenth century, in Benjamin Franklin's home province of Pennsylvania. The local government created its own bank, which issued money and lent it to farmers at a modest interest. The provincial government created enough extra money to cover the interest not created in the original loans, spending it into the economy on public services. The bank was publicly owned, and the bankers it employed were public servants. The interest generated on its loans was sufficient to fund the government without taxes; and because the newly issued money came back to the government, the result was not inflationary.7 The Pennsylvania banking scheme was a sensible and highly workable system that was a product of American ingenuity but that never got a chance to prove itself after the colonies became a nation. It was an ironic twist, since according to Benjamin Franklin and others, restoring the power to create their own currency was a chief reason the colonists fought for independence. The bankers' money-creating machine has had two centuries of empirical testing and has proven to be a failure. It is time the sovereign right to create money is taken from a private banking elite and restored to the American people to whom it properly belongs.

My nephew has lost $50,000. I know some of you are really hurting too, and it is not going to get better anytime soon. I wish I could tell you to save your money for the hard times to come, but we have only worthless fiat paper, with no fixed value!
It is difficult for Americans to come to grips with the fact that their total money supply is backed by nothing but debt, and it is even more mind boggling to visualize that, if everyone paid back all that was borrowed, there would be no money left in existence. That's right, there would not be one penny in circulation -- all coins and all paper currency would be returned to bank vaults -- and there would be not one dollar in any one's checking account. In short, all money would disappear.
Look I am not Moses, and I can't lead you to the land of milk and honey; and I can't keep sending Caren out to check on your little
boo-boos. Indeed, She has been G-d's gift to me, for without her encouraging support, I would have quit, and just drifted away long ago. We must all learn to help each other, and for a lucky few, this is a good time to be Jewish. For throughout history, no one thrives, and excels in the face of adversity, better than the Hebrews; when they all work together as one.

1 comment:

Liz Michael said...

The Revolution Has Started:
Attention: all you jack booted thugs and various bureaucratic and judicial tyrants. American patriots are going to kill the lot of you.

"How dare she say that", some of you say. Am I some sort of wild-eyed radical? Well, frankly, yes. In the tradition of the greatest President this or any country on earth has ever had, Thomas Jefferson. The tree of liberty, he said, must be watered with the blood of patriots and tyrants. Inevitably, you will kill some of us. But don’t fret: it’s our job to supply the blood of tyrants, and we will make sure you are not left out.
Whether you kill me, jail me, harass me, or whatever, it won’t make a bit of difference to what is going to happen to you. It will only increase your eventual misery, or create a new case for the tribunals. There are thousands if not millions of Mordecais and Esthers out there, waiting for the day you go on trial.