This plan is necessary for the following reasons A to D
A) The present system is in violation of the Constitution because it does not provide for Congress having the power to "coin money and regulate the value thereof" as specified at Article 1 / Section 8.
B) The present regulation of the money supply by the Federal Reserve System, a privately owned entity, costs the Federal Government and the taxpayers about 400 billion dollars interest every year.
C) The present system almost always results in an unbalanced federal budget.
D) The existing Federal Reserve System has no checks and balances. The Fed reports to Congress, but Congress does not have any practical power to control the Federal Reserve System in any way.
Goals of this plan
A) The proposed plan will balance the Federal Budget in all years after its implementation.
B) The proposed plan will provide for the checks and balances implied by the Constitution by putting all monetary functions in the hands of Congress or the Executive Branch of government, both of which are automatically subject to the checks and balances inherent in the Constitution.
INTRODUCTION: We are herewith considering (a) a Money System and (b) a Banking System; plus all necessary functions within those systems (billing, budgeting, taxing, auditing, bookkeeping, financial record keeping and any other monetary functions not mentioned here).
ELEMENTS OF THE PLAN:
1) Congress shall, as a matter of law, define the required functions of The Money System and assign those functions to either Congress or the Executive branch
2) Congress shall pass all laws necessary for controlling and managing the above mentioned systems and functions.
3) Congress shall see to it that a department or departments is/are set up, within Congress, to administer those laws set up in #2 above that are put under control of Congress.
4) The Executive Branch shall see to it that a department or departments is/are set up, within the executive branch, to administer those laws set up in #2 above that are put under control of executive branch.
5) Although the Constitution specifies the coining of money is clearly the responsibility of Congress -- such coining has always been done by the Treasury Department in accordance with the coinage act. That coining will remain under the Treasury.
6) All other functions now assigned by the Constitution shall stay under the control of Congress or the executive branch as specified by the Constitution.
7) At a minimum, a Department of Banking shall be established within the Banking System. That banking department shall administer the Banking System.
8) At a minimum, the laws shall specify (1) which department has the right to create money (2) a fractional reserve money system will be used in the Department of Banking.
9) Congress shall specify in the law, the auditing procedures for the two systems.
10) At a minimum, the systems set up under this plan will be subject to the checks and balances that naturally arise from following the Constitution.
11) None of the systems or functions that are set up under this plan shall be transferred or farmed out to any private entity, except as specifically provided for in the constitution.
12) In any event, the people have the right to start banks, number 11 above notwithstanding. The Constitution gives them that right.
13) The government's accounting shall use double-entry bookkeeping which tracks assets and liabilities as well as income and expense. In particular, governmnet expenditures for national infrastructure will not be counted as expenses immediately. Such expenditures will become bookkeeping "assets", each of which will be counted as expenses in accordance with a dedicated depreciation schedule. This system is the standard system used by almost all businesses.
Martin R. Carbone -- 9/06/2008
1 comment:
And onwards we go.
The present system is in violation of the Constitution, but not for the reason you stated.
The Federal Reserve is anything but private.
Putting the power to make money in the hands of the Executive Branch, which it effectively is now, will lead to even more inflation and unblanaced budget. Giving that power to the government was exactly how it all started.
The banking department you speak of already exists through the Fed and the Treasury, combined with a number of selected banks. Hence the term "financial-industrial complex".
This department would in your plan be allowed to create money. This is completely unconstitutional. You should at least decide whether or not you plan to obey the Constitution or dismiss it.
The Constitutional check on your banking department would be: "abolish it!"
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