GOP Budget Cut Battle Shows Party Health

Anyone who thinks cutting government spending is the answer to our economic problems does not know or understand our debt-based monetary and banking system. We have a severe debt problem because the federal government fails to exercise its sovereign authority to issue our nation’s money.

The failure is not new. This year is the two hundred years anniversary of a great constitutional battle with the banks, a battle started and lead by Thomas Jefferson and championed by, then President, James Madison. Congress refused to renew the charter of the first central bank of America on the grounds that the constitution gave the power and authority to issue the nation’s money to congress, not to a privately owned banking corporation.

On the topic of money creation, Jefferson wrote, "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

But we have not listened to Jefferson. The Federal Reserve and the banks that make up the monetary system are an assemblage of privately owned corporations that create 99.9% of our money as the principal of loans. Every dollar, with the exception of coins, is borrowed money, and it all must be repaid with interest. Since no one creates the interest, there is always an inherent shortage of money in our system. Furthermore, as we payoff debts without replacing them with new ones, we reduce the amount of money in the economy. If we paid off the national debt, the nation would have no money. The simple fact is, if there were no debt; there would be no money.

Only government can solve our economic problems. If our government issued our money as a public utility, we would not have a national debt, we would not pay a huge amount of our tax revenue to the banks as interest, we would not have a scarcity of money in our economy, we would not have to slash needed government services, or need an income tax.

BILL PARKS of MD 10:16PM January 25, 2011