A Green Public Money Future
The crisis in our financial system makes it imperative that we restructure our monetary system. The present system of privatized money issuance and control has resulted in the misdirection of our financial resources to speculation, toxic financial instruments, and loans that create huge profits and wealth for the corporate few, but inadequate income and jobs for the common people.
It is both possible and necessary for Congress to take back its exclusive Constitutional power to create our money (Article1 Section 8) without the creation of debt, and assume the responsibility to spend this money directly into circulation to fund public benefits outlined in the Federal Budget. Only with a Public Money System can the government direct our national wealth to the needs of the people through their local and state governments. A Public Money System will enable millions of good livelihoods, provide sufficient incomes, shrink the debt burden and begin to close the wealth gap. Public money has not been issued since Greenbacks, introduced by President Lincoln in 1862, and circulating as public money until 1971.
To reverse the private control of issuing our nation’s money; to reverse the immoral and undeserved concentration of national wealth and income resulting from that private control; to place control over money within a more equitable public system of governmental checks and balances; and to end the regular recurrence of severe and disruptive financial crises that mark the Booms and Busts cycles of capitalism – the Green Party proposes the following three Public Money solutions to be enacted together:
- Nationalize the 12 Federal Reserve Banks and transfer administrative functions of the Federal Reserve Board of Governors to a Bureau of the U.S. Treasury.а All money created under the nationalized Federal Reserve System will be treated as publicly issued money. The private creation of money will cease and with it the reckless practices that have led to recurring economic crises.
- All new money will be issued as a debt-free, permanently circulating asset by the federal government. A new Public Monetary Authority will be established under the Department of Treasury to scientifically determine the amount of money that can be safely created for the national economy to avoid inflation or deflation. The Monetary Authority will be empowered with full autonomy and independence to avoid political influence.а Although banks will continue as financial intermediaries, lending publicly-issued money at interest, and performing traditional banking functions they will no longer be allowed to create money, ending what is known as fractional reserve banking. Specific guidance for a progressive publicly-controlled Monetary Authority can be found in a bill already entered into the U.S. Congress: H.R. 2990 Ч 112th Congress: National Emergency Employment Defense Act of 2011 (NEED Act).
- All new money will be spent into circulation by the U.S. Government as authorized by Congress for public purpose. This includes funding a 21st century infrastructure including education and health care. Per capita spending guidelines for new money will assure a fair distribution across the nation, creating good livelihoods, re-invigorating local economies and funding government at all levels. Newly-created money will also be distributed directly to state and local governments.
Source: Green Party