Tuesday, January 20, 2015

#14 A few lingering questions

From: http://www.monetary.org/intro-to-monetary-reform/faqs

Is there any chance the green US Money act could eliminate the federal income tax?

It “could,” and though that’s not likely in the near future, it is the direction it goes in. Thanks to the immense savings our government will experience through control over its money system, taxation should decline substantially for middle and lower income groups. In addition the green US Money act should directly lead to substantial reductions in interest rates, because as the US pays off its national debt in money rather than rolling it over, those receiving those payments will be looking for places to loan and invest those funds. Interest rates should drop substantially.


Won’t you be breaking the sanctity of contracts when you convert the existing bank credit already in circulation, into U.S. Money

No. First of all a contract requires understanding of the terms by all parties to it, and that certainly did not exist. But more likely it will be viewed as very acceptable by the banks, considering the security it confers on banking, especially when the alternative is going broke. There would be no reason to extend the legal tender privilege (acceptance for taxes) to the credits of any disagreeing banks.


How would the green US Money act affect our position with China?

The green US Money act would have a number of positive effects on Chinese – American Trade. Particularly it would encourage the Chinese to use more of their dollar earnings to really trade with us rather than just sell to us, and then invest their earnings in US bonds as at present.


What about other countries, and international systems such as the IMF (International Monetary Fund) and the BIS (Bank for International Settlements)? 

We’d expect other countries to follow quickly in our footsteps to each obtain the advantages of issuing their own national monies. The United Nations is already putting forward suggestions that member states shift now to nationally created, debt free; interest free moneys. They are way ahead of the US Congress just now.

A much reformed IMF, already organized under United Nations Article 57; #3, will see a greatly expanded role for the SDR and more responsibility for international accounts clearing as well as real assistance to member states, rather than acting as a destructive collection agent for the big banks. The role and importance of the BIS should be rapidly reduced, and perhaps eliminated.



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