posted on Jul, 26 2012 @ 12:40 AM
While discussing politics and history with my son, it occurred to me that we have the power to tackle 3 huge problems with one simple solution. Let me
lay a little groundwork first.....
Beginning in 1933, through executive orders and through laws passed by Congress, Franklin Roosevelt initiated the New Deal which includes the 13
For simplicity's sake, let's consider only 2 of them for now:
1) Civil Works Administration (CWA). The CWA provided relief for the unemployed. It hired laborers for temporary construction projects like roads
and bridges sponsored by the federal government.
2) Civilian Conservation Corps (CCC). The CCC also provided relief for the unemployed. It employed young people on projects on federal lands and
paid their families a monthly sum.
Using such programs today would certainly reduce unemployment while allowing us to repair road and bridges, build and update water treatment plants,
update the nation's electric grid, build oil and gas pipelines, and many other sorely needed improvements.
You will probably ask "How do we pay for this?"
For that answer, go back exactly 150 years to 1862. During the Civil War, the U.S. Treasury issued paper notes commonly called "Greenbacks".
Without borrowing from a central bank (or ANY bank for that matter), Greenbacks were issued directly into circulation to pay the troops and to pay for
other expenses incurred by the Union. Congress was careful not to flood the market with Greenbacks, and after the war, business began to return to
Greenbacks continued being printed until 1871 and were widely circulated until 1913..... even through "The Crime of 1873" (the return to the gold
standard) and through William Jennings Bryan's failed push for "free silver" in 1896 and the 1900 presidential campaigns. Greenbacks did not
disappear until 1913 with the selling of America to The Federal Reserve Bank.
Now that I've set the stage, I would propose that the U.S. Treasury issue and control a New Greenback!
The job of Congess would be to approve programs rebuilding our nation's infrastructure, and pay for these programs with the New Greenbacks. This
action would not increase our national debt and would provide much-needed jobs, without the "help" of the Federal Reserve Bank.
These new jobs would create income that would flow to all sectors of society, and increase tax revenues as a result. With careful spending, Congress
could use the increased revenues to slowly "retire" Federal Reserve Notes until eventually, the Federal Reserve Bank will wither and die.
By GRADUALLY retiring Federal Reserve Notes, the "shock factor" to our economy would be minimized.
The major obstacles will be forcing Congress to issue New Greenbacks carefully and to approve work programs prudently. We have to stop wasteful
spending and living beyond our means. Congress must not be allowed to borrow, and fractional lending must end!