C o m m o n S e n s e
“Why should there not be a patient confidence in the ultimate justice of the people? Is there any better, or equal, hope in the world?”
Abraham Lincoln, First Inaugural Address, March 4, 1861
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THE NORTH COUNTRY RESOLUTION
* PUBLIC MONEY (at its actual cost) FOR PUBLIC WORKS *
The cornerstone for getting our “House”/Infra-structure in order.
To determine whether the town/city of ________will vote to fund their next duly authorized public works project publicly, that is at the actual cost of the funds, which we anticipate as being less than 1%. The town treasurer is authorized, with the approval of the Board of Selectmen/City Council, to borrow public money by accessing our national credit through our local banking institutions.
“The government [on behalf of We the People, not the central bank or private member banks] should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of the consumers. The privilege of creating and issuing money is not only the supreme prerogative of government [United States Constitution, Article 1, Section 8, paragraph 5], but it is the government’s greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium [of exchange] will be satisfied. The taxpayers will be saved immense sums of interest. The financing of all public enterprises, and the conduct of the Treasury will become matters of practical administration. Money will cease to be master and become the servant of humanity.”
~ Abraham Lincoln, Senate Doc. 23, 76th Congress.
Explanation of Terms:
1) National credit is the money that is created by our central bank, the Federal Reserve System. This money is the monetary representation, or account, of the productive capacities of the citizens of a nation as a whole. As individual citizens are more or less productive, so it is with nations. An industrious nation has more national credit than a less industrious nation. In a landmark speech on February 6, 2013, Adair Turner, chairman of Britain’s Financial Services Authority, broke the existing taboo in recommending that just such national credit, public money, be made available to the nation at large. Turner is considered one of the most influential financial policy makers in the world. His 75 page recommendation explains how the extension of such credit would solve our economic woes globally without causing hyperinflation.
2) At Cost: We anticipate that the actual cost of the funds for public works projects will, as noted, be less than 1%. This is because of the way the system currently works. Movements of funds between the Fed and its member community banks occur daily, with but the strokes of a few keys on the computer: electronic transfers. To date our national credit has been made available to the major private banks, corporations, and financial institutions, both national and international. Specifically, following the credit crisis of 2008, the Fed provided over 16 trillion dollars in liquidity, short-term loans and other financial “arrangements” to banks, multinational corporations, and foreign financial institutions. In comparison, the collective budget deficit of the United States of America for 2011 was projected at a mere $140 billion.
In the face of such monumental imbalances, the Resolution proposes that our national (public) credit also be made available to our nation, public communities. This would occur once the funding has been approved by both the citizens and officials of the community, the People. The Fed would, as expressed, merely push a few keys on the computer, and the money is immediately credited to the community’s account in the Fed’s local member or affiliate bank.
The rationale for such public spending was presented by Mark Blyth and Eric Lonergan in an article in Foreign Affairs (Sept./Oct. 2014), “Print Less But Transfer More: Why Central Banks Should Give Money Directly To The People.”
3) Loans not Hand-Outs: The North Country Resolution does not call for “hand-outs”. Rather, it calls for loans, at their actual cost, which will be paid back. The resolution, itself, does not seek to change our current system. It simply offers our local communities the same access to our national/public credit that the Fed offers the major private banks.
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