In 2011, to address the failed US recovery, former Congressman Dennis Kucinich (D-Ohio) and Congressman John Conyers (D-Michigan) introduced HR2990, the National Emergency Employment Defense Act. The bill proposed to abolish the Federal Reserve system and end the ability of private banks to create money out of thin air.* If the bill had passed, it could have instantly ended all federal deficits and debt, while simultaneously providing trillions of dollars for vital infrastructure and restoring funding to states and local authorities for education, hospitals, clinics, housing, police, libraries and other programs cut after the 2008 economic crash.

The late Stephen Zarlenga, founder of the American Monetary Institute and co-author of the bill, always found it ironic that in 2008-2099 the US Treasury “printed” between $3-15 trillion of new money (aka quantitative easing) – as HR2990 proposes. However instead of spending this government-created money into the economy as HR2990 specifies, they handed it over to private banks. They in turn used it to pay obscene CEO salaries and to inflate their stock prices by buying back shares.

Among other provisions, of HR2990 would

  • Dismantle the Federal Reserve and transfer its powers to a new Monetary Authority operating under US Treasury oversight.
  • Replace all Federal Reserve notes with United States Money.
  • Instruct the Secretary of the Treasury to create United States Money to address any and all deficits resulting from a discrepancy between tax receipts and funds appropriated for government services.
  • Subject to criminal and civil penalties any person [ie banks] who creates or originates United States Money by lending against deposits through “fractional reserve banking.”
  • Prohibit borrowing by the Secretary or by any federal agency or department, independent establishment of the executive branch, or any other instrumentality of the United States (other than a national bank, federal savings association, or federal credit union) from any source other than the Secretary.
  • Require the Secretary to begin to pay off all outstanding US debt payment in full in United States Money.
  • Prescribe requirements for the entry of United States Money into circulation.
  • Require the Monetary Authority to instruct the Secretary to disperse monetary grants to states for public infrastructure, education, health care and rehabilitation, pensions, and paying for unfunded federal mandates.
  • Direct the Secretary to make recommendations to Congress for payment of a tax-free Citizens Dividend to all U.S. citizens residing in the United States in order to provide liquidity to the banking system at the commencement of this Act, before governmental infrastructure expenditures have had a chance to work into circulation.
  • Prescribe requirements for federal funding of education programs, coverage of any deficits in Social Security Trust Fund account, a universal health care plan, resolution of aspects of the mortgage crisis, and a program of interest-free lending of United States Money to state and local governmental entities.

As Kucinich points out in the preamble to his bill, Article 1 Section 8 of the US Constitution places the power to create money in Congress. In 1913, Congress made the foolhardy decision to delegate this bower to the Federal Reserve system and private banks. Predictably the latter operate the US monetary system (and money creation) in such a way as to their profits – and not for the benefit of the American people. The result has been increasing economic instability, skyrocketing income inequality and growing power of private banks, such as Goldman Sachs and JP Morgan – to the extent they virtually control our so-called democratic system of government.

More information on the American Monetary Institute at their website: http://www.monetary.org/

Link to HR2990: HR2990

In the video below, Kucinich** speaks about HR2990 on the floor of Congress in 2013.


*Contrary to popular belief, the government doesn’t create the dollars in circulation in the US. The vast majority is created by private banks out of thin air when they initiate loans. See How Banks Invent Money Out of Thin Air

**Like Bernie Sanders, Kucinich was more of an anti-coproratist than a Democrat. He opposed military intervention in Iraq, Libya, Syria and the Patriot Act. As a presidential candidate in 2004 and 2008 he called for single payer health care, free education (including pre-school and university), instant run-off voting, a moratorium on GMO crops, withdrawal from the WTO and NAFTA, ending the death penalty and the War on Drugs and lowering the voting age to 16. He collaborated with libertarian Republican Ron Paul on a number of bills and currently serves on the Ron Paul Institute advisory board. He lost his seat in 2013 after the Ohio state legislature re-districted his Congressional District out of existence.

Comments
  1. marblenecltr says:

    Great idea, but would it be legal to do something like that? Wait! Look at Article 1, Section 8 of the United States Constitution! Those guys were so smart! Repeat that last sentence applying to us today, and replace the word “smart” with “dumb.” Imagine, our not having to pay others for printing our money and then accepting it as a loan and having to pay interest on it. Bring it to a very basic level, and imagine working for another, getting paid for labor, services, goods, ow whatever, then taking your paycheck as an interest-bearing loan. Unfortunately, currency is neither backed by gold nor silver. That was taken away and replaced by the Rockefeller-friendly petrodollar. There is much damage to be repaired, but it should be done after much careful thought.

    • Marblenecltr, I suspect – as I mentioned on your blog – that the Federal Reserve Act was unconstitutional. There is nothing in the Constitution giving private bankers the right to issue our national currency.

      As for silver and gold – I have just finished Zarlenga’s book The Lost Science of Money (I plan to post a review tomorrow). He traces the history of money back 5,000 years and the most stable societies have occurred when money was assigned a fixed value by the government. When you base money on silver and gold, it’s too easy for rich merchants (and foreigners) to destroy your currency by manipulating its value through speculation. He also argues quite convincingly that this whole silver and gold thing is a mythology perpetuated by bankers for their own profit.

  2. marblenecltr says:

    Reblogged this on necltr and commented:
    Would it be Constitutional?

  3. Reblogged this on ashiftinconsciousness and commented:
    The Federal Reserve Act, deceptively passed under extremely shady circumstances by bankers and crooked politicians in the employ of John D. Rockefeller and J. P. Morgan in 1913, is one of the most oppressive pieces of legislation in U.S. history. Do your own research and be sure to use a variety of sources before assessing the validity of this stunning attack of economic terrorism by wealthy predators. The combination of manipulation by clever insiders and ignorant acceptance by obedient, dull-witted politicians is staggering by any standards. The true story would make an unbelievable movie. I’m reminded of a famous quote by Mark Twain: “Truth is stranger than fiction because fiction is obliged to stick to possibilities. Truth isn’t.”

    • marblenecltr says:

      It all took place under the presidency of that revered Democrat Woodrow Wilson. I believe his face is on the one hundred thousand dollar bill. Poverty has its privileges in that few people have to look at his face.

      • Yes, I know. Wilson was quite the class warrior. He also lied about entering the Great War during his reelection campaign. About a month after his second inauguration, the U.S. had forces in Europe.

    • Thanks for reblogging, ashiftinconsciousness. I would really like to see the Federal Reserve Act challenged in court. As I state above, I believe it’s unconstitutional.

      • It goes against the constitution because the right to print currency was given to Congress.

        However, the bankers and their co-conspirators in Congress held hearings on the “need” for a central bank to control fluctuations in the economy and were able to convince many in Congress to go along with them and to coerce others through intimidation. They also pulled the stunt of stating publicly they were going on a recess for Christmas and secretly went back in session with many members of Congress out of town. Of course, they were all members opposed to the Federal Reserve Act. They had just enough members in session to make it official, but kept enough dissenters in the dark to pass the bill.

        If more people knew what actually went down and knew the connections between Paul Warburg and the Rothchilds as well as Rockefeller and Morgan to many of the insider members of Congress, we’d have enough public support to put pressure on Congress to get an amendment passed to bypass it.

        People should read the following post for one source of what happened or research for themselves:

        https://ashiftinconsciousness.wordpress.com/2013/09/25/the-illusionists/

  4. “Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible government, to befoul the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of the day.”— Theodore Roosevelt, 26th President of the United States, Theodore Roosevelt, An Autobiography, 1913 (Appendix B)

  5. Great quote from Teddy Roosevelt, UZA. Thanks for reblogging.

  6. That’s a great quote, but often politicians say great things in public while colluding with evil people to make bad things happen knowing full well that most people will believe they were good guys and never understanding the evil actions they took.

    Woodrow Wilson once said, “The government, which was designed for the people, has got into the hands of the bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy.”

    Yet he signed the Federal Reserve Act into law in December 1913 knowing exactly what had transpired between Paul Warburg, an agent of the Rothschild Empire, John D. Rockefeller, Senator Nelson Aldrich (whose daughter married Rockefeller’s son John Jr., J.P. Morgan and other Wall Street insiders.

  7. […] book, by co-author of Congressman Dennis Kucinich’s HR 2990 to abolish the Federal Reserve (see HR2990: Historic Bill to Abolish the Federal Reserve), is one of the most amazing books I’ve ever read. At 775 pages, the lowest price I could find […]

  8. Alan Scott says:

    Sounds like a good plan! Let’s see if it happens 😉

  9. I think a number of people in the banking establishment realize at this point this is the only way capitalism can be saved. I think this is the main reason you see people like Michael Kumhof (formerly with the IMF and now with the Bank of England) running around promoting this concept:

    https://stuartjeannebramhall.com/2014/03/26/stripping-banks-of-their-power-to-issue-money/

  10. […] via HR 2990: Historic Bill to Abolish the Federal Reserve — The Most Revolutionary Act […]

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