Re-issue debt-free United States Notes

Greenbacker Money: debt-free United States Notes that Congress is empowered to create anytime, for any reason, and DID create under Lincoln ($450 million) to defeat the South under the Civil War. This money would not have to be borrowed, taxed to raise, or backed by gold. It need not be inflationary if dedicated towards those areas of society that are actually in deflation, such as Infrastructure. It is, as Max Keiser put it to me, a "Public Option for Money." Congress can authorize new U.S. Notes anytime, for any reason, in any amount. Perhaps $4 trillion, spread over 10 years, should be directed towards infrastructure, to start.
Read more here: US Notes

Check out Dennis Kucinich's NEED act. It would nationalize the fed, abolish the fractional reserve banking system (privately owned banks creating our money supply by loaning it into existence) and creating debt-free government issued currency (just like greenbacks) by having Congress spend it into existence through massive public works and infrastructure programs.

oregonstu wrote:Check out Dennis Kucinich's NEED act. It would nationalize the fed, abolish the fractional reserve banking system (privately owned banks creating our money supply by loaning it into existence) and creating debt-free government issued currency (just like greenbacks) by having Congress spend it into existence through massive public works and infrastructure programs.

Yes, I'm aware of that, and have seen Zarlenga speak about it.
The problem I have with that is it centralizes all the money creation, which has Soviet-style central planning implications. With pure Greenbacking, you can have both private and public money-creation, and it'll probably be politically easier to pass. Of course, neither solution is being seriously considered in Washington. That's where the 99% comes in...

The idea of the NEED act to have minimal change from the present system. It doesn't necessarily ban private currencies-it just doesn't legalize or regulate them. I doubt Dennis or Zarlenga would want a heavy handed ban on stuff like bitcoin(I haven't spoken with either of them on that point though).

One big question: what currency will the government accept for payment of taxes and fines? That alone would justify maintaining something like the fed.

the big inherent issue I see:
Right now the fed pays something like $50 Billion per year into the treasury-but must print $500 Billion/year just to expand the money supply to keep up with growth of the US GDP. Zarlenga thinks the money supply can be expanded faster than that if the money is carefully spent into circulation. I'm cautious on that point. Right now, what the fed does is give banks preferential access to credit. Weaning the banks away from that will be _HARD_.