The first 32 minutes of this video from Claremont Colleges’ Center for Process Studies’ conference, “Money-Creation in a Finite World,” is Professor Timothy Canova’s presentation to explain how the Federal Reserve can be governed away from its captured status to redirect trillions of dollars in annual benefits for Americans (recent paper here). Note: the bottom-right of the video has screen options to switch screen-in-screen and full-screen options; the remainder of the video is panel and audience discussion.
The 99% must achieve factual command of the basic facts how money and credit are created, or else continue their debt-damned existence under an oligarchic and Robber Baron-era structure.
Monetary and credit reform can be understood with three simple areas of facts that are taught in basic economics and easily verified:
- The US does not have a money supply; we have its Orwellian opposite as a debt supply. This is because the US leading banks won legal right through passage of the 1913 Federal Reserve Act to have private banks and the Fed create debt for what we use as money, and then charge the 99% for its use.
- The policy choice of a debt supply compounded with interest causes ever-increasing aggregate debt that can never be repaid. It can’t be repaid because this is what we use for money. The US national debt now pushing $16 trillion has a gross annual interest payment over $400 billion a year; ~$4,000 per US family of $50,000 annual income (if your household earns $100,000, then your gross annual interest payment is ~$8,000 every year).
- Monetary reform creates debt-free money that extinguishes the debt (details here), and allows government to become employer of last resort for infrastructure investment (hard and soft). This creates full-employment, optimal infrastructure, and falling prices because infrastructure historically creates more value to the economy than cost. Credit reform allows for public loans (interest directly pays for public goods/services) as another monetary tool for stable money supply.
Obviously, monetary and credit reform benefits 100% of humanity because it guarantees full employment, optimal infrastructure, and no government debt/interest cost. The current parasitic system benefits a 1% banking oligarchy that causes cyclical unemployment and poverty, decays infrastructure (especially as debt and interest costs accelerate as they do today), and enslaves the 99% to permanent and escalating debt.
Americans cannot be responsible citizens without understanding this fundamental structure of money.
Professor Tim Canova is the Betty Hutton Williams Professor of International Economic Law and co-director of the Center for Global Law & Development at the Chapman University School of Law in Orange, California. He previously served as the law school’s associate dean for academic affairs.
Tim’s research crosses the disciplines of law, public finance, economics, and history. He was an early critic of financial deregulation and warned of the dangers of the bubble economy. He has authored more than two dozen articles and book chapters, including articles in the Harvard Law & Policy Review, American Journal of Economics and Sociology, Brooklyn Law Review, Georgetown Journal of Law & Public Policy, and UC Davis Law Review.