Even a 12-Year Old Knows the Truth About Public Banking


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  • As a Canadian myself – I know we’re all victims of Capitalism.

    Capitalism is based on shear philosophy of loot – where the major shareholders of banking institutes take public money (deposit) against lower interest rates and then loan the same money (invest) to businesses and individuals against much higher interests rates to earn profits. The projectors of this system call it ‘the risk taking’ – that if banks’ investment suffer a loass – the depositor is still ensure of his/her ‘profit’ in the shape of interest. However, in practice it never happens that way. The bank loss is always covered by ‘low or no annual raise’ for the employees or some additional ‘service charges’ to the customers – or the banking institution declaring an outrght bankruptcy- which is usually put on the taxpayers’ shoulders – for the fear of more layoffs and thus increased unemployment – while the rich bank shareholders keep receiving their fat salaries and annual bonuses.


  • Bev

    State banks are a distraction from the greater good that a new Debt Free, Interest Free Public/Federal Government Money, a new monetary policy at the federal level could provide such as Greenbacks, such as Dennis Kucinich’s NEED Act HR 2990.

    You need money to fix serious problems. Money is the easiest thing in the world to create on a keyboard. That is all that is delaying our fixing terrible problems.


    Fukushima 2 is leaking

    Dear Friends,

    Please help protect the US, especially California, from a Chernobyl-like blast from the crippled Fukushima reactors. After reading the Reuters article dated May 12, 2012, which updates the conditions in reactor 1, please sign the petition to Senators Boxer and Feinstein if you haven’t already done so, and send out this message to your friends and contacts.

    :: sign the petition ::
    see below

    UPDATE 2-Fukushima reactor has a hole, leading to leakage
    Thu, May 12 2011

    * Water leaking from No. 1 reactor, complicating shutdown
    * Uncertain where radioactive water leaking -utility
    * Melted, collapsed fuel being cooled by water pumps (Updates with analysts’ comments)

    By Yoko Kubota and Scott DiSavino

    TOKYO/NEW YORK, May 12 (Reuters) – One of the reactors at Japan’s crippled Fukushima nuclear power plant has a hole in its main vessel following a meltdown of fuel rods, leading to a leakage of radioactive water, its operator said on Thursday.

    The disclosure by Tokyo Electric Power Co (TEPCO) (9501.T: Quote, Profile, Research, Stock Buzz) is the latest indication that the disaster was worse than previously disclosed, making it more difficult to stabilize the plant.

    The discovery of the leak provides new insight into the sequence of events that triggered a partial meltdown of the uranium fuel in the No. 1 reactor at Fukushima after the plant was struck by a massive earthquake and tsunami on March 11, officials said.

    Read more.


    The Petition:


    The spent fuel pools at Fukushima are a bomb waiting to go off. Each pool contains irradiated fuel from several years of operation, making for an extremely large radioactive inventory without a strong containment structure that encloses the reactor cores;

    Several pools are now completely open to the atmosphere because the reactor buildings were demolished by explosions; they are about 100 feet above ground and could possibly topple or collapse from structural damage coupled with another powerful earthquake;

    The loss of water exposing the spent fuel will result in overheating can cause melting and ignite its zirconium metal cladding – resulting in a fire that could deposit large amounts of radioactive materials over hundreds of miles.

    Fukushima is in an active earthquake zone. The urgency of the situation is underscored by the ongoing seismic activity around NE Japan in which 13 earthquakes of magnitude 4.0 – 5.7 have occurred off the NE coast of Honshu last week in the 4 days between 4/14 and 4/17. This has been the norm since the first quake and tsunami hit the site on March 11th of last year. Larger quakes are expected closer to the power plant. http://www.countercurrents.org/alvarez240412.htm

    California is downwind from Japan. Radiation from the earthquake hit is increasing. http://www.infowars.com/california-slammed-with-fukushima-radiation/
    A Chernobyl type explosion from the spent fuel pools could force coastal California to evacuate for decades.

    Tepco and the Japanese government lack the staggering resources- up to $250 billion- to clean up Fukushima before another disaster happens. Tepco’s timeline is way too slow- 10 years to contain the spent fuel ponds.

    We urge the California Senators to join Oregon Senator Wyden in touring Fukushima, and then investigate the risks, with an eye to mobilizing US and international support for the cleanup.


    Money is the easiest thing in the world to create, type it on a keyboard and press enter…so long as it is not Debt paid to a banker.

    Governments must now create No Debt Greenbacks to have money to fix this life threatening danger.

    After signing the petition, please call Rep. Dennis Kucinich’s office and tell him to contact the California Senators about a renewed push for Greenbacks, his NEED Act HR 2990 to help us all survive in California and around the world.

    Phone (202)225-5871
    Fax (202)225-5745

    Link Greenbacks, Monetary policy, to have money to fix serious dangers.

  • Lois Gagnon

    I tried to watch this video on You Tube and found it was taken down. Another thing I discovered about YT the other day is you are not aloud to use the word fascist. Your comment will be blocked yet the term communist is OK. Apparently, it’s not considered good manners to call out fascism either figuratively or literally. Interesting.

  • Randy

    I am so proud of what this young lady is doing. I do hope however that she will correct her statement’misunderstading about the goldsmith story. The numbers on the IOU’s weren’t crossed out; rather the IOU was endorsed on the back and passed on to the other party to the transaction. This was the beginning of how checking originated. I bet this young lady is actually aware of this, and only misspoke. I wish we had more bright children spreading this truth. It is hard to resist the message when it comes from the heart of a child.

  • Jack Tyynela

    …….so much corruption, in virtually all parts of the world

    — even in Canada and in Quebec’s construction industry!!!

  • Bev

    The California politicians ought to call Rep. Kucinich. I should also put in a good source for info:


    Monetary Reform:


    What do the Occupiers want? Mainly Economic Justice!

    To get economic justice, you must have monetary justice and the AMI has been working at gaining monetary justice since 1996. We have made progress. Our research results, The Lost Science of Money by Stephen Zarlenga demonstrate that decades of research and centuries of experience shows that three things are absolutely needed:

    The present form of the Federal Reserve System must be ended – it must become a part of our government – what people mistakenly think it is now! In the Treasury Department is best.

    The accounting privilege that banks now have to create what we use for money out of debt, must stop once and for all. What’s called fractional reserve banking must be decisively ended.

    The Congress must understand and be empowered to create new money and spend it into circulation as money, not debt. For example the $2.2 trillion dollars the Engineers tell us is needed for infrastructure over the next 5 years. As the system progresses, health care and education, and grants to the states are made.

    Now some good news: Congressman Dennis Kucinich (D Ohio. 10th Dist) on September 21st, introduced HR2990 which does those very things!!!! Congressman Conyers of Detroit co-sponsored it.

    We need to see that people realize there is a bill which achieves these goals, already in the Congress. That they can help by asking their representatives and Senators to support it. Also their school Boards, State reps and Senators, City Councils, newspaper editors, etc, etc, etc.

    We have materials which can help them do all that, available for the asking, but first they have to become aware of HR 2990, and there are four attachments which will help you make it clear to them:

    First, a half page Flyer announcing the HR 2990 which should be handed to everyone at a demonstration.

    Second, “The Need for Monetary Reform”, a one page (double-sided) sheet for those who want to know more. It’s exactly 800 words and you can reprint it easily, even get it into newspapers.

    Third, a fact sheet on HR 2990 describing what the bill does to stabilize America’s financial situation, including the creation of 7 million of jobs.

    Fourth, our 32 page booklet, which includes some history, our answers to the 20 most frequently asked questions, the American Monetary Act, and much more. Copy and photocopy the one attached, or get pre printerd ones from us at 10 copies for $30.

    I ‘m suggesting you print these out, photocopy several hundred of them and head to the nearest demonstration! Stay at least a few hours. Let me know what happens. To find the nearest demonstration to your location, Google: “Occupy(insert your city here)” and check it out.

    Warm regards to you and good luck! Remember this is a non-partisan activity!

    Stephen Zarlenga


    Congressman Kucinich’s Jobs Bill to Secure America’s Financial Sovereignty:

    The Debt Stops Here

    Congressman Kucinich will introduce a landmark bill to:

    • Create millions of well-paying private sector jobs and rebuild America’s infrastructure
    • Pay off the national debt as it comes due
    • Reduce federal deficits or even eliminate them
    • End the fiscal crisis at Federal, State and local levels
    • Make the U.S. dollar a stable currency which maintains its purchasing power over time

    All without raising taxes or borrowing.


    • Puts the Federal Reserve (Fed) into the Treasury to make our monetary policy truly
    accountable to the Congress and the American people
    • Ends the banks special privilege by no longer allowing them to create our money supply when they make loans, through a simple and non-disruptive accounting change
    • Invests money to renew our crumbling infrastructure, making it fit for the 21st Century; creating real wealth and millions of good jobs at the same time




    And another good source:

    See: http://www.moneyaswealth.blogspot.com/

    Why Are We Short Of Money? Why?

    The World Economy Trembles
    Because Every Nation Is Short Of Money.


    Money Is The Easiest Thing In The World To Create.

    It Is Done On a Computer.
    Type It In. Press enter.
    That Is, In Fact, How They Do It Now.

    But, They Only Do It As A Loan.


    Because You Let Them.

    That’s Stupid.
    Don’t Be Stupid.

    You Can’t Borrow Yourself Out Of Debt.



    Think about it:

    If the banks are the only ones who create money, and you have to give it back to them (loan payments) – two things happen.

    1st. You have to give it back!! You never get to keep it in exchange for goods/services. In the aggregate (combined picture) you do the work, but can’t keep the money.



    2nd. If the banks are the only ones allowed to create money, and then only as a loan, in the aggregate, you have to borrow to pay interest!

    IMPOSSIBLE to get out of debt.

    Nothing should be more clear,
    especially with all this talk of raising the debt ceiling.

    Why would a sovereign government with the Constitutional authority to create money, borrow a dime?


    In the U.S., Congress has the power to coin or create money and regulate its value.

    U.S. Constitution

    The Congress shall have Power …
    To coin Money, regulate the Value thereof…

    So Do It!!


  • Bev


    Announcing the 8th Annual AMI Monetary Reform Conference
    at University Center in downtown Chicago, Sept. 20-23, 2012

    The American Monetary Institute is proud to announce its 8th annual Monetary Reform Conference in Chicago. Our conferences have launched the modern grass roots movement for U.S. monetary reform and thereby World reform. Make your plans now to attend this important meeting in beautiful downtown Chicago. Our money system clearly needs a serious overhaul to secure economic justice and peace as we enter the 3rd Millennium. It’s evident that true reform, not mere regulation, is necessary to move humanity back from the brink of nuclear war; away from a World dominated by fraud, warfare and ugliness and toward a World of justice and beauty. The conference focuses on minimum initial steps to begin this process and put time on the side of humanity instead of against us. You may receive this announcement amidst very depressing news and events, but we urge you to avoid discouragement and instead join with us in this adventure to achieve positive results for America and the world.

    Don’t allow yourself to be discouraged because the villains who created the present crisis, have manipulated governments to bail them out, at the expense of the public. We the people have the power to end that nonsense. Once we realize that, and learn to ignore the “corrupt and corrupting” negative influences, we can understand what should be done and then act.

    Main Themes of the Conference: Implementing Monetary Reform now!

    At the forefront of the Conference will be a description of the essential elements of monetary reform needed to “get the snake out of the house.” The American Monetary and Financial Security Act, a program for achieving the reforms will be discussed at length.

    We will focus on Congressman Dennis Kucinich’s National Emergency Employment Defense Act (NEED, HR 2990), introduced into Congress on September 21, 2011, which contains all the necessary provisions to achieve real and lasting reform.

    This conference will continue to examine the problem of usury. Is it a necessary part of “free market economics,” or is it a destroyer of nations, or is it both? The present false definition of usury as excessive interest, was foisted on economics by Jeremy Bentham, who also devised utilitarianism – dropping morality in favor of supposed results. But the real concept of usury is the anti-social misuse of the money mechanism for private gain. The conference continues to help revive this classical concept of usury and relate it to how our present privatized monetary system malfuntions, for example in creating the present banking crisis. The Kucinich Act, 2990 will limit compound interest!

    Because the world is still in danger of sliding into an unimaginable economic disaster, and warfare in the Middle-East, the conference will also focus on how a privately controlled money system such as we presently have in the U.S. leads to warfare by providing the financial motivation for starting unnecessary wars. Everyone has heard that banking and wars are related, but only a handful of people understand how.

    A Different Kind of Monetary Conference

    The situation in which knowledgeable monetary reformers find ourselves is that after years of studying monetary history and theory, we already know many if not most of the broad shapes that monetary reform should take. We know from experience that these views have stood the test of time and many challenges from those with less experience in the field or operating under misconceptions or pursuing non-reform agendas. Rather than merely arguing over these main themes, it is time for those of us who understand, to move forward to implement those elements that we know must be a part of good reform.

    What are these broad national parameters supported by over 3000 years of history? That the control of money systems should shift away from private control toward governmental control. Away from commodity money notions; away from fractional reserve banking – monetizing private credits and loaning them into circulation at interest. Towards money issued interest free by government and spent into circulation for the common good. The system must be morally grounded in fairness. Serious reformers understand that we must replace our private credit system with a government money system, ending whats known as fractional reserve banking.

    Not seeking blind trust, we’ll continue educating and explaining why the proposals are beneficial and moral and continue to present the historical evidence demonstrating that. We’ll answer any serious challenges, and those arising from plain misunderstanding. We may invite selected spokesmen for differing reforms to succinctly present their case. But we’ll do it within a context of advancing the real reform agenda, making necessary adjustments as we proceed. We will not waste our participants time! Dissenters obviously don’t have to join in the reform phase; but neither need we procrastinate, waiting for all to experience their monetary epiphanies, before moving forward. The direction of world events requires that we advance monetary reform now.

    This year’s (2012) speakers will be posted as they confirm. Recent conference speakers have included the following:

    Prof. William Black of UMKC, who successfully ran the savings and loan crisis rescue in the 90s, and brought it to successful conclusion using only $150 billion of the $300 billion alloted by Congress, spoke on Fraud’s Critical Role in Producing the Financial Crisis

    Richard Cook, Formerly the NASA whistleblower on the Challenger disaster; then 2 decades at the U.S. Treasury, with a lifetime in monetary/economic studies, speaks on questions of justice in monetary and economic matters.

    Prof. Kaoru Yamaguchi of Doshisha University gave an outstanding analysis of the American Montary Act, placing it through his advanced systems analysis software, determining it would pay off the US national debt and provide the necessary funding for infrastructure (solving the unemployment problem) and do it without inflation.

    Greg Coleridge, Director of the Northeast Ohio American Friends Service Committee (Quakers). He is on the National Steering Committee of the Move to Amend / Campaign to Legalize Democracy Program on Corporations, Law & Democracy (POCLAD) national collective.

    Michelle St. Pierre, Leader of the highly successful Ron Paul movement in north Washington State discussed how to turn talk into action!

    Prof. Nic Tideman of Virginia Tech (formerly Senior Economist on the President’s Council of Economic Advisors) spoke on how banks will compete after monetary reforms are in place.

    Michael Hudson, UMKC professor and PBS commentator and the only economist to accurately forecast the mortgage and housing debacle, spoke on what is needed before there can be a real recovery. He also discussed reforming the international payments system.

    many more

  • Bev


    Why Promoting States to do Banking is a Distraction and Diversion

    Dear Friends,

    As you know the states are in terrible financial condition, cutting back on necessary programs, laying off people and raising taxes. This has been the case for several years, and thanks to the banking crisis has reached horrific levels in some states. This is the time – an opportunity to push for real reform, such as the American Monetary Act. But instead, ill advised suggestions have recently been circulated on the internet that the states go into the banking business to solve or lessen this problem. The American Monetary Institute concludes that these suggestions, though they may be for well meaning purposes, are bad ideas for a lot of reasons as described below. People involved in real monetary reform understand that the private creation of money through what amounts to a fractional reserve accounting system is at the heart of the monetary problem which has plagued humanity and has now brought down the world economy. That vicious system by which money is created in our society must be reformed, not imitated. But there is no reform whatever in the proposal for states to enter the banking business.

    It would also distract lawmakers from facing the facts about the national reforms that are needed to solve this crisis and institute a money system grounded in justice, which will operate to promote the general welfare. It would even sanction and endorse the present fractional reserve banking system, the source of the problem. That system requires condemnation and structural reform, not endorsements! We now have a blog at the end of this article below, so that you may record and post your reactions to Mr. Walton’s research. To view an analysis of the flawed idea behind this fractional reserve system, see Jamie Walton’s review of the Web of Debt http://www.monetary.org/review-of-ellen-browns-the-web-of-debt/2010/12 .


    Stephen Zarlenga
    Director, AMI


    Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problem

    by Jamie Walton, AMI researcher

    “We may not be able to stop them, but we can join them. We the people need to play the bankers’ game ourselves.”1
    – that was written by one of the promoters of the notion that the state governments should go into the fractional reserve banking business to beat Wall Street at its own game and solve their fiscal problems.


    Money doesn’t have to be created like this; coins aren’t, they’re just created as money, with no debt attached; when they’re issued, it’s revenue for the U.S. government, saving taxpayers $$$. All money can be created this way. And; if we don’t start with any debt, then we don’t start with any interest either.


    So what is the solution?

    It’s the monetary system which must be changed to end the fiscal crisis, and State governments cannot do this – it’s a matter for the Federal Government.

    Under present constitutional and legal conventions, the only institutions that can create money without debt are national treasuries and/or central banks. State governments within a federal nation cannot do this – the problem can only be solved at the national level.

    Proposals promoting anything else would require a constitutional amendment, which is not necessary.

    There are some additional specious arguments being made within these promotions claiming that the U.S. Constitution (Article I, Section 8, Clause 5) does not authorize the U.S. Congress to issue non-coin money, so implying that it authorizes the States (or the people) to issue non-coin money.8 It most certainly does not. As Robert G. Natelson, in the Harvard Journal of Law and Public Policy, exhaustively and authoritatively determined, the term “coin” (with a lower-case “c”) means to create money in any form, whereas the term “Coin” (with an upper-case “C”) means coins.9

    There’s also a lot of misinterpretations in these same arguments regarding the term “Bills of Credit” in the U.S. Constitution (Article I, Section 10, Clause 1) and “bills of credit” in other contexts, and the terms “Tender” and “Coin” (again). These misinterpretations lead to some ridiculous assertions like stating that: “The States violate the [U.S.] Constitution every day … to pay their debts … since gold and silver coins are no longer in general circulation.”10

    All of these spurious ‘ideas’ only serve as distractions during a time of crisis.

    We have a big problem in our economy and society today: too much debt. Banking cannot solve this problem because banking produces debt, which is the problem. It’s incredible that even now the delusion of borrowing ourselves out of debt is still seen as a solution, by anyone, let alone so-called reformers. We’re in a deep hole because we listened to cheerleaders yelling “keep on digging” without thinking. We cannot afford to keep doing this any more.

    Proposing to get governments involved in banking is the complete opposite of a solution, because it keeps the problem in place.

    As American Monetary Institute Chapter Leader, Dick Distelhorst, says:

    “We don’t want to put the government into the banking business – we want to get the banks out of the money creation business!”

    The correct solution to the crisis was presented in Stephen Zarlenga’s speech at the U.S. Treasury in December, 2003, titled “Solution to the States’ fiscal crisis” (read it at http://www.monetary.org). That solution has become the proposed American Monetary Act. In California, Governor Schwarzenegger has had a copy of The Lost Science of Money (the historical research which led to the solution) on his bookshelves since the spring of 2004.

    Historical experience has taught us what we need to do:

    1. Put the Federal Reserve System into the U.S. Treasury.

    2. Stop the banking system creating any part of the money supply.

    3. Create new money as needed by spending it on public infrastructure, including human infrastructure, e.g. education and health care.

    These 3 elements must all be done together, and are all in draft legislative form as the proposed American Monetary Act [In September 2011, Congressman Dennis Kucinich introduced the National
    Emergency Employment Defense (NEED) Act, HR 2990, into Congress. View details here].

    The correct action is for Congress to fulfil its constitutional responsibilities to furnish the nation with its money by making the American Monetary Act law.

    The correct action for the States is to insist on this Federal action!