Ending homelessness SAVES money; monetary reform and public banks should fund this now

8-minute video: Director of US Interagency Council on Homelessness explains how to END homelessness:

Utah has reduced homelessness by 78%, and has targeted ending homelessness this year.

The US federal agency, US Interagency Council on Homelessness states all 50+ economic cost-benefit studies conclude it costs less to provide homeless Americans with shelter, food, health care, and job training than doing nothing at all.

The greatest savings come from decreased emergency room visits, police calls, and court time. What isn’t counted, and significant, is the increase of business in areas where the homeless are vagrants.  In addition, these studies show most participants find jobs and leave these programs.

A 2014 study in Florida reports taxpayers save over $20,000 per homeless person when they are provided basic services rather than languishing on the streets. An academic paper from two University of Pennsylvania professors document it’s more cost-effective to end homelessness than endure it.

Richard Cho, US Interagency Council on Homelessness Policy Director, documents similar studies from New York CityBoston, Denver, Seattle, Chicago, San FranciscoLos Angeles, with smaller cities in Connecticut, and rural areas in Maine that all research have found it’s more cost-effective, intelligent, and moral to end homelessness.

Given that all 50+ professional studies conclude we save money by ending homelessness, all US communities should enact policies to do so.

Given that all communities have problems with funding public programs, even those that save money in the long-term like infrastructure and education, we should also enact monetary reform and public banking for funding.

Monetary reform and public banking are required solutions because what we use for money is created as debt by private banks for their profit. This does not come close to serving public needs, as lack of funding for infrastructure, education, and public services like ending homelessness prove.

The UK Guardian is Earth’s third most-read on-line newspaper. In a revealing article, The truth is out: money is just an IOU, and the banks are rolling it in, the author explains what the Bank of England and US Federal Reserve admit:

What we use for money is created as debt by private banks.

This system is like adding negative numbers forever. The aggregate debt only gets larger, and will never be repaid because this is what we use for money. Also, as we see today, the interest and debt total become so tragic-comic we can’t get close to affording to pay.

What this also means is that with monetary and credit reform the public could have instant prosperity: full-employment, zero public deficits and debt, the best infrastructure we can imagine, falling prices, and release of public TRILLIONS held in “rainy day” accounts.

These solutions are OBVIOUS with a few moments of attention, and affirmed by leading Americans since Benjamin Franklin. See for yourself with what we have now, and what these solutions offer.

What we have:

US “leaders” psychopathically pretend to care about American labor while lying about a real unemployment rate of close to 25% (the so-called “official” rate excludes under-employed and discouraged workers). Along with unemployment, Americans receive policy enabling oligarchs to “legally” hide $20 to $30 trillion in offshore tax havens in a rigged-casino economy designed for “peak inequality.” For comparison, $1 to $3 trillion ends global poverty forever, saving a million children’s lives every month from slow and gruesome death (here, here).

We have escalating and unpayable national debt, a real-inflation rate more than double the stated rate, and because private banks and their admitted privately-owned pinnacle bank, the Fed, create credit/debt for what we use as money, this becomes the literal mother of all conflicts of interest. If the Fed were to deliver its three stated goals of “maximize employment, stable prices, and moderate long-term interest rates,” we have a stunning observation:an honest Fed would at least ask for independent professional cost-benefit analyses to determine if government-created debt-free money and public credit would do better than their ever-increasing and unpayable aggregate debt

In addition:

And, as always please keep in mind, US “leaders” also  lie-begat Americans into unlawful Wars of Aggression (in comparison, 11 days of US war cost would pay for all tuition of US college students).

OBVIOUS solutions:

What is monetary and credit reform?  Since the 1913 legislation of the Federal Reserve, the US has had a national “debt system;” the Orwellian opposite of a monetary system. What we use for money is created as a debt, with the  consequence of unpayable and increasing aggregate debt. This is the simple description of the sum of forever increasing negative numbers. Although it’s taught in every macroeconomics course in structure, the consequences of increasing and unpayable debt are omitted (unpayable because it destroys what is used for money, and eventually the debt becomes tragic-comic in amount).

Monetary reform creates debt-free money as a public service for the direct payment of public goods and services. This would replace the existing system of creating what we use for money out of debt; both from the Federal Reserve issuing credit for US federal debt instruments charged to taxpayers with interest, and private banks issuing credit through fractional reserve lending.

Closely related is credit reform that replaces private bank credit with public credit (and here). This transfers interest payments from private profits to public service.

Benefits of monetary and credit reform: no debt, optimal infrastructure, falling prices: The benefits include paying the national debt, ending a national debt forever, issuing money and credit for full employment, and optimal infrastructure. The prima facie case of benefits should undergo professional multiple and independent cost-benefit analyses. The facts that a Federal Reserve-type debt-based system causes unpayable debt, unemployment, inflation, and decaying infrastructure is relatively easy to demonstrate.

Debt begone: Monetary reform pays the national debt of over $18 trillion dollars virtually without cost, and ends its gross $400 billion+ annual interest payments. This saves the ~100 million US households an average of ~$180,000 in total debt cost, with ~$4,000 gross annual interest cost. Another way to calculate the savings is to figure those amounts per $50,000 annual household income (for example, if your household earns $100,000/year, you save $350,000 in national debt costs and $8,000 every year in gross interest).

The way the national debt is paid nearly cost-free is to use government-created money to pay the debt securities as they are due instead of what is done today: never pay them and “roll them over” (re-issue the debt to existing owners or issue new debt to pay for redeemed debt instruments) while only paying the interest. What is done today is similar to only paying the interest on a credit card with ever-increasing debt total. The inflationary effect of paying the debt will be counteracted by simultaneously removing private banks’ fractional reserve authority proportional to the payments (increasing banks’ reserve requirements).

When government has authority to transparently create money, a national debt becomes a tragic-comic part of history. Trial and error will inform total money supply, with an option of removing money from the supply through some form of simple taxation. For example, if public credit issues mortgages and credit cards at ~5%, this form of taxation can pay for public goods and services with the ability to raise or lower the interest rate. It also releases CAFR funds back to the public worth TRILLIONS. Again, proposals such as these should be subject to professional and independent cost-benefit analyses.

Full employment, optimal infrastructure, falling prices: Government can become the employer of last resort for hard and soft infrastructure investment. This provides triple benefits for employment, the best infrastructure we can imagine, and falling overall prices to the extent infrastructure investment contributes more economic output relative to costs of inputs. History demonstrates infrastructure investment does reduce overall prices in the current debt-funded model that typically adds ~50% of the projects’ nominal cost to its total cost. Monetary reform with infrastructure means the cost of debt-funding disappears, making this employment even more attractive.

Additional anticipated benefits are reductions of crime and other social costs related to human despair as people see and participate in creating a brighter future for all.

If monetary reform and public banking are so “obvious,” why haven’t these been done?

For three good reasons: 1) Those in charge of the current system “make bank.” 2) Because those in charge commit criminal fraud, they must keep the public ignorant and confused. 3) Those in charge apparently have purchased corporate media to “cover” these crimes and “cover” their assets.

1) The “leaders” of our current system parasitize unimaginable amounts of money under our current system. Former Chief Economist at McKinsey, James Henry, reports the .01% have deposited $21 trillion to $32 trillion in tax havens to evade taxes. Related, the Federal Reserve reports the US top seven banks have over $10 trillion in assets recorded in over 14,000 created “subsidiaries” to avoid taxes. The .01% hide more than total annual economic output of the US and Japan combined. This is also 7 to 32 times the $1 to $3 trillion estimated to end global poverty (here, here).

2) The Federal Reserve system of its member banks creating what we use as debts owed to them with interest is not a “monetary” system, but a “debt system.” This is massive criminal fraud with:

  • annual public damages in the trillions of dollars,
  • unpayable and escalating aggregate debt,
  • Orwellian opposites of Fed promises for maximum employment, stable prices, and minimal interest costs,
  • Lies of commission and omission from Fed and US government officials with legal fiduciary responsibility to accurately communicate public costs and benefits, including omitting the above documented solutions from present-day professional consideration.

Because .01% US “leaders” are engaged in criminal fraud since “Robber Baron” era inception of the Federal Reserve, officials must psychopathically keep the public confused to avoid arrests and forfeiture of fortunes.

3) Congressman Oscar Callaway demanded investigation into JP Morgan purchasing control over the US’ largest 25 publications in 1917. In our world of the present, ~90% of US media is concentrated in just 6 corporations. There is abundant evidence today that corporate media serves particular interests centered in war and money. Historically, every oligarchy works to control media.

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  • Robert Barsocchini

    Fascinating work! Thanks, Carl.