Instant millionaire status per US household: Top 3 benefits of monetary reform, public banking

The top three benefits each of monetary reform and public banking total ~$1,000,000 for the average American household, and would be received nearly-instantly.

Please read the above sentence a second time, then verify the following factual claims to confirm its objective accuracy.

Monetary reform is the creation of debt-free money by government for the direct payment of public goods and services. Creating money as a positive number is an obvious move from our existing Robber Baron-era system of only creating debt owed to privately-owned banks (a negative number) as what we use for money. Our Orwellian “non-monetary supply” of adding negative numbers forever causes today’s tragic-comic increasing and unpayable total debt. You learned these mechanics of positive and negative numbers in middle school, and already have the education and life experience to conclude with Emperor’s New Clothes absolute certainty that accelerating total debt is the opposite of having money. As a National Board Certified and Advanced Placement Macroeconomics teacher, I affirm this is also exactly what is taught to all economics students.

The public benefits of reversing this creature of Robber Barons are game-changing and nearly-instant. We the People must demand these, as .01% oligarchs have no safe way to do so without admission of literal criminal fraud by claiming that debt is its opposite of money.

The top 3 game-changing benefits of monetary reform:

  1. We pay the national debt in proportion to removing private banks’ ability to create what we use for money as debt in order to prevent inflation. We retire national debt forever.
  2. We fully fund infrastructure that returns more economic output than investment cost for triple upgrades: the best infrastructure we can imagine, up to full-employment, and lower overall costs.
  3. We stop the ongoing Robber Barons who McKinsey’s Chief Economist documents having ~$30 TRILLION in tax havens, and the Fed finding the US top seven banks creating shell companies to hide $10 trillion. This amount is about 30 times needed to end all global poverty, which has killed more people since 1995 than all wars and violence in all human history.

Public banking creates at-cost and in-house credit to pay for public goods and services without the expense and for-profit interest of selling debt-securities. North Dakota has a public bank for at-cost credit that results in it being the only state with annual increasing surpluses rather than deficits.

Top 3 game-changing benefits of public banking:

  1. a state-owned bank could abundantly fund all state programs and eliminate all taxes with just a 5% mortgage and credit card.
  2. a state-owned bank could create in-house and at-cost credit to fund infrastructure. This cuts nominal costs in half because, as you know, selling debt securities typically doubles the cost. For example, where I live we’re still dismantling the old Bay Bridge in NoCal from the upgrade that cost $6 billion, but the debt-service costs will add another $6 billion when it’s all paid.
  3. CAFRs (Comprehensive Annual Financial Reports) stash “rainy day” funds no longer required with a credit line from a public bank. In addition, the so-called “retirement funds” currently deliver net returns of just a few percent on good years, and negative returns on bad years (here, here). California’s ~14,000 various government entities’ CAFRs have a sampled-data total estimate of $8 trillion in surplus taxpayer assets ($650,000 non-disclosed assets per household, among California’s ~12.5 million households).

$1,000,000 of benefits per US household:

  • California’s CAFR data of ~$650,000 of assets per household is evidence of huge cash assets of similar magnitude in every state.
  • Paying the US national debt of ~$18 trillion saves ~$180,000 per household.
  • Ending state taxes in California to pay a budget of ~$170 billion saves each household ~$15,000, with similar savings in every state.
  • ~$30,000 per household savings annually: the American public would no longer pay over $400 billion every year for national debt interest payments (because almost 30% of the debt is intra-governmental transfers, this is a savings of ~$300 billion/year). If lending is run at a non-profit rate or at nominal interest returned to the American public (for infrastructure, schools, fire and police protection, etc.) rather than profiting the banks, the savings to the US public is conservatively $2 trillion (1). If the US Federal government increased the money supply by 3% a year to keep up with population increase and economic growth, we could spend an additional $500 billion yearly into public programs, or refund it as a public dividend (2). This savings would allow us to simplify or eliminate the income tax (3). The estimated savings of eliminating the income tax with all its complexity, loopholes, and evasion is $250 billion/year (4). The total benefits for monetary reform are conservatively over three trillion dollars every year to the American public. Three trillion is $3,000,000,000,000. This saves the ~100 million US households an average of $30,000 every year. 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 ~$60,000 every year with these reforms). This savings represents a 60% raise for every US household’s income.
  • Related, if the ~$30 trillion hidden in tax havens by the .01% have $10-$15 trillion from Americans, and we count the Federal Reserve report that the US top seven banks have over $10 trillion stored, then the average US household could clawback ~$200,000 to ~$250,000.

Famous Americans already on record for these reforms:

Please understand that I represent likely hundreds of thousands of professionals making factual claims with objective evidence anyone with a high school-level of education can verify.

The Emperor’s New Clothes obvious pathway out of these mechanics of our “debt system” is to start creating debt-free money (a positive number) for the direct payment of public goods and services, and create public credit for at-cost loans (a negative number). I have three academic papers to walk any reader through these facts; an assignment for high school economics students, one for Advanced Placement Macroeconomics students, and a paper for the Claremont Colleges’ recent academic conference:

Teaching critical thinking to high school students: Economics research/presentation

Debt-damned economics: either learn monetary reform, or kiss your assets goodbye

Seizing an alternative: Bankster looting: fundamental fraud that “debt” is “money”

4-minute video: Ready to rise from your economic slavery?


1) Of $60 trillion total debt, a conservative current interest cost of 5% is $3 trillion every year. Two trillion dollars of savings if the profits are transferred to the American public rather than to the banking industry is probably low. St. Louis Federal Reserve Bank:

2) The US GDP is ~$17 trillion. Three percent growth is moderately conservative.

3) Of the US Federal government’s ~$4 trillion annual budget, about $1.7 trillion is received from income tax.

4) Tax Foundation. Hodge, S, Moody, J, Warcholik, W. The Rising Cost of Complying with the Federal Income Tax. Jan. 10, 2006:


Note: I make all factual assertions as a National Board Certified Teacher of US Government, Economics, and History, with all economics factual claims receiving zero refutation since I began writing in 2008 among Advanced Placement Macroeconomics teachers on our discussion board, public audiences of these articles, and international conferences. I invite readers to empower their civic voices with the strongest comprehensive facts most important to building a brighter future. I challenge professionals, academics, and citizens to add their voices for the benefit of all Earth’s inhabitants.


Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at

Note: has blocked public access to my articles on their site (and from other whistleblowers), so some links in my previous work are blocked. If you’d like to search for those articles other sites may have republished, use words from the article title within the blocked link. Or, go to, paste the expired link into the box, click “Browse history,” then click onto the screenshots of that page for each time it was screen-shot and uploaded to webarchive. I’ll update as “hobby time” allows; including my earliest work from 2009 to 2011 (blocked author pages: here, here).


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  • diogenes

    One good thing about the internet is that it allows the circulation of facts and ideas such as these about debt-free public credit, which have been known since the days of Ben Franklin but rigorously marginalized and suppressed in 20th century America. The ideas exist and are spreading. What we need to figure out is how to put them into action. More especially, how can we level the table without upsetting dinner? Because if we don’t level it, it’s gonna fall over before very much longer.

    Thank you Carl Herman. Your writings are always first rate but this is TOPS.

  • “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”Alan Greenspan, Gold and Economic Freedom

  • Mar 29, 2015 Solutions: The Peer-to-Peer Economy

    If the root of our economic problem is the tendency toward centralized, globalist bureaucracies (like the EU and the WTO and the IMF and the World Bank) why does anyone believe the solution will be centralized, globalist bureaucracies (like the BRICS Bank and the EEU and the AIIB)? Today we look at a truly paradigm-shattering civilization-wide change taking place right now that has the potential to undermine the status quo: the peer-to-peer economy.

  • jadan

    Monetary reform is more accurately called monetary revolution. Moving from private debt money to public debt-free money is a move from slavery to freedom, from oligarchy to democracy. The Bank of North Dakota is not part of the revolution, however. This banking model is designed to prevent revolution. The tyranny of the Fed must end!

  • Silverado

    You think they’re going after China & Russia for not using US (petro) dollars now and in the future?? That effort would be nothing compared to what these psychopathic criminals would do to the country if they knew the end was near for their wet dream of debt based money. I’m thinking we’d have to round these traitors up and jail a few in conjunction with taking the country and it’s money back from crooks and thieves that only cared about enriching themselves at everyone else’s expense…literally. And won’t that be a glorious day…

    • animalogic

      ” I’m thinking we’d have to round
      these traitors up and jail a few in
      conjunction with taking the country and it’s money back”
      There is nothing in Mr Herman’s monetary thesis i can disagree with, certainly not the importance he places on it. However, there’s the rub: such a program of monetary transformation would be, in my opinion, revolutionary to a degree rarely witnessed in history. To say the status quo would fight it tooth and nail, is almost redundent. Jailing a few “traitors” also. sounds a little optimistic to me (nevermind the fact that the status quo would call us the traitors).
      Perhaps, its thought a transition to non-debt money could be subtle, almost slip it through under the oligarchs’ noses ? Good luck !.

      • Silverado

        First we take care of & forcefully retire the neocons and then we take care of their fraudulent financial arm, the banksters – criminal psychopaths all. 0.01% isn’t that large of a number. And we wouldn’t have to…manage them all. It’s highly doable and if it’s in one fell swoop, so much the better. After that the problems won’t look so large or foreboding.

        I believe that after the dollar collapses and their power does the same thing and with the truth known to all, those problems you describe will be dealt with by highly pissed off peasants with proverbial pitchforks and torches just like always happens once the fraudulent activities and high crimes & misdemeanors of the banksters and their enablers in govt with their scorched earth financial policies become more well known and leads to everyone else losing everything.

        It’s more than amusing these idiots that are…on top right now can’t see the end of the dollar coming that’s connected to their power, their livelihood, their health & well being and even the air these vermin happen to breathe. Once their power ebbs as it surely will, their sorry asses will belong to the very people they’ve been financially screwing for over 100 years. And won’t that be a hot time in the ol town that night.

        Good luck alright. They’ll need it…

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