“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” ― Buckminster Fuller
1. Understand debt:
The national debt is accumulated through the selling of bonds and is the sum total of those bonds. In order to eliminate the national debt, therefore, the government must somehow buy back ALL of those bonds, and some of them don't mature until 30 years from now:
Deals can probably be made to buy back long term bonds at a premium, but they have to be considered.
BUT, HOW can it buy back those bonds? Under the current system it can only do it by selling MORE bonds or taxing us higher and more frequently thus circulating the money through the government hands enough times to buy back the bonds.
Of course the first answer, buying more by selling more is ludicrous. And the second answer will never be accepted by the people.
So what can be done? Answer in number 2 below.
Next, we need to understand that PUBLIC debt is not the same as NATIONAL debt. NATIONAL debt is the continuous funneling of public debt money through the government wheels which then turn the debt counters for the national debt. It's like passing GO in Monopoly but instead of collecting $200, the government accumulates more debt.
2. Return to a sovereign national currency:
Any approach will require taking money creation powers away from private banks and returning them to the government. The Constitution, in Article I Section 8, specifies that Congress shall have the power "to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures". No other entity should, therefore, have that power especially private businesses and even more specifically private banks which is what happens now.
Avoiding for the moment the argument about whether the Fed is private or public (even though it has private shareholders), the fact of the matter is that their shareholder banks participate in what is called fractional reserve lending. So at a minimum, even wrongly calling the Fed a public institution, we still have as much as 97% of the nation's currency (all in digital form) being created by private banks.
A sovereign nation creates its own currency, spends it into circulation (or in our case could distribute it to the states to be spent into circulation), and taxes it out for value regulation. Taxes should never be a source of revenue for a sovereign government, and while spending should be approved by the population it shouldn't be causing a "deficit" as we think of them today.
Some will say that giving government the power of currency creation again would result in inflation, but 1. we have that now with the banks creating the currency at will, and 2. inflation is not caused by increasing the money supply, but rather the other way around. Price inflation happens as a result of human emotions, and the pressure the inflation places on the rest of the public in a domino effect causes a demand for more currency (debt in our case) which is handled by banks issuing more debt.
Local trade systems will help a lot with the inflation issue.
It would take only a single vote from Congress to approve a return to a Constitutional currency and it would only take 6-12 months to complete the transition and be completely out of debt.
We'd still need to deal with the trade deficits but if we do monetary policy right, our nation's businesses (large and small) could turn around the trade situation quite quickly without government intervention.
3 & 4 go together. Decentralize as much as makes sense to decentralize, and use local currencies efficiently:
Things that are huge government expenses now at the national level would work better at the local level, especially when pursuing number 3, which is to allow and encourage local complementary currencies, etc.
- Unemployment can be virtually wiped out with strong local economies.
- Health care and education would be much better handled at the local level as well, with the central government acting at most as an information hub.
- No welfare would be necessary, including social security, if we do these three things.
Any city or town which implements a local system could turn around from bankruptcy to thriving in a year using this approach. There are historical examples of this happening.
We must understand what the national debt is, at its roots. Why is the government even $1 in debt, much less $19+ trillion? Why do we borrow even $1 to supply currency to our own circulation? Why must the government borrow from the people? They borrowed THEIR money from the banks.
The national debt is a result of the currency being 100% borrowed from private banks rather than created by Congress, and is a SECOND layer of debt. The only way to eliminate it is for the government to buy back every existing government bond and the only ways to do that are:
1. Sell MORE bonds, which defeats the purpose.
2. Increase both the tax rates, and the tax frequency, which of course would have very bad consequences if it even could be pulled off.
3. Use sovereign currency to buy the bonds back and retire Federal Reserve Notes.
The Federal Reserve would be eliminated from the national currency equation. If we are to have a national bank it must be a completely public bank. Independence from Congress is OK, but independence from the people and authority over the people is not. No private bank should be allowed to lend out more than it has on deposit and if even public banks would be allowed to do it there must be tight controls, regulations, and transparent audits on them. There are plenty of people with awesome levels of knowledge of these things who can come up with the best possible approaches for this.

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