Can You Petition for Monetary Reform?

Written by Carmine Gorga, The Somist Institute

Yes.  You can petition for monetary reform.  Two petitions circulating on the Internet are designed to stabilize our monetary system. Their purpose is to hopefully avert the next financial crisis and, if the crisis occurs, to be in a position to set things right in relatively short order.  Details follow below.

The details of the proposals were laid out in the preceding article of this series.

First Petition

This is a patriotic petition to restructure (procedures) of the Fed To be delivered to Janet Yellen, Chair, Board of Governors of the Federal Reserve System for the Fed to commence operation as a public bank.  In order to function as a public bank, the Fed should

1. Issue loans ONLY to create real wealth (means of production), such as equipment, tables and chairs and professional services;
2. Loans at cost;
3. Loans to benefit everyone (by funding—through local banks—individual entrepreneurs, cooperatives, ESOPs, and public entities with taxing power, so that loans can be repaid).

PETITION BACKGROUND

The monetary system is broken—the world over. It is not working for the poor.

It has led to the collapse of the middle class. It is not working well for the rich, except in an illusory and transitory way.

We have to turn the Fed from serving the few, rather badly, to serving everyone well. If the proposed structure is in place, let Wall Street tremble or financial behemoths collapse, Main Street will continue to prosper.

To sign this petition, please go to the petition website.

Second Petition Concept

In theory and practice, we are so far away from the American conception of money, with its deep roots in the Mosaic conception of the Jubilee, that it is worth spending a few words and dedicating some attention to the topic. In addition to the restitution of the land to the original owner on the 50th year, the year of the Jubilee, Mosaic Law prescribed the cancellation of debts among Jewish people every seven years. The reasons are many, and all valid. The most important one can be found in the very nature of money: money has real value only at the moment of the exchange; money in my pocket is just paper. If money is concentrated in a few hands, the circulation of money is reduced. When the circulation stops, namely when there is a financial crisis, the value of money is reduced to zero. Chaos ensues. Is not so much more rational to face these issues in a timely fashion in order to avoid certain disaster?

Second Petition,The Jubilee Solution: A systematic reduction of zeros

This is to be delivered to Every creditor of the world and Every Government of the world.

Reduce all debt to zero in seven years.

Start with a 30% reduction the first year, and reduce all debt by 10% per year every year for seven year(s).

At the end of the seventh year, start the process anew.

THIS PROPOSAL TRULY CALLS FOR A SYSTEMATIC REDUCTION OF ZEROS.

Wealthy people will remain wealthy, as at the beginning of the escalating creation OF ZEROS to their accounts — because wealth is a RELATIVE thing. Just be alert: Find ways to isolate the smart ones, who might not join you at first.

PETITION BACKGROUND

The next financial collapse is going to be dreadful. Knowledgeable people are talking of the collapse of $100 trillion. It is the MONETARY system of the world, not the financial system involving a few corporations, which will collapse.

The modern, prevalent solution of letting the taxpayer come in and save the “too big to fail” corporations might not be available at the next meltdown.

Sequestering the deposits of individuals and perhaps even corporations in banking institutions might not be sufficient for the creation of money to run apace with the growth of interest.

General knowledge is gradually growing that charging interest on a loan sets up an impossible race between growth of real wealth and growth of financial wealth.

No matter how much new money is ever created, it is never enough because interest—especially in the form of compound interest—grows inexorably at a faster rate.

Money can never keep up. Interest always wins. But its victory is ephemeral. Bankruptcies result.

Next time around, not even the Fed might have enough latitude to fill the gap.

To sign this petition, please go to the petition website.

Please, analyze these petitions. If you have questions, feel free to contact me at [email protected].

If you feel you can, please add your signature to them—and ask your friends and relatives to do the same. To put it very briefly, with the implementation of these petitions, we might avert the impending financial catastrophe that we all know is coming—or at least be in a better position to pick up the pieces afterwards.

Strong support for these proposals is expected not only from staunch secularists but also from faithful people of all three monotheistic traditions. They will find here the means for the realization of their deepest aspirations. Members of other religious communities are expected to help unite the world around the programs of action contained in these two petitions.

Review and sign petition 1 here.

Review and sign petition 2 here.

This Part 3 of a series on monetary reform.  In Part 4 there will be discussion of how the usefulness of money is affected by “animal spirits” of mankind.

Part 1 of this series:  The World of Economics Since 2008

Part 2:  Two Proposals to Stabilize the Monetary System

Part 3:  This article.

This article was developed from an article posted at Mother Pelican, September 2015.