Issue Position: The American Credit System

Issue Position

Transform the Federal Reserve into a National Bank

To insure the proper distribution of public money into productive commercial business, the U.S. Congress will reassume its duty as the sole authority to issue credit. The Federal Reserve must be nationalized, and its lending held accountable to the U.S. Constitution, especially the Preamble. A regulated, national banking system, modeled on Lincoln's 1864 National Banking Act, will replace the current fiat system.

Use Article I, Sec. 8 of the Constitution to Issue Regulated Credit

Congress will create credit, backed by the physically productive work such credit is monetized for accomplishing, and the U.S. Treasury will issue the credit through the national banking system into productive public and private businesses. Such credit will be regulated on a two tier interest rate, where credit for physically productive work shall be fixed at 1-2% per annum, while credit for speculative activity shall be much higher, to make it unprofitable. This credit shall be generated as a long term capital budget, separate from the yearly fiscal budget generated by tax revenue. We could never generate enough tax revenue to fund the needed relief efforts.

Emergency Relief for the States, Industrial Mobilization for the Nation

With appropriate financial regulations in place, Congress must rapidly respond to the failure of our state budgets, and the massive unemployment crisis. Emergency relief loans shall be made, to relieve the state budget crises, and a national mobilization shall be initiated, to reemploy the population in real productive work so those loans can be repaid.

However, the principle of a credit system is not contained in the details surrounding a national banking system. The principle is contained in directing credit, as great presidents of the United States such as Abraham Lincoln, Franklin D. Roosevelt and John F. Kennedy understood, into projects which fulfill the universal demand of "progress or die." This principle of progress destroys the underpinnings of environmentalism and monetarism, the fraud called entropy. That is the principle that underlies the programmatic features of the physical economic recovery we will continue to elaborate.

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