The American Monetary Act
The American Monetary Act, a three part reform to bring our money system under proper public control agrees in its main features with the Chicago Plan:
(the latest formulation of the Act is viewable at
First: It incorporate the Federal Reserve banks into the U.S. Treasury where money will be created by the government as money, not as private interest-bearing debt; and will be spent into circulation to promote the general welfare and monitored to be neither inflationary nor deflationary.
Second: It removes the banks privilege to create purchasing media through the fractional reserve system. Fractional reserves are elegantly ended by the U.S. government initially loaning banks enough money at interest to bring reserves to 100%, converting all the past monetized credit, into U.S. government money. Banks then act as intermediaries accepting deposits and loaning them out to borrowers, what people think they do now.
Third: It Spends newly created money into circulation on infrastructure, including education and healthcare needed for a growing society, starting with the $1.5 trillion that the American Society of Civil Engineers estimate is needed for infrastructure repair; creating good jobs across our nation, re-invigorating local economies and re-funding all levels of government.
Full article here:
I believe that this is a rework of the "Chicago Plan" ptoposed by Irving Fisher.
Two relevant items
One from Asia Times - Dust off the Chicago Plan
The financial crisis 2007-2008 is, in many respects, reminiscent of the Great Depression of 1929-1934 in terms of its causes, intensity, and consequences. Maurice Allais, the Nobel Prize winning economist, has written that the causes of the present financial crisis and the Great Depression are the same. Both were preceded by speculative credit booms fueled by low interest rates and consequent asset bubbles in stock and housing markets. Both were triggered by the bursting of these bubbles, asset price deflation, and were compounded by an ensuing credit contraction or freeze. The severity of the Great Depression was conveyed by a drop of real GDP of 29%, a resulting unemployment rate of 25%, contraction of money supply by 30%, and widespread business and bank failures. The magnitude and ordeal of the Great Depression led a number of celebrated economists to devote considerable effort to analyze the true causes of the Depression and to formulate financial reforms that would immunize the economy against such financial turmoil.
The reform plan that was developed came to be known as the Chicago Plan, as it was formulated in a memorandum written in 1933 by a group of Chicago professors, including Henry Simons, Frank Knight, Aaron Director, Garfield Cox, Lloyd Mints, Henry Schultz, Paul Douglas, and A G Hart, and was forcefully advocated by the noted Yale University Professor Irving Fisher in his book titled 100% Money.
Also The Chicago Plan & New Deal Banking Reform By Ronnie J. Phillips
I think this along with the concept of interest free money as discussed in Money and Merit and Margrit Kennedy's work could be useful
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Very much so on the Chicago plan ( http://www.monetary.org/chicagoplan.html ), and its the cleanest solution by far, as well as taking many more of the actual facts and actual history into account than anything from Keynes or the Austrians.
Great links, thanks... and here's hoping...
I recommend you read the entire article and also study more of Zarlenga's work... perhaps even look into what Schacht did in the 1930s.
I believe you will find the results at least somewhat surprising. It is not as it seems on a cursory & quick glance.
This plan is the simplest and most elegant solution to end the bankster parasitism. But we need something major (like a terrible financial crisis or a revolution) to move things in the right direction and make it happen.
WHY DIDN’T THE CHICAGO PLAN PASS
First there was no understanding or support for the proposal among the electorate. Only Irving Fisher seems to have understood the necessity for popularizing the matter.
Simons himself got cold feet and shied away from promoting the plan, desiring to remain on a level of professorial discussion. He even threw a wet towel on Fisher who was promoting the reform suggesting that Fisher avoid popularizing the idea!
Simon was demanding perfection from his own proposal and was being overly cautious. The proper goal was not perfection, but should have simply been substantial improvement that the Chicago Plan clearly represented. Instead Simons became obsessed with how banks would evade the reforms.
Second the Plan was mishandled politically.
Cutting appears to have misunderstood his own bill, and incorrectly said in interviews that credit as well as money creation was also to be a sole function of government.
Third, the bill suffered a major setback when Senator Cutting died in an Airplane crash in May 1935 while being forced to defend his election results in New Mexico by challenges from the Roosevelt Administration which was then held responsible for his death.
A Legislative Proposal for Monetary and Fiscal Policy Reform
Support the NESARA Monetary Rights Movement
Get off the bench and into the game!
If the American Founding Fathers were alive today they would not recognize their own legacy.
Something went terribly wrong.
More to the point, how do we repair the damage?
Find the answers to both of these questions and many other