Lessons of Revolutionary and Civil Wars, page 1

REVOLUTIONARY WAR-- Was fought over control of our own currency and debt. The colonies, before the Declaration of Independence, were forced to borrow money from the Bank of England. Consequently, the colonies were eternally financially indebted and in bondage to England. The Constitution allowed the US to issue its own credit and currency on more fare terms. Too bad the US continued FRACTIONAL RESERVE LENDING and USURY and eventually gave up all control of money creation via the FED

CIVIL WAR--Was fought over the issue of PROTECTIONISM. The North didn't use slaves, but instead depended upon industrialization to produce the goods and services to drive the economy. The North used the power of the TARIFF to protect domestic industry and manufacturing from cheap goods brought in by the East India Trading Company (WALMART), which were produced by slave labor in India.

The South never industrialized at first because their economy ran on slave labor. Eventually, everyone realized the machine out-muscled the man and the South saw that it needed to industrialize to keep up with the North. However, they resented having to pay higher prices for machines from the North, and they resented the TARIFF, which prevented them from getting imported goods shipped in by the East India Trading Company at the cheaper price.

Fixing America depends on learning these 2 critical lessons of the Revolutionary and Civil wars. First, we need to take back control of the creation of our own money and the issuing of credit.

1. End the FED
2. Replace Fractional Reserve Banking with Full Reserve Banking
3. Allow US Treasury to collect fee on all money created and not just a fraction as they do now.
4. Allow local and state banks to borrow directly from the US Treasury (No money middlemen)
5. Switching to Full Reserve Banking will create a huge immediate demand for US dollars. Therefore the US could print 14 trillion dollars to meet the demand and pay all its debts this one time.
6. End the Income Tax. The ability to collect prime or a fee on all money created and not just a fraction will create huge revenue for the federal government.
7. With no debt to pay interest on, we could finally balance the budget.
8. At some point, switch back to gold and silver-based currency
9. Rebuild domestic manufacturing infrastructure based on a policy of complete national self-reliance.
10. End the HUD/FHA amortized home mortgage which is a major driver of inflation. In today's system you only gain equity if the price of the house goes up during the first 10-20 years on a 30-year loan ===> INFLATION.
11. Instead of usury, have local banks charge a fee for a home loan, and let borrowers bring 10% down and go in with the bank as part-owners. Each month the borrower pays the bank, earning equity from day -1 and a small fee until the borrow becomes 100% owner of the property. Any missed payments end up being subtracted from the borrowers equity and become profit for the bank. Default and Repossession occurs only after the borrower becomes totally divested of the property and not upon the first missed payment like today. This sets up an immediate reverse mortgage if needed.
12. Use Tariffs to prevent foreign governments from dumping cheap goods on our markets that are produced via child labor, sweat shops, and polluting the environment.
13. Use Anti-Trust Laws to break up companies that are too big to fail.
14. Use Bankruptcy Laws to allow failed companies to restructure and downsize and come back stronger and never give bailouts.

FULL RESERVE BANKING would end the volatility and perpetual banking failures that have plagued the US economy throughout its history. Because of inflation, Banks have to hold stocks instead of cash to maintain the fractional reserves upon which they lend. If there is a manufactured economic downturn then stocks lose value, banks lose reserves and cant lend.

[edit on 21-8-2010 by davedan978]