ONE SOLUTION to Reduce Unemployment, Rebuild Our Infrastructure AND End the Federal Reserve.

While discussing politics and history with my son, it occurred to me that we have the power to tackle 3 huge problems with one simple solution. Let me lay a little groundwork first.....

Beginning in 1933, through executive orders and through laws passed by Congress, Franklin Roosevelt initiated the New Deal which includes the 13 "Alphabet Programs".
For simplicity's sake, let's consider only 2 of them for now:
1) Civil Works Administration (CWA). The CWA provided relief for the unemployed. It hired laborers for temporary construction projects like roads and bridges sponsored by the federal government.
2) Civilian Conservation Corps (CCC). The CCC also provided relief for the unemployed. It employed young people on projects on federal lands and paid their families a monthly sum.

Using such programs today would certainly reduce unemployment while allowing us to repair road and bridges, build and update water treatment plants, update the nation's electric grid, build oil and gas pipelines, and many other sorely needed improvements.

You will probably ask "How do we pay for this?"

For that answer, go back exactly 150 years to 1862. During the Civil War, the U.S. Treasury issued paper notes commonly called "Greenbacks". Without borrowing from a central bank (or ANY bank for that matter), Greenbacks were issued directly into circulation to pay the troops and to pay for other expenses incurred by the Union. Congress was careful not to flood the market with Greenbacks, and after the war, business began to return to normal.

Greenbacks continued being printed until 1871 and were widely circulated until 1913..... even through "The Crime of 1873" (the return to the gold standard) and through William Jennings Bryan's failed push for "free silver" in 1896 and the 1900 presidential campaigns. Greenbacks did not disappear until 1913 with the selling of America to The Federal Reserve Bank.

Now that I've set the stage, I would propose that the U.S. Treasury issue and control a New Greenback!

The job of Congess would be to approve programs rebuilding our nation's infrastructure, and pay for these programs with the New Greenbacks. This action would not increase our national debt and would provide much-needed jobs, without the "help" of the Federal Reserve Bank.
These new jobs would create income that would flow to all sectors of society, and increase tax revenues as a result. With careful spending, Congress could use the increased revenues to slowly "retire" Federal Reserve Notes until eventually, the Federal Reserve Bank will wither and die.

By GRADUALLY retiring Federal Reserve Notes, the "shock factor" to our economy would be minimized.

The major obstacles will be forcing Congress to issue New Greenbacks carefully and to approve work programs prudently. We have to stop wasteful spending and living beyond our means. Congress must not be allowed to borrow, and fractional lending must end!

Thoughts? Suggestions?

people seem not to understand that all that infrastructure built during the New deal has a finite lifespan..

Thats why we hear about bridge collapse now and than...


Competing currency to the fed? Getting Americans actually back to work...

Your talking common sense... SO never gonna happen...

Partisanship and the talking heads on MSM wont allow it.

Cause spending on Infrastructure and employing the masses, thats just socialism...

reply to post by masterofnone


Dear masterofnone,

In the end what helped the most was the Works Progress Administration. When the depression began, the first attempt to rebuild the infrastructure was done through contracting (much like the Stimulus program did). That failed to create sustainable jobs, it only worked for the contractors. The final attempt, and the one that worked, was the Works Progress Administration, which hired people directly.

Most companies and most people benefit in their business from good transportation infrastructure; but, a few benefit from overcharging for maintaining that infrastructure. The worse the infrastructure, the more they benefit. There are some things that benefit from being profit driven and some things that do not. Peace.

reply to post by AQuestion


Thanks for the input AQuestion! I understand your points, and simply chose the CCC and CCA as examples. We would need to prioritize the Nation's needs, and devise programs accordingly. We shouldn't rush to put big contractors in charge. Local contracting for local projects might work...

An arduous task, yes.

Worth it? For all of our sakes, you bet!

I'm all for it. I don't know if its likely at this point, but it is an interesting perspective.

reply to post by benrl


When things get bad enough, perhaps we'll begin to return to common sense. It's amazing how people will unite once they learn that their ship is sinking!

More and more of people distrust the MSM, and the MSM saying something doesn't make it so.

Thanks for caring!

reply to post by masterofnone


Dear masterofnone,

It is not that simple. 4 companies own 75% of all the construction rock in the United States. Local contractors cannot do the type of large projects, such as bridge rehabilitation, that are needed. There are only a few companies that can even afford the bonds. We know what worked in the past and refuse to do it today for the same reasons it took ten years (1929 to 1939) to recognize it in the past. We repeat history rather than learn from it because our wants have not changed.

It is really simple. Nationalize the Federal Reserve (5 trillion in debt to ourselves goes away in minute). Create a new WPA and millions can get jobs and learn trades in a year with savings on all projects. Reinstate Glass Seagall and stop banks from being gamblers. The difference between their generation and ours is that we don't care about each other anymore, we don't have neighbors.

reply to post by AQuestion


By jove, you've got some good suggestions there AQuestion! By nationalizing the Fed, we take the Federal Reserve Notes, and make them OURS to control!

With things are bad as they are, more of us are thinking about our needs more than our wants. When we look for solutions to such huge problems, do we really need to reinvent the wheel?

Well said. I've often thought of this, the idea of undergoing a complete overhaul of America's infrastructure, and employing hundreds of thousands in the process. Great idea.. but I suppose it would require a power structure that actually wants higher employment. Not likely at this point.

What is your problem with the Federal Reserve?

There is some sort of trend against the Federal Reserve lately.

You need to study how it works. Seriously. The Federal Reserve is not a problem.

reply to post by XXX777


Dear XXX777, my problem with the Federal Reserve is that they opereate in secret, using nefarious methods. Do you approve of the $16 Trillion they handed out IN SECRET through the TARP bailouts?

You, my friend, need to watch "The Hundred Million Dollar Penny". Look it up on YouTube. Then tell me you're fine with the Fed.

Do you work for the Fed, XXX777 ? Your Cowardy Lion avatar is symbolic of William Jennings Bryan in Oz! Coincidence? I read your statement "You need to study how it works. Seriously. The Federal Reserve is not a problem." I cringe when you make such a naive comment with NOTHING to back it up.

Why do you think Congress has finally decided to audit the Fed? Because even our crooked Congress is FED UP with the FED!

Originally posted by XXX777
What is your problem with the Federal Reserve?

There is some sort of trend against the Federal Reserve lately.

You need to study how it works. Seriously. The Federal Reserve is not a problem.

I would say that Smedley Butler would have disagreed with you.

lets add the idea that the manpower to rebuild the Nations infrastructure will be paid in an internal & strickly domestic currency... the re-issuing of Silver Certificates to be used only in the homeland

let the federal reserve and casino banks & multinational corporations keep passing around all that Trillions in worthless Bernanke Bucks... let them continue creating money out of thin air for their Quadtrillion in derivatives, etc

but their gaming money would not ever be convertable into the reissued Silver Certificate money which the Main Street economy uses... they might be able to get private deals to exchange lets say 100 million of Bernanke Bucks used by the Wall Street crowd for maybe $100 in Silver Certificate money used in the Main Street economy



Let the swindlers, commit fraud againsr one another & leave the Patriot economy alone

China presently has it's own domestic currency and it's own Trade currency... the Renmimbi & the Yuan...
if we want to keep modeling after China ---that would be one area to emulate...

a two currency sovereign system in the remodeled USA makes sense to me,,,,
well thats after Øbama is properly canned this November

maybe Ron Paul as VP will orchestrate this revival of an internal/domestic use Silver Certificate currency

Originally posted by St Udio
lets add the idea that the manpower to rebuild the Nations infrastructure will be paid in an internal & strickly domestic currency... the re-issuing of Silver Certificates to be used only in the homeland

I like what you're thinking St.Udio!

Let's hope it happens without the repercussions mentioned in my signature!

Thanks for the thoughtful input!

reply to post by masterofnone

Star and Flag, Good point friend. I have also been saying this for a pretty long time, and really think it is the best idea for rebuilding the American Economy. Fractional Banking is money from debt, and this kind of economy only works while people can pay interest on what they owe. Once the jobs are gone, and the companies have fled the high taxes, the whole house collapses.

reply to post by autowrench


Thanks autowrench! I appreciate your opinions! Let's hope enough patriotic Americans open their minds enough to make this idea a reality!

I also appreciate the details in your HHO thread which I've begun perusing....

Great minds think alike....... Fools never differ.

reply to post by autowrench


This is something that most Americans fully understand. Or, rather, not so fully understand....but understand well enough. Another thing, what really baffles Americans the most is that they ahve to balance their household budgets, but our government isn't held to the same. In my job I have had to find a way to displace an additional 6 months wages/benefits for 3 employees due to some failures to meet deadlines by the construction. No, it wasn't my fault. But the amount of money I am given to budget is fixed, meaning I have to figure out how to make it work coughing up an extra 150k, give or take. Why does the government not figure out how to do the same thing. Its simple and done by every private businessman in existence.

Originally posted by bigfatfurrytexan
reply to post by autowrench

 

This is something that most Americans fully understand. Or, rather, not so fully understand....but understand well enough. Another thing, what really baffles Americans the most is that they ahve to balance their household budgets, but our government isn't held to the same. In my job I have had to find a way to displace an additional 6 months wages/benefits for 3 employees due to some failures to meet deadlines by the construction. No, it wasn't my fault. But the amount of money I am given to budget is fixed, meaning I have to figure out how to make it work coughing up an extra 150k, give or take. Why does the government not figure out how to do the same thing. Its simple and done by every private businessman in existence.

This is where you and others go off track. There is a huge difference between what the government does and what the individual does when it comes to money.

The individual is limited by their own income and available credit. They are active in the labor market, trading their time and effort for what they believe to be scarce money.

The government is not limited. They are in fact the origin of the money. They make as much as they want. There is a constant effort to limit the growth of the money supply just enough to keep things in order. Too much money floating around creates too much price inflation. Too little money floating around creates too much price deflation, a bad thing. The name of the game for governments is money supply inflation and price inflation, leading to GDP inflation, and more power to build bigger military to protect our way of life.

You get it or you don't. If you don't you should do yourself a favor and study. Your life will be better for it.

reply to post by XXX777


I am an accountant. I get it. I was speaking for most folks I have talked to.

Originally posted by XXX777

The government is not limited. They are in fact the origin of the money. They make as much as they want. There is a constant effort to limit the growth of the money supply just enough to keep things in order. Too much money floating around creates too much price inflation. Too little money floating around creates too much price deflation, a bad thing.

The government IS limited, by the Constitution and by legal mandates. The problem is that too many of us BELIEVE the government is not limited


The Federal Reserve Note does NOT originate from the government. They are created by the Fed without having to answer to ANY of us or our representatives. This includes the money supply, which the Fed has played with for 100 years. Every major recession/depression in our history has been preceeded by a sharp drop in the money supply available to the masses. We've learned very little from our own history!
The only money created by our government are COINS.

I appreciate your input, and do agree with some of your statements, but I felt I should point out a few glaring fallacies.