Nationalize Fed and reduce deficit
On Feb. 13, Speaker of the House John Boehner addressed a letter to President Obama, signed by 150 economists stating, “To support real economic growth and support the creation of private-sector jobs, immediate action is needed to rein in federal spending.” If federal spending creates jobs, how can government austerity augment job creation? It can’t.
According to the Economic Policy Institute, John Boehner’s budget would reduce the federal deficit by 4 percent at the price of 700,000 American jobs. Boehner’s response was, “So be it.” President Obama’s budget curtails growth of federal spending as well. Both budgets operate under the same flawed assumption: that ultimately the government’s budget must be balanced.
If the federal government originates money, why not print the money to pay the national debt as it comes due? All non-coin money is loaned into existence by the privately owned Federal Reserve and the banking system. Debt-based money cannot pay off the debt.
Fortunately, a member of Congress is taking action. Democratic Rep. Dennis Kucinich of Ohio introduced the National Employment Emergency Defense (NEED) Act in December. The bill will: 1) nationalize the Federal Reserve, 2) eliminate the banks’ privilege to create money and 3) spend new money into circulation on a national infrastructure program. Our inflationary credit money will be replaced by a sound currency. The federal debt will be paid as it comes due. It is change we can believe in.
The people must restore economic democracy by passing the NEED Act. Until Kucinich’s solution becomes law our nation will be paralyzed by debt, unable to provide essential goods and services to working people.
Jules Brouillet
Palatine