If the Federal Reserve can create new money to buy bond and others securities, Congress under Article 1, Section 8, of the Constitution can create new money to fund the infrastructure and give money to the states. We need a monetary system that can put new money where ever it is needed to create new jobs that creates goods and services which are the real wealth of a nation, not the number of billionaires a nation has.
1. ADEQUATE MONETARY SYSTEM: The three functions of the Federal Reserve to lower or raise discount rates, to buy or sell securities on the open market, to lower or raise the reserve requirements for member banks are inadequate for maintaining a balanced money supply at all times. By adding a FOURTH AND A FIFTH FUNCTION to the monetary system, a balanced money supply could be achieved. The fourth function would index the PAYROLL TAX on a scale of 1 to 10 which would bring a better balance. The index could be lowered when more money is desired in the consumers pockets and raised when less is needed. NEW MONEY WOULD BE CREATED TO MAKE UP THE DEFICIT, NOT BORROWED FROM CHINA OR ANYONE ELSE. A fifth function could be added by using Article !, Section 8, of the Constitution to coin money and regulate the value there of, and then by-pass the banking industry and give the money to the Treasury Department. The Treasury could fund infrastructure work, and give money to the states to help them fund programs. States gave up there right to create money when they joined the United States of America. Until we have a monetary system that can put money where ever it is needed, we will always have economic problems. See Article 1, Section 8, below:
Article 1 – The Legislative Branch
Section 8 – Powers of Congress ***See to coin money…
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
**** To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; WHY NOT USE THIS LEG OF A THREE LEG STOOL TO SOLVE AMERICA’S ECONOMIC PROBLEMS? WHY USE ONLY TWO LEGS?
The American people needs to know that banks BUY and SELL money like all other businesses do; that when a bank pays 2 percent for money and sell it for 8 percent, the banks make 400 percent gross profit and not 6 percent like they would like for you to think. If a merchant pays two dollars for a candy bar and sells it for eight dollars, the gross profit would be 400 percent just like a bank buying money for two dollars and selling it for eight dollars. The gross profit would be 400 percent. Banks are engaged in Loan sharking! ANY INTEREST RATE OVER 10 PERCENT IS USURY.