http://kucinich.house.gov/theneedact/
H.R. 2990: National Emergency Employment Defense Act
Congressman Kucinich has introduced the NEED Act of 2011, a landmark bill to:
Create millions of well-paying private sector jobs and rebuild
America’s infrastructure
Pay off the national debt as it comes due
Reduce federal deficits or even eliminate them
End the fiscal crisis at Federal, State and local levels
Make the U.S. dollar a stable currency which maintains its
purchasing power over time
All without raising taxes or borrowing.
WHAT IT DOES:
Puts the Federal Reserve (Fed) into the Department of Treasury
(Treasury) to make our monetary policy truly accountable to Congress and the
American people.
Ends the banks’ special privilege by no longer allowing them to
create our money supply when they make loans, through a simple and
non-disruptive accounting change.
Invests money to renew our crumbling infrastructure, making it fit
for the 21st Century; creating real wealth and millions of good jobs at the
same time.
HOW IT WORKS:
The conflict of interest between private ownership of the 12 Fed banks and
management of our nation’s monetary policy is ended by incorporating the Fed
into the Treasury. The Fed is put on a budget and made accountable to the
American people.
A separate Monetary Authority (part of Treasury) made up of experts is made
responsible for managing monetary policy. Its governing principle is to ensure
that the money supply is sufficient to meet the demand in the economy, and is
not inflationary or deflationary (i.e., the purchasing power of our money
remains stable). The Fed executes monetary policy actions.
Banks continue to make profits by lending money that savers and investors make
available to them for that purpose. Banks may also borrow from the Treasury.
The Monetary Authority advises Treasury how much money is needed in the
economy. Treasury advises Congress how much recycled or new money is required
to pay off debt (as it comes due) and supplement existing revenues to fund
infrastructure renewal, grants and loans to State and local governments,
education and other priorities, as appropriated by Congress.
Congress uses its Constitutional power to authorize Treasury to issue money to:
Pay off the national debt as it comes due. This releases funds for investment
in the private sector to generate more economic activity and revenues – helping
to balance everyone’s budget.
Invest in 21st Century infrastructure renewal. This keeps skills and
technology at home and makes the whole economy work more efficiently, assuring
competitive advantage.
