NEO AFSC January 29, 2016 Podcast

podcasticon_8
Listen to podcast here

We summarize last week’s activities; share upcoming events for next week; and provide an update on the attack on Ohio’s unemployment compensation system (and the need to take action), the signing of the Trans-Pacific Partnership (and the need to take action), why John Kasich should join the growing movement to end corporate personhood and money as speech, and what looks like the start of the next decline of the economy…and what you can do. (Length 31:27)

Flint’s Water AND Democracy Crisis

Flint

A growing number of residents are demanding not simply the resignation but the arrest of Michigan Governor Rick Snyder over the ongoing water contamination crisis.

Snyder declared a state of emergency last week for Flint — only, however, after learning of an investigation of lead contamination of the drinking water had begun by the federal government. Lead when ingested in water, paint and other sources is connected to permanent health problems including memory loss and developmental impairment.

Flint’s water problems began after Snyder’s appointed emergency manager switched Flint’s water source  to the polluted Flint River from Detroit’s water system to save cash.

University researchers say the city could have corrected the problem by better treating the water at a cost of as little as $100 a day.  This inaction could now cost as much as $1.5 billion to fix the city’s water infrastructure, according to Flint’s current Mayor.

Flint residents had complained about the quality of the water to the state for more than a year following the switch. Tests of water from individual homes revealed lead levels 7-28 times federal standards, which themselves are too high to begin with. Flint residents, a large percentage of whom are low income and African American, were ignored Governor Snyder’s chief of staff wrote an email to health officials admitting Flint residents were, “basically getting blown off by us.”

The decision to switch was made by an unelected emergency manager with ultimate power over the Mayor and City Council to run the city. The elected officials only had as much power as that emergency manager decides to give them. Their authority and pay is determined by the emergency manager. The mayor and City Council are, thus, employees of the appointed, unelected emergency manager.

These emergency managers can also sell off assets, break collective bargaining agreements, slash the healthcare benefits of retirees and overturn ordinances and create new ones.

“Emergency managers” appointed by Governors in response to financially distressed conditions in cities are becoming more common not just in Michigan but around the country. Of course, among the reasons for financially distressed conditions have been the unilateral power of corporations to pick up their plants and move wherever and whenever they want with no responsibility or accountability to the communities — a common occurrence throughout the former industrial Midwest. Another reason is due to state cuts in revenue sharing to cities and other municipalities imposed by states — as a means to save money and often, to cut state taxes, which disproportional benefit the wealthy, and corporations in that state. That has no doubt happened in Michigan. That has certainly happened in Ohio — as last year’s state budget attests with its 6.3% income tax cut and tax cuts for businesses.

So a crisis is created or at least exacerbated due to external conditions in a community. That crisis is then used to declare an emergency that demands drastic action, which entails appointed a person with the power to trump the authority of elected local officials. So much for democracy.

Flint’s crisis is certainly one of water. But it flows, if not gushes, into a crisis of democracy. The inability of Flint residents to elect their local leaders who have the authority to represent them and the power to protect their health and safety because of a state appointed, unelected “emergency manager” who is more concerned with saving money and selling public assets (i.e. privatization or corporatization) is a trend we must all become more aware of and be prepared to resist.

MONETARY HISTORY CALENDAR January 25 – 31

Greenbackk

JANUARY 25

1898 – SECOND INDIANAPOLIS MONETARY CONVENTION BEGINS
Billed as a grassroots effort for monetary reform, the second convention brought together nearly 500 representatives from 31 states. It was a follow-up gathering of major corporate leaders (including many bankers and economists representing leading corporations) to the first convention held a year earlier. Participants advocated for a privately run national central bank. Just as the proposed national central bank was misleading (to be privately controlled), the first and second Indianapolis Monetary Conventions were equally misleading. They were hardly “grassroots”, yet the image was useful when lobbying Congress and communicating with the public.

2014 – POSTED YOUTUBE TALK TO A MODERN BEAT OF MONETARY REFORMER JOE BONGIOVANNI ON “WHY SHOULD GUV BORROW? WHO CONTROLS THE MONEY?”
“Public debt is the government borrowing money. The government of this country has the power to create all the money. And if you had the power to create the money and you said to me: ‘Here, you create the money, I’ll borrow it from you,’ people would think that you were insane. That’s basically the situation we have right now. The government that has the power to create the money, is giving that power to the private banks and the private banks now lend money to the government and pays interest on it and collects that from the taxpayers. That is unfair to the taxpayers. Because right now we have a totally corrupt government. Our government is totally corrupt, and it’s controlled by the bankers and the money powers.”

JANUARY 26

2007 – DEATH OF H.L. BIRUM, FINANCIAL COMMENTATOR
“The Federal Reserve Bank is nothing but a banking fraud and an unlawful crime against civilization. Why? Because they “create” the money made out of nothing, and our Uncle Sap Government issues their “Federal Reserve Notes” and stamps our Government approval with NO obligation whatever from these Federal Reserve Banks, Individual Banks or National Banks, etc.”

JANUARY 27

2009 – WILLIAM DUDLEY BECOMES 10TH PRESIDENT AND CEO OF THE NEW YORK FEDERAL RESERVE BANK
“We don’t understand fully how large-scale asset purchase programs work to ease financial market conditions.”
That’s comforting Mr. Dudley. The head of THE most powerful of the regional reserve banks in the USA admits he doesn’t know the full financial impact of injecting trillions of dollars created by the Fed into the economy. Well, the evidence is in. Wall Street banks made out like bandits, while main street businesses and side street homeowners suffered.

2010 — DEATH OF HOWARD ZINN, HISTORIAN
“The challenge remains. On the other side are formidable forces: money, political power, and the major media. On our side are the people of the world and a power greater than money or weapons: the truth. Truth has a power of its own. Art has a power of its own. That age-old lesson – that everything we do matters – is the meaning of the people’s struggle here in the United States and everywhere. A poem can inspire a movement. A pamphlet can spark a revolution. Civil disobedience can arouse people and provoke us to think. When we organize with one another, when we get involved, when we stand up and speak out together, we can create a power no government can suppress. We live in a beautiful country. But people who have no respect for human life, freedom or justice have taken it over. It is now up to all of us to take it back.”

JANUARY 28

2013 – THE CHICAGO PLAN REVISITED, LIVE WEBCAST OF A THE DEBATE INVOLVING MICHAEL KUMHOF OF THE INTERNATIONAL MONETARY FUND
“At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher’s claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.” – “The Chicago Plan Revisited,” IMF Working Paper Research Department, Prepared by Jaromir Benes and Michael Kumhof

JANUARY 29

1737 — BIRTH OF TOM PAINE, US REVOLUTIONARY
Commenting on the value of colonial-issued money, the “Continental”…
“Every stone in the Bridge that has carried us over seems to have a claim upon our esteem. But this was a corner stone, and its usefulness cannot be forgotten.”

1956 — DEATH OF H.L. MENCKEN, US JOURNALIST
“The whole aim of practical politics is to keep the populace in a continual state of alarm (and hence clamorous to be led to safety) by menacing them with an endless series of hobgoblins, all of them imaginary.”

JANUARY 30

1835 — ASSASSINATION ATTEMPT AGAINST US PRESIDENT ANDREW JACKSON
In 1832, Jackson called on Congress not to renew the charter of the Second National Bank of the United States. He vetoed a bill to renew the bank’s charter, saying the bank was guilty of fraud, corruption and controlling the money supply (expanding and contracting the supply of money to economically and politically benefit the bank). He stated, “beyond question…this great and powerful institution had been actively engaged in attempting to influence the elections of the public officers by means of its money.” Jackson ordered the US government to move its money out of the Second Bank. In response, the bank called in all its loans and ceased issuing new loans. An economic panic followed. In 1835, Richard Lawrence fired two guns at Jackson but both misfired. He claimed his assassination attempt was because, in part, “money would be more plenty.”

1882 — BIRTH OF PRESIDENT FRANKLIN D. ROOSEVELT
Roosevelt missed a chance to fundamentally improve our economy, if not democracy, during the Great Depression when he chose to go into debt to pay for his many “New Deal” programs. A group of prominent economists from across the nation had urged him in what was known as “The Chicago Plan” to pay for his programs by issuing debt-free money, based on the previously issued Greenbacks during the Lincoln Administration. Instead, FDR added to the government debt, which enriched bankers and all others who purchased U.S. Treasuries.

JANUARY 31

1609 – FIRST CENTRAL BANK IN WORLD ESTABLISHED
The first central bank in history, which was publicly owned, was established in Amsterdam.

2013 – PUBLICATION OF “MODERNIZING MONEY” BY ANDREW JACKSON AND BEN DYSON OF POSITIVE MONEY IN THE UK
“When a bank makes loans it increases both the quantity of money in the economy as well as the quantity of debt.”
“The overriding principle when we are deciding who should have the authority to create money is whether or not the ‘creator’ can benefit personally from creating money…this requires the separation of the decision on how much new money is to be created from how that newly created money is to be used.”

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com

NEO AFSC January 22, 2016 Podcast

podcasticon_8

Listen to podcast here

We summarize last week’s activities; share upcoming events for next week; and discuss the TPP as a brand new same old story, taking action to protect unemployment insurance in Ohio, the water AND democracy crisis in Flint MI, shedding light on “dark money” nonprofit groups that spend money in federal elections, and a little history on taxing the rich.  (Length: 38:09)

Cleveland Heights “Democracy Day” public hearing testimony

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Eighteen people testified on a wide range of subjects which were connected to corporate constitutional rights and money defined as free speech.

TESTIMONY OF GREG COLERIDGE AT 3RD ANNUAL “DEMOCRACY DAY” PUBLIC HEARING
Cleveland Heights, Ohio / January 21, 2016

Martin Luther King, Jr., whose life we celebrated earlier this week, later in his life expanded his message and work beyond race. He identified what he called the giant triplets of evil: racism, materialism and militarism. I believe if King were living today, his triplets would be quintuplets. Added to his list of evils would be classism and corporatism.

By classism, I mean the growing gap between rich and poor – with its devastating social, economical, environmental, and political impacts – including the ability to translate growing individual economic wealth into political power.

By corporatism, I mean the growing role of corporate entities to influence our entire culture – including the political authority and so-called rights to mold elections, laws, regulations and even judicial decisions.

More than a tad of attention has been paid recently to the practice of Cleveland Hts. council members feeding themselves to the amount of $12,000 annually. I’m not going to belittle this concern, only to offer some perspective. Over the past several years, our city has seen the state of Ohio cut its funding annually by $2.5 million.

Cleveland Heights and other Ohio municipalities that have seen severe cuts don’t donate or invest to politicians or have a legion of lobbyists compared to the wealthy and corporate interests – who gorged themselves on a 6.3% income tax cut (which will benefit the wealthy disproportionately) as well as enacted tax deductions for business owners in last year’s state budget. There were no new increases to sales or severance taxes on oil and gas drillers. And while not a budget measure per se, the Ohio legislature froze requirements for utility corporations to meet modest renewable energy standards. A quick peek at recent campaign reports of Ohio’s leading legislators explain much of the reasons why.

Top donors or investors to Ohio House Majority Leader Cliff Rosenberger include First Energy Corporation, Chesapeake Energy Corporation, the Ohio Oil and Gas Association, Ohio Coal Association, American Electric Power Corporation and Duke Energy Corporation – as well as some of the richest individual Ohioans (follow the money).

Top donors or investors to Ohio Senate President Keith Faber include basically the same entities, in a slightly different order and in most cases just larger amounts of cash (since afterall he is head of the Senate).

We not only have in this country a criminal justice system but also a political system in its most brutal form inflicts “capital punishment.” In the case of the later, if you don’t have the capital to invest in elections and lobbying, you will be punished. In the case of Cleveland Heights, the yearly affliction has been  $2.5 million.

That happens to be 208 times as large as $12,000. So I respectfully suggest that for those who have called for ending 12 grand worth of council meals, they spend maybe not 208 more times but certainly at least some time – as well as the rest of us —  working to end the $2.5 million in city cuts from the State of Ohio – which isn’t based on sound public policy but is due to rather (take your pick) basic power politics, capital punishment, legalized bribery, pay to play, or the golden rule (i.e., he or she who has the gold, rules).

Ultimately our growing hybrid plutocracy and corporatocracy that is silencing the voices of an ever growing number of people won’t fundamentally change unless we change not this or that elected official, law, regulation or edict, but change the basic constitutional rules that have anointed money as equivalent to free speech and corporate entities (corporations and unions) as legal persons with inalienable rights.

Martin Luther King said, “History will have to record that the greatest tragedy of this period of social transition was not the strident clamor of the bad people, but the appalling silence of the good people.”

While there are more Americans than ever who understand that corporate personhood and money as speech thwart democracy, justice and peace, there is still too much silence from too many people – afraid to be seen as impractical or unrealistic by calling for amending the constitution.

Much the same was said of the abolitionists, suffragetts and populists who, in the later case, had the audacity to call for direct election of senators (vs appointed by state legislators). History proved their vision, understanding, and persistence correct.

I firmly believe history will prove this cause correct as well. King said the universe bends toward justice. The Move to Amend movement is, I believe, on the right side of that arc.

Expanding Democracy by Changing the Rules of the Game

SupremeCourt

January 21 marks the 6th anniversary of one of the worst Supreme Court decisions of our generation – Citizens United v. Federal Elections Commission (FEC). The decision increased the already obscene flood of money into elections from wealthy individuals and corporate entities in the 2010, 2012 and 2014 elections due to its widened constitutional interpretation that money is equivalent to 1st Amendment protected “free speech” and that corporations possess “free speech” rights equal to human persons.

The 2016 elections are shaping up to continue the trend of larger sums of cash from a smaller number of individuals and corporate entities, protected by the ever-expanding constitutional “money is speech” and “corporations are persons” shield.

Every citizen of our country should be concerned about the decision and consider being engaged in organized campaigns in response  – especially Northern Ohioans given our pivotal role in federal elections in general and Presidential elections in particular.

Democratic problems

If money equals speech, then quite simply those with the most money have the most speech – whether that “speech” is directed toward elections or in influencing public policies via election “donations” (a more descriptive term is “investments”) or political lobbying. The speech of the super rich and corporate entities drown out the voices of the vast majority without money, making it hard to have our needs met and our communities served. Consequently, the flood of political money into our airwaves from narrow backgrounds and perspectives (which we in the Cleveland area will be subjected to yet again beginning soon) will define for us the problems and solutions this campaign season.

A recent New York Times article documented that of the 120 million families in the US, only 158 have provided more than 50% of the funding to Presidential candidates to date. Can anyone with a straight face make the case such political donations/investments won’t yield returns favorable to these special interests? Call it a campaign financing system of legalized bribery.

Moreover, money invested in influencing public policy by the super wealthy and corporate interests distorts our laws. There is a growing disconnect between what people want and what laws are passed or not passed – be it, for example, for gun background checks, more funding for renewable energy instead of fossil fuels, making job creation a top priority, or supporting homeowners instead of banks.

Citizens United also worsened a second democratic problem – that connected to corporations possessing constitutional “rights.” Our constitution was meant to protect We the People from abuses of the state as well as to guarantee certain inalienable rights of human beings. Corporate attorneys have turned this on its head – successfully claiming that corporations should be protected from We the People by being shielded with Bill of Rights and other constitutional protections. The result has been a corporate hijacking of our democracy by claiming never-intended constitutional rights that has anointed them with the “rights” to politically invest in campaigns (1st Amendment “free speech”), prevent inspections of corporate property to ensure health and safety (4th Amendment “search and seizure”), oppose environmental rules as a constitutional taking (5th Amendment “takings”), prevent public preferences for local businesses over chain stores (14th Amendment “equal protection”), and perversion of the Commerce Clause in favor of corporations to overturn hundreds of democratically local and state protecting consumers, workers, communities and the environment.

Democratic solution

If our country is broken because the system is fixed, as in rigged, then changing a politician or two or reforming this or that law or regulation isn’t nearly enough. We need to change the system. Or put another way, changing the players (elected officials) or the plays (laws and regulations) of the game isn’t enough if the rules of the game are rigged. The system or rules in this case is to change or amend the U.S. Constitution.

The same day the Supremes ruled on Citizens United, grassroots activists launched Move to Amend, (movetoamend.org), a national multi-racial and inter-generational campaign seeking a 28th Constitutional amendment which would end the “money is speech” and “corporate personhood” bizarre constitutional doctrines. The effort goes beyond fiddling via legislation Citizens United (i.e. calling for greater transparency) or merely a constitutional amendment reversing Citizens United because the 2010 ruling merely extended or expanded the money is speech and corporations are persons nonsense. Money was first defined as free speech in 1976 while corporate personhood goes back more than 100 years. There was no glorious democratic nirvana the day before Citizens United. Corporate rule and plutocracy were simply less obvious and, thus, the need to address the roots of the problem.

The major political approach of Move to Amend is to build awareness and pressure on Congress to enact such an Amendment by organizing to pass city council resolutions and ballot initiatives at the local and state levels. More than 500 communities have already done so — 17 in Ohio alone, including ballot measures in Brecksville, Newburgh Heights, Mentor, Chagrin Falls, and Cleveland Heights and council resolutions in Lorain, Lakewood, Oberlin and S. Euclid just in Northeast Ohio. There are efforts currently to collect sufficient signatures to qualify for the ballot in November 2016 in Cleveland, Shaker Heights, and S. Euclid in Northeast Ohio — as well as several other communities across the state. Toledo citizens will vote on a similar measure in March. Interest exists in roughly 10 other Northeast Ohio communities. Wherever ballot initiatives have appeared on the ballot nationally, they have passed. The 100% support at the ballot by those of all political ideologies indicate people have had enough with the withering away of what little remains of our democracy.

Amending the Constitution is, unquestionably, not easy, but it has been done before. Working to amend it doesn’t mean giving up traditional electoral or citizen activism on other issues. It’s a recognition, however, that the issues you care about will be much more achievable and/or the candidates for elected office you support will be much more effective and publicly accountable if the constitutional rules of the game are no longer stacked against We the People. We must build a broad and deep social movement.

If interested in helping circulate a petition in Cleveland, Shaker Heights or S. Euclid (deadline is July) or in exploring working in your community, contact gcoleridge@afsc.org

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Greg Coleridge is Director of the Northeast Ohio American Friends Service Committee and Coordinator of the Move to Amend Ohio Network

MONETARY HISTORY CALENDAR January 18 – 24

Greenbackk

JANUARY 18

1910 – BIRTH OF KENNETH BOULDING, ECONOMIST, PROFESSOR, PEACE ACTIVIST, QUAKER
“Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.”

JANUARY 19

2015 — NATIONAL HOLIDAY HONORING LIFE OF MARTIN LUTHER KING, JR.
King was born on January 15, 1929 but his birthday is celebrated as a national holiday on the third Monday of the month. A few King quotes:
“Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity.”
“The ultimate tragedy is not the oppression and cruelty by the bad people but the silence over that by the good people.”
“The time is always right to do what is right.”
Ignorance and stupidity of how money is created by banking corporations and private central banks must end. Now is not the time to be silent, but to educate and advocate for a democratic monetary system, or what others call “sovereign money.”

JANUARY 20

1859 – BIRTH OF CHARLES LINDBURGH, SR., REPUBLICAN US REPRESENTATIVE AND FATHER OF THE FAMOUS AVIATOR
“Ever since the Civil War Congress has allowed the bankers to control financial legislation. The membership of the Finance Committee in the Senate (now the Banking and Currency Committee) and the Committee on Banking and Currency in the House have been made up chiefly of bankers, their agents and their attorneys. These committees have controlled the nature of bills to be reported, the extent of them, and debates that were to be held on them when they were being considered in the Senate and the House.”
“This [Federal Reserve] Act establishes the most gigantic trust on earth.  When the president signs this bill, the invisible government by the monetary power will be legalized.  The people may not know it immediately but the day of reckoning is only a few years removed, the worst legislative crime of the ages perpetrated by this bank bill.”

JANUARY 21

2013 – POLAND RECEIVES $33.8 BILLION IN LOANS FROM INTERNATIONAL MONETARY FUND (IMF)
“Poland has shown that very strong fundamentals and sound policies help strengthen a country’s resilience to crises. I think this is a key lesson that other countries can draw from Poland’s experience,” Julie Kozack, IMF mission chief for Poland said after the IMF’s Board decision, as quoted on IMF website. Less than 2 years later, on December 1, 2014, investor and economist Matthew Tymand in Forbes magazine comments on Poland’s recession: “Hopefully this coming recession lasts two to three years at most and is accompanied by a changing of the political guard. But, if Polish politics follow the trend of most of Europe…then it will look more like a lost generation (like Japan) and the likes of which the U.S. and parts of the E.U. are embarking upon. In this case the coming recession will last closer to ten years than two or three. Politics matter.”

JANUARY 22

1561 – BIRTH OF SIR FRANCIS BACON, PHILOSOPHER, BRITISH LORD CHANCELLOR
“If money be not thy servant, it will be thy master.  The covetous man cannot so properly be said to possess wealth, as that may be said to possess him.”

1719 – DEATH OF WILLIAM PATTERSON, CO-FOUNDER OF THE BANK OF ENGLAND
Patterson was an early Director of the bank, which was created in 1694. “The bank hath benefit of interest on all moneys which it creates out of nothing.”

JANUARY 23

2013  – PUBLISHED ARTICLE, “WHAT WOULD A TRILLION-DOLLAR COIN MEAN?” BY STEPHEN ZARLENGA, DIRECTOR OF AMERICAN MONETARY INSTITUTE ON HUFFINGTON POST
“The emergence of the trillion-dollar coin idea is encouraging in that it recognizes that the federal government has the sovereign power to create its own money…U.S. Constitution Art. I, Sec. 8, Clause 5, “The Congress shall have Power… To coin Money and regulate the Value thereof,…”
“The advantages of this sovereign power are several. The federal government could go far beyond merely avoiding a debt limit and could operate without deficit. It could pay off all existing debt, thus eliminating hundreds of billions of dollars of interest payments each year. This would free up revenue to provide desired and necessary services, creating millions of useful economy stimulating jobs — all debt free. This would include repair of degraded infrastructure, universal medical care, and universal education. The federal government could bail out states, many of which are deeply in trouble; and help resolve their pension problems. Again, all of this could be accomplished debt free…
“A trillion-dollar coin could avoid raising the debt limit, but it does not solve most of the problems facing our monetary and banking system. It leaves the same corrupt financial power structure in place. Bank issued debt used for money in our system remains in place — that is the source of current economic stress. It does nothing to reduce the interest burden of the existing federal and state debt. It does nothing about private debt such as housing, consumer, and student debt. It does nothing to get 47 million people off food stamps. It would not repair infrastructure or provide employment.
“The real solution to those problems was introduced into the 112th Congress by Congressman Dennis Kucinich, HR 2990. This bill puts the private Federal Reserve System under the U.S. Treasury, so that money creation in the U.S. becomes a function of government. The accounting privilege banks presently have to create money in the form of debt is ended by ending what is known as the fractional reserve system. New money is introduced into the economy by approved congressional government spending for infrastructure, health care and education.”
http://www.huffingtonpost.com/stephen-zarlenga/trillion-dollar-coin_1_b_2522214.html

JANUARY 24

1811 – CHARTER OF FIRST BANK OF UNITED STATES NOT RENEWED
The federal government issued a 20-year charter in 1791 to create the first national private bank. This was unusual since at the time most corporate charters, or licenses, were issued by states. The Bank was the first private institution empowered by the U.S. federal government to create paper money — with all the power and profit that goes along with it. The bank’s paper money was accepted for taxes. Eighty percent of its shares were privately owned, among these 75% were foreign owned (mostly by the English and Dutch). The bank was modeled on the Bank of England. Within 2 months of its creation, it flooded the market with loans and banknotes and then sharply shifted course and called in many of its loans. The result was the first US securities market crash — what became known as the “Panic of 1792” – the first of many panics, recessions and depressions due to the private/corporate control of our money system. On January 24, 1811, the result was Congress voting to not renew the bank’s charter, thus dissolving the bank. During the first 50 years of the US, legislatures and courts routinely chose not to renew or revoke corporate charters, which were considered democratic instruments and used to control the actions of corporations.

1932 – DEATH OF PAUL WARBURG, US BANKER
Warburg guided the operations of the National Citizens League, an organization formed in 1911 with $5 million in contributions from the big New York banks (including those owned by Rockefeller and J.P Morgan) to establish an “educational fund.”  The fund financed respected university professors to endorse the concept of creating a private central bank, what became the Federal Reserve Bank, created by the 1913 Federal Reserve Act.

1939 – STATEMENT MADE BY ROBERT H. HEMPHILL, CREDIT MANAGER OF THE FEDERAL RESERVE BANK OF ATLANTA
“We are completely dependent on the commercial banks.  Someone has to borrow every dollar we have in circulation, cash or credit.  If the banks create ample synthetic money, we are prosperous; if not, we starve.  We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible; but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied…”

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com