Wednesday, October 29, 2008

Here is the Authority to Fix the Glitch

Article 1,  BILL OF RIGHTS
Section 1.  OBJECT OF GOVERNMENT.  Government is instituted for the security, benefit and protection of the people, in whom all political power is inherent, together with the right to alter, modify or reform government whenever required by the public good.

Article 1, Section 8
  • To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
  • To establish post offices and post roads;

FEDERAL FIX: We can change things to have Congress "coin" money to build roads (infrastructure). Debt free money would flow into circulation.

STATE FIX:  We can pass a law authorizing a small change in accounting procedure, and allow State Chartered Banks to create (just like they do now, except debt free) and deposit new money into the State's Transportation Account.  As the state follows the existing procedure for getting the roads build, new debt free money would flow into circulation. 


"Fix the Glitch" 

The MTA in it's most recent form, Senate File 705:

SF 705       
(updated Spring 2009)

This piece of legislation, with true bipartisan support, can help fix our broken economy.


History Made

In March of 2008 there was an historic hearing in the Minnesota House and Senate. The Minnesota Transportation Act (MTA), in the form of HF 619 and SF 500, would fund the rebuilding of bridges and roads in Minnesota using Transportation Certificates, in lieu of bonds, or increased taxes.

This is a robust, wealth based concept, with newly created money from State Chartered Banks flowing into the economy.  New money flows from the Bank, to the State of Minnesota, that pays the Contractor to build the roads and then pays the Workers - they continue the movement of the new money into wider circulation:
  1. debt free
  2. interest free
  3. inflation free
  4. tax free

The State Chartered Banks create the money the same way they do it now - electronically.

Creation of the new money is limited by production and the infrastructure supports the new money, so it is inflation free.

It is not a loan, so it is debt and interest free, bringing down the cost of production.

Because the State no longer needs to tax for bridges and roads, the fuel tax can be eliminated and Minnesota property taxes get immediately reduced. Again, the cost of production drops.

Jobs will be created. A boom in Minnesota's technology sector will occur as we build infrastructure that is more gentle on the environment. Innovation, investment and savings will be the result.

The public gets safer, modern roads and bridges with which to conduct commerce.

  1. Banks win - lower default rate, increased liquidity and a tax break
  2. Minnesota government wins - balanced budgets, national leadership
  3. The people win - lower taxes and prices, plus safer bridges and roads
  4. The US wins - Minnesota paves the way into a new era of prosperity

There is a glitch in the system that we use to finance infrastructure; the MTA will fix it.

Learn about the MTA and become part of history!


If It Can't Be Grown, It Has To Be Mined.

Everything we have (excluding cosmic debris) comes from the Earth.  As we produce, we create wealth; we do not create money as we produce. That only happens at a bank.

Now, money only comes into being when someone, an individual, business or government, takes out a loan. 

It's true that gold, silver, platinum and diamonds are forms of wealth (wealth = raw resources + labor + innovation) but we don't use wealth for money.  We use debt.

The Minnesota Transportation Act (MTA) will introduce a stream of wealth-based money into the economy to allow people to pay off their debt. Bank default rates will decline and our economy will stabilize.

We can't grow money and we don't mine it either.  We borrow it.  Our money is not wealth - it's debt.