"The federal government has the sovereign power to create its own money. This is a major constitutional power, giving We, the People the authority to issue our own money. U.S. Constitution Art. I, Sec. 8, Clause 5, "The Congress shall have Power... To coin Money and regulate the Value thereof,..."(i). As leading constitutional scholar Robert G. Natelson demonstrated in his lengthy article in the Harvard Journal of Law and Public Policy on the meaning of "to coin" in the Article 1, Section 8, Clause 5, the word "coin" here is a verb, meaning to create or originate: "... the money thus "coined" did not need to be metallic. Paper or any other material that Congress selected would suffice. Because the power to coin paper was express, it requires no justification by the incidental powers doctrine of the Necessary and Proper Clause." Most of the money we use today is digital, and nearly all of this money is presently created by the private banking system when they make loans. The U.S. Treasury, under the direction of Congress and the president, could create money in any amount the same way. The Federal Reserve Banks would be required under current law to accept that money on account. 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." - Stephen Zarlenga
Posted on: Tue, 08 Oct 2013 10:06:27 +0000
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