Imagine Legislation That
Makes the Public Responsible for Currency Creation
 

First, Congress can no longer hide behind the “create money out of thin air” scheme so easily hidden through the Federal Reserve System. NESARA restores respectability to the word “borrow” because Congress must borrow only currency already in circulation.

Under NESARA, the new Treasury Reserve Banks cannot create money out of thin air because by law they are forbidden to purchase income producing obligations of the U.S or of foreign governments. They are limited to basic clearinghouse functions and storing cash reserves for commercial banks. Just as the Founding Forefathers intended, creation of currency is reserved to the people.

Under NESARA, all fiat currency is created by commercial banks through the monetization of debt—but only at the local level. The Treasury Reserve System Board of Governors may purchase government issued debt, but, by law, only for purposes of regulating the exchange value of U.S. Treasury credit-notes. And any U.S. debt which it does purchase must be immediately sent to the U.S. Treasury where it is cancelled out of existence.

Second, the U.S. Treasury Secretary is required by law to publish at least weekly, the exchange ratios of the various currencies in circulation. And the U.S. Comptroller of the Currency is required by law to publish at least weekly a United States Treasury Credit-Note Exchange-Value Index which measures and tracks the exchange value of treasury credit-notes in commercial transactions. Although Congress has constitutional authority to borrow money, if Congress doesn’t quickly learn to control itself, variations in these exchange values will immediately warn Americans that something is wrong.

Under NESARA, banks are prohibited from buying any government issued debt for their own accounts and can only use the new Treasury credit-notes as bank reserves. This severely limits their influence over monetary policy.

Under NESARA, Congress sets the standards and establishes the procedure for the currency creation process but only the people determine the quantity of debt they are willing to monetize.

More information about, and a copy of the bill, are located on this web site.