Imagine Legislation That
Provides 500 Billion Dollars for Infrastructure Projects
 

NESARA creates a new national monetary system, within the limits established by the Constitution, consisting of three types of currency: silver coin, gold coin and treasury credit-notes.

New banking regulations, specifying how accounts in each of the currencies are to be handled, opens the door for some creative infrastructure project financing at the local level.

Suppose Congress instructs the Treasury to sell small-denomination, nontransferable interest-bearing gold and silver savings bonds to U.S. citizens through their bank specie accounts. These bonds are redeemable in 5 to 20 years, interest paid annually, calculated in specie but paid in treasury credit-notes at the current exchange-ratio. Americans could exchange their paper currency for lawful money, deposit the coin in a specie bank account, then convert those funds to interest-bearing gold or silver savings bonds.

This immediately creates a tremendous circulating market for the Treasury’s gold and silver coin, most of which never leaves the vaults. The sale of $50 billion in specie bonds at par removes that amount in paper currency from general circulation. Under the new banking rules, the bonds are nontransferable, thus the bonds never enter the stream of commerce and cannot replace the paper currency. Nor under the new banking rules can the bonds be used as bank reserves. Due to the expansion factor built into the fractional reserve monetary system, the nation’s available currency and credit drops, perhaps by $500 billion.

At the least such a move is sharply deflationary, and probably recessionary. Since the nation’s aggregate of currency and credit is only about $3,000 billion, the government would have to increase the money supply before the economy collapsed. Suppose Congress decides to accomplish that increase by redistributing the proceeds from the bond sales as restricted bank reserves, setting the restricted reserve requirement at 10 percent. State and local governments could borrow funds for infrastructure projects from local banks equal to 10 times the reserve amounts (provided local taxpayers agree to new taxes to repay the loans).

Everybody wins. The federal government, using the bullion now collecting dust at the Treasury, redirects a significant portion of net national production toward rebuilding a crumbling America, new roads, bridges, and other public facilities including water supply and waste disposal plants. Bankers earn a fee for handling the transaction. Voters once again get back into the loop. Proposed projects die without local approval. Lastly, because principal is repaid before the monetization-fee, low debt-service factors on long-term projects keep the cost down and local taxes low.

NESARA offers a tremendous opportunity to rebuild the national infrastructure. Congress initiates the plan, but the plan is administered and controlled at the local level where the people build their own prosperity.

Just like the Founding Forefathers intended.

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