Building and fixing roads and bridges, and the ‘Money Plan’ will pay for it.
By: Leslie Davis - 612-529-5253
Minnesota’s roads and bridges are in terrible condition and need very expensive repairs, maintenance and expansion. Minnesotans also need jobs and income.
Where will the money come from to implement my Minnesotatransportation vision? The answer is the ‘Money Plan’.
Two facts: The Tooth Fairy does not create money, and money is not dropped into circulation from the sky. So, how do we get money?
Money is created by banks. When you go to the bank to get a loan, the bank “creates” the money. Whether it is a mortgage on a house, car or boat, or a promise to pay bonds issued for a school, library or municipal building, the money is created as a loan with interest.
Byron Dale, money researcher and author, in his booklet, “Tales of the Treasury,” cited government sources stating: “The actual creation of money always involves the extension of credit by private commercial banks.” Today, all money is created only as book entries on the ledgers of private banks as loan principal. The money is created from debt, and nothing backs the debt other than the promise to repay the debt.
Government sources also state: “Money for paying interest on borrowed money comes from the same source as other money comes from.” In other words, the money to pay the interest on a loan comes from capturing another’s principal or from another loan.
Rodney Hext of the Federal Deposit Insurance Corp., or FDIC, has confirmed that state law controls FDIC audits of state-chartered banks.
The ‘Money Plan’ is the most wonderful way to pay for Minnesota’s state-of-the-art roads and bridges with no debt and no new taxes. It works like this:
The state regulates state-chartered banks and the state creates the rules under which those banks operate.
The ‘Money Plan’ calls for modifying state-banking laws by statute. The new statute would require state-chartered banks to create new checkbook money to pay for construction and maintenance of all approved roads and bridges throughout the state (township, county, and city). The money would be a final, debt-free payment for materials and wages earned. The money would be created based on wealth instead of debt and there would be no debt or new taxes!
For providing this service, state-chartered-banks would be exempt from reserve requirements on this aspect of their business, receive a nominal fee, and some tax benefits.
As the recent financial crisis demonstrated, we cannot pay debt with debt and get rid of debt.
Nor can we borrow our way to prosperity. The ‘Money Plan’ would allow money representing wealth, not debt, to flow into circulation to begin paying the debt out of our economy and provide money for economic expansion and sustainability.
A state-of-the art transportation system would provide safer roads, reduced insurance costs, lower costs to do business, reduced environmental emissions, less travel time, less stress, and thousands of additional jobs.
State fuel, axle, and sales taxes, would no longer be needed for transportation and could be used in many ways. Returned to the payee, help balance the budget; reduce property taxes, or a combination of all three. After 2015, transportation taxes could be eliminated.
The ‘Money Plan’ legislation, when passed, would return our state to long-term prosperity and wealth.
With our vast resources of water, land, forests, great workers and good schools, Minnesotans should be healthy and wealthy instead of sick and borrowing.
Leslie Davis of Minneapolis is the founder of the Earth Protector environmental group and a DFL candidate for governor in 2014.