Monday, July 25, 2011

What Do North Dakota and Libya Have in Common?

We have a confused understanding of the federal money system because we base it on what we know about our own personal bank account, and we were never taught that the federal system does not operate in the same way. If you look at a chart of historical national debt and compare it to a chart of national money supply, they're the same. They both go up at the same rate. Why? Because the federal debt IS our money supply. Our money is credit and debt.

The federal government can initiate the supply of money by writing checks (debits in fed acct) that directly jumpstarts our economy. When the government writes checks to its employees, for real goods and services, that shows up as credits in real people's accounts that they, in turn, spend into the economy. The federal government can also write checks for infrastructure, which shows up as credits in commercial accounts, and creates jobs, thus creating credits in real people's accounts that they can spend into the economy.

States can create their own credit, as well. North Dakota is the only state that escaped the credit crisis. They own their own bank, which partners with the local banks and keeps credit moving within the state. So, why aren't all 50 states taking control of their money supply in the same way? Well, this would greatly threaten the international banking cartel (ibc). And, when you threaten the ibc, you end up like Libya, who had the nerve to create their own central bank that issues the money and issues credit for the nation's infrastructure, interest free; therefore, they had the lowest debt to GDP ration in the world.

However, unlike the political leaders in North Dakota, Khadaffi was trying to mobilize all of the African countries to follow his lead, while setting up an African monetary fund that would compete with the International Monetary Fund.

So, yes, we have the money to do anything we want to do. That's what money is: the credit of the nation, and the nation can advance the credit for what it needs to do.

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