Mission & Name
US Foreign Policy (Dr. El-Najjar's Articles)
Congressman Dennis Kucinich Calls for Debt-Free Dollars
By Chris Petherick
Heart Land News, February 12, 2009
Congressman Calls for Debt-Free Dollars
congressman has called on the federal government to take back the power
to issue money from the Federal Reserve, the private central bank that,
along with Wall Street, is to blame for plunging the world into an
economic crisis not seen since the Great Depression of the 1920s and
"The Federal Reserve [is] no more federal than Federal
Express," said Rep. Dennis Kucinich (D-Ohio) on the floor of the House
of Representatives on Jan. 26. "It's a collection of private bankers
that was established in 1913 by the Federal Reserve Act."
GOVERNMENT SHOULD ISSUE
DEBT-FREE MONEY, SAYS DENNIS KUCINICH
called on the federal government to institute monetary reform beginning
by issuing debt-free money—dollars that have not been loaned into
circulation at interest by banks. "We can take a new direction, and that
new direction must include monetary reform," said Kucinich.
Kucinich quoted monetary theorist Stephen Zarlenga, the author of The
Lost Science of Money, saying, "the bulk of our money is not created by
our government, but by banks when they make private loans."
Kucinich quoted the Constitution as authorizing the government to be the
sovereign power to issue money.
"Because of this monetary
crisis," he said, "we have an opportunity here. Instead of giving
private bankers more power, we need to incorporate the Federal Reserve
into the Treasury where all new money could be created as government
money, not as interest-bearing debt."
He also said the
government needs to halt the banks' privilege of creating money out of
thin air by ending the fractional reserve system. "Past monetized
private credit would be converted into government money," he said.
"Banks would continue to do what people think they do now under this new
approach," he said. They would only act as intermediaries by accepting
savings deposits and loaning that money or their own cash out to
"And what would the government do?" he asked. "Well,
we wouldn't have to borrow money and continue to owe money to the banks
to finance the needs of this country."
The proposal came during
an hour-long speech by Kucinich, who offered fierce criticism of the
banking industry in general, saying that bankers shamelessly exploited
legislation, which was supposed help Americans avoid bankruptcy, in
order to get free money from taxpayers.
"It turned out to be a
windfall for banks," said Kucinich. "But hold onto your hat, Mr. And
Mrs. America, because the banks are not done. They're going to be
looking for even more money, [and] they're using this opportunity to
game the system."
Kucinich also had choice words for
speculators. "We've seen speculation driving this economy. An economy
built on gambling, and not real production, is not sustainable. Moving
to a financial sector as a source of profits is an unsustainable Ponzi
scheme," he said.
"Remember that this time in our national
experience is all about taking wealth from the great mass of the
American people—from your paychecks, wallets and pocketbooks—and just
moving it right to the top," he said.
"We're in a world of debt,
creating more and more debt in a debt-based economy," said Kucinich.
"And the pros, who put us in this mess, refuse to admit that debt is the
problem that put us here." The current situation is unique, Kucinich
said, because never before in American history have we seen so much
"The growth of our public
and private debt from $10.5 trillion to $43 trillion
during Alan Greenspan's tenure from 1987 to 2006 gives us some sense of
the real magnitude of the problem," he said.
The Federal Reserve
knew this financial meltdown was on its way. "Yet we saw Greenspan
pretend he didn't have a clue," he said. "The Fed didn't do its job."
"Under those circumstances," Kucinich asked, "would Americans want
the Fed to have more power?
"Someone has to stand up for the
American taxpayers, and say, 'Stop it,' " he said. "We have to get
control of this Federal Reserve."
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