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What is the one and only good solution out of all this? A combination of the installation of a Super Debt SIV, a swift of money creation from the FED back to the Federal Government, an Export Finance Fund, an Energy Fund and a Municipal Finance Fund. The Super Debt SIV: The creation of a super Debt SIV that can purchase all stressed bank debts. Resistance in bailout the airline industry and the car industry directly (as their problems are global, not specific US, and have other causes). Some kind of sanctioning for the banks that sell 'assets' to this Super Debt SIV. A stop on interest can be put in place, but this will face global resistance, and is therefore maybe not wise to propose. On the other hand: the debt has two parties: the financials as debtors and the owners as lenders. Maybe this Super Debt SIV only must purchase only debts with mutual agreement between both debtor and lender. Than the sanction for the banks and the conditions for the owner can be set in mutual agreement (by a standard not negotiating model). Demands of the Super Debt SIV to the banks? 1) Production of honest balance sheets based on actual values (based on published financial measures). 2) Shares reshuffling based on real values (as it is a refinance tool). 3) The Super Debt SIV gets share equal to the refinanced debt (with recalculation if later on new balance sheets prove that the old once where not good and an extra fine for that). 4) Lenders must agree in transfer the debt to the Super Debt SIV. Demands if the Super Debt SIV? A) Agreement on the transfer of the debt to the Super Debt SIV. B) Lower interest rate or even interest stop (a general mandatory rule, not negotiable). C) A mandatory convertibility of 20% of the debt a year into purchase of US produced goods. D) A default option of 50% payment and 50% goods (if the second part of this proposal -the FED part- also is done). A short period will prevent full interexchange between debts and the current order flow, because that will not lead to extra orders and would not boost the demand for US production and the US would not gain payment power again). The other part of the solution is the return of the money creation to the government. The FED has in her 95 years of existence never granted any auditing request of the Congress. The current dollar is already fiat (not by anything backed) currency. The Gold in Fort Knox is never full audited since 1954. So it's not clear if there is any gold there and if there is left some gold there who owned it. The commission that advised Reagan on the gold standard possibilities write in their report that the gold that still is left in Fort Knox had been in ownership changed to the FED 'due collateral reasons' of the state debt. Both the resistance of FED book auditing and the resistance of an one day full gold absent and ownership auditing at Fort Knox tells enough. The FED must be seized overnight and assets that has been moved or let off must be corrected. Private ownership of the money creation system was a stupid idea, installing a bank cartel that lend the government the money the government has allowed them to print. Paying interest by the government on debts that are based on fiat created money is to odd for words. Seizing the FED. Gradually paying the governmental debts by the new created money with equally retracting the fractional bank ratio's so that the same amount of money stays in the system. Tight regulation on the governmental money creation capacity. Legislation that forbids any seized FED official to be involved in the BIS (Bank of International Settlements) as the BIS being a non-democratic and non-governmental financial body that holds to much (not politically controlled) international economic power. We don't need old bros based networks any more, we need open democratic transparency. This solution could use also additional an Export Finance Fund, an Energy Fund and a Municipal Finance Fund. Europe and China could realize a same set of solutions, if the Euro and the European banks and the Renminbi and the Chinese banks are too much effected by the US situation. Results? No debts anymore, no fractional banking any more (more stable economy), less income tax (as the IRS tax we pay now almost completely is used to pay interest on the federal governmental debt, with will be gone than), no inflation anymore and municipals can address the PeakOil related problems of making their local economies vibrant prosperous. If this set of solutions not is taken, we will face collapses and chaos. The future of the 21st century is local due the fact that local models has the best energy/prosperity ratio's. This transition can be done gradually by the above described solution of will be born out of chaos (much more headwind for everybody). Local currencies and local taxes are the two words of the 21st century. Federal can gradually flow into local, or federal will be abolished with an economic/financial big bang. The weak spot in the FED is dangers of the Sherman Anti Trust Act of 1890 for the owners. That that FED is a cartel is a 100% proven fact. That the cartel has used it power to abolish their competition right after the incorporation in 1914 is also a proven fact. That the cartel influence the market movements by money circulation contraction/extension also. That the cartel has used the money circulation contraction to buy assets (companies, land, stocks: see the few FED meeting transcriptions that are leaked out) for stressed/lower prices also (their view on economy is like a farmer: let it grow, profit meanwhile of it, but certainly harvest when a boom reaches its top). That the FED used it force to seize all the gold held by US citizens in 1933 also. That the FED keep artificial money supply shorten in the 30ties (because outside the USA in a certain European country was more profit to gain in that period). The FED is about profiting/taxiing a nation by a private company. The FED is about insight trader profits by negative bets (put options) when it's not betting, but the results are ensured by fore knowledge. All it takes is just load of civilians who file a Sherman Act complaint against the FED. That's acting real patriotism, really freeing both Government of their debts, and giving people only 1 instead of 4 month a year 'working for taxation'. The procedure for this can be found on the internet by googling for 'Sherman Act'. Then the US government will get the money supply back, could buy back the Treasuries, while contracting the high risk fractional banking ratio's so that money supply stays the same. The dollar is already a total 'fiat' (not by anything backed) currency, that its value totally gets on the common trust in the currency. Then the US Government will be debt free, the US citizens can use the earnings of 4 months work a year they now pay in taxes (100% used by the Government to pay the interest on the Federal State debt, new things are paid by debt extension) for paying of their debts. Municipals can be also brought out of debt by the Federal Government. The new president really can make a difference. If he does not. He will be like someone who attend to a party at 06.00 when all that's left is empty bottles and a mess on the floor while the caterer is demanding payment for the cost of the party. The new president (republican or democrat) really can lead the US to a new debt free future, lead the Federal Government, the citizens, the States and the Municipals out of debt. Assisted/backed by the Sherman Act, immediately effected by or an own written new Executive Order, or by use of the EO 11110 that Kennedy already has signed on June 4, 1963, he could take back the money supply to where it belong: by the government and not by a private owned cartel. The US would get out its debt without a own crash and without a global economic crash. Any other solution will certainly lead to a global economic crash where the hard working middle class loose / get ripped off their savings and pensions, but this time on global scale. Only an EO will work, giving no time for destroying archives and attractive business closing deals for the current owners. As mathematically correct: in economic crashes less real value is lost, values are only transferred to the bargain buyers who has cleared their positions earlier. The results? No collapse (as collapse is not about lost of values/assets, but only transfer of values/assets to insight knowledge), less income taxes (as the State Debt will disappear: so more household wealth and corporate strength), less debt (so less interest payments: so more household wealth). The US citizen faces today to mayor financial pressures related to FED designed interest: 1) Income Tax: that is used 100% for interest payments on the unnecessary interest on federal governmental debt (the new expenses are funding by higher debt), as the federal government has giving away in 1913 her own right to issue money to the FED, who now can let her shareholders/beneficiaries charge interest on the printed money for the governmental debt. Each American works 3 till 4 months a year (30.8% GDP according to the Tax Foundation) to pay the interest on the governmental debt to a company that has seized the right to issue this debt from the government in 1913. 2) Debt Interest: as Income Tax takes away 3 till 4 months (30.8% GDP according to the Tax Foundation) of each income, going into debt is a logical consequence / appealing temptation. But debt costs interest. If the invisible taxation of currency users by the currency issuers due to inflation (increased money supply, more money issuing) also is also taken into account, than it's mathematically safe to say that each American works 50% of the year just because Wilson in 1913 pushed the FED law trough Congress on Christmas Eve. This is a modern time version part-time slavery, something that will no longer accepted in the 21st century. The governments will take money supply back into their hands, the money system will not gold backed, but will be 100% fiat/trust based currency. There will be a constitutional amendment that prevents that one president/administration can blow up the currency by outlining moneysupply borders. Taxes will be sever lower (as they not longer used to pay interest on the federal debt), people will have less debts (as they have less taxes to pay and the fractional banking ratio's are lowered the same time). In nations with good governments there will no inflation and no taxes and they still will be able to provide good government. This is no weird fairytale, but a actual proposal. Just do the math concerning taxes, money supply, governmental budgets, inflation, interest and money supply. Any university should do this. Of course being the policeman of the world, or fighting wars is not possible in this system, as governments their spending directly negative influence their own currency position. An other big advantage that comes for free as side effect of this system. As for the driving forces in the banking industry. Good business men knows when to stop. The taxation/inflation based cow is old, has given enough milk in the 20th century, but is due. Times to leave the currency/credit path of the forefathers. Time to change operations from central banking completely into energy generation: that's the 21st century version of currency/credit. Universities: do the math. Both pro and contra. This Planck Proposal fits also a goodbye to fractional banking. As fractional banking needs endless growth and that's not possible on a limited earth. Shortening the banking leash in equity ratio's, auditing and bonuses is crucial. Equity ratio's must be driven back to normal levels, equity/volume ration's of 1 to even 100 as they are now, back to 1 on 1, as fractional banking must be abandoned by legislation. Bank CEO/staff bonuses may only be done in lifetime benefits, preventing short term gambling. Bank asset values, equity ratio's and bonuses must be controlled/audited with bank auditing by a new organization of banks/governments/companies/consumers. Banks are no islands in economy/society, they are the bridges and needs to be audited objectively. This should be part of the license, self regulation has failed severely. This Planck Proposal momentum also can be used to cut all artificial data inflation out of all governmental reported statistics. No artificial low inflation figures any more, no artificial high GDP figures anymore. There is no need more for lying on status data. As the financial problems are solved by changing the system of money supply, the USA doesn't have the need to dress-up figures just to keep the lenders buying Treasuries. Real values. That will be the motto of the 21st century.

Author: Gijs Graafland

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