hf 610, sf 65 will help solve 2 major problems: funding for transportation ever growing debt

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35 M INNESOTA HF 610, SF 65 Will help solve 2 major problems: 1. Funding for Transportation 2. Ever growing debt

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HF 610, SF 65 Will help solve 2 major problems: Funding for Transportation Ever growing debt. This is A SCARY CHART - showing 4 decade trends of America's total debt (the red line, reaching $53 trillion) vs. growth of the economy a measured by net national - PowerPoint PPT Presentation

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Page 1: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

35 MINNESOTA

HF 610, SF 65Will help solve 2 major problems:

1. Funding for Transportation2. Ever growing debt

Page 2: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

America's Total Debt Report

$ 57 Trillion$ 57 Trillion – and soaring

Household, Business, Financial and Government Sectors by Michael Hodges

This is A SCARY CHART - showing 4 decade trends of America's total debt (the red line, reaching $53 trillion) vs. growth of the economy a measured by net national income (blue line), adjusted for inflation in today's dollars.

updated March 2008 - a chapter of the Grandfather Economic Reports -

The chart shows

the debt in 1957

was $693 billion

(the left bar in the

chart) - - or about

$4,000 per capita

Today's debt has

grown above $53

trillion (the right

bar in the chart)- -

76 times higher - -

to $175,154 per

man, woman and

child - or $700,616

per family of 4.

80% ($42 trillion)

of today's debt

was created since

1990.

Page 3: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

How did we get over $60 trillion trillion in debt, when all we have done for the last 250 years is create wealth by combining our ideas and our labor with the raw resources of the earth?

In search for the answer to that question, letters were written to The U.S. Treasury and others.

The answer received from Russell Munk, Assistant General Council for the U. S. Treasury, was:

““the actual the actual creation of money (ALWAYS) involves the extension of creation of money (ALWAYS) involves the extension of creditcredit from private commercial banks.” from private commercial banks.”

This means interest bearing loans.This means interest bearing loans.

Mr. Munk then went on to say, Mr. Munk then went on to say, “You may want to know whether the “You may want to know whether the bank is the one getting the benefit of the new money, bank is the one getting the benefit of the new money, since the bank since the bank owns the new money while the customer has merely borrowed the owns the new money while the customer has merely borrowed the moneymoney. . The bank does indeed get the benefit of the new money”.The bank does indeed get the benefit of the new money”.

Page 4: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

Here is How

Banks Create Money

The Banks creates new money as a book entry on thier ledgers.

When someone needs money for a purchase, they go to the bank.

The bank then takes their promise to pay, and puts it on its books as an asset to the bank. Then the bank puts the new money in that persons’ checking account, as an asset to the account holder.

Page 5: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

John B Henderson, Senior Specialist in Price Economics, Congressional Research Service, The Library of Congress stated:

“Money is created when loans are issued and debts incurred, money is extinguished when loans are money is extinguished when loans are repaidrepaid”.

A Checking Account(Account Holder Loses Asset)

Promise To Pay Fulfilled (Bank Loses Asset)

-$1000 +$1000 -$1000 +$1000

0 0

Page 6: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

Quote: Robert H. Hemphill, credit manager of the Federal Reserve in Atlanta:

“If all the bank loans were paid, no one would have a bank deposit and there would not be a dollar of coin or there would not be a dollar of coin or currency in circulationcurrency in circulation”.

Under the present system, we are FORCED Under the present system, we are FORCED into interest bearing debt, before we can have a into interest bearing debt, before we can have a medium of exchange.medium of exchange.

Page 7: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

My next question was, “If all money is created as an interest-bearing loan, how is the money created to pay interest on the loans?”

The answer received from Mr. Munk was, “the money to pay “the money to pay the interest on loans comes from the same the interest on loans comes from the same source as all other moneysource as all other money.”.”

In other words, it also has to be borrowed from a commercial bank.That’s right. We must borrow to get the money. Then, we must borrow more to pay the interest. Unsustainable & Impossible.

John M. Yetter, U. S. Treasury stated in his answer: “The “The money that one borrower uses to pay interest on money that one borrower uses to pay interest on a loan has been created somewhere else in the a loan has been created somewhere else in the economy economy by another loanby another loan”.”.

Page 8: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

$38

$53 $51

$6.8

$0

$10

$20

$30

$40

$50

$60

Value America's TotalWealth

Total Debt Unfunded Fed Debt Dav idWalker

America's TotalM oneySupply

America's Financial Statement in Trillion$

SOURCES:($38) Speeches given by David Walker, U.S. Com ptroller General & "Cam paign Warns of Fiscal Doom ", St.Paul Pioneer Press , 10/30/06($53) Am erica's Total Debt Report-Michael Hodges($51) Speeches given b y David Walker, U.S. Com ptroller General ($6.8) Federal Reserve Bank New York .

Page 9: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

We cannot borrow our way out of debt. We cannot borrow our way to prosperity.

Collectively, we have already borrowed so much that by 2016, the Interest on the Debts at just 6% will be

greater than the Total Consumer Income!

U.S. Family of 4 Avg. IncomeShare of Interest on Total Debt

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$40,000$43,500

$46,500

$12,480

$30,854

$47,955

1990 2005 2016

Income Interest

Since 1990: The total debt has grown 24 trillion or $1.71 trillion per

year. Median family income has increased by $250 a year. By 2016, if the debt keeps increasing at the rate it is

now, the average family share of the interest cost will be 47,954.40.

The average family income will fall short of paying their interest bill by $1,454.40 to

say nothing about having any money for food and other things.

Sources:

Debt, Income & Interest http://mwhodges.home.att.net/nat

-debt/debt-nat.htm U.S. Department of Commerce

$12,480

$30,854

Interest

U.S. Family of 4 Average Income

Share of Interest on Total Debt

$47,955

Page 10: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

HF-610

&

SF-65

Minnesota

Transportation Act

MTA

Page 11: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

The MTA is a unique & innovative way to address the Funding shortfall that will Provide Safe and Sound Funding for Mi nnesota’s Roads and Bridges without increasing the tax burden!

The MTA will insure a more Safe and Sound Minnesota state banking system.

STATE

Page 12: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

The MTA will do this by enhancing a current banking practice of:

CREATING

MONEY AS AN

INVESTMENT

STATE

“BANKS CAN EXPAND OUR MONEY SUPPLY BY MAKING LOANS AND INVESTMENTS.”

The Story of Banks Federal Reserve Bank of N.Y.

Page 13: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt
Page 14: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

The MTA will mandate that the State Governments and the State chartered-Banks enter into an agreement whereby the banks will invest in needed Public Roads and Bridges projects.

The State Banks buy the Natural Equity to the project.

The State retains the Usage Rights.

STATE

Natural Equity

Usage Rights

Page 15: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

STATE BANK

A State-Chartered Bank will pay for the Natural Equity by

‘monetizing’ the bid value of the project.

35 MINNESOTA Here’s how it works!

Page 16: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

When we need new money to build transportation, we take the Bid Value of the Project to a state chartered bank.

The Bank monetizes the bid value of the Project, just like it would a borrowers Promise to Pay, and creates new money by adding numbers to a checking Account as an asset to the Account Holder.

The Bank takes the Bid Value of the Road Project and puts it on the books as a good will asset. The Money goes into circulation as the funds mores from Checking Account to the Checking Account. Just like it does now.

Page 17: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

This new money will stay in circulation, as long as we are a Nation, without new borrowing.

Page 18: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

‘Contractor’s Account’ ‘Transportation Project Account’

+ $488,000,000 MONEY

The money will be electronically debited out of Road Authority account in a State-Chartered Banks according to the terms of the Contract.

0

Page 19: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

Road Workers

Checking Accounts

Heavy Equip.

The Contractor will spend the money

to complete the project and pay for

construction costs

according to the terms

of the contract. Raw Materials

$200,000,000

$185,000,000

$103,000,000

Page 20: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

$87,000,000

Food

Checking Accounts

Housing

The money will flow into the Minnesota economy.

Loan Payments

It will be used to purchase the needs of life, pay taxes

and pay interest on our

huge outstanding debts.

Road Workers

& Suppliers

$488,000,000

Transportation

$249,000,000

$142,000,000

$10,000,000

Page 21: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

STATE BANK

A Safer, more Sound Minnesota state banking system.

Some of the benefits:

No Tax Increases to build and maintain roads & bridges!

494 MINNESOTA

Safe, Sound Funding for Minnesota’s Roads and Bridges!

Page 22: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

They will do this by working through the road authority of either their

city, county or state government.

Said government agency designs the specs for the project and gets bids, then takes the wining bid to the nearest state

charted bank.

Said state charted bank will monetize the value of the project then transfer the funds electronically to the bank account of that

road authority.

The road authority will pay the Contractors by transferring the

funds into the contractors account maintained in a state charted bank according to the

terms of the contract.

The contractor will then spend the

money to pay all the costs incurred in completing the

project: labor, equip, and raw materials.

As the road workers, the suppliers etc., spend their money for food, housing, transportation, etc., the new money will flow into

circulation, debt free.

The people will get the transportation system that

they need. They will have new money in the system to meet

their daily needs, without more borrowing and without a

greater tax burden.

The People decide they need better

transportation.

The state banking system, working together with the

local and state governments, will have monetized the States’

transportation system for the benefit of the people.

Government is instituted for the security, benefit and the protection of the people, in whom all political power is inherent, together with the right to alter, modify or reform government whenever required by the public good.

-Minnesota Constitution

Page 23: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

ARTICLE I BILL OF RIGHTS

Section 1. OBJECT OF GOVERNMENT.

Government is instituted for the securitysecurity, benefitbenefit and protectionprotection of the people, in whom all political power is inherent, together with the right to alter, modify or reform government whenever required by the public good.

Page 24: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

SecuritySecurityWe believe the Governments of MN. are not providing Security to the people of Minnesota, when we have bridges falling down and roads closed, out of fear of more bridges collapsing.

BenefitBenefitWe believe the Governments of MN. are not providing Benefit to the people of Minnesota by adding an ever increasing tax burden.

ProtectionProtectionThe Governments of MN. are not providing monetary Protection to the people of Minnesota if they continue to force them to go deeper and deeper into debt, in order to have a medium of exchange. Minnesotans overall indebtedness is already over $29 billion.

Page 25: HF 610, SF 65 Will help solve  2  major problems: Funding for Transportation Ever growing debt

We believe the passage of this unique We believe the passage of this unique & innovative bill, will enable the & innovative bill, will enable the

Governments of MN. to fulfill their Governments of MN. to fulfill their Constitutional dutyConstitutional duty to provide for the to provide for the securitysecurity, , protectionprotection and and benefitbenefit of the of the

people in Minnesota.people in Minnesota.