Only Treasury Department To Issue Money
The United States Department of the Treasury, directed by Congress, should be the only institution with the power to issue money (Treasury Notes). Neither the Federal Reserve, nor any other private bank or banking system should have any power to issue new money. This new money should be managed for the public good, not for private profit as is done today. As such, money should not be sold to the government with the charging of interest, as is done today through the selling of bonds, but should be created without any associated debt. Money is a tool used to facilitate the exchange of goods and services in an economy and the decision to increase or decrease the money supply should be solely to serve this public-interest purpose. Therefore, two statistics should be be paramount in this decision: 1) population change (i.e., annual growth or decline) and 2) the price-level index (basically a measure of the price of several goods and services compared over time). These Treasury Notes should not be backed by anything of intrinsic value.
Abolish Fractional Reserve Banking
The reserve ratio of all banks and other financial institutions should be increased from the current 10% (usually) to 100%. The funds for this increase would be provided by debt-free Treasury Notes. In order to keep the money supply stable and prevent hyperinflation, the reserve requirement of banks would be increased at the same rate that payments are made to them with Treasury Notes. Paying off the national debt in such a way need not take more than about one year. (Please see www.themoneymasters.com)
The permanent benefit of transitioning to a non-debt-based money system would be the elimination of the requirement to perpetually pay hundreds of billions of dollars annually in interest payments for merely servicing the national debt. Other benefits include the elimination of the vast majority of inflationary pressures enabling price stability and easy comparability for decades.
Although credit would become scarcer, it would merely be available in quantities that are in line with a natural stability of the system. In other words, fractional reserve banking results in credit that would otherwise not be available, except for the legal ability of banking institutions being allowed the lending of money created out of nothing.