Some of the benefits of an Amendment are as follows:
- Eliminates the Taking of Your Money Through the Hidden Tax of Inflation
- Eliminates Boom / Bust Economic Cycles
- Fewer and Shorter Wars due to Funding Only with Taxes or Real Borrowing
- Limits Pork Barrel Spending
- Bailouts would Cease
- Congress Spends Only Taxes & Real Borrowing
- Americans Keep the Wealth they Create
- Limits Government Spending your Children's Money (placing debt on the next generation)
- Stops Congress from Buying Your Vote with Your Own Money
- Forces Congress to Deal with Medicare, Social Security, Pensions and Other Unfunded Entitlements
- Begins a dialog on what monetary system should replace our current broken system
Monetizing debt (printing money) is a regressive tax that hurts poor people more than anyone else. It takes money from citizens as a hidden tax and the people do not even know they are being robbed.
Why Should we Stop Monetizing Debt?
The point of stopping Congress' ability to monetize debt through the Federal Reserve is to take the first step towards unraveling the unholy system that was created so the banks can get bailouts and so the government can spend all the money it wants by stealing from the citizens.
If America passes this Amendment and Congress no longer can monetize debt through the Fed, then it will no longer have any reason to bail out banks, or anyone else, when they fail because there is nothing in it for Congress.
The banks will have to stand or fail on their own. The failure of banks is bad, but not as bad as having taxpayers bail out the banks without taxpayer's knowledge or permission. Once banks learn that Congress will no longer use the Fed to bail them out, they will make less risky loans and well run banks will not need bail outs. Natural free market forces will determine the fate of banks and Congress will not need a 2300 page bill to control them.
Congress will then press to authorize a return to a gold standard or some version of that standard because they would have no incentive to allow the risk inherent in the current fiat money system. At the very least, Congress would require reserves in banks to have intrinsic value such as gold, silver, real property, hard assets, etc.
Then Congress would have incentive to gradually increase the banks' reserve requirement. If Congress increases the bank's reserve requirement by 2.5% per year, in 36 years we would be off "fractional reserve banking" entirely and if the increase is with money that has intrinsic value, we would be off fiat money as well.
There is no way of knowing how much wealth would have been created in America if Congress would have only had to exist on taxes and real borrowing from the beginning. Where would we be if we had followed Article 1, Section 8 and never allowed "fractional reserve banking?"
What we can do today is begin to unravel the fraud, pay the piper for our mistakes, and begin to use an honest monetary system. That honest system begins with this Amendment and will allow Americans to keep their wealth.
"We shall consider ourselves unauthorized to saddle posterity with our debts, and morally bound to pay them ourselves." Thomas Jefferson, The Writings of Thomas Jefferson, Library Edition (Washington: Jefferson Memorial Association, 1903), Vol XIII, p. 272.
If you are a State Legislator or are willing to work with your legislature to right this injustice, please contact us for more information on how to get started.