APRIL 28
1937 – BIRTH OF SADDAM HUSSEIN, IRAQI PRESIDENT/DICTATOR
Hussein announced in November 2000 that Iraq would no longer accept dollars, only euros, as payment for Iraqi oil. The inherent strength of the US dollar for decades has been passed on the “petrodollar” – the policy that only dollars could be used to purchase oil from any nation. An end or even serious threat to the petrodollar system would reduce the dollar’s value – causing severe economic decline in the US. Many believe this announcement was the major reason, not anything to do directly with the 9/11 attacks in the US, for the US invasion of Iraq.
2017 – “MEET THE DOUGHNUT, THE NEW ECONOMIC MODEL THAT COULD HELD END INEQUALITY” ONLINE ARTICLE POSTED
“Money creation: why endow commercial banks with the right to create money as interest-based debt, and leave them to reap the rents that flow from it? Money could alternatively be created by the state, or indeed by communities as complementary currencies: it’s time to create a monetary ecosystem that can fulfill this distributive potential.”
APRIL 29
1947 – DEATH OF IRVING FISHER, PROFESSOR AND ECONOMIST
“Thus our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess. “
2006 – DEATH OF JOHN KENNETH GALBRAITH, AMERICAN ECONOMIST, PUBLIC OFFICIAL AND DIPLOMAT
“In numerous years following the Civil War, the Federal Government ran a heavy surplus. But it could not pay off its debt, retire its securities, because to do so meant there would be no more bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”
[Note: The same is true today. Since most money is created as debt via loans (to individuals, corporations and the government), paying off the debt would reduce the money supply. A severe depression would inevitably result since not enough money would exist to permit all our economic transactions. The solution is not to “reform” our debt-based money system, but to replace it with a system where money is created debt-free. This is needed today more than ever.]
2021 – POSTED VIDEO “MODERN MONEY, FORGET THEORY: DEBUNKING THE MMT S(TAB)HYPOTHESIS” BY JEFF EDER
“The Deficit Myth by Stephanie Kelton is the apex of MMT thought so that is where I am going to focus my efforts in debunking their theory that the government spends money into the economy before taxing and borrowing can occur. Their acronym of choice is S(TAB) government Spending before Taxes and Borrowing. Sometimes it is what you don’t say that can be deceptive and in this case Kelton and other MMT advocates completely ignore the fact the majority of money in circulation is created by privately owned commercial banks through the loans process and is not contingent on any funds from the government. This alone should dissuade any objective thinker from taking their theory seriously. To the casual reader unaware of this fact they can be led down the rabbit hole and I’m going to show you how MMT does it.”
APRIL 30
2014 – IMF APPROVES $17.01 BILLION LOAN TO UKRAINE IN EXCHANGE FOR “ECONOMIC REFORMS”
The IMF money comes with stringent terms, what used to be called “Structural Adjustment Programs,” which includes spending cuts, privatization/corporatization of public assets, laying off of public employees, increased prices and debt restructuring. IMF loans in essence transfer economic sovereignty domestically to international bankers. In the case of Ukraine, the requirements include a 50 percent increase in the price of gas for households, as well as a quick pension reform and lower government spending.
The World Bank warned on April 10 that the loan terms set by the IMF would cut 2014 consumption in Ukraine by 8 percent, as well as erode capital investment.
MAY 1
1871 — KNOX V LEE US SUPREME COURT DECISION
This decision was one of several popularly known “Legal Tender Cases” during this period (the others were Hepburn v. Griswold and Julliard v Greenman). The Supreme Court reversed their earlier decision in Hepburn v. Griswold (1870). The decision upheld the Legal Tender Act declaring that making paper money legal tender did not conflict with US Constitution (Article 1). The decision allowed debtors to repay debts in Greenbacks rather than gold or silver.
2012 – “97% OWNED” VIDEO POSTED ONLINE
“When money drives almost all activity on the planet, it’s essential that we understand it. Yet simple questions often get overlooked, questions like; where does money come from? Who creates it? Who decides how it gets used? And what does this mean for the millions of ordinary people who suffer when the monetary, and financial system, breaks down? https://www.youtube.com/watch?v=XcGh1Dex4Yo
2018 – “A GREEN BANK OF ENGLAND” INTERNET POSTING
“The Bank of England is uniquely placed to explain the links and trade-offs between the low-carbon transition and other economic objectives, and to promote both where possible. It can retain its operational independence over monetary and financial policy even if the goals or parameters of policy are altered. Indeed, the choice of those goals is fundamentally a political question: political reform has modified the Bank’s purpose to suit historical and economic context in the past. The climate crisis presents an urgent change in context. The UK needs a central bank with a mandate which reflects that.”
2023 – “FINANCING THE COMMON GOOD” ARTICLE BY MARIANA MAZZUCATO
“The United Nations has warned that “cascading and interlinked crises” are jeopardizing not just the 2030 Agenda for Sustainable Development, but “humanity’s very survival.” Mitigating the threat requires a radical reform of international finance, based on a market-shaping paradigm that advances the common good.”
MAY 2
2012— SPEECH BY FEDERAL RESERVE GOVERNOR DANIEL TARULLO AT THE COUNCIL OF FOREIGN RELATIONS
“It is sobering to recognize that, more than four years after the failure of Bear Stearns began the acute phase of the financial crisis, so much remains to be done–in implementing reforms that have already been developed, in modifying or supplementing these reforms as needed, and in fashioning a reform program to address shadow banking concerns. For some time my concern has been that the momentum generated during the crisis will wane or be redirected to other issues before reforms have been completed.” [Note: The political influence of financial corporations has prevented any serious banking and monetary reforms from being passed. Those that were passed have been watered-down during the implementation phase out of public spotlight thanks to intense lobbying from the same financial corporations]
2013 – “TAKING NOTES 22: THE NEED FOR A DEBT STRIKE” ARTICLE PUBLISHED
“The real problem, however, seems to be a failure to see the real relationship between debt and economic growth. And in this lies an issue of morality, as well as the root cause of climate change, increasing inequality, political conflict, and a host of other modern ills. Let me phrase the case in a series of propositions…
“Four, the reason we must perpetually grow exponentially is that we have a debt-based financial system. Money, in almost all countries, is issued as debt. Thus the economy must continually produce interest on debt or profit on investments or collapse…
“If it is true, that most of our environmental, political and social problems stem from the requirement of perpetual exponential economic growth, and if it is true that this stems from a debt-based financial system, then the only way to solve the problems of environmental devastation, social and economic inequality, and the continuing concentration of political power, is to reform this system. And the only way to convince those in power to implement reforms, is to threaten to withhold from them, the wealth that the great majority is expected to return to them. In other words, threaten a debt strike….
“To this end, I have drafted a Debtor’s Bill of Rights that outlines the threats we face and the rights we must demand.”
Debtor’s Bill of Rights at https://web.archive.org/web/20150508194126/http://faculty.plattsburgh.edu:80/richard.robbins/bill_of_rights.htm
2019 – DESIGN OPTIONS OF SOVEREIGN MONEY – A FULL OVERVIEW
“The goal of a sovereign money reform is to place the money creation into the hands of a public institution that serves the public interest. However, there are still many different design options how to implement this, i.e. what instruments should be used to steer the money supply or if the payment system should be run by the state or private payment providers. To bring more clarity to the discussion, this article provides an overview of the wide variety of design options for a sovereign money system.
“Among the member organizations of the International Movement for Monetary Reform regarding some of the design options there is consensus on best solutions but in other cases opinions vary quite a lot. Obviously though, often it can’t be generalized what is best, as that depends on a country’s specific circumstances and institutions. What’s reasonable for Germany might not be reasonable for South Africa or Canada.”
internationalmoneyreform.org/news/2019/05/design-options-of-sovereign-money-a-full-overview/
2023 – VIDEO, “STEVE KEEN: HOW CENTRAL BANKS ARE DESTROYING THE PAYMENTS SYSTEM THAT THEY ARE SUPPOSED TO PROTECT”
“Central Banks have increased interest rates to fight inflation. Inflation hasn’t changed all that much, but several large banks have been driven insolvent, and there’s a direct relationship between rising interest rates and the bankruptcy of Silicon Valley Bank, the woes of Deutsche Bank, and so on. This talk will explain how this has happened and how it could be prevented.
MAY 3
1939 – TESTIMONY OF GRAHAM TOWERS, GOVERNOR OF THE BANK OF CANADA (1934-54) BEFORE CANADIAN SELECT STANDING COMMITTEE ON BANKING AND COMMERCE
Question: “But there is no question about it, that banks create that medium of exchange?” [i.e., bank deposits]
Towers: “That is right. That is what they are for.”
Question: “And they issue that medium of exchange when they purchase securities or make loans?”
Towers: “That is the banking business, just in the way that a steel plant makes steel.” (p. 287)
Towers testified that just as steel corporations create steel, banking corporations create money. The difference is that steel corporations start with iron ore and apply labor and technology. Banks, by contrast, create money out of thin air…as debt.
2011— “REDUCING U.S DEBT AND CREATING JOBS THROUGH PUBLIC CONTROL OF OUR MONEY SYSTEM” BY STEPHEN ZARLENGA AND GREG COLERIDGE, HUFFINGTON POST
“Be it for ignorance or by intention, few federal elected officials have examined how a change in the way money in our nation is created and issued could reduce our nation’s deficit and debt and, in doing so, increase millions of vital jobs to transform our economy.
One of the few exceptions is Rep. Dennis Kucinich (D-OH), who during the last Congressional session introduced H.R. 6550, The National Emergency Employment Defense Act.
The three essential measures include:
1. Moving the mostly private Federal Reserve System under the US Treasury Department…
2. Making the power to issue money a public function — bypassing the current system, which invited the careless and risky lending that, led to the global economic crisis…
3. Enabling the U.S. government to use its money power — creating and spending money into circulation — to address pressing infrastructure needs such as repairing our crumbling roads, bridges, rails and highways…
The irony is that these three provisions would institutionalize what most Americans falsely believe already exists: That the Federal Reserve is public. That banks only loan money that they possess. That the government creates our money. Wrong on all counts.”
https://www.huffpost.com/entry/reducing-us-debt-and-crea_b_857230
MAY 4
1970 – IRISH BANKERS STRIKE – LIFE GOES ON
Irish bank employees go on strike over low wages. Over 85% of the country’s reserves were immediately locked down. The strike continued into the summer. By then, something odd happened — not much happened.
According to the Central Bank of Ireland, “The Irish economy continued to function for a reasonably long period of time with its main clearing banks closed for business.” The strike lasted for 6 months.
What did the Irish do for money?
“The Irish started issuing their own cash. After the bank closures, they continued writing checks to one another as usual, the only difference being that they could no longer be cashed at the bank. Instead, that other dealer in liquid assets – the Irish pub – stepped in to fill the void…
“In no time, people forged a radically decentralized monetary system with the country’s 11,000 pubs as its key nodes and basic trust as its underlying mechanism. By the time the banks finally reopened in November, the Irish had printed an incredible £5 billion in homemade currency…
“Some checks had been issued by companies, others were scribbled on the backs of cigar boxes, or even on toilet paper. According to historians, the reason the Irish were able to manage so well without banks was all down to social cohesion…
“[O]f course there were problems…Irish companies had a harder time acquiring capital for big investments. Indeed, the very fact that people began do-it-yourself banking makes it patently clear that they couldn’t do without some kind of financial sector…
“But what they could do perfectly well without was all the smoke and mirrors, all the risky speculation, the glittering skyscrapers, and the towering bonuses paid out of taxpayers’ pockets. ‘Maybe, just maybe,’ the author and economist Umair Haque conjectures, ‘banks need people a lot more than people need banks.’”
http://evonomics.com/why-garbage-men-should-earn-more-than-bankers/
2004 – “THE LOST SCIENCE OF MONEY & MONETARY JUSTICE USING GOVERNMENT CREATED MONEY TO FUND PUBLIC PROJECTS’ TALK BY STEPHEN ZARLENGA AT THE HOUSE OF LORDS
To Lords, British MP’s, and monetary reformers at Parliament.
“The World’s economic problems are rooted in the miscontrol of our money systems which have been based on an inadequate concept of the nature of money…
“HALF OF THE PROBLEM IS The failure of economics from Adam Smith to the present to define or discover a concept of money consistent with both logic AND history. Economists rarely define money, assuming an understanding of it…
“THE OTHER HALF OF THE PROBLEM is the Mythology of Money – that what A Lot of People Think They Know About Money, just isn’t so.”
2021 – “WILL JUST MONEY REFORM CAUSE INFLATION?” POSTED ARTICLE BY VIRGINIA HAMMON AND MARK PASH
“No. It will establish steady-value currency that will eliminate the economy-wide boom and bust cycles caused by our current system, and that can eliminate the possibility of high or hyperinflation.”
2021 – “WHAT IS ENOUGH?” ONLINE ARTICLE BY HOWARD SWITZER
“The nascent monetary reform movement emerging world-around supports three reforms. To be clear, this will not fix everything, it will only help make everything fixable. This will allow a transformation of society. There are three reforms that must be implemented simultaneously to create and protect a debt-free sovereign monetary system. They are:
1. The FED is nationalized and put under the Treasury, precisely what most of us mistakenly think it is now.
2. Bank creation of money as debt is decisively stopped. Banks will only loan money that already exists, exactly what most people mistakenly believe happens now.
3. The federal government creates and spends into existence US Money in non-inflation/deflationary amounts for the needs of the nation and its people. Again, what many mistakenly think is happening now.”
https://howardswitzer.medium.com/what-is-enough-8d6db712ef5a
2021 – “WILL JUST MONEY REFORM CAUSE INFLATION?” ONLINE ARTICLE BY VIRGINIA HAMMON AND MARK PASH
“When we change our money system from debt-money created by private bankers to government-created asset money, will that lead to inflation?
“No. It will establish steady-value currency that will eliminate the economy-wide boom and bust cycles caused by our current system, and that can eliminate the possibility of high or hyperinflation.”