Bring Back the Greenbacks!
  • Petitioned Congress and President Obama

This petition was delivered to:

Congress and President Obama
President of the United States
U.S. Senate
U.S. House of Representatives

Bring Back the Greenbacks!

    1. Carl Klapper
    2. Petition by

      Carl Klapper

      Metuchen, NJ

Issuing United States Notes allows the federal government to function without raising the debt limit or defaulting. Raising the debt ceiling would increase our structural deficit, making it harder to return to surpluses after the depression. Defaulting is not only unnecessary, since the federal government could simply issue US Notes make debt payments, but supports the fallacy that governments need to borrow, making our federal government more dependent on foreign financiers. Only the issuance of pure fiat currency breaks our government out of the self-destructive cycle of borrowing to spend and spending on debt service.

This policy is more budget neutral than our current one of creating debt instruments, "treasuries", and selling them to pay for deficits. By issuing United States Notes and depositing them in the Treasury's account, the federal government incurs no future obligation to pay coupon interest or redemption principal as current policy does. Debt increases future deficits and decreases or eliminates future surpluses; issuing United States Notes does not. Budget negotiations can therefore be disjoined from financing by this change of policy.

It is probably best at this point to dispel some common myths about the issuance of pure fiat currency, chiefly that of inflation and hyperinflation. A moment's fearless thought will reveal that deficits add money value and surpluses remove it.  Thus, regardless of the financing involved in government expenses and receipts, deficits have an inflationary effect and surpluses a deflationary effect. Further reflection will reveal that deficits and surpluses are not the only factors producing inflationary and deflationary effects or even the only factors producing general monetary effects. Indeed, the level of bank lending has a much greater impact on the money supply than annual deficits or surpluses of the federal government. The payment of federal government expenses through revenues and United States Notes, by limiting the inflationary impact of  a deficit to that of the current one, is the least inflationary way of financing a deficit both now and and in the future. The current policy of issuing treasuries is, by contrast, more inflationary in the future because of debt service and at all times because of bank lending off of debt reserves.

As for hyperinflation, that is caused by speculation on the near certainty of continued deficits and great doubts that future taxes could be paid with current money. The war reparations debt of the Weimar Republic and the certainty that the costs of waging the Revolutionary and Civil Wars would exceed the revenues which could be collected at the time, indeed the doubt that future revenues could be collected by a government honoring the money in which the expenses were paid, these were the reasons for hyperinflation in Germany between the world wars and in America during the Revolutionary and Civil Wars. The financing in these cases was ancillary to the resulting hyerinflation, the use of fiat currency being, in fact, an attempt to ameliorate the fiscal crisis and thus dampen inflationary speculation.

Our situation is not nearly so dire. We are starting to back away from foreign conflicts; the public is more inclined to let the people of these areas resolve their own conflicts and fight their own battles. Our problems at home can be fixed by our own ingenuity and love. There are no reasons other than the size of the federal debt to believe that we cannot create surpluses when it makes good economic sense to do so. That is why it is so essential that we start moving away from debt as a way to pay the expenses of government , especially the expenses of the federal government. That is why it is so essential that you immediately issue United States Notes for federal government expenses and suspend indefinitely the issuance of debt securities.

Recent signatures

    News

    1. Another pithy way to put it

      Carl Klapper
      Petition Organizer

      The stimulus giveth and the debt taketh away. Only the greenback leaveth gifts alone.

    2. Another, breifer explanation of why this is necessary

      Carl Klapper
      Petition Organizer

      The stimulus, which is an inflationary fiscal policy, cannot be inflationary today if it is postponed by using treasuries (debt). Only by bringing the deficit current -- issuing US Notes when the revenue collected is not sufficient -- can the stimulus have a net inflationary effect today.

    3. Reached 10 signatures
    4. Every Day This Becomes More and More Important

      Carl Klapper
      Petition Organizer

      The United States is failing to set an example to other indebted countries. We can change this and show Greece and Italy that the path to a secure sovereignty and prosperity is to eliminate debt and issue their own sovereign printed currency again. Why printed currency? Because precious metals are controlled by the few just as debt is.

    5. Reached 5 signatures
    6. Catch my iReports on CNN

      Carl Klapper
      Petition Organizer

      If enough people view my iReports, CNN may actually air one. That would be a GREAT boost to our campaign to restore the money creation power to the people!

      Thanks for your continued support

    Supporters

    Reasons for signing

    • Maneesh Pangasa YUMA, AZ
      • about 3 years ago

      Issue United States Notes instead of Debt

      This allows the US government to function without raising the debt limit or defaulting. Raising the debt ceiling would increase our structural deficit, making it harder to return to surpluses after the depression. Defaulting is not only unnecessary, since the federal government could simply issue US Notes make debt payments, but supports the fallacy that governments need to borrow, making our federal government more dependent on foreign financiers. Only the issuance of pure fiat currency breaks our government out of the self-destructive cycle of borrowing to spend and spending on debt service.

      REPORT THIS COMMENT:
    • Gary Leinkram WAPPINGERS FALLS, NY
      • about 3 years ago

      the present system is self destructing.

      REPORT THIS COMMENT:

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