“The banks have shown that they can’t be trusted with the American economy. That’s generally been the case, but now it’s out in the open, 350 billion dollars later.
In 1913, the money power of the country was taken away from the people — by Constitutional privilege it belongs with the Congress — but it was given up in the Federal Reserve Act.
The Federal Reserve is no more federal than Federal Express, but yet it has the power to determine the direction and use of money in our economy. If we could take that power back and put the Federal Reserve under Treasury, we start to be in a position of being able to control monetary policy on behalf of the United States people.
We also have to address the issue of the fractional reserve system, which is how banks create money out of thin air. And then, as they do that, they’ve created the conditions where we’ve had this kind of ponzi scheme collapsing — banks and the hedge funds working together.
So we have to halt the banks’ privilege to create money by ending the fractional reserve system. Past monetized credit would be converted into U.S. government money, and banks would act as intermediaries, accepting deposits and loaning them out to borrowers.”
Transcribed by Jeff Fenske
Related: Kucinich Rocks! “Instead of nationalizing banks, we should nationalize the money system”