by Bill Parks

Created on: September 30, 2009

As a sovereign nation with full authority and power to issue its own money, America has adopted a 'crazy' money system using privatized currency created as debt extended into the economy in the form of the principal of loans that must be repaid with additional interest, which is not supplied, resulting in contractual terms that cannot be fulfilled when all the loans are considered as a whole.

The problem inherent in privately owned central banking systems, like those countries using the British banking system created and patterned on the 17th century, Bank of England in the late, is that the banks create only the principal of their loans. If the principal is repaid, then there is no money remaining to pay the required interest. If the required interest is paid from the principal, then there is insufficient money remaining to repay the principal of the loans.

In either case the terms and conditions of the sum total of the loans are impossible to be fulfilled. This limitation can be expressed as a simple mathematic inequality: the sum of all principals cannot equal the sum of all principals plus the sum of all interest.

Since this arrangement is a matter of federal law, the Federal Reserve Act of 1913 being the basis of the system, the American Congress, both Democrats and Republicans are responsible of continuing this central banking system-based currency. In that sense, not only have the Democrats gone crazy with America's money, the American people are crazy for using the British banking system.

Can anyone please explain why American citizens allow congress to issue bonds, creating a national debt, requiring the payment of huge amounts of interest, limiting the fund available for programs and policies, and jeopardizing the nation's future, when they could require congress to simply issue debt free American currency?

Our own national history shows that debt free currency worked well in the interest of the citizens, and if it were reinstated would most likely work equally well in our modern economy.

Using the banking system developed by Benjamin Franklin, known as the American Banking System (as guide or model), congress could issue America's entire money supply, prohibiting banks and other lending institution from utilizing the practice of fractional reserve lending employing credit and bookkeeping to create new money, a practice, sometimes referred to as legal counterfeiting by people who study monetary systems.

In Franklin's system, developed for Pennsylvania

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