Imagine Legislation That
Doubles the Average Standard of Living
 

By reforming monetary policy, NESARA solves a root problem that has plagued civilizations for centuries. Many wars and revolutions are and have been fought over economic inequality caused by unjust wealth distribution. Providing a sound money system that eliminates inflation, increases productive capacity, and reduces or eliminates existing and future debt is vital to any solution.

By providing fiscal policy reform, NESARA moves the nation from taxing production to taxing consumption. Anyone familiar with the Federalist Papers might recall that the Founders believed the best national tax policy was one of taxing consumption, not production. As a nation’s production grows, so does the nation’s consumption (Supply = Demand). However, by taxing consumption, consumers decide when to be taxed. Conversely, the current tax system greatly punishes production through compounded taxation and therefore greatly burdens consumption.

Concurrently with these two actions NESARA changes some banking system rules. Compound interest on secured loans made on a fractional reserve basis is replaced with a straightforward monetization fee. Instead of borrowers paying a bank the equivalent of two and a half houses to buy themselves a home, borrowers will pay back only one and a half houses. Bankers will appreciate the new equations too because all of the loan principal is repaid first. That makes lending inherently safer, frees bank reserves faster, and allows banks to make loans more often. Essentially bankers make the same or more profit, but through more customers in the same period of time. More importantly, those bank customers watch their debt obligations disappear much faster, and at lower cost.

NESARA also requires all current secured loans made on a fractional reserve basis to be immediately converted to the new equations, retroactive to the origination date. That reduces the total number of monthly repayments remaining to retire the mortgage and, in some cases, that number will go to zero indicating that the mortgage has already been paid in full. As additional disposable income becomes available, people can save more or buy more. People get to choose!

NESARA immediately cancels an approximate one trillion dollars of national (public) debt. This is an estimate, but a reasonable one. The interest due to the Fed will be cancelled as the Fed is converted to the new Treasury Reserve System. Furthermore, banks will no longer be allowed to use commercial paper as reserves and must swap any U.S. government paper they hold as reserves for the new Treasury credit-notes. This effectively cancels all of that government debt. Because those new credit-notes are used as reserves, they are effectively removed from circulation. There will be no currency inflation due to this swap.

NESARA places restrictions on Congress’s spending habits. Congress has constitutional authority to borrow, and borrow they will by authorizing the U.S. Treasury to issue and sell government commercial paper. But NESARA effectively limits that borrowing to currency already in circulation. The new Treasury Reserve System Board of Governors will not be obligated to buy any of that debt. By law, it only buys U.S. debt when necessary to regulate the exchange value of the new Treasury credit-notes and it can’t hold that debt for resale as the current Fed can. All U.S. government debt purchased by the new Treasury Reserve System Board of Governors must be immediately transferred to the U.S. Treasury and cancelled out of existence. Therefore, the only way Congress can borrow is the old fashioned way, just like you and I borrow. By forcing Congress to live by the same essential rules you and I live by, the American people can say good-bye to pork barrel legislation. A new consumer price index, which measures the exchange value of the currency, acts as a watchdog for Congressional misbehavior. Congress will finally have to live within its budget! This will have an enormous quashing effect on special interest groups. Say good-bye to the social welfare state.

By eliminating a massive amount of public debt, a massive amount of private debt and maintaining the currency’s purchasing power, NESARA will double the standard of living for every American within one generation.

Consider the following simple math exercise. Under the current system productivity increases an average of about 2.5% per year. Projecting just another 2.5% increase annually brings the increase to 5%, that is, double current averages. Multiply that figure by 20 years and you have a 100% increase within one generation. There isn’t a single knowledgeable, reputable subject matter expert who claims that current fiscal and monetary policy cannot be improved. Surely, with a much better system, not to mention more constitutional, America can increase its annual productivity a mere 2.5%! That is the basis of the claim that NESARA will create an economic boom of Biblical proportions as NESARA will generate annual increases beyond 2.5%.