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The proposed National Economic
Stabilization and Recovery Act, known as NESARA, is based on a new
theory of money, its fundamental tenet being that all currencies are
symbols of debt, including gold and silver coin with substantial intrinsic
value. Explicitly identifying the characteristics of currency clarified
the process of its creation and helped refine its purpose.
Using this information, NESARA amends the Federal Reserve Act of 1913
(as amended) to modify the nation’s monetary system. The effects of
these modifications are dramatic:
- The national economy is stabilized through the use of new control
mechanisms.
- Several revisions to current commercial bank lending rules and
regulations eliminate massive amounts of public and private debt.
- Under NESARA, for secured loans made by banks operating on a
fractional reserve basis, compound interest is eliminated, being
replaced by a monetization fee. These banks must credit all loan
repayments in excess of their regulated service charges to the
principal loan amount, collecting the entire principal before they can
collect their monetization fee.
Because the new rules apply to all existing secured loans made by banks
operating on a fractional reserve basis, outstanding balances must be
recalculated. In every case, the outstanding balance will be reduced and
in some cases totally eliminated.
Example: The recalculated outstanding balance will be zero for
someone who has made 17 years of payments against a 30 year home mortgage
loan at 8.5% interest. The bank will return the mortgage marked paid in
full to the borrower saving 13 years of loan payments. For
compensation on this one-time recalculation, banks will receive
retroactive service fees calculated from the origination date.
More information about, and a copy of the
bill, are located on this web site. A
spreadsheet is also available. |