It's the answer to all of our problems: let's simply get rid of the Fed, disband it entirely, and replace the Federal Reserve Notes (aka "money") with ... US Money. Printed by the Congress.
Repudiate all debt, simply print money. Need to fund something? Simply print money.
Hallelujah! All of our problems solved!
Author of the Bill, HR 6550: a certain Mr. Kucinich.
If that is the solution, then it is rather apparent that the Democrats have no clue what the problem is. Zilch, nada, not one whit of a tad.
Read this specifically
SEC. 106. ORIGINATION IN LIEU OF BORROWING.
(a) In General- After the effective date, and subject to limitations established by the United States Monetary Authority under provisions of section 302, the Secretary shall originate United States Money to address any negative fund balances resulting from a shortfall in available Government receipts to fund Government appropriations authorized by Congress under law.
(b) Prohibition on Government Borrowing- After the effective date, unless otherwise provided by an Act of the Congress enacted after such date--
(1) no amount may be borrowed by the Secretary from any source; and
(2) no amount may be borrowed by any Federal agency or department, any independent establishment of the executive branch, or any other instrumentality of the United States (other than a national bank, Federal savings association, or Federal credit union) from any source other than the Secretary.
(c) Rule of Construction- No provision of this Act shall be construed as preventing the Congress from exercising its constitutional authority to borrow money on the full faith and credit of the United States.
(d) Technical and Conforming Amendment- On the effective date, chapter 31 of title 31, United States Code, is hereby repealed, subject to the retirement of outstanding instruments of indebtedness of the United States in accordance with section 401.
Ye gods. This is the complete and total abolition of any fiscal responsibility and the destruction of US government bonds as the most secure investment instruments the world has ever seen (okay, the Democrats have been working on that last one for quite a while).
He seriously wants to forbid borrowing by simply allowing Congress to print whatever money it needs.
What would monetary policy then be? Take a look:
(5) GOVERNING PRINCIPLE OF MONETARY POLICY- The Monetary Authority shall pursue a monetary policy based on the governing principle that the supply of money in circulation should not become inflationary nor deflationary in and of itself, but will be sufficient to allow goods and services to move freely in trade in a balanced manner. The Monetary Authority shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
How is this then to be reconciled with allowing Congress to print whatever money is needed?
Hopeful thinking is all: stating that whatever Congress needs will, in effect, not become inflationary or deflationary in and of itself, but will be ... sufficient.
If this is not a case of serious parody - and Mr. Kucinich is scarcely capable of such a sense of droll humor - then this is one of the better examples of why the Democrats are doomed. Sheer ignorance of basic economics and sheer ignorance of how economies actually function appears to be the basis for their thinking: it is the only explanation for such a folly.
Oh, and interest rates may not exceed 8%, nor may the amount of interest over the life of the loan exceed the equity, nor may interest be paid on your regular banking account. Oh, and local governments can borrow money for nothing.
Ye gods. The man seriously just wants to get rid of economics because it keeps on getting in the way.
Keep it up, Democrats. Keep on showing how you elect congresscritters who are fundamentally incompetent, fundamentally ignorant and cannot even begin to understand the consequences of such an act.
Keep it up, and you'll look back at 2010 as one of the good years.