The NESARA Transformation Part A

My homework task in Macroeconomics was to answer some economic questions truthfully  Sorry it comes from the US perspective but Canada will be affected as well.

Part A; High unemployment, interest rates near 0, inflation is about 2% annually, GDP growth less than 2% annually.

          It is necessary to reassemble the above mentioned trends to a more balanced level, without skyrocketing inflation.  As president I would have to realize that government spending has a multiplier effect that will bring an increased rate of one and two thirds more output into the US economy.  Increased government spending usually has only short term effects on the economy as the money influx requires construction work of some kind that prompts bordering businesses that are needed to support whatever the main project is. When the construction is done, the support teams are done. This is often called discretionary spending and differs from entitlement spending, that the government does at all times to support the citizens.

          As president or advisor to one, I will have to increase spending or lower taxes and maybe do both as it seems like the US economy is heading for a liquidity trap or is already in one. Making legal and activating the National Economic Security and Recovery Act (NESARA) will be my main focus.  

          The first thing I must do for this country is to enact NESARA into law by formally reintroducing it into Congress and seeing to it that it is assigned a tracking number. It is an 88 page document that spells out exactly what this country needs to become a prosperous and productive country (NESARA, 2001). At the outset it will be necessary to publicly denounce the misinformation and disinformation that has been invented to confuse this proposal to the common people and the follow-up adjustments to suit various spiritual and political agendas.

          The next action I would take, as the president, would be to have Congress obliterate all mortgages and all other bank debts that were instigated by illegal banking and government activities (Change is, 2011). Article 1 of the Constitution clearly states that the Congress has the power to borrow money on the credit of the US, has the power to coin money, has the power to provide punishment for counterfeiting of securities and current coin of the US and to have power over the states in these matters (Article 1, n.d.). Congress will start immediately using its powers without foreign influences. At the same time I would be zeroing out every credit card debt, personal and business. Interest rates are gone! Loans now have a one-time monetization fee. Banks will be unable to influence financial policies as they cannot buy government issued debt anymore. No longer can various money accounts, without the owner’s consent have their funds intermingled. Banking will now return to serving the public’s interests. Any bank that has not become Basel III compliant to be in harmony with NESARA must do so immediately or close (Impact of Basel III, 2012). If there is resistance to this procedure the already prepared indictments will be handed over to the new security forces and the resistors will be taken to the International Court of Justice in the Hague for a swift trial, sentencing and detention (the Hague, 2013). Immoral financial greed and victimization of humanity will be announced, allowed to become common knowledge and no longer tolerated.

Where did NESARA come from?

          When Harvey Bernard was majoring in systems philosophy in Louisiana State University, his professor said that what they were learning could solve the problems of the world. This peaked his interest and by the late 1980s he had the first sections of the National Economic Stabilization and Recovery Act (NESARA) proposal completed. He sent copies of it, entitled Draining the Swamp: Monetary and Fiscal Policy Reform, to every member of Congress thinking it would immediately pass on its obvious values (Amazon.com, 2013). It was totally ignored. If it was read, it had such financial responsibility consequences for the politicians and bankers involved that they wanted it gone! NESARA is based on the theory that the main factor that inhibits economic growth is debt. It goes on to say that compound interest is the number one “moral evil” and reason for this debt. It advocates metal-backed currency.  Harvey made several attempts in the 1990s to get political attention on the root causes of the problems he saw in the US economy and his suggested economic recovery programs. By 2000 he realized that change was going to have to come from a grassroots level and he published the proposal on the internet at www.nesara.org . He established the NESARA Institute in 2001 along with a second edition of his book, “Draining the swamp: The NESARA Story - Monetary and Fiscal Policy Reform.  There are copycat sites that claim to have the real NESARA information but are filled with disinformation to lead you astray from Harvey Bernard’s original intention. It appears to be dangerous to have integrity in our economic system. You must have your heart activated and connected with your mind to properly understand where Harvey is coming from (Beckow, 2011), (Amitron, 2013).

More monetary reform

          The money is restored to Constitutional currency. This will result in a stable economy with zero inflation. The United States Treasury coexists alongside the private Federal Reserve System for a year, while the FRS transforms into the public United States Treasury Reserve System. The Federal Reserve Bank becomes the Treasury Reserve Bank guided by the Office of the Comptroller of the Currency.   All commercial banks may only hold treasury credit notes as bank reserves. Many changes will be imposed on how repayment of fractional reserve loans on secured property is done.  Control of the currency is moved from private control by the fed to public control through Congress and the new Treasury Reserve System. Reports on the value of the currency come out at the very least, once a week. It becomes common knowledge to everyone.

Taxation will be upgraded as well.

          A national tax rate of 14% is installed through a new device, the National Tax Service. The Internal Revenue Service (IRS) is reformed into the National Tax Service to manage the collection process. This tax is a retail sales tax on consumptive products and services and is imposed upon all non-exempt retail sales. There are many categories of exemption to this tax that include most of the necessities of life. There will be no more income taxes. The only thing that is taxed is consumption. Productivity is not taxed. Social Security, Medicare and Medicaid payroll taxes will be kept. Licenses, permits and passports and other government assigned documents are exempt, as well as purchases of coin, currency and bullion. This will reveal the true cost of government. All the underground commercial activities will find it safe to surface.    

          Congress finds that nobody seems to recognize that progressive income tax is a hidden tax in the price of goods and services which is paid twice by the working middle class. They pay it once out of their wages and secondly as a hidden tax when they buy something. It also becomes evident to Congress that income taxes discourage people, especially those on government aid, from becoming productive citizens. This tax shift from production to consumption will encourage people to take responsibility for themselves. Those who are receiving Social Security and federal retirement benefits will be compensated for the income taxes they paid in former years.

NESARA progresses

          The only thing that looking at dangers of a high debt to GDP ratio and a growing budget deficit in the economy will do, is reveal the obvious need for radical change in the US economy. It is broken so badly, and so mentally complex that repairs don’t work anymore (Boudreaux, 2012). We don’t need policy change. We need radical change. Inflation will disappear very quickly but it will take a little time before all the effects are felt in the economy as NESARA moves along.

          Now that consumption is the only thing that is taxed, wages will start to stabilize and reflect the needs of the new economy. It will be a natural thing as production is encouraged to grow industry. Inner cities will be rebuilt with way less waste of natural resources. People will learn to move forward in their lives and no longer be struggling against the economy. They will work with it. As lobbyists and special interest groups are inactive, everyone will feel safe to contribute to their environment and each other. The government will release thousands of suppressed technologies (Cold fusion, 2000). People will become aware of the possibilities for a new life.

          So now let’s look at what NESARA cannot change right away.  Those payroll taxes like Medicare and Social Security payments cannot be eliminated immediately. All regulated activities that have constitutional excise taxes will remain for a while. The national debt will only drop a trillion dollars at first (And you’re worried about that half million you owe!). It will take a while to get rid of it permanently. In our current US economic system the $44 trillion + national debt would remain unpaid because of the two unacceptable resource solutions that have been available. One of them leads to absolute depression and the other a ridiculous hyperinflation. Neither one of these options works for humanity. Perhaps NESARA should be endorsed. I know the bankers and politicians are afraid of change; but isn’t humanity ready for this big change? (continue to Part B)

Macroeconomic Transformation  Nikki Gail Darwin CTU