Rep. Dennis Kucinich’s (photo) recent offering of his “National Emergency Employment Defense Act” (NEED Act) is designed to remove all money creation powers from the Fed to a newly established congressional agency, the Monetary Authority. According to Kucinich, the bill “would reassert congressional sovereignty and regain control of monetary policy from private banks [the Federal Reserve]” by placing that control into the hands of “a separate Monetary Authority made up of experts … responsible for managing monetary policy.” That Monetary Authority would advise the …
Treasury how much money is needed in the economy. Treasury [would advise] Congress how much recycled or new money is required to pay off debt (as it comes due) and supplement existing revenues to fund infrastructure renewal, grants and loans to state and local governments, education and other priorities, as appropriated by Congress.
From the actual language of the bill, it promises everything: to create full employment, to retire the national debt, to “stabilize” Social Security, to restore the authority of Congress to create and regulate money, to modernize and provide stability for the monetary system, and “for other public purposes.” In the body of the bill it reiterates that “the authority to create money is a sovereign power vested in the Congress under Article I, Section 8 of the Constitution,” and that the purpose of the act is as follows:
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