OPPT: Similar Type Tactics Have Been Tried Before and Failed Part 2
UNLAWFUL FOR PERSONS TO CREATE MONEY.
Here is Part 2, be sure to check out SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY.
SEC. 3. DEFINITIONS.
(a) In General- For purposes of this Act, the following definitions shall apply:
(1) BUREAU- The term ‘Bureau’ means the Bureau of the Federal Reserve established under section 314 of title 31, United States Code, as added by section 303.
(2) DEPOSIT- The term ‘deposit’–
(A) has the meaning given such term in section 3(l) of the Federal Deposit Insurance Act); and
(i) a member account (as defined in section 101(5) of the Federal Credit Union Act) in a credit union; and
(ii) any transaction account.
(3) DEPOSITORY INSTITUTION- The term ‘depository institution’–
(A) has the same meaning as in section 3 of the Federal Deposit Insurance Act; and
(B) includes any credit union (as defined in section 101 of the Federal Credit Union Act).
(4) INSTRUMENT OF INDEBTEDNESS OF THE UNITED STATES; TREASURY INSTRUMENTS- The terms ‘instrument of indebtedness of the United States’ and ‘Treasury instrument’ include any obligation issued under subchapter I of chapter 31 of title 31, United States Code.
(5) MEMBER BANK- The term ‘member bank’ has the same meaning as in the first section of the Federal Reserve Act.
(6) MONEY- The term ‘money’ refers to United States Money, as established under title I.
(7) MONETARY AUTHORITY- The term ‘Monetary Authority’ means the Monetary Authority established under section 302.
(8) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.
(9) STATE- The term ‘State’ has the same meaning as in section 3 of the Federal Deposit Insurance Act.
(10) EFFECTIVE DATE- The term ‘effective date’ means the date determined and published in the Federal Register by the Secretary, during the 90-day period beginning on the date of the enactment of this Act, that–
(A) is not less than 1 year after such date of enactment and not more than 2 years after such date; and
(B) is the date on which the designated provisions of this Act take effect.
(b) Technical and Conforming Amendment to the FDIA- Section 3(l) of the Federal Deposit Insurance Act (12 U.S.C. 1813(l)) is amended by adding at the end the following:
‘Such term does not include any amount on which any interest is paid or which is received or held by a bank or savings association pursuant to a loan agreement for a fixed term of time (as determined without regard to any designation on the agreement as a loan, certificate, or other particular instrument).’.
SEC. 4. COORDINATION WITH OTHER LAW.
(a) In General- This Act shall supersede any provision of Federal law in effect on the day before the date of the enactment of this Act that is inconsistent with any provision of this Act but only to the extent of such inconsistency.
(b) Technical and Conforming Amendments- Before the end of the 6-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Congress a proposed draft of legislation of the Monetary Authority that, if enacted, would implement such technical and conforming amendments as the Monetary Authority may recommend–
(1) to repeal the provisions of law referred to in subsection (a) that are inconsistent with this Act; and
(2) to further clarify and implement the provisions of this Act.
TITLE I–ORIGINATION OF UNITED STATES MONEY
SEC. 101. EXERCISE OF CONSTITUTIONAL AUTHORITY TO CREATE MONEY.
(a) In General- Pursuant to the exercise by the Congress of the authority contained in the 5th clause of section 8 of Article I of the Constitution of the United States of America–
(1) the authority to create money within the United States shall hereafter reside exclusively with the Federal Government; and
(2) the money so created shall be known as United States Money and denominated and expressed as provided in section 5101 of title 31, United States Code.
(b) Exercise of Sovereign Power- The creation of United States Money under this Act is the legal expression of the sovereign power of the Nation and confers upon its bearer an unconditional means of payment.
(c) Limitation on Expression- Beginning on the effective date–
(1) only the coin, notes, or other forms of legal tender, including electronic currency, originated by the United States Treasury under the authority of this Act shall be deemed as United States money; and
(2) it shall be unlawful for any person to designate any credit, note, bond, script or other financial instrument as United States Money.
SEC. 102. UNLAWFUL FOR PERSONS TO CREATE MONEY.
Any person who creates or originates United States money by lending against deposits, through so-called fractional reserve banking, or by any other means, after the effective date shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.
SEC. 103. PRODUCTION OF UNITED STATES MONEY.
(a) Commencing Full Production of United States Currency- Section 5115 of title 31, United States Code, is amended by striking subsections (a) and (b) and inserting the following new subsections:
‘(a) In General- In order to furnish suitable notes for circulation as United States money, the Secretary of the Treasury shall cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the same denominations as are currently issued.
‘(b) Form and Tenor- United States currency notes for circulation as United States money shall be in form and tenor as directed by the Secretary of the Treasury.’.
(b) Ceasing Production of Federal Reserve Notes- The Secretary of the Treasury shall wind-down and cease production of Federal reserve notes under the 8th undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 418) as quickly as practicable after the date of the enactment of this Act, but no later than the effective date, in coordination with the start-up and maintenance of production of United States currency under section 5115 of title 31, United States Code. The Secretary shall ensure that at all times the amount of Federal Reserve notes in circulation is sufficient to meet demand until the production of United States currency is sufficient to meet such demand.
(c) Continuing Circulation Until Retirement- Any Federal Reserve notes in circulation shall continue to be legal tender until retired in accordance with applicable provisions of law.
SEC. 104. LEGAL TENDER.
(a) In General- United States Money shall enter into general domestic circulation as full legal tender in payment of all debts public and private.
(b) Technical and Conforming Amendment- Section 5103 of title 31, United States Code, is amended by striking ‘(including Federal reserve notes and circulating notes of Federal reserve banks and national banks)’ and inserting ‘in the form of United States Money’.
SEC. 105. DISBURSEMENTS TO BE DENOMINATED IN UNITED STATES MONEY.
On the effective date, all United States Government disbursements shall be denominated in United States Money, the unit being the dollar, symbolized as $
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.
SEC. 107. RETIREMENT OF INSTRUMENTS OF INDEBTEDNESS.
Before the effective date, the Secretary shall commence to retire all outstanding instruments of indebtedness of the United States by payment in full of the amount legally due the bearer in United States Money, as such amounts become due.
SEC. 108. ACCOUNTING.
(a) In General- The Secretary shall account for the disbursement of United States Money and of current fund balances through accounting reports maintained and published by the Secretary and by departments and agencies of the United States Government.
(b) GAO Audit- The Comptroller General of the United States shall conduct an independent biennial audit.