Hubbert's third prophecy
Original article:

1. The small reserve requirement of ~5% means that the banking system can create 1/.05 = 20X the money from deposits on hand.  Most people think banks loan out money that people save and deposit, but that isn't how it works.  With 100% reserve banks can only loan out money on time that you deposit, and you cannot withdraw it during that period of time, so it is like a CD (certificate of deposit).

2.  Abolish the fed or put it under the treasury department.

3. The Treasury department could then issue Treasury notes, not Treasury bonds.  Treasury notes are credit money that is spent on public goods, or loaned for projects creating public goods.  It is returned to the government through taxes or repayment of low-interest loans.  The colonists used colonial scrip, Lincoln issued GREENBACKS, and Kennedy issued Treasury notes.  These were all credit money, not debt money.

4. States or local governments could issue warrants, bills of credit, or zero interest bonds.  Some people feel the national government is too unaccountable to be trusted with money creation and it should be devolved to lower levels of government.

5. Social Credit (CH Douglas):  Part of public credit money could be to resurrect the idea of social credit.  Government issues credit directly to the public as a guaranteed minimum income and they spend it on things they need.  The fed gave money free to banks.  Why not give money free to us?  This is similar to the scene in the recent movie "In Time", when they rob the bank and announce to the crowd that the bank is giving zero interest loans, and you don't have to pay it back.

6. Dennis Kucinich has introduced the NEED act which incorporates many of these ideas from the American Monetary Institute.

Debt-based money is incompatible with the post oil-peak world.  It's only a matter of time before it collapses in default.

For further reading see:
Web of Debt, Ellen Brown

Gary Flomenhoft is currently a Fellow at the Gund Institute. The article was first presented at a "Gund Tea" on Oct 28th, 2011.

He received a BS in Mechanical Engineering from Tufts University in 1977, and a Master in Public Policy from the University of Maryland in 2001, with a certificate in Ecological Economics. Gary has a diverse background of practical experience ranging from environmental technology and Green politics, to aerospace and systems engineering.

Gary was a founding member of the Green Party of California, co-founder of the US Green Party Organizing Committee, and in 1990 and 1992 served as Policy Director and spokesperson for the first Green Party congressional campaigns in the US in Santa Barbara, California. He is co-founder and Vice-President of the non-profit Geonomy Society which is concerned with democratic rights to land and resource rents. From 1992-1996 Gary managed two small electric vehicle companies, and ran his own EV conversion and online parts company from 1996 to 2000. From 2000-2001 he worked as a Program Assistant for economic development at the US Dept. of Housing and Urban Development.

Gary's current interests in Ecological Economics focus on three areas: renewable energy, international sustainable development, and green taxes and common assets. He teaches 4 energy courses at UVM, including a renewable energy workshop in Dominica, and co-teaches a sustainable development course in St. Lucia. His policy work focusses on implementation of green taxes and common assets in Vermont, ie: payment for the use of "the commons" with dividends paid to all of us.