To: President Donald Trump, The United States House of Representatives, and The United States Senate
We petition President Obama and Congress to pass a law.
We petition President Obama and Congress to pass a law that would allow the Federal Reserve System to buy any quantity of zero percent perpetual bonds from the Treasury, thus enabling the Treasury to spend money without borrowing, paying interest, and adding to the national debt.
Why is this important?
Since our federal government is not a business that must balance its budget, but rather a sovereign state that can create any amount of fiat currency, need never borrow, and can never become insolvent, we are limited only by time, material, labor, and productive capacity and not by a lack of dollars so that our problem is not an excess of necessary federal spending but an excess of unnecessary federal borrowing.
The Federal Reserve System and the Treasury have used this procedure on a massive scale with enormous success. To finance World War II, the Fed pegged Treasury bonds at an almost-zero interest rate and bought as many bonds as Treasury needed to pay the nation’s wartime salaries. After the war, consumers spent their savings on homes and cars, starting 35 years of prosperity without harmful inflation.
The Federal Reserve System and the Treasury have used this procedure on a massive scale with enormous success. To finance World War II, the Fed pegged Treasury bonds at an almost-zero interest rate and bought as many bonds as Treasury needed to pay the nation’s wartime salaries. After the war, consumers spent their savings on homes and cars, starting 35 years of prosperity without harmful inflation.