WE PETITION THE OBAMA ADMINISTRATION TO:
demand a law to allow the Fed to buy zero percent perpetual bonds from the Treasury in any quantity and in any price.
This law would let the Treasury spend even with a deficit and still not increase the national debt.
Why is this important?
Whereas 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 borrowing,
To finance WW 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,
This law would let the Treasury spend even with a deficit and still not increase the national debt.
