Asset Based Receipt Monetary System
to Save Our State from Economic Collapse
and take Us All into Prosperity

The Asset Based Receipt Monetary System is a proposed implementation of an asset based monetary system provided for by our founding fathers in the United States Constitution, where was set forth that the States will not "make anything but gold and silver coin a tender in payment of debts."  Although the Federal Reserve Act that Congress implemented in 1913 did claim their dollar certificates were redeemable in gold and silver, it never was a total backing since far more paper money was issued than there were reserves in gold and silver.  This is called "fractional reserve" banking.  It was a monetary system where money was created only as debt, where the interest money was never created.  The result was that greater and greater amounts of debt had to be entered into to pay the interest because as debt is paid off, that money that was created as debt, ceases to exist when the debt is paid off.  So therefore, the Federal Reserve Bank was a system devised from the beginning to eventually bankrupt our country with all benefit going to the private bankers that own it.

Thomas Jefferson saw that this would happen.  He said:

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."

The Asset Based Receipt Monetary System proposes a monetary system that is stable and maintains the value of the people's money.  This will be done by creating a State Bank 100% owned by the people of the State.  Private bankers have proven with all the bankruptcies and foreclosures they have caused that they are unable to provide a stable monetary system for the benefit of the people.  The Asset Based Receipt Monetary System provides a solution to the issuance of new money allowing the economy to grow in a stable manner that creates neither inflation nor deflation.  This is accomplished by implementing an Asset-based monetary system and voluntary 10% income tax based on the successful 500 year history of the tally stick system implemented in England in the middle ages by the son of William the Conqueror, King Henry I.  In the tally stick system, taxes were paid to the King who gave as a receipt a "tally stick" with the amount notched onto the stick and split down the middle so that both splits of the stick had the notches recorded thereon, the taxpayer keeping one split as his receipt for taxes paid and the King the other split as evidence of the taxes paid, and both using the sticks as money.  This system provided for an automatic control on the issuance of new money into the economy based on the production of products and services by the people.  The tally stick receipt tax system gave the benefit of all new money created to the taxpayers as a receipt for taxes paid.  To have a stable monetary system, money must circulate from the people to the government and back to the people in a certain amount.  This can happen automatically with this Asset Based Receipt Monetary System.

The Asset Based Receipt Monetary System is a modern-day implementation of the medieval tally stick system where all new money is given to the taxpayer as a receipt for a 10% voluntary income tax paid to the government through it's State bank.  The receipt given to the tax payer will be in the form of NEW money given by the State Bank.  The receipt, at the election of the tax payer, can be received as: 1) gold, silver or copper coin with face values greater than the intrinsic value of the metal in the coin, so as to encourage it's use to be spent into circulation, or 2) electronic money deposited in the tax payers account in the State Bank, or 3) new paper money. All private fractional reserve banking will be made illegal, with only the State Bank given the power of issuing new money, and all new money will be issued ONLY as receipts for taxes paid benefiting the taxpayer.  The new money that the bankers had the benefit of in the old system, in the new system will benefit the taxpayer upon whose products and services, provided by the people, our money's value is based.

What is money?  Money is a medium of exchange of value agreed upon by the people.  Money could be anything accepted by the people as a medium of exchange in trade.  It could be whatever people throughout history have accepted as money, such as cows, tally sticks, paper, or gold and silver coin, or anything else, even entries in a bank computer database as exists today as money.

What gives money it's value?  The value of money is given it by the confidence the people have in the medium of exchange in sufficient quantities to enable trade value for products and services.  Money should be issued ONLY by the government of the people because only the government can insure that the correct amount of new money enters the economy that will create a stable economic growth without inflation or deflation. What determines the value of the money in an economy is the QUANTITY of money that enters the economy.  Private competing currencies would cause inflation because too much money would be allowed into the economy.  Money is not just gold and silver coin.  Spain suffered massive inflation when too much gold and silver coin was put into circulation when the conquistadores brought back boat loads of gold and silver from America.  Inflation resulted because Spain introduced more money into circulation than their economy could sustain.  To preserve the value of money, the government must have the State Bank issue no more than will support the quantity of exchange in goods and services.  If not enough money is issued, deflation will result, with prices falling.  If too much money is issued, inflation will result with prices increasing.  By issuing too much money, the value of all other monetary units in circulation reduces in value, deriving the value of the new money from the monetary units in circulation, creating inflation of prices.  Therefore new money should be introduced into the economy to the exact extent that new products and services increase.  If products and services increase without a corresponding increase in new money to support the transactions of these new products and services, deflation with falling prices will result.  The tally stick receipt system where new money is issued as receipts for taxes paid creates an automatic control system for the submission of new money into the economy to support a growing, healthy economy free of inflation or deflation, thus  providing a vibrant, healthy and stable economy for all citizens.

Therefore the Legislature shall:

1.  Set up a State Bank as a non-profit corporation 100% owned by all residents of the State with its officers elected by the people with branches in each town and city with the branch officers elected by the people of that town or city.

2.  Issue money by the State Bank as an asset, instead of as debt, its value derived from the gross state product based on all the products and services produced by the people.  Initially a date can be set where all debt in the state will be paid off by the State Bank, except credit card debt which will be cancelled by statute.  Credit card debt will be eliminated and the issuance of credit card debt made illegal in the state because credit card debt is one way banks create new money.  Only the State Bank will be given the power to create ALL new money and it will be created and issued to the taxpayers as a receipt for taxes paid.  The money supply belongs to the whole people, because it is the people that give value to the money.  Thus all money will be issued by the State Bank as an asset, instead of as a debt, to each owner's account in the State Bank which each resident can set up over the Internet.  All money issued will have a unique serial number identifier and recorded in the State Bank records as assigned to account holders.  The money serial number could take the form of:  [Unique Money Serial Number]|[Initial Amount Issued]|[Current Amount Held by Owner].  When an owner spends a portion of the Initial Amount, the serial number of the amount spent transfers to a new owner.  For example, say the Unique Money Serial Number for $100 is K37829SI74 and is issued to taxpayer/resident John Doe.  So the complete identifier of this money would be:  K37829SI74|100|100.  This could be new money the bank has issued a taxpayer who has paid $100 voluntary income tax, or it could be new money issued to pay off that state resident's debts, and is deposited into the taxpayer's/resident's bank account with the State Bank.  Say the taxpayer/resident then spends $25.30 for gasoline.  The bank will then show K37829SI74|100|74.70 in John Doe's account and K37829SI74|100|25.30 in the gasoline vendor's account.  The bank computer can then sum all the current amounts of all owners of an Initial Amount Issued under a unique serial number to ensure that the total Current Amounts held by all owners equals the Initial Amount Issued.  This will be asset money that never diminishes, increases, nor ceases to exist, but will be owned by the people with serial numbers such as other property assets that citizens own, such as automobiles and land.

3.  Declare all private fractional reserve banking to be illegal, including credit card debt, and short selling on the stock markets, which are speculative practices which banks use to prey upon the people for the benefit of the bank owners.  Only the State Bank will be authorized to create new money, and all new money initially will go to pay off all non-credit card debt and thereafter to the taxpayers as receipts for voluntary income taxes paid.

4.  Revise the State Internal Revenue Code to a flat voluntary 10% income tax paid on the gross income of salaried workers and the net income of businesses and investments to the State Bank for the operation of the State Bank, the government, state, counties, towns and cities, based on population counts and to provide grants to businesses, new home owners, and for education.  The income tax will be paid to the State deposited in the State's account at the State Bank.  The State Bank will then issue receipts of the voluntary income tax paid to the tax payers in the form of NEW money issued to each tax payer in the same amount as taxes paid.  The NEW money given to taxpayers as receipts for taxes paid will increase the income of tax payers in the amount of 2.38 times in every period of ten years.  With this simplification and incentive for paying the voluntary income tax, the State Internal Revenue Department can be eliminated since there will be no need to enforce collection of a voluntarily paid incentive based income tax.  All other taxes will be eliminated.  A contract to the lowest bidder to mint gold, silver and copper coins with a face value greater than the intrinsic value of the metal in the coin can be provided to tax payers as an option to receive their new money as receipts for taxes paid.  Other options are also offered to the tax payer to receive their new money as a receipt for taxes paid: electronic money, and/or new paper currency.  For example, an indication of how much money would be coming into the State of Arizona with a 10% income tax can be estimated.  From the 2000 census, there were 1,901,327 households in Arizona, with a median household income of $44,261.00.  1,901,327 x $44,261.00 = $84,154,634,347 * .10 = $8.4 billion income tax.  The income tax from business could be ten times that amount -- plenty of money to run all governments in the state so that all other taxes can be eliminated, including property taxes, thus returning complete ownership of the land to the people.  And since taxpayers will be getting back from the State Bank the same amount as taxes paid in NEW money, this tax will not be a burden on them.  In fact, it costs the taxpayer nothing but his participation. It is a flat 10% of their income, so it will not require any expensive software or tax return preparation to calculate.  This NEW money given to taxpayers as a receipt for taxes paid will actually increase the income of businesses and households 2.38 times in every ten year period.

5.  Institute a tariff tax on all imported products and services to encourage growth of businesses in the State and thus assist in achieving optimum employment of our workforce.  This tariff will raise the cost of imports greater than those same products and services produced within the State.  All other taxes will be eliminated.

6.  Provide protection and grants to inventors and businesses to develop new technology for the benefit of the people.

7.  Invite all other states and the Congress of the United States to institute an Asset Based Receipt Monetary System, which if they do, then our State tariff tax will be eliminated between our State and theirs.

8.  Request the United Sates Congress to remove the United States from the United Nations and order the United Nations be removed from the United States.  The United Nations was instituted by the private bankers to force their economic system of scarcity on the world.

9.  Request Congress to recall all our troops home from around the world to defend our country.  The government controlled by the bankers have sent our troops around the world to assist in the  implementation of their private scarcity-based, debt-based monetary system that concentrates all wealth into the hands of the rich.

10.  Request Congress eliminate all un-constitutional activities the federal government is involved in. 

Rationale for the implementation of these points of action:

1.  With over 40 states going into bankruptcy because of the mismanagement of our monetary system by the banking system and the effects of the bank bail-out by Congress, at least one state is in good financial health -- North Dakota, which has a state-owned bank that returns enough profits to the state to help provide for a balanced budget.  With the bank bail-out by Congress, the banks have received their money and have no incentive to issue loans to the people.  This has caused the economy to plummet reducing tax receipts to the state governments.  With the states forming their own state-owned banks, they can issue the money to the people needed for operating businesses and providing employment to their people.  Since our money supply is a common resource, it should be owned by all the people.  No private bank should be making a profit off a resource owned by the people.  Therefore, the State Bank needs to be owned 100% as a non-profit corporation by the residents of the State with it's officials elected by the people.  This was the big mistake Alexander Hamilton committed when he set up the first United States bank.  He gave 20% of the stock to private bankers.  They promptly used their influence and part ownership in the bank to lend themselves money to buy out the government stock.  Private bankers have proved their inability to do what is good for the people by bankrupting our whole nation with their monetary ponzi scheme where the interest money is never created causing our country to enter into a death spiral of unpayable debt. 

2.  Since Federal Reserve Notes have been declared by Congress to be legal tender, and the states are prohibited by the Constitution from issuing their own money, a State Bank, formed as a non-profit corporation owned by all the residents of the State with officials elected by the people can under the Federal Reserve Banking system issue new money to its people.  Since money issued as debt ceases to exist when that debt is paid off, and since the interest money on money issued as debt is never created, a debt-based monetary system creates inflation or deflation depending on arbitrary decisions of banks to make or not make loans resulting in an unstable economy.  Because the interest money is never created in a debt-based monetary system continually more and more debt has to be entered into in order to have enough money in circulation to pay the interest on loans and to have enough money in circulation to even have an economy.  In the debt-based monetary system that is currently in effect, if all debt were to be paid off, all money will disappear and there would be NO money except a little coin and paper currency in circulation to have an economy.  Therefore, the State Bank should issue its new money as an asset, not as a debt.  With the first issuance of new money, the State Bank can grant money to pay off all debt in the state, except credit card debt which can be eliminated by statute.  All subsequent issue of new money will then be limited to giving it to tax payers as a receipt for income taxes paid in the same amount as taxes paid.  This will have the effect of bringing stability to our state economy giving the benefit of all new money created to the people who are the foundation of our economy.  The income tax is necessary to prevent inflation, so that money issued to the people comes back to the State Bank in the form of voluntary taxes paid.  Issuing money with unique serial numbers in the State Bank database will establish the money as an asset that does not go away, unlike money issued as debt in the current system, which debt money ceases to exist when paid off.  All money used in the State will go through the State Bank to ensure our money supply is not inflated.  Every store's check-out system, and every resident will be able to check the State Bank database that money they receive is registered in the State Bank database with that money's serial number and belongs to State Bank account holders.  Money not registered with serial numbers to account holders in the State Bank will be considered counterfeit or foreign money and not usable in our state for transactions.  The main purpose of the State Bank will be to manage the economy as a stable economy without inflation nor deflation to preserve the value of money for residents and businesses in our state.  If someone brings money into the state, they must register that money with the State Bank with a unique serial number to be used in our State, to prevent speculation and inflation.  At registration, the State Bank can determine if that money was created as new money outside the state with the intent of inflating our money supply, which inflation would steal value from the money of state residents, and if so, could be denied as a deposit in our State Bank and it could not be used for purchases in our State.  Besides issuing most of the money used in our state, the State Bank can be proactive in stabilizing prices.  Say the oil companies decide to raise their monopoly gasoline and diesel prices.  The State Bank could then give out grants to the people to buy electric cars.  The State Bank could also be proactive in encouraging the development and sale of new technology.  Grants could be made to develop, for example, free energy generation and flying saucer technology.  Grants could also be given to new home owners and to students to pay for their education.

3.  By statute, fractional reserve banking can be eliminated in the state, and only the State Bank will be allowed to issue new money, and after the initial payoff of all debt, all new money will go to the tax payer as a receipt for taxes paid.  Fractional reserve banking is where currently 90% of all new money is created as commercial banks lend out ten times the money they borrow from the Federal Reserve.  This allows banks to cause booms and busts allowing them to repossess businesses and property for money they created out of nothing, money based on the productivity of the people, money which should belong to the people and not the banks because the value of money is ultimately derived from the people, and therefore should belong to the people and benefit the people and not just the banks.

4.  The state Internal Revenue Code should be simplified by statute to a flat 10% voluntary incentive-based income tax on the net income of business and investments, and the gross income of salaried workers.  Since all money will issue from the State Bank, in order not to create inflation, it must also return to the State Bank as a voluntary income tax.  As the economy grows, new money must be created to allow for the increase in production and services.  If no new money is created to provide for new production and services, the economy will not grow, and prices will deflate.  If too much new money is created, or in other words, if new money is created faster than new production and services increase, prices will rise causing inflation.  To maintain a stable economy, new money should be added to the economy in exact proportion to the increase in production and new services.  This can be accomplished by re-instituting the tally stick receipt system of money creation used in medieval England, where new money was created as receipts for taxes paid.  This can be accomplished by having the State Bank issue the only new money created as receipts for income taxes paid, in the same amount as taxes paid.  Instead of allowing commercial banks to issue new money as loans, in this new system, new money will be issued only by the State Bank as receipts for the voluntary income taxes paid.  As production and services increase, more taxes will be paid and new money created to support that increase in production and services allowing the economy to grow at a healthy rate with no inflation nor deflation.  Since the federal constitution prohibits states from coining money, the State Bank could put out a bid to private industry and award to the lowest bidder the creation of gold and silver coin exclusively for use of the State Bank with face values greater than the intrinsic value of the metal in the coins to give as new money to taxpayers as receipts for the voluntary income tax paid.  This gold and silver coin would have a face value greater than the intrinsic worth of the metal in the coin to encourage it's use in circulation as money.  Providing this gold and silver coin as an option to the people as new money in receipt for voluntary income tax paid will tend to give people more confidence in the worth of our monetary system.  The federal constitution requires states to use only gold and silver coin as tender in payment of debts.  There will be no debts in this Asset-Based Receipt Monetary System, but making gold and silver coin available as money will fulfill the vision of the founding fathers to have an asset-based monetary system.  There is a misconception that at one time our money was backed by gold and silver.  In reality it never was, because there never was enough gold and silver to back all the money.  The bankers said it was backed by gold and silver, but it was a lie:  they secretly issued more currency than they ever had in gold and silver knowing that at any one time, only about 10% of the people ever came for their gold or silver.  What money is made of really doesn't matter, because people down through the ages have used many different things as money, including cows, wood sticks, paper, cheap metals, and today just computer entries at the bank.  What gives the money value, is the value the people give it plus the wise management of the money supply in making sure that there is never more money put into circulation than a healthy, vibrant economy can sustain without inflation or deflation.  Inflation can be caused by the government allowing too much gold and silver coin to go into circulation, such as happened in Spain which issued too much gold and silver coin into circulation as continually more gold and silver arrived in Spain brought home from the Americas by the Spanish conquistadores allowing too much gold and silver coin into circulation which caused high inflation in Spain -- because the money supply was inflated greater than the increase in products and services that their economy could sustain.

Since all private fractional reserve banking in the state is made illegal, only the State Bank is allowed to create NEW money as receipts for taxes paid. This new money paid to the taxpayers will increase their income 2.36 times in every period of ten years.

Here is a scenario with a person earning $20,000 a year.  The NEW money this person will get each year will increase his yearly income by 10% so that in 10 years his income will more than double.

Year   Yearly Income 10% Tax
1   $20,000.00 $2,000.00
2   $22,000.00 $2,200.00
3   $24,200.00 $2,420.00
4   $26,620.00 $2,662.00
5   $29,282.00 $2,928.20
6   $32,210.20 $3,221.02
7   $35,431.22 $3,543.12
8   $38,974.34 $3,897.43
9   $42,871.78 $4,287.18
10   $47,158.95 $4,715.90

Think about what is happening here.  The new money that the banks used to get, instead with this new monetary system goes to the tax payer.  Just because in this example where the tax payer earned $20,000 the first year, and paid $2,000, (the 10% voluntary tax) to the State, this did not reduce his yearly income.  He paid $2,000 in income tax on his $20,000 year's income.  So when the State bank sends him his receipt for the income tax he paid in the form of NEW money in the amount of $2,000, this is income that he must count with his next year's income because he receives it in year 2.  So in year 2, his income is $22,000, and his income thus goes up each year by 10% so that in ten years time his total income has more than doubled.  In year 10, his income is $47,158.95 of which he pays $4,715.90 in income tax, but which he gets right back in NEW money, and so didn't cost him anything to pay his taxes, yet because he paid 10% of his income in taxes each year, for which he got back the same 10% in NEW money, this caused his Year 1 income to increase by 2.36 times in ten years time.  This increase in income is what the bankers used to get in the old monetary system where they received the benefit of all new money created.  In our new asset based receipt monetary system, the tax payer gets all the new money.  Thus, everyone can become rich with our new asset based receipt monetary system.  There is no inflation in this system, because the gross state product increases in tandem with the increase in the money supply.

5.  Since the flat 10% voluntary income tax is incentive based, that is, it actually pays the tax payer for paying his taxes, instead of being an expense to him, tax payers will voluntarily pay their income tax.  Since a voluntary tax will bring sufficient income to the state, county and city governments that all other taxes can be eliminated, the Department of Revenue can be eliminated since there will be no need to enforce a voluntary incentive based income tax.  This income to the State can be shared with the counties and cities based on their population counts and take care of all government expense, allowing all other taxes to be eliminated.  Eliminating property tax will return complete ownership of property to the people where it belongs.  Enough money would come in to the state coffers that can be shared with the counties and cities that all other taxes could be eliminated.  Abundant prosperity will result.

6.  With an ever increasing influx of income tax coming into the State Bank, it could not only fund all government, but provide interest free, debt free grants to businesses, the building of infrastructure, for education and health for the benefit of the people.  As grants are made to new businesses, increased income tax will result, contributing to full employment and a healthy growing economy.  Grant money could be provided for new technology development and industry based on that new technology giving state business a competitive edge in the world of commerce that will increase our state prosperity.

7.  As other states and Congress see the successful implementation of this asset-based receipt monetary system, they will be encouraged to implement their own asset-based receipt monetary system benefiting the whole country.  Other countries seeing the benefits of this system will want to implement it in their countries also bringing about world abundant prosperity, which will solve the immigration problem because people will want to stay in their own countries rather than immigrating.

8.  As prosperity increases in our state, our state and people will be able to influence our national government to return to our constitutional basis of freedom and rule of law with integrity, honesty, and abundance, rather than the current debt-based system that encourages strife, dishonesty and graft, with all benefits accruing to the privileged banker class at the expense of the people.  As the states adopt this asset-based receipt monetary system, Congress will be encouraged to adopt it also relieving it of it's crippling debt to the private bankers and their schemes for monopolizing all power and wealth into their own hands at the expense and poverty of the people.  Congress can then remove the US from the banker created UN, and in it's place offer the Asset-Based Receipt Monetary system to the whole world to bring peace and prosperity to all.

9.  Since peace and prosperity expand to the whole world, our troops can be brought home and our country and industry can concentrate on developing beneficial technologies that promote the general welfare of all peoples.

10.  Since all un-constitutional activities that our federal government is involved in here and abroad is the result of the private banker monopoly on the creation of money, with the Asset-Based Receipt Monetary System, our government can be brought back in line with the wishes of the people as provided for in our inspired constitution, our representatives will truly represent the wishes of the people rather than private bankers, and prosperity, freedom and the rule of law will return to our land and world eliminating wars, cartels, mafias, drug running, illegal immigration and oppressive tyranny.  Corporations and business will again return to treating their customers as king and act responsibly in the use of national and world resources instead of polluting the planet, killing people with weapons, poisoning our foods, genetically modifying death promoting seeds for our crops, other poisonous and harmful health practices, and the weaponization of the world and space.  The people of the world will return to becoming a peaceful people, with long and prosperous lives.  Population reduction will no longer be a goal because with an economic system based on plenty with prosperity for everyone, there is plenty of room for everyone on this planet and into our future peaceful expansion into space.