We are frequently asked: “If the Federal Reserve is abolished, what do we replace it with?”

ANSWER: There are a number of workable monetary systems that have been proposed by some of the world’s leading economists and financial experts that would solve nearly all of our fiscal problems quickly and simply if the Fed were eliminated.

A thorough discussion of the details of these systems is beyond the scope of this website. Many excellent resources are available for the reader to investigate and understand the problems with the current system and some alternative solutions. (See the links at the end of this section).

However, so as not to be accused of dodging the question, PatriotStorm would like to summarize some of the basic elements that each of the successful monetary systems has in common:

1. First, it would be entirely transparent. The only reason for secrecy is to hide something. An efficient system working in the public’s best interest would have nothing to hide and its administrators would have nothing to fear.
2. Second, it would be fair, sustainable and create an environment of prosperity for all. Numerous non-interest bearing systems at the federal and state level have been shown to be mathematically sound and would produce economies that were both sustainable and equitable.
3. Third, it would not be based on debt with interest (Usury); certainly at the Federal level. Other systems go further and propose non-interest bearing systems throughout the entire financial system. This requirement is based upon the knowledge that any system that operates under a Usury principle is unworkable since it can be shown to be mathematically unsustainable.
4. Fourth, it would have sufficient regulatory and audit controls built in that would identify any irregularities quickly and decisively and identify those responsible for the problem.
5. Fifth, it would prohibit the practice of debt backed money at the federal level, returning the power of money creation to a new department of the Federal Government (We the People) established by Congress as enumerated by the U.S. Constitution Article I Section 8.
6. Sixth, it would eliminate excessive or “toxic” debt and derivatives from the entire financial system, and restructure balance sheets to produce workable debt to income ratios. This could be accomplished by several mechanisms:
   1. Individuals and businesses could be credited with, or receive a refund of tax dollars or recover interest payments that would be used to directly pay down existing debt.
   2. All banks and financial institutions could be reorganized through a special bankruptcy procedure to eliminate unserviceable debt and derivatives. All banks will survive this process and will exit their bankruptcy with 10 to 1 fractional reserve ability, a level of leverage that is safe and will be capped by law.
   3. State balance sheets would be restructured and all states would create State Chartered Banks based on the successful model of the Bank of North Dakota. Additionally, these banks would assume the roles and functions formerly held by the 12 Regional Federal Reserve banks, thus decentralizing control but in a coordinated manner where all states would benefit proportionately and fairly.
   4. These State Chartered Banks would oversee and regulate the banking operations of the local banks operating within their state
7. Seventh, it would ensure that the amount of money in circulation as measured by M-1, M-2 or M-3 would be adjusted based upon market conditions as measured by accurate and unbiased economic measurements and reporting. This would be achieved with 100% transparency in all data gathering and statistical methods, allowing the market to 'police' the government.
8. Eighth, it would create effective controls that integrally monitor the overall money supply in relation to the cumulative prices of all asset classes. Such a system would essentially eliminate any measurable inflation and would self-adjust the amount of money in circulation.
9. Ninth, if interest rates were allowed, they would be set by the free market. This means no more long term inflation or deflation.
10. Lastly, it would prohibit special interest money from contributing to political campaigns. This targeted political reform is necessary to keep the political system functioning for those who it is supposed to serve. Without this cornerstone to the reform, history proves that the system will not last long, as those with large reservoirs of money will eventually co-opt the system for their own purposes.

These 10 principles create the basis for a permanent monetary system solution that can be phased in over time without crashing global markets and would allow time for the development of public confidence in the new system.

Furthermore, such a system would be reproducible and could be used by other nations to solve their Usury based money problems as well.

Please go to the following the links to learn more.

http://www.swarmusa.com/vb4/content.php

https://www.youtube.com/watch?v=F-QA2rkpBSY&feature=player_embe...

https://www.youtube.com/watch?v=vVkFb26u9g8

http://www.swarmusa.com/vb4/content.php/312-Open-Your-Eyes

http://www.swarmusa.com/vb4/list.php/category/45-Economics

http://www.amazon.com/Truth-About-Money-American-ebook/dp/B001OI1XNA

http://www.whale.to/b/mullins1.html

http://www.amazon.com/End-Fed-Ron-Paul/dp/0446549193

http://www.amazon.com/Fraud-Money-Banking-Scene-Three/dp/1440463476...