Dear Harry:

        How can there be any fair system of money balance in this country when our own Federal Reserve is not part of the Federal Government? Have you read  Eustace Mullins book on the Secrets of the Federal Reserve?   --------    Charlotte

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From:   Harry Veeder[SMTP:[log in to unmask]]
Sent:   Monday, May 05, 1997 12:04 AM
To:     [log in to unmask]
Subject:        What I do mean by a democratic banking system

Hi all,

I am still trying to clarify the idea of democratic banking. The current
proposal/theory is very rudimentary. So I would like to hear your
questions and criticisms. If you find the concept appealing, I am also
looking for help to refine it. I think it is very different from L.E.T.S

What I DO NOT  mean by a democratic banking system
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*The existing banking system is not democratic.

*The banking system before the creation of the federal reserve was not
democratic either.

*It does not mean "taking control" of the existing private banking system.

What I do mean by a democratic banking system
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*It does mean devising a *parallel* banking system along liberal
democratic principles and procedures for decision making. The central
task of such a banking system is to CREATE and DISTRIBUTE "UNEARNED"
MONEY based on a democratically concieved credit-debt systems, which
would be very different from the system of credit-debt in the private
banking community.

*The credit-debt system could be adapted to suit the special physical and
cultural realities of individual communities.

*It would not be like giving each person a "blank cheque". Budgets
limiting the creation of money, would have to be negotiated
democratically.(Note: if people don't feel adult enough to discuss and
negotiate budgets from "nothing", then I suppose what I am saying is a
complete waste of time. The problem is deciding where the money should be
spent. Only a business has to worry about where the money comes from.)


*It does NOT necessarily require the creation of any new currencies.
Existing currencies would suffice although it should allow for the
possibility of new currencies. If a community opted for their own
currency it would, of course, create a host of problems, whose resolution
would have to be negiotiated with both banking systems.

The two systems are designed around a differnet set of core values:
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1)The private banking system regulates the creation and distribution of
money which is to be EARNED. All the social roles (eg. worker,
businessman, stockholders etc.) which involve earning money are
"governed" by this system.

2)The democratic banking system regulates the creation and distribution
money which is to be SPENT. All the social roles (eg. consumer, student,
volunteer etc.) which involve spending money are "governed" by this system.


Harry