I 
112TH CONGRESS 
1ST SESSION H. R. 2990 
To create a full employment economy as a matter of national economic 
defense; to provide for public investment in capital infrastructure; to 
provide for reducing the cost of public investment; to retire public debt; 
to stabilize the Social Security retirement system; to restore the authority 
of Congress to create and regulate money, modernize and provide stability 
for the monetary system of the United States; and for other public 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2011 
Mr. KUCINICH (for himself and Mr. CONYERS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To create a full employment economy as a matter of national 
economic defense; to provide for public investment in 
capital infrastructure; to provide for reducing the cost 
of public investment; to retire public debt; to stabilize 
the Social Security retirement system; to restore the 
authority of Congress to create and regulate money, 
modernize and provide stability for the monetary system 
of the United States; and for other public purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Emergency 
Employment Defense Act of 2011’’. 
SEC. 2. FINDINGS; PURPOSES. 
(a) FINDINGS.—The Congress finds as follows: 
(1) Nearly 14,000,000 Americans are currently 
unemployed, another 12,000,000 estimated Ameri-
cans are underemployed, wages are stagnant and 
millions of Americans are being asked to take pay 
cuts. 
(2) Over 43,000,000 Americans live below the 
poverty line, 49,000,000 of Americans go to bed 
hungry at night, and an estimated 3,000,000 Ameri-
cans are homeless. 
(3) Over 1,500,000 non-business bankruptcies 
were filed in calendar year 2010, the highest number 
in five years, and the index of small business opti-
mism is at a low not seen in nearly two decades. 
(4) More than 2,000,000 homes are in fore-
closure and millions of homeowners are falling be-
hind in their mortgage payments; the housing mar-
ket in terms of construction and sales has undergone 
an historic decline; and the declining value of hous-
ing means Americans’ largest single investment, the 
home, is no longer a safe harbor for savings, nest 
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eggs, social mobility or the transfer of generational 
wealth. 
(5) Notwithstanding passage of the Patient 
Protection and Affordable Care Act, a privatized 
health care system has made quality health care be-
yond the reach of most Americans. 
(6) The cost of higher education has put higher 
academic attainment outside the reach of millions 
more young Americans, and the current generation 
of young Americans will not be able to attain the 
quality of life of their parents, reversing a long- 
standing trend. 
(7) The American Society of Civil Engineers 
has estimated that there is $2.2 trillion in unmet in-
frastructure needs. Cities and States, urban and 
rural areas all have an urgent need to rebuild and 
repair roads, bridges, railroads, water systems, sewer 
systems and other infrastructure but lack the nec-
essary funds, bond-issuing capacity and other needs 
which has led to America’s infrastructure falling into 
disrepair. 
(8) The Board of Governors of the Federal Re-
serve System have compounded the economic crisis 
by failing to take decisive action to move the econ-
omy forward, Wall Street, which was bailed out by 
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the American people, is not investing its rising as-
sets in Main Street America, and individual inves-
tors are beginning to turn away from the stock mar-
ket. 
(9) Some banks, many of which received gov-
ernment bailouts, are not investing in small busi-
nesses, nor in the creation of jobs, the private sector 
is not creating jobs, and in fact most businesses are 
freezing their employment levels. 
(10) Congress is stymied by competing forces: 
a desire to put people to work and an aversion to 
borrowing money to create programs to do so. 
(11) Confidence in the United States’ economic 
leadership at home and around the world is waning, 
the value of our currency cannot be securely main-
tained, and no other path to economic recovery ex-
ists which will create the changes necessary to put 
people back to work, invest in rebuilding America’s 
infrastructure, i.e. highway, rail, airport, harbors, 
light rail, communication, shipping, water, sewer, 
education, and civil defense. 
(12) The aforementioned conditions require 
comprehensive action by the United States Congress 
to create full employment, invest in America and se-
cure our Nation’s long-term economic, social and po-
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litical future; and that such action is within our 
Constitutional right and responsibility. 
(13) The authority to create money is a sov-
ereign power vested in the Congress under Article I, 
Section 8 of the Constitution. 
(14) The enactment of the Federal Reserve Act 
in 1913 by Congress effectively delegated the sov-
ereign power to create money, to the Federal Re-
serve system and private financial industry. 
(15) This ceding of Constitutional power has 
contributed materially to a multitude of monetary 
and financial afflictions, including: 
(A) growing and unreasonable concentra-
tion of wealth; 
(B) unbridled expansion of national debt, 
both public and private; 
(C) excessive reliance on taxation of citi-
zens for raising public revenues; 
(D) devaluation of the currency; 
(E) drastic increases in the cost of public 
infrastructure investments; 
(F) record levels of unemployment and 
underemployment; and 
(G) persistent erosion of the ability of Con-
gress to exercise its Constitutional responsibil-
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ities to provide resources for the general welfare 
of all the American people. 
(16) A debt-based monetary system, where 
money comes into existence primarily through pri-
vate bank lending, can neither create, nor sustain, a 
stable economic environment, but has proven to be 
a source of chronic financial instability and frequent 
crisis, as evidenced by the near collapse of the finan-
cial system in 2008. 
(17) Banks increased their value by lending 
money imprudently, which greatly inflated the value 
of bank holdings, exposing depositors and taxpayers 
to the risks of schemes like the bundling of subprime 
mortgages, and ultimately bringing undercapitalized 
banks and the entire financial system to the edge of 
ruin, creating circumstances where the taxpayers of 
the United States were called upon to save the 
banks from their own imprudent lending practices, 
misspending and mis-investments. The banks’ ability 
to create money out of nothing ultimately became 
the taxpayers’ liability, and raises a fundamental 
question about a practice of money creation which 
threatens the wealth of the American people. 
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(18) Abolishing private money creation can be 
achieved with minimal disruption to current banking 
operations, regulation, and supervision. 
(19) The creation of money by private financial 
institutions as interest-bearing debts should cease 
once and for all. 
(20) Reclaiming the power of the Federal Gov-
ernment to originate money, and to spend or lend 
money into circulation as needed, eliminates the 
need to treat money as a Federal liability or to pay 
interest charges on the Nation’s money supply to fi-
nancial institutions; it also removes the undue influ-
ence of private financial institutions over public pol-
icy. 
(21) Under the current Federal Reserve Sys-
tem, the persons responsible for the conduct of 
United States monetary policy have been unaccount-
able to the Congress and the Nation, have resisted 
auditing by the Government Accountability Office, 
and have claimed exemptions from some Federal 
statutes, including the Civil Rights Act of 1964, that 
apply to all agencies of the Federal Government. 
(22) The implementation of United States mon-
etary policy by the Board of Governors of the Fed-
eral Reserve System has failed to promote full em-
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ployment, and the failure of the Board of Governors 
to safeguard the financial system against wholesale 
fraud and abuse of citizens, demonstrates the risks 
of maintaining a system wherein the power to create 
and regulate money has been delegated to private in-
dividuals who are unaccountable to the People of the 
United States in any way, even through their rep-
resentatives in Congress. 
(23) An examination of the historical record 
demonstrates that the exercise of control by the 
United States Government over the money system 
has provided greater moderation in the supply of 
money and promoting the general welfare, and has 
been indispensable in times of national emergency 
for generating resources required to support public 
investment, provide for national defense, and pro-
mote the general welfare, and is therefore superior 
to private control over the money system. 
(24) As our money system is a key pillar in 
maintaining general economic welfare and as the 
Federal Reserve System and its private banking 
partners has consistently failed to promote or pre-
serve the general welfare, it is essential that Con-
gress, in the name of protecting the economic lives 
of the American people and the long-term security of 
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our Nation, reassume the powers and responsibilities 
granted to it by the Constitution. 
(b) PURPOSES.—The purposes of this Act are as fol-
lows: 
(1) To create a Monetary Authority which shall 
pursue a monetary policy based on the governing 
principle that the supply of money in circulation 
should not become inflationary nor deflationary in 
and of itself, but will be sufficient to allow goods 
and services to move freely in trade in a balanced 
manner. The Monetary Authority shall maintain 
long run growth of the monetary and credit aggre-
gates commensurate with the economy’s long run po-
tential to increase production, so as to promote ef-
fectively the goals of maximum employment, stable 
prices, and moderate long-term interest rates. 
(2) To create a full employment economy as a 
matter of national economic defense; to provide for 
public investment in capital infrastructure; to pro-
vide for reducing the cost of public investment; to 
retire public debt; to stabilize the Social Security re-
tirement system; to restore the authority of Con-
gress to create and regulate money, to modernize 
and provide stability for the monetary system of the 
United States, and for other public purposes. 
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(3) To abolish the creation of money, or pur-
chasing power, by private persons through lending 
against deposits, by means of fractional reserve 
banking, or by any other means. 
(4) To enable the Federal Government to invest 
or lend new money into circulation as authorized by 
Congress and to provide means for public investment 
in capital infrastructure. 
(5) To incorporate the Federal Reserve System 
into the Executive Branch under the United States 
Treasury, and to make other provisions for reorga-
nization of the Federal Reserve System. 
(6) To provide for an orderly transition. 
(7) To make other provisions necessary to ac-
complish the purposes of this Act. 
SEC. 3. DEFINITIONS. 
(a) IN GENERAL.—For purposes of this Act, the fol-
lowing definitions shall apply: 
(1) BUREAU.—The term ‘‘Bureau’’ means the 
Bureau of the Federal Reserve established under 
section 314 of title 31, United States Code, as added 
by section 303. 
(2) DEPOSIT.—The term ‘‘deposit’’— 
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(A) has the meaning given such term in 
section 3(l) of the Federal Deposit Insurance 
Act); and 
(B) includes— 
(i) a member account (as defined in 
section 101(5) of the Federal Credit Union 
Act) in a credit union; and 
(ii) any transaction account. 
(3) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’— 
(A) has the same meaning as in section 3 
of the Federal Deposit Insurance Act; and 
(B) includes any credit union (as defined 
in section 101 of the Federal Credit Union 
Act). 
(4) INSTRUMENT OF INDEBTEDNESS OF THE 
UNITED
STATES; TREASURY
INSTRUMENTS.—The 
terms ‘‘instrument of indebtedness of the United 
States’’ and ‘‘Treasury instrument’’ include any obli-
gation issued under subchapter I of chapter 31 of 
title 31, United States Code. 
(5) MEMBER BANK.—The term ‘‘member bank’’ 
has the same meaning as in the first section of the 
Federal Reserve Act. 
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(6) MONEY.—The term ‘‘money’’ refers to 
United States Money, as established under title I. 
(7) MONETARY AUTHORITY.—The term ‘‘Mone-
tary Authority’’ means the Monetary Authority es-
tablished under section 302. 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(9) STATE.—The term ‘‘State’’ has the same 
meaning as in section 3 of the Federal Deposit In-
surance Act. 
(10) EFFECTIVE
DATE.—The term ‘‘effective 
date’’ means the date determined and published in 
the Federal Register by the Secretary, during the 
90-day period beginning on the date of the enact-
ment of this Act, that— 
(A) is not less than 1 year after such date 
of enactment and not more than 2 years after 
such date; and 
(B) is the date on which the designated 
provisions of this Act take effect. 
(b) TECHNICAL AND CONFORMING AMENDMENT TO 
THE FDIA.—Section 3(l) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(l)) is amended by adding at 
the end the following: 
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the President to certify that a national emergency 
exists which requires the exercise of such authority; 
(2) the House of Representatives and the Sen-
ate each adopt, by a vote of 2/3 of the members 
present, a concurrent resolution calling on the Presi-
dent to certify that a national emergency exists 
which requires the exercise of such authority; and 
(3) the President issues a certification that a 
national emergency exists which requires the exercise 
of such authority by the Monetary Authority. 
(b) EMERGENCY BOARD.—There is established for 
purposes of this section the Emergency Board which shall 
consist of the following members: 
(1) The President. 
(2) The Secretary of Commerce. 
(3) The Secretary of Energy. 
(4) The Secretary of Labor. 
(5) The Secretary of the Treasury. 
(6) The Speaker of the House of Representa-
tives. 
(7) The minority leader of the House of Rep-
resentatives. 
(8) The majority leader of the Senate. 
(9) The minority leader of the Senate. 
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