(20) 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. 
(21) Banks pyramided their value by spending 
money into existence, greatly inflating the value of 
bank holdings, inflating the value of their asset 
bases, enticing unknowing investors to participate in 
financing 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 money-issuing 
practices, misspending and mis-investments. The 
banks’ ability to create money out of nothing ulti-
mately became the taxpayers’ liability, and raises a 
fundamental question about a practice of money cre-
ation which threatens the wealth of the American 
people. 
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(22) Abolishing private money creation can be 
achieved with minimal disruption to current banking 
operations, regulation, and supervision. 
(23) The creation of money by private financial 
institutions as interest-bearing debts should cease 
once and for all. 
(24) Reclaiming the power of the Federal Gov-
ernment to create 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 renders unnecessary the 
undue influence of private financial institutions over 
public policy. 
(25) 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 General Accounting Office, and have 
claimed exemptions from some Federal statutes, in-
cluding the Civil Rights Act of 1964, that apply to 
all agencies of the Federal Government. 
(26) The conduct of United States monetary 
policy by the Board of Governors of the Federal Re-
serve System, and specifically the failure of Board 
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members 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 individuals who are unaccountable to the 
People of the United States in any way, even 
through their representatives in Congress. 
(27) The Board of Governors of the Federal 
Reserve System has acted unilaterally to create and 
spend $1.25 trillion for the purpose of acquiring 
mortgage-backed securities, in disregard for the 
Constitutional requirement that all Federal Govern-
ment spending originate in the House of Representa-
tives. 
(28) 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. 
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(29) 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 
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 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. 
(2) 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. 
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(3) 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. 
(4) 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. 
(5) To provide for an orderly transition. 
(6) 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’’— 
(A) has the meaning given such term in 
section 3(l) of the Federal Deposit Insurance 
Act); and 
(B) includes— 
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