The Minnesota Transportation Act.

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Thomas Hedin's picture
Thomas Hedin
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The Minnesota Transportation Act.

What is your opinion of The Minnesota Transportation Act.

House version

https://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=H0888.0.html&session=ls86

Senate Version

https://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=S0705.0.html&session=ls86

 

fortytwo's picture
fortytwo
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Re: The Minnesota Transportation Act.

I had heard of the Act, but I wasn't familiar with the details.  I found this link, which was helpful:

http://www.webofdebt.com/articles/minnesota-bank-proposal.php

Does anyone have any other concise summary? 

 

My question:

I understand how state chartered banks can create money to be used by the state government without interest.  I understand how that can be a short term stimulous to my local economy.  If there is no interest paid on the loan, how does the bank make money to compensate itself for the trouble of administering these loans? 

 

Thomas Hedin's picture
Thomas Hedin
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Re: The Minnesota Transportation Act.

I'm going to get you a full, complete answer to your question straight from the author of the bill.  But I did record a video of the author of the bill last Saturday and we touched on the MTA.  We did a video directly about the MTA but I want to do the shoot over again.

 

 

DrKrbyLuv's picture
DrKrbyLuv
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Re: The Minnesota Transportation Act.

It is very encouraging to see interest free money being considered as a viable alternative to our current system of usury.  This thing will snow ball into every phase of our economy.

An interest free system represents our best hope to build a sustainable economy - which will enable us to build a sustainable society.  

Larry

James Wandler's picture
James Wandler
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Re: The Minnesota Transportation Act.

Thomas,

Please contact me by email.  I like where you are going and I'd like to help. 

Thanks,

James

DrKrbyLuv's picture
DrKrbyLuv
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Re: The Minnesota Transportation Act.

fortytwo - My question:

I understand how state chartered banks can create money to be used by
the state government without interest.  I understand how that can be a
short term stimulous to my local economy.  If there is no interest paid
on the loan, how does the bank make money to compensate itself for the
trouble of administering these loans?

My understanding is that the transaction participants are compensated through fees and services - similar to engineering, environmental and planning companies involved in the project.  The program does not eliminate private profit, just the interest charges.

 

 

Thomas Hedin's picture
Thomas Hedin
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Joined: Jan 28 2009
Posts: 815
Re: The Minnesota Transportation Act.

Byron was to busy tonight to answer this question, but I'll try to get to it this weekend during our meeting. 

My question:

I understand how state chartered banks can create money to be used by the state government without interest.  This money would be created by the state chartered banks and would be SPENT into circulation, instead of lent in.  This money would be free of debt and free of interest.  

I understand how that can be a short term stimulous to my local economy.  This would be a long term, sustainable, fix to our economic mess.  Please take time to read the bill and I think you'll get a much better understanding of what the bill does. If we can get this passed in Minnesota I firmly believe that it would spread to every other state in the USA at the very least. 

If  If there is no interest paid on the loan, how does the bank make money to compensate itself for the trouble of administering these loans?  This money would be created as a payment, instead of a loan.  It would take any of the state chartered banks less than 5 minutes to create this money and transfer it to the proper account.  The benifit to the banks is it would stabilize the market, and provide a way for their interest profits to be paid to them without causing foreclosures.  This is the biggest benifit to the state banks.  There would be a mechanism in place for them to get the interest on the loans they create.  If the banks really thought about it, if they pushed to get this passed there would be a boom in Minnesota the likes we've never seen before, and those banks I'm sure would be the first ones in line to get a lot of new companies started to begin the overhaul on Minnesota's infastructure. 

This is something I can't prove, but I'm suspecting that my next statement would probably be true.  I'm willing to bet that all this bailout money is going to the big banks and the little banks who really need it to keep from going out of business are being shoved aside.  If I was a state chartered bank, I would be demanding the MTA before the big banks(they tried to do it before) attempt to consolidate all the of smaller banks and elimate any compitition.

fortytwo's picture
fortytwo
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Posts: 35
Re: The Minnesota Transportation Act.

Thanks for your dilligence, Thomas.  I've watched both videos and am starting to read the bills today.  I guess I've always been intimidated by 'bills' and this is first one I've actually read.  It doesn't seem too dry or complicated at all.

*edit*  these bills are short and to the point.  I just read one in 5 minutes.  

I'd recommend that you give it a read so you are familiar with it-  I'll bet this will become an hot topic in the coming months.

After reading the bills, the questions that came to mind (perhaps a little more focused than above) are:

The commissioner of management and budget will have the power to pay for things directly with cost-free money.  This is an incredible responsibility that has ramifications for the bidding process, the rates contractors are paid, etc.  Is transparant accounting enough to prevent profiteering and conflicts of interest? 

It would seem as though the banks need to be compensated for 'creating the money'.  It is unclear to me how this occurs.  Again-  since this is a large responsibility it seems like there is potential for profiteering among the banks.

Lastly-  it would seem that (in our smaller state economy) we would be controlling our own money supply in ways that supplement what happens on the federal level.  Would this exagerate the problems we have with an exponentially increasing Federal money supply because of the effect of 'displacement'?  Displacement being the effect of the State's money displacing (not replacing) the Federal money and making that even less valuable?  Maybe that's the idea?

I hope these questions help focus your explanations for the public.  I'm sure working through these issues will help the cause. 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: The Minnesota Transportation Act.

Thanks for your dilligence, Thomas.  I've watched both videos and am
starting to read the bills today.  I guess I've always been intimidated
by 'bills' and this is first one I've actually read.  It doesn't seem
too dry or complicated at all.

*edit*  these bills are short and to the point.  I just read one in 5 minutes.  

I'd recommend that you give it a read so you are familiar with it-  I'll bet this will become an hot topic in the coming months.

After reading the bills, the questions that came to mind (perhaps a little more focused than above) are:

The commissioner of management and budget will have the power to pay
for things directly with cost-free money.  This is an incredible
responsibility that has ramifications for the bidding process, the
rates contractors are paid, etc.  Is transparant accounting enough to
prevent profiteering and conflicts of interest? Two things come to mind for me.  First, since when is the peoples labor free?  Second, all contracts will still go through the normal bidding process.  The only difference is that we will have the state chartered banks regulated to create this money as an assest(debt free, interest free, final payment), instead of a loan.  All current rules will still apply to the bidding process.  If we find that there is parts of our bidding process that need to be upgraded, then by all means, lets work on that too.

It would seem as though the banks need to be compensated for
'creating the money'.  The banks compensation would come in the form of less foreclosures, a stable money system, and improved public confidence.

It is unclear to me how this occurs.  Again-
since this is a large responsibility it seems like there is potential
for profiteering among the banks. The banks would create this money the exact same way they create all other money(by putting numbers into a checking account) except this money would be created free of debt and would be used to pay people for the production.  Right now the banks are the ones who receive the benifit of the new money they produce.  The library of congress, the federal reserve, and the treasury all agree.  What we are proposing is to upgrade out money system where it gives a benifit to everyone who uses it.  It's the same concept as the wright bros.  They found out how to make something fly, but through time, we have improved on their concepts and created much better aircraft.  Litterally we haven't upgraded the way money goes into circulation in this country for hundreds of years.  I think it's time smart people start having open discussions about how to improve out money system.  This simple accounting switch literally doesn't cost the bank anything to produce.

Lastly-  it would seem that (in our smaller state economy) we would
be controlling our own money supply in ways that supplement what
happens on the federal level. All that federal money in time, will be taxed back, plus interest, leaving the state economy in the hole. 

Would this exagerate the problems we
have with an exponentially increasing Federal money supply because of
the effect of 'displacement'? All of the money that the federal government puts into circulation is done so by an extention of credit from a private commercial bank. Lets be honest here, do you know anyone with to much money, or has even claimed to have to much money?  Did people complain that when gold and silver could be taken to the mint free of charge and turned into money that we would have to much money?  There is a huge paradigme shift that the american people are going to have to really study and understand.  Currently our money only represents debt, but that can change, if we pass the Minnesota Transportation Act.  It's the principles of gold and silver applied to our current monetary system.   I suppose it is possible to have to much money go into circulation but we would have to spend 53 trillion into circulation just to zero out the debt we have.  If we ever did get to the point of having to much money(I'm unsure if that is possible because there is zero historical data to ever support to much money ever occuring in any country.  The Weimar republic and Zimbobwe(how ever that is spelled) both had interest rates above 800%.  The also both operated under debt money systems.

Displacement being the effect of the
State's money displacing (not replacing) the Federal money and making
that even less valuable?  May I suggest that you watch the videos again that I linked earlier about why we are having a foreclosure crisis.  That video reveals why we have a currency that takes more and more of it to do business until we reach a point in time, where no matter how much money they loan into circulation, it has zero positive effect.   From my calculations we reached that point at the end of 2008 (the interest alone on the total debt exceeded the total consumer income.  I understand a lot of this stuff is hard to understand when we first hear it because it's never been taught to us before, so we are going to have to really sit down and study this stuff and figure it out for ourselves.

Maybe that's the idea? I'm open to any and all ideas, but the way I see it the only way we are going to get out of this mess is to get some debt free, tax free, interest free money into circulation.  Otherwise this system is going to collapse, and we may be at that point in time right now.

I hope these questions help focus your explanations for the public.  I'm sure working through these issues will help the cause. Absolutely!  

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