AMERICAN MONETARY INSTITUTE
PO BOX 601, VALATIE, NY 12184
Tel. 518-392-5387 email mailto:email@example.com
Stephen Zarlenga, Director
Dedicated to the independent study of monetary history, theory
REPORT on the 2005 AMI Monetary Reform Conference
Dear Friends of the American Monetary Institute,
Judging by the comments and many congratulations from participants
- speakers and attendees alike, the 2005 AMI Monetary Reform Conference
held in Chicago from September 29th to October 2nd was an important
success. One often heard comment was: "The best conference
I ever attended."
Additional comments are at the bottom of this page, under the
Altogether seventy-five people came - our initial expectation.
It appeared to be a wonderful experience for all. Participants
told us how much they learned and enjoyed being with people who
understood the monetary problem. There was excellent interraction
with speakers who for the most part attended the whole conference.
For myself and AMI's advisors, it was very rewarding to see the
American Monetary Institute moving forward on this program to
reform America's money system, to bring it in line with both our
Constitution and with moral considerations of fairness, sustainability,
and good environmental sense.
The AMI's Vision of Reform was clearly presented:
The conference focused on the three areas outlined at the www.monetary.org/2005conference
As promised, we presented AMI's vision of the needed reforms:
To move away from privately controlled money systems toward
To end the privilege of private banks to create purchasing
media as interest bearing loans;
To spend money into circulation interest free for infrastructure
repair and development that promotes the general welfare.
Each of these themes was described by several speakers in terms
of why they were necessary and how they would work. Our specific
reform proposal was placed into its wider historical context as
truly a part of our American tradition, originating in proposals
put forward by some of the best economic minds in American history.
For example our programs similarities with the Chicago Plan which
came out of the Great Depression were described in detail. The
proposed American Monetary Act is a comprehensive program that
gets to the root of the problem.
Some speakers presentations were on how to get the reforms enacted.
Some gave detailed descriptions of the kinds of trouble our money
system has caused including the horrendous debt buildup in our
society, with its related obscene concentrations of wealth into
just a small part of the population; and the neglect of infrastructure
which now amounts to a $1.6 trillion dollar requirement just to
get the system to a decent grade. Some speakers gave previews
of the kinds of progress toward a much better future -even a paradise
- that can start to be created on our planet Earth, with properly
run money systems. A money power under societal control instead
of the privately controlled system that has been leading us into
a man-made hell.
Keynote Speaker Congressman Dennis Kucinich Inspired the
Congressman Dennis Kucinich's Keynote address emphasized the importance
of thinking in terms of what can be, not just what is; and of
the potential importance of having this monetary tool available
not just to solve pressing problems but to start building a wonderful
future on Earth. He stressed the need of bringing this discussion
to Washington, to re-examine and look again at the problems caused
by fractional reserves and at why this great power was turned
over to the Federal Reserve System. His inspiring video can be
viewed in its entirety at our homepage - see link below.
The Conference also discussed the American Monetary Act, (version
9), which starts to put these reforms into legal terminology,
and we requested suggestions from attendees both at the conference
and through later correspondence. Additional views will be sought,
and then we'll be ready in a couple of months with version 10
of the draft legislation, which will be publicly distributed for
comment. A lot more work will be needed on this, and with version
ten we feel comfortable to throw open that discussion to the public,
even though it will still admittedly be a work in progress.
A Consensus Emerged
A few participants disagreed and voiced other views. Two thought
banks should be allowed to continue to create money in modified
form. However no-one could give really convincing reasons to award
this powerful privilege to bankers, though asked to do so. The
one argument that emerged on those lines was that without this
special privilege the profits of the banking system would be too
low. We recognize the necessity of a viable banking system but
argued that its immoral to give any group special privileges and
pointed out that it creates an aristocracy forbidden by our constitution.
Also that the bankers have done a dismal job, and that results
of government controlled money have been much better. But we advised
that the argument is best framed in moral terms. Banks are of
course necessary - especially when performing their legitimate
functions - but those do not include money creation.
We had not expected unanimity, but overall there appeared to be
a general consensus on AMI's program, and emails to me after the
conference have confirmed it. That was good to see, since weve
put about 15 years of focused work into getting it to this point.
Lots of refinements will be needed, but so far no "back to
the drawing board" indications. So the AMI moves forward
with its program in a measured open manner - open to all sound
suggestions and all are welcome to join with us on this quest
for monetary justice. Please contribute toward its achievement!
We Need Your Help
The entire conference was professionally video
recorded in a two camera shoot, by Chad Ely, on HDTV tape, and
the videos will be available for distribution (see below). The
AMI had to go into some debt to sponsor this conference at the
low registration donations we requested, and now I'm going to
ask for your help to erase that debt so AMI can be in a position
to have the videos professionally edited.
I'm asking all of you to become sustaining members
of The American Monetary Institute. That means donating from $24
to $75 per year to support the Institute's research and education
programs. Yes its fully tax deductible - we are a 501(c)3 organization
founded in 1996.
If enough of you are moved to respond, you'll
empower us to move forward and continue this work at a good pace.
One of the themes of my welcoming message was that our civilization
is living on borrowed time - Kennedy's Defense Secretary McNamara
has told us that the only thing that stopped an all out nuclear
exchange with Russia in the 1962 Cuban Missile Crisis was "blind
luck." Then again in 1987 civilization was saved when Russian
Colonel Petrov refused to launch Russian missiles to counter a
mistaken warning of an attack from America. The reason we are
living on borrowed time is that for too long we have been living
on borrowed money! As Prof. Blain points out, "We must own
our money system, not rent it from private banks!"
So folks please help us out right now, with what
you can afford. We'll use your contributions intelligently - thats
a promise. We are starting over a dozen local chapters of the
AMI on a shoestring, as a result of the conference and we need
to have speaker videos available to do that properly. For more
information, and if you would like to arrange for me to speak
in your city on one of my four cross country trips in 2006, please
let me know as soon as possible so that we can plan ahead.
Those donating at the $75 level or higher, will
receive a complimentary copy of my book, The Lost Science of Money,
which presents AMI's research results to date. Alternatively you
can receive DVD's of any two speaker presentations.
Those donating $250 receive the book plus any 8 speaker DVD's
and for donations of $400 or more, you'll receive the book plus
DVD's of the entire conference - all 22 speakers/panels.
Please print and mail or email the donation form
below, or use the convenient paypal page by clicking on "make
a Donation" at the left side of our homepage at www.monetary.org.
The enro lment/ tape ordering form is below.
We really do need your help at this time - seriously friends,
please be generous. To see how great the tapes are you can view
Congressman Dennis Kucinich's speech in its entirety at our website
now. See the link beneath the membership form below. All those
contributing will also receive a copy of the American Monetary
Act draft legislation version 9, for comment, before version 10
is distributed publicly.
Summary of Speakers Topics and Their Relevance to Monetary
There is a description of how each speakers topic contributed
to the overall picture of monetary reform, at the bottom of this
Annual Supporting Member Renewal/Video Order Form
You can make your donation by paypal
(click Donation at our homepage) or print this page and
mail it to the AMERICAN MONETARY INSTITUTE, PO Box 601,
Valatie, NY 12184, U.S.A. Questions? Phone 518-392-5387
Please enroll me as a sustaining member of the American
Monetary Institute at the support level of (circle one):
$24 (Student) $48 (Basic) $75 (Advanced)
All supporting members receive AMIs quarterly newsletter,
The American Money Scene and regular updates. Members
donating $75 or more receive a complimentary copy of Stephen
Zarlengas book, The Lost Science of Money, OR
any two speaker DVD's.
$250 - Donors at this level receive The Lost Science of
Money and any 8 conference speaker DVD's as a gift.
$400 - Donors at this level and above receive The Lost
Science of Money and all 22conference speaker DVD's as
$1,000 (The Del Mar Circle) Other $...............
Enclosed is my check Or Bill my credit card
Print name & title
These are the Speaker DVDs I'd like to receive ($35 each,
if ordered separately): ...........................
Click to view Congressman Dennis Kucinich's conference speech:
Comments from Participants emails:
"Congratulations on a wonderful conference. I think it was
spectacular for your first effort." R.D. Chicago
"Hi Steve, This is my conference critique... I told at least
10 people this was the best conference I ever attended.... I believe
I told that to Elizabeth moments before it closed but if I failed
you can pass that on to her. I learned a bunch." Dr. J.S.,
"Congratulations for your work on a conference that was a
whopping success. I believe that the consciousness/ awareness
of monetary reform was significantly enhanced amongst those that
were there as well as the messages that will go out from the attendees
to their associates. We look forward to purchasing some of the
video tapes when available." B.G., Idaho
"Dear Stephen, - A truly wonderful conference. Congratulations!
In just four days, I, for one, received a tremendous education
and really saw for the first time the significance of what you
are doing and ways that I personally can support it." Dr.
"I want to personally thank you for all the work you have
done promoting monetary reform...Pulling together this conference
called for a lot of planning and effort. Then there are the others
with fixed ideas, but you kept us going in a direction of pulling
in our best minds. I felt all the intelligence, wisdom and strength
there, available to build a strong argument for monetary reform
that would support the best and most irrefutable values of life.
Im with you on the 100% reserve solution
no special privileges for any private group or individual."
"after some additional thinking about your "Chicago
Plan" for monetary reform, it just may have more potential
for restoring the health of our civilization than I originally
thought. It would restore the sovereignty of the money system
to the government, so that the interest earned would flow into
the control of congress as opposed to the ruling elites who own
the central bank. Of course, these same people would still have
more influence over governmental decisions than other citizens,
but they would at least be forced to operate in the public forum
to gain their selfish ends. Dr. L.C. California
"Thanks for all the work you put into the conference!"
"Thanks again for organizing a wonderful meeting, I feel
energized to go work for monetary reform!" L.M., Massachusetts
"I appreciate very much the opportunity to have attended
your conference." E.A., Minnesota
"Indeed, I have been "chomping at the bit" to write
to you and fellow participants ever since the conference...thank
you for everything you have done to make AMI a reality. I thoroughly
enjoyed and appreciated the conference and was only sorry that
I was not able to attend all of it. I commend you for the incredibly
rich and well thought-out program. As you walked through the schedule
Sunday morning and recapped the contents of each session, the
substance and logic of the conference became even clearer to me
than they already were. I have begun to read your book and look
forward to clearing some time over the holidays to read it in
its entirety."L.E., Illinois
"I really enjoyed the conference and am thankful for all
your hard work...Claire and I are looking forward to our next
conference. I need your autograph on your book." H.J.,
"I really enjoyed the conference and appreciate your efforts
in organizing it. " F.B., California
"I just wanted to first, compliment you on making the conference
a reality. I learned much while I was there. I am glad I participated
and I look forward to any future events that include American
Monetary Reform as one of the themes. Please keep us all advised
on your speaking engagements so that we can come show our support.
Further I just wanted to say that I understand your focus and
mission and better appreciate the difficulty, time and cost incurred
to just get traction behind ONE concrete agenda and strategy....
So Ive taken the position that I do not wish to dilute the
effort with other strategies even though I would like to try them.
I am fully behind AMI and whatever I can do to help push that
cause forward Im going to do. I understand the mission and
the method." G.M., Florida
"It was good to meet you in Chicago as well as many others
whose books I have read or in some cases corresponded with....I
would like to reiterate that I strongly support the direction
you are going. It is centuries late, of course, but we weren't
around centuries ago." R.P., Oregon
Brief Summary of the Monetary Reform Significance of
Each Speakers Talk:
We take seriously our responsibility to present knowledgeable,
disciplined researchers at our conferences.
Stephen Zarlengas opening remarks set forth the agenda
and goals of the conference. He pointed out that monetary reformers
have known for decades what general shape money reform should
take away from privately created money loaned into circulation
as interest bearing loans and credits, toward governmentally issued
money spent into circulation interest free. He noted that the
present infrastructure situation requires money be spent on much
needed repairs which have gone ignored for decades. Monetary reform
makes this possible. He pointed out that the conference would
focus on three areas: The monetary Reforms; How to achieve them
politically; and What they could be used for once achieved. He
set out the conference general guidelines for politeness and keeping
the questions on point.
The Panel on the Federal Reserve System underscored the
problem and mechanism of how money is currently created by the
private fractional reserve banking system and how this is not
consistent with our democratic republic form of government, or
good common sense.
Ole Mackeprang, European financier presented a picture
of how the Euro has already changed daily life in the European
Community and how this currency went from dead on arrival
to dominating the US $ in a few short years, so that there are
now two world class currencies in existence a major new
Alistair McConnachie talked on the 1946 nationalization
of the Bank of England and demonstrated it is not enough to just
nationalize the central bank if the private banking system keeps
the privilege to issue money. This privilege has led to the current
situation where the British government only creates 3% of the
money and the private banks are creating the other 97% at interest,
and are engaged in an orgy of privatization. He described the
new British political party being organized to specifically promote
James Gibb Stuarts presentation by video underscored
the great importance of correct money views, describing how just
one letter requested by the Malayasian Prime Minister from English
money reformers altered the course of Malaysias history
and rescued that country from the worst effects of the 1997 Asian
currency crisis brought on by speculators.
William Krehm of Comer described the situation with Canadian
monetary reform and the Bank of Canada already being a nationally
owned bank. William was one of the few people present who supports
allowing banks to continue creating money, but under some alternative
regulations that he believes would restrict the abuses of privileged
money creation powers.
Connie Fogal, leader of the Canada Action Party, founded
by Paul Hellyer, which supports monetary reform, passionately
described in detail the provisions of the nationalized Bank of
Canada legislation which actually give it the power to do what
the AMI considers necessary for money reform. However, because
the private banks are still allowed to create Canadian money,
these powers have been ignored, and allowed to be usurped by the
private banking establishment. More strong evidence that nationalization
of the central bank isnt enough to achieve monetary justice.
John Herman of Australia gave a report on the money reform
situation Down under. The same system of private bank
created purchasing media loaned into circulation at interest,
also dominates there, as well as in Europe, even though central
banks have been nationalized. Indeed Americas Federal Reserve
System appears to be the only major central banking system still
under private ownership and private control.
William Hixson succinctly presented the problems with
introducing money at interest through the private Federal Reserve
System, and demonstrated that the idea of a gold standard had
always been a sham. It had to be because gold production could
never be sufficient; and he described why it was never a good
idea even if there were gold available. He proposed the federal
Government issue the money, and even make some of it directly
available for State governments use.
Prof. Robert Blaine gave an account of how debt has been
growing right from the founding of our country in basing our money
system on bank issued debt rather than government issued money.
This thorough presentation with charts gives documentary evidence
of the inexorable nature of this flawed process and how it has
led us to the present debt malaise. The talk demonstrated the
long term effects of our defective debt based money system leading
toward an impossible debt equation for society.
David I. Kelley, Issues Advisor to Congressman Dennis Kucinichs
presidential campaign, gave a rousing presentation of the
Forbidden Statistics demonstrating the unacceptable
concentration of wealth in our society - One of the unanswerable
indictments of our present money system and a further demonstration
of the unacceptability of the inevitable results of privately
controlled money systems. This was among our most acclaimed talks
judging by participant evaluation sheets.
Ben Gisin, Advisor to the AMI, discussed the approaching
food crisis emanating from the inadvisable way our society allows
money to be created privately and circulated as interest bearing
debt.. A "must see" presentation of this hitherto ignored
aspect of the money problem. Its not just abstract debt claims
that are plaguing us, the money system is already degrading humanity's
ability to get good agricultural nourishment.
Cay Hehners presentation critiqued Adam Smith and Karl
Marx as not having done their homework. Smith put together a jumbled
mass of poorly defined concepts, which essentially ignored morality
and Karl Marx sensing the need for morality, esssentially turned
Smith's jumbled mess upside down. Neither provided a viable approach
for humanity. Both used the same erroneous metallist concept of
Prof. Nic Tideman's presentation on using housebricks
as the ultimate form of commodity money made a very outstanding
point: those who claim to want commodity backing for money should
be considering housebricks, rather than the normally discussed
gold and silver. What it really means is that the goldbugs are
not so much for commodity backing as they are for promoting fetish
gold, connected with their coin collections and gold shares, etc.
They forget that everything that makes gold a good investment
makes it no good as money.
Dr. J.W. Smith's presentation on Adam Smith vs Frederich
Liszt made the important point that nations have been built using
Liszts system, but never with Adam Smiths system. Adam Smith is
still worshipped as a god in the economics community, but you
cannot have both Adam Smith and economic justice at the same time.
It must be one or the other and it is past time to cut Adam Smith
down to size.
Jack Bidell showed how the standard method of trying to
fight inflation by raising interest rates is a perverse policy
that actually increases inflation in a world where debt and interest
payments form such a large part of economic activity - a concept
that Alan Greenspan never grasped while head of the Fed. Since
they are wrong about this - their main tool, imagine the other
errors and inniquities that are built into the system.
Dan Sullivan presented Henry George's viewpoint that society
must share and protect a modern "commons" in both land
ownership and in the monetary area. Values in both areas that
result from our actions as a society rightly belong to all of
us and should not be alienated.
Randy Cook showed that the shortfall in actual money payments
to raw material producers is roughly equivalent to the total debt
in our society, as the raw materials were exchanged for debt instead
of for money. A fascinating concept that deserves deeper analysis.
John V. O'Holleran described a bleak picture of America's
deteriorating infrastructure situation, now requiring over $1.6
trillion dollars in repair work, to raise it from its current
"D" rating up to acceptable levels. The outlook is that
it will reach D- soon. This infrastructure problem, in AMI's view
represents an unanswerable indictment of the present monetary
system, which has been unable or unwilling to address America's
Ken Bohnsack described his years of experience in getting
over 3,000 signatures of support for the Sovereignty proposal,
from governmental bodies from school boards to states. His enthusiastic
presentation energized the audience - especially his attitude
that in this process one might get disappointed, but never discouraged.
Charles Walter's talk described how the parity payments
system had worked well for so many years in assuring farmers that
they would be able to at least approximate getting their costs
of production back for crops produced under reasonable conditions.
This talk along with Randy Cook's provide some of the key elements
of monetary information for reasonable monetary management and
control as envisaged in the AMerican Monetary Act.
Richard Distlehorst demonstrated statistically that we
know about how much money will be created per year by recent standards,
and that we then have a choice - to give the banks the privilege
to create this money and lend it back to us at interest, or to
have our own government create it interest -free and spend it
into circulation to promote the general welfare. He left no doubt
which choice we should make!
J. Edward Anderson's presentation of Public Rapid Transit
systems was a view into the future of congestion free, environmental
friendly, efficient, time saving transport which is clearly the
main answer to remaking our cities into liveable sensible environments.
Step inside the cars, press a button for your destination and
sit back and relax, read, doze. A picture of the kind of life
that money reform can create.
Prof. Glen Martin's well received talk on the necessity
of viewing mankind as a whole, not merely as divided into political
structures attempting to take advantage of each other with policies
leading inexorably toward warfare. Human rights are universal!
A money system in so much conflict with human rights in our own
country, extends its injustice around the world. We must eliminate
the moves toward warfare now, or the warmongers will be in a position
under the false guise of "security" to restrict our
rights including those that enable us to reform our system.
Stephen Zarlenga gave a description of the "Chicago
Plan" which came out of the Great Depression as a solution
to the banking crisis, and was endorsed by the then great economic
minds in the nation. He showed how the American Monetary Act incorporates
the main elements of the Chicago Plan and adds some more, based
on our experience since the 1930's.
Congressman Dennis Kucinich's inspiring keynote address can be
viewed in its entirety at www.monetary.org
The American Monetary Institute issued the following press release
after the conference. Please feel free to distribute it and the
entire message above, to your contact lists.
PRESS RELEASE - For Immediate Release,
October 6, 2005 by the American Monetary Institute - a monetary
policy think tank - Chicago - 2005
Monetary Reform Conference - Congressman Dennis Kucinich, Keynote
Speaker - MONEY REFORM PLAN WOULD SAVE TAXPAYERS $ BILLIONS
PER YEAR IN KATRINA CLEANUP
"An alteration in the way money is
introduced into our economy would save at least $10 billion dollars
per year in the cleanup and rebuilding aftermath of Hurricanes
Katrina and Rita. If the cleanup loans last the normal 30 years,
the savings will be over $250 billion," says Stephen Zarlenga,
Director of the American Monetary Institute. The plan, known as
The American Monetary Act was discussed at the AMI 2005 Monetary
Reform Conference, held in Chicago over the weekend at the Essex
Inn. The proposed three part reform of our currency system would
have the U.S. Government directly spend the money into circulation
rather than the present method of allowing the banking system
to create the money and then the government borrowing the money.
Funding such infrastructure expenses through bonds generally doubles
to triples their final cost. The reform avoids this expense by
removing the fractional reserve provision of the present system,
which in effect allows the banking system to create the much needed
new money that must be continually introduced into the economy,
as population and economic activity expands; or when emergencies
such as Katrina, or warfare require great expenditures. Under
the reform only the U.S. government, not the private banking system
would be allowed to create money.
"What we're proposing is very similar
to the 'Chicago Plan' which came out of University of Chicago
economists in the 1930's and was widely supported nationwide by
the economics profession back then," said Zarlenga. Under
the plan the government spends the new money into circulation
on necessary infrastructure, including education. A presentation
at the conference by the American Society of Civil Engineers pointed
out the deteriorating condition of American infrastructure, which
currently receives an overall grade of D, and is predicted to
reach D- soon. MOST OF KATRINA'S DAMAGE ON NEW ORLEANS COULD HAVE
"This method of introducing new money
through infrastructure creation and repair would actually have
stopped most of the damage and loss of life in New Orleans because
the money would have been available to repair the levees, and
they would have probably held" said Zarlenga. "The
difference is that under the present private control, money goes
largely into speculative bubbles, including wall street games
and real estate" he said, "Under societal control it
would go much more toward promoting the general welfare. Inflation
is avoided because real material wealth has been created in the
process, and catastrophic loss including loss of life is prevented."
The keynote speaker at the conference was
Congressman Dennis Kucinich, on the topic of Economic Justice.
The American Monetary Institute is a 501c3 publicly supported
charitable trust organized in 1996 to promote the independent
study of monetary history, theory and reform. This was the institutes
first public conference and annual conferences are planned. The
institute's website is at www.monetary.org.
where a complete video of Congressman Kucinich's speech can be
Inquiries by email to firstname.lastname@example.org,
or by telephone to 518-392-5387.
Contact person: Stephen Zarlenga, Director of the Institute
A brief bio and photo of each speaker can be viewed at www.monetary.org/2005schedule
Warmest regards to all of you! Please help us now by becoming
supporting members of the American Monetary Institute, and stay
Stephen Zarlenga, Director, AmiTo View the AMI Home Page click