The Most Revolutionary Act

Diverse Ramblings of an American Refugee

Dr Stuart Jeanne Bramhall

Dr Stuart Jeanne Bramhall
New Plymouth, New Zealand
December 02
Retired psychiatrist, activist and author of 2 young adult novels - Battle for Tomorrow and A Rebel Comes of Age - and a free ebook 21st Century Revolution. My 2010 memoir The Most Revolutionary Act: Memoir of an American Refugee describes the circumstances that led me to leave the US in 2002. More information about my books (and me) at


FEBRUARY 8, 2013 8:28PM

New IMF Chicago Plan Video: Stripping Banks of Their Power

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Last October two International Monetary Fund (IMF) economists (Jaromir Benes and Michael Kumhof), created a firestorm with their working paper The Chicago Plan Revisited. The document revives a proposal first put forward by professors Henry Simons and Irving Fisher in 1936 during the Great Depression. Fisher, like many modern economic thinkers, was extremely concerned about the extreme concentration of wealth created by credit cycles. In January Kumhof posted the following YouTube video clarifying various aspects of the proposal, as well as answering some of its critics:


The Chicago Plan would require all banks to hold sufficient capital, either in the form of deposits or “reserve credits,” for all the new loans they generate. Under this proposal, the US treasury would issue sufficient “reserve credits” to repurchase all outstanding sovereign debt held by private banks. This buyback would make up a substantial portion of the capital banks would be required to hold to generate loans. They could add to it by borrowing “reserve credits” at a low or zero interest from the US treasury.

As Kumhof explains, the aim of the proposal is to end the ability of private banks to control the monetary supply by creating money out of thin air in the form of loans. Most people have the mistaken belief that government controls the money supply by printing money. Nothing could be further from the truth. Ever since the 17th century, except for a brief period under Andrew Jackson, the money supply in all western countries has been issued and controlled by private banks.

The paper itself goes further than the video in providing historical examples in which governments, rather than private banks, controlled the money supply. Such periods are always characterized by less wealth and income inequality, greater economic stability and negligible public and private debt.

The growing movement to end debt-based money is still considered pretty radical, despite the early boost the Chicago Plan received from conservative economist Milton Friedman and his friends at the Chicago School. The fact the mainstream International Monetary Fund is promoting it suggests that the global economic crisis is far more serious and intractable than our governments and the corporate media are letting on.

The following are excellent documentaries explaining how private banks issue and control the money we all require to meet basic needs in contemporary society:

Money as Debt

97% owned

The Secret of Oz

photo credit: dkshots via photopin cc

Crossposted at Daily Censored and The Most Revolutionary Act

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The word here in New Zealand is that the IMF is pretty fed up with some of the private banks and determined to implement the Chicago Plan (in which government, not private banks would assume responsibility for creating and controlling the money supply). In this half hour video, this IMF economist does a pretty good job of explaining how money is presently created (by banks, out of thin air, as loans). His explanation of the transition to the new system is a little more complicated.

In Europe, the IMF got their way over the Robin Hood tax (financial transactions tax on banks). Most of the Euro countries have adopted it.
[r] Stuart, thanks for this seminar!! will be back! best, libby
Recent revelations on internal bank e-mail conversations indicating that those in control were well aware that the securities they were selling were worthless is confirmation that those in control of the financial sector are psychologically set to gain huge profits by cheating whoever is gullible enough to trust them. The mentality of the Mafia has totally taken over a major portion of the financial sector and with their social irresponsibility and huge power they are undermining and destroying civilization. Ironically, like any termite colony or cancer they seem totally unaware that their own sustenance is intimately involved with civilization.
I already rated this. I don't comment on Sabbath but I posted this to your fellow New Zealander Anthony Hosmer‘s feed on my Facebook. Anthony’s post was hot last night. It had over a hundred comments. He apparently feels that state controlled banking is the harbinger of a second holocaust and the rise of a global fifth Reich.
Very well done. The IMF is one of the most hated institutions, too. Perhaps there will be some bloodletting finally. It's gone on too long.
interesting news but this is sort of like "bank, heal thyself". even in our highly technological societies, the true nature of money is not understood. a government issued money is just as subject to corruption. the real issue is, how do you prevent corruption? corruption can enter either private or public banking systems. the fed reserve has issued money for over 1 century and assuredly its not going without the Mother of All Battles in the saddam hussein sense.... it will be like trying to get the parasite off the face of its victim, in Aliens....
by the way if Friedman supported it, then you know its tyranny in disguise. did you read the book "shock doctrine"? hooeeee, better take a look at that before you buy the chains of your own slavery.
vzn, in your last comment, I think you were guilty of an ad hominem fallacy. Just because Milton Friedman said and did a lot of bad things doesn't mean he was wrong about everything. In 1935, the communists, socialists, and unions were so powerful the US was pretty damned close to a revolution. It's my understanding that The Chicago Plan was envisioned as a last ditch effort to save capitalism. In the end, Roosevelt went with the New Deal instead.

I acknowledge, vzn, that governments are subject to corruption. But at least they operate under the mandate of doing what's best for the whole of society. Private banks operate under the mandate of doing what's best for their shareholders - which usually entails a transfer of wealth from poor people to rich people.

I think what the IMF is proposing is a last ditch effort to save capitalism. The world is getting closer and closer to total anarchy. The question is whether we should just let it collapse - whether we are together enough to replace it with something else.

To be honest with you, Jack, I think we already have a global 5th Reich and the investment banks run it.
You wrote above:

"governments are subject to corruption. But at least they operate under the mandate of doing what's best for the whole of society. Private banks operate under the mandate of doing what's best for their shareholders - which usually entails a transfer of wealth from poor people to rich people."

I agree quite much.

I think that the main problem with governments is nowadays that they are led by people, who are elected into the power not by common people but by elites, who select carefully only few candidates, whom people can vote. The real power is not with presidents or prime ministers or with their voters, but with the people, who select the election candidates.

In general common people are not well informed about important things, but are busy with their own life and let 'professional politicians' and specialists to do the decisions about wars, about economics...

When the technology is becoming more and more complex and sophisticated people are becoming more and dependent on specialists. And people are becoming easier to be controlled.
There are a lot of moving parts here - and many that we will never get a peak at. There are also a lot of names behind those parts, hidden from not just us, but from justice as well. To me, living that life, even with the private jet and yacht, seems stressful beyond my imagination. That world they live in is as you describe it; anarchy. Will this pond of piss at the top spill over into the main stream? No. There will be wars and natural disasters but there will also be bunkers and escape plans. Having nearly unlimited wealth buys more than it ever did, faster than it ever did, and in more places than it ever did. If anything should survive the worst of what their fear and greed will do to the planet, the odds are strong that it will be that pond scum and cockroaches.
Hannu and Snowden, you both make good points. One outcome of their greed the pond scum can't escape is the ubiquitous toxic pollution of air, water and the food chain and electromagnetic pollution from cell phones, cell phone towers and high tension wires. Cancer rates are going through the roof. There are still many forms of cancer that can't be picked up through early detection. Thus it tends to be an equal opportunity illness.