1-page summary of Monetary Reform and Public Banking: pay US national debt, fully fund infrastructure, return ~$1,000,000 to every household. Your choice: breakthrough or tragic-comic exponential debt crash

Can US national debt be sustained, or is it an exponential and accelerating growth curve with mechanics that must crash if not reformed? 

The nominal annual interest payment of US national debt pushed over $600 billion; doubled from just 2004. Demonocracy's 2 minute visual of the national debt:

As a math teacher, I see exponential growth in a model that creates what we use for money only as negative numbers (debt/credit). Without the power to create money as positive numbers (monetary reform explained below), this accelerating growth of debt only has one outcome: crash. 

Moreover, I see insiders know this, as oligarchs push for short-term tax benefits as 91 Fortune 500 companies paid zero taxes (some received taxpayer subsidized refunds despite profits in the collective trillions, with an average tax down to 11%). The top 1% now own more assets than the bottom 99%.

This is a 1-page summary of Claremont Colleges’ published research of a paper I wrote for a 2015 international conference on Monetary Reform and Public Banking. These two reforms would abundantly fund all infrastructure, including public education. They are historically tested and championed by many of our brightest historical minds that include Ben Franklin, Thomas Edison, and 86% of economics professors when directly asked (topic of a 2012 paper). I’ve shared this research on the AP Economics Teachers’ Discussion Board since 2009, with no colleague finding any errors. After 10 years of our lobbying, the state of California just passed AB 857 authorizing public banks.

These two reforms are easy to learn: 

• Monetary reform simply means being able to create money as a positive number to directly pay for public goods and services. What we have only creates "money" as its Orwellian-opposite, debt, which explains how and why total debt increases exponentially. Creating money as a positive number has triple and game-changing benefits: upgraded infrastructure, employment, and falling prices to the extent infrastructure investment returns more economic output than cost (this usually happens).
• Public banking is creating in-house and at-cost credit instead of selling debt securities to the public. In-house and at-cost credit reduces total nominal debt by ~50% compared with paying Wall Street "debt experts" and interest. The one state with a public bank is North Dakota: also the one and only state with increasing budget surpluses from their paying half of what all other 49 states pay for debt.

The top 3 game-changing benefits of monetary reform:

1. We pay the national debt in proportion to removing private banks’ ability to create credit (what we use for money as debt). This balance prevents inflation. We retire national debt forever.
2. We fully fund infrastructure that returns more economic output than investment cost for triple upgrades: the best infrastructure we can imagine, up to full-employment, and lower overall costs.
3. We stop the ongoing Robber Barons who McKinsey’s Chief Economist documents having ~$30 TRILLION in tax havens, and the Fed finding the US top seven banks creating shell companies to hide $10 trillion. This amount is about 30 times needed to end all global poverty, which has killed more people since 1995 than all wars and violence in all human history. Robber Barons are within our own Department of Offense Defense, who admit they "lost" $21 trillion of taxpayer money (~$200,000 per average US household).

Top 3 game-changing benefits of public banking:

1. A state-owned bank could abundantly fund all state programs and eliminate all taxes with just a 5% mortgage and credit card.
2. A state-owned bank could create in-house and at-cost credit to fund infrastructure. This cuts nominal costs in half because, as you know, selling debt securities typically doubles the cost. For example, the new Bay Bridge upgrade cost $6 billion, but the debt-service costs will add another $6 billion when it’s all paid.
3. CAFRs (Comprehensive Annual Financial Reports) stash “rainy day” funds no longer required with a credit line from a public bank. In addition, the so-called “retirement funds” currently deliver net returns of just a few percent on good years, and negative returns on bad years (here, here). California’s ~14,000 various government entities’ CAFRs have a sampled-data total estimate of $8 trillion in surplus taxpayer assets ($650,000 non-disclosed assets per household, among California’s ~12.5 million households).

There is literally nothing more valuable for you to learn. Given the exponential growth of national and total US debt that must be reformed or crash when debt costs become onerous: either learn monetary reform and public banking, or kiss your assets goodbye.

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I make all factual assertions as a National Board Certified Teacher of US Government, Economics, and History (also credentialed in Mathematics), with all economic factual claims receiving zero refutation since I began writing in 2008 among Advanced Placement Macroeconomics teachers on our discussion board, public audiences of these articles, and international conferences (and here). I invite readers to empower their civic voices with the strongest comprehensive facts most important to building a brighter future. I challenge professionals, academics, and citizens to add their voices for the benefit of all Earth’s inhabitants.

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Carl Herman worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at Carl_Herman@post.harvard.edu

Note: My work from 2011 to October 2017 is on Washington’s Blog, which the owner closed from Internet censorship in 2019, and here since. Work back to 2009 is censored by Examiner.com (blocked author pages: here, here). This means that some links in essays are inactive. If you’d like to see those articles, go to http://archive.org/web/, paste the expired link into the search box, click “Browse history,” then click onto the screenshots of that page for each time it was screen-shot and uploaded to webarchive.