Creating an Interest- and Debt- Free Money System

Stephen Zarlenga

Director, American Monetary Institute

Monday, April 11, 7:00 PM

Cleveland Friends Meeting / Peace House

10916 Magnolia Ave., University Circle, Cleveland

Zarlenga will discuss how the public can regain control of our money system.

Our money system is run by financial institutions, not We the People. The vast majority of money in our society is created as debt (via loans) by banks and other financial institutions that must be repaid with interest when it could be created debt- and interest-free by the government as stipulated in the Constitution. A federal bill introduced by Rep. Dennis Kucinich would “democratize” our money system and in the process reduce US debt and create jobs (re)building our nation’s infrastructure. Zarlenga will discuss the status of the Kucinich bill in the new Congress and what we can do to help raise awareness about it.

Text of Kucinich bill in last Congress here




More information, 330-928-2301,

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3 Responses to Creating an Interest- and Debt- Free Money System

  1. David Ward says:

    I think the work AMI is doing is great and I’m very pleased that Congressman Kucinich has created the NEED Act.

    I have two questions about it:

    * From my reading of the bill, there is interest on money loaned. That seems reasonable since there needs to be some money made for the holding and loaning of money (otherwise the bankers are working for free, an unlikely event for any of us when we have full-time jobs). Also, if there isn’t some sort of interest, how will we ensure accountability from the person taking out the loan?

    * What is the likely effect on international trade with the US? How is it likely to effect trade with the Chinese? Will we simply pay them for their Treasury bond purchases? How will it affect dollar-denominated oil, both for the US and for foreign countries? I’m guessing it might be a benefit to oil exporters since it would stabilize the dollar.

    Any thoughts would be appreciated.

    David Ward

    • AMI says:

      Dear David,

      Thank you for your comment and questions.

      With regard to your first question, interest is allowed to be charged on loaned money, but no interest is paid on deposits held in transaction accounts. Banks will thus obtain income on the interest charged on loans, and since no interest is paid on deposits, the interest charged on loans can come down and the banks can still obtain the same net income. Note also that the maximum interest rate that can be charged is 8%, including all fees, and the interest charged may not exceed the principal amount of the loan, except on mortgages (which tend to be long term). This has the effect of doing away with (unlimited) compounding interest.

      With regard to your second question, the effect is likely to move towards more balanced trade with countries exporting to the USA, e.g. China, since when they earn dollars, instead of investing them in US Treasury securities, they can buy things from the USA in exchange. Since the primary objective of monetary policy in the bill is to assure that it is neither inflationary nor deflationary, i.e., to maintain a stable purchasing power for the US dollar, this will generally be beneficial to all holders of US dollars and US dollar-denominated assets. Also, since banks will no longer be able to create what we use for money to fuel speculation, that component of the price for oil should go away.

      Kind regards,

      Jamie Walton

  2. It was a pleasure to be able to meet and talk to Stephen Zarlenga before the departure from recent USBIG (Basic Income) Conference in New York. The educational value of this Kucinich Bill is significant for all citizens and as I am sharing it in my blog and peace & justice forum. You can too.

    Susmita Barua

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