Executive Summary
 

Monetary Policy Reform
 

• Establishes three types of United States currency: standard silver coin and gold coin (restores Constitutional currency), and treasury credit-notes
   
• The United States Treasury buys and cancels all outstanding capital stock of the former Federal Reserve Banks
   
• The privately owned Federal Reserve System is abolished, returning ownership of the national currency to the people through a newly created United States Treasury Reserve System
   
• A new Board of Governors of the Treasury Reserve System uses a specific law-mandated plan to maintain and stabilize the exchange value of the currency
   
• The new Board assumes all powers and responsibilities of the former Federal Open Market Committee, eliminating private control of the nation’s monetary system
   
• The existing regional Federal Reserve Banks become Treasury Reserve Banks and continue clearinghouse operations and other bank service functions under the direction of the Office of the Comptroller of the Currency
   
• All commercial banks must exchange their income-producing government obligations for treasury credit-notes (reduces the national debt)
   
• Only treasury credit-notes may be held as bank reserves
   
• Fundamental changes are imposed on the repayment of all outstanding fractional reserve loans on secured property—principal must be repaid before the monetizing-fee is paid (applies retroactively to existing mortgages reducing private debt)
   
• A progressive federal excise tax is imposed on the privilege of making commercial loans of currency for profit
   
• Commercial financial institutions such as credit unions are provided, subject to some restriction, with opportunities to operate with fractional reserves
   

Fiscal Policy Reform
 

• Amends the existing federal income tax system

• A national retail sales (excise) tax is imposed upon non-exempt retail activities of commerce (20 categories of exemptions covering most necessities of life)

• The Internal Revenue Service is reorganized as the National Tax Service to administer the collection of the new tax
   

What NESARA Does Not Immediately Do
 

• Eliminate all payroll taxes, such as Social Security and Medicare taxes

• Eliminate constitutional excise taxes on regulated activities

• Immediately eliminate the entire national debt

• Immediately halt inflation (the economy needs some response time before inflation will disappear)

The mice voted to bell the cat.

Aesop c. 620 — c. 560 B.C.