Imagine Legislation That
Eliminates A Trillion Dollars of Public Debt
 

Once NESARA becomes law, several changes take place:

Concurrent with converting the Federal Reserve System to the new Treasury Reserve System, all obligations held by the Federal Reserve System are traded for the new Treasury credit-notes.

Another change is that commercial banks no longer can hold as reserves, or for their own accounts, any income producing U.S. or foreign debt obligations. All banks must trade these obligations in for the newly created Treasury Reserve credit-notes.

Because almost all of those newly received credit-notes are to be used by the commercial banks as reserves, they do not enter into circulation and are therefore not inflationary.

Once the Secretary of Treasury receives all of the recovered U.S. debt obligations, the Secretary merely cancels them out of existence, thereby significantly reducing the public debt. The actual amount eliminated is unknown, but $1 trillion is a reasonable figure.

Realize, of course, that the debt held by the Fed is largely bookkeeping. The real debt is held by commercial banks, private investors, both domestic and foreign, and by foreign governments. Because NESARA makes no changes for the debt held privately or by foreign governments, its only real impact is on commercial banking.

More information about, and a copy of the bill, are located on this web site.