UN SDG Target 17.3.1 & Target Action Plan #22
22. Reform financial systems. Carefully vacate as null and void the Federal Reserve Act of 1913, Nationalize the Federal Reserve and Convert Federal Reserve District Banks into Public National District Banks and large private banks into a National Bank and National State, City and Community Public Banks. Congress print and appropriate U.S. currency and exchange for Federal Reserve Notes at a rate based on how Federal Reserve Notes earned and are planned to be used.
(Updated September 15, 2017)
As outlined in Target Action Plan #13. Vacate as Null and Void, Set Aside, Repeal, Replace or Amend All or Portions Of Unconstitutional, Unjust and/or Injurious Laws:
22.1.1 The Federal Reserve Act of 1913 which wrongfully and unlawfully established the Federal Reserve System is clearly null and void and therefore all the federal reserve notes and all funds issued electronically by the Federal Reserve have been and are counterfeit.
22.1.2 Section 13.4.6 Laws that fraudulently deregulated financial firms are clearly null and void and therefore all derivatives are null and void
This must be carefully planned and managed or there could be a horrible economic collapse and depression.
According the Forbes 2000 2017, the 25 largest banks and other financial institutions in the U.S. have $19.1 trillion in assets making the U.S. financial industry the wealthiest in the world. Their hoarding is one is one of the primary causes of poverty in the country
Accomplishing this Action Plan will provide a big step in decreasing the wealth divide and eliminating much of the exploitation of the people. There is no excuse for unaffordable banking and millions of foreclosures.
TABLE OF CONTENTS
22.4.1 Vacate as Null and Void the Federal Reserve Act of 1913,
22.4.2 Nationalize the Federal Reserve
22.4.3 Congress Print and Appropriate U.S. Currency and Exchange for Federal Reserve Notes Based on How They Were Earned, Prevent Economic Crises and Depressions and Recover-Disgorge Federal Reserve reserves and assets
22.4.4 Pay debts as they come due and end deficit spending
22.4.5 End foreclosures and evictions
22.4.6 Convert Federal Reserve District Banks into Public National District Banks and large private banks into a National Bank and National State, City and Community Public Banks continuing ongoing business as usual with limits and disbursing funds appropriated by Congress primarily to help implement the SDGs all with detailed, transparent records
22.4.7 Carefully phase out stock markets, hedge funds, etc and allow only actual producers and users to participate in futures markets
22.4.8 Cancel government programs that funnel money to the banks and not to the people
22.4.9 Review the so called $26 billion settlement between the federal
government and 49 state attorney generals with major banks for fraud
22.4.10 Nationalize the Federal Home Loan Mortgage Corporation (FHLMC),
known as Freddie Mac and the Federal National Mortgage
Association (FNMA) commonly known as Fannie Mae.
22.4.11 Vacate as Null and Void Laws that Fraudulently and/or Unconstitutionally Deregulated Financial Firms
22.4.12 Outlaw the trading of Mortgages and Derivatives
22.4.13 Carefully cancel the approximately $230 Trillion in Derivative Bets.
22.4.14 Actions to Reform, Regulate and Revitalize Financial Systems
22.4.15 Consider implementing the Proposals for Effectively Regulating the U.S. Financial System to Avoid Yet Another Meltdown
This Plan outlines proposed actions to:
• Prevent an economic breakdown or collapse
• Repeal as null and void the Federal Reserve Act of 1913 and laws that deregulated banks and Wall Street
• Nationalize the Fed and the too big to fail banks,
• End deficit spending, pay down the national debt
• Reform, regulate and revitalize financial systems and Wall Street
• End foreclosures and trading of mortgages and derivatives
• Provide affordable, community based personal and commercial banking.
22.4 Actions. Congress, the Administration and state and local governments as appropriate :
22.4.1 Vacate as Null and Void the Federal Reserve Act of 1913, which wrongfully and unlawfully established the Federal Reserve System, as outlined in TAP 13 The Plan to Set Aside, Repeal, Replace or Amend Injurious, Unjust Laws and Court Rulings.
22.4.2 Nationalize the Federal Reserve and operate it as part of the Department of the Treasury under the direct control of Congress. Congress make all decisions about “coining,” appropriations, regulating the value of money, the money supply, interest rates and loan guarantees as required by the Constitution. (During the 2012 Congressional session, Rep. Dennis Kucinich (D-OH), introduced H.R. 6550, The National Emergency Employment Defense Act, which would have nationalized the Federal Reserve. It includes additional proposed requirements)
22.4.3 Congress Print and Appropriate U.S. Currency and Exchange for Federal Reserve Notes Based on How They Were Earned, Prevent Economic Crises and Depressions and Recover-Disgorge Federal Reserve reserves and assets of significant value and earnings including about $2.46 trillion of U.S. Treasury Securities, $1.78 trillion of mortgage backed securities, any of the unpaid over $37 trillion low and or no interest loans, grants and all assets of significance that were acquired directly or indirectly with these loans in particular the real property (factories, infrastructure, land, airports, etc.) or control over this real property acquired directly or indirectly with these funds
22.4.4 Pay debts as they come due and end deficit spending, all government shutdowns, the need to raise the debt ceiling, deficit spending, sequestration and austerity programs, pay down the national debt and avoid an economic collapse, by providing funds from the Summary of Funding Sources.
22.4.5 End foreclosures and evictions
22.4.6 Convert Federal Reserve District Banks into Public National District Banks and large private banks into a National Bank and National State, City and Community Public Banks continuing ongoing business as usual with limits and disbursing funds appropriated by Congress primarily to help implement the SDGs all with detailed, transparent records. Please note that globally about 40 percent of all banks are publicly owned and mostly survived the credit crisis of 2007 while most of the large private banks had to be bailed out by low income taxpayers .
22.4.7 Carefully phase out stock markets, hedge funds, etc and allow only actual producers and users to participate in futures markets
22.4.8 Cancel government programs that funnel money to the banks and not to the people and apply funds remaining in these programs to actual Mortgage Relief.
126.96.36.199 The so called term asset-backed securities loan facility (TALF), the Consumer and Business Lending Initiatives, Public-Private Investment Program (PPIP)
188.8.131.52 The TARP/bank bailout and stimulus legislation and similar programs.
184.108.40.206 The Homeowner Affordability and Stability Plan and redirect all related funding ($75 billion) intended for it to state governments.
22.4.9 Review the so called $26 billion settlement between the federal government and 49 state attorney generals with major banks for fraud. This agreement was supposed to address the criminal fraud, robo signing and changing income and job history on mortgage applications without the applicants knowledge. Most of this so called settlement provides a bailout of the large banks that committed fraud. Some government and independent agencies are separately paying banks for each foreclosure. Foreclosure are once again increasing.
22.4.10 Nationalize the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac and the Federal National Mortgage Association (FNMA) commonly known as Fannie Mae.
220.127.116.11 All government and independent agencies cease all payments to banks for foreclosures and recoup all such past payments and return the money to the Treasury.
18.104.22.168 Expedite the implementation of The Plan to Rapidly Implement the UN SDG TAPs and End Use of Nuclear Weapons, Wars, Poverty, Hunger, Terrorism, Excessive Global Warming, Inequalities, etc. In the U.S. and Worldwide which provides full employment. Having a job will help troubled mortgage holders make mortgage payments and let her/him better know how much s/he can afford to pay for a home.
22.4.11 Vacate as Null and Void Laws that Fraudulently and/or Unconstitutionally Deregulated Financial Firms and enact replacement legislation as necessary as outlined in The Plan to Set Aside, Repeal, Replace or Amend Injurious, Unjust Laws and Court Rulings. Once these injurious, unjust laws are repealed and declared by Congress to be null and void, regulations such as the Glass-Steagall Act (which prohibits banks from speculating with depositors' money and engaging in investment activities, speculative trading and mergers or collaborating with brokerage firms, selling insurance, etc.) will be effective retroactive to the time it was passed in 1933.
22.214.171.124 Limit maximum interest rates by vacating the Depository Institutions Deregulation and Monetary Control Act (P. L. No. 96-221; 94 Stat. 132) (1980), which removed all controls over interests rates. Enact legislation that will set limits on all mortgages, home equity, government guaranteed and other secured loans, credits cards and unsecured (signature) loans and limit late fees.
126.96.36.199.1 Makes these maximum interest rates and lower fees retroactive to the origination of the mortgage, credit card or loan.
188.8.131.52.2 Requires financial institutions to calculate amounts due and balances due on all mortgages and loans based on these lower rates and fees with extra interest and excess fees paid to reduce the principal as payments were made.
22.4.12 Outlaw the trading of Mortgages and Derivatives which contribute nothing to the economy or humankind. A mortgage backed security is a derivative that derives it value from the mortgages it is backed by. Require that the current owner(s) of the mortgage backed security(s) which includes the troubled mortgage break down the mortgage backed security into the individual mortgages and determine the “real property(s)”, their value and status maintain proof that they are indeed the owners of the and maintain records of all of the owners, originators, packagers, regulators, transactions and prices for each individual mortgage when they changed hands and require that:
184.108.40.206.1 The current owner(s) of a property with a troubled mortgage;
220.127.116.11.2 The current owner(s) of the troubled individual mortgages or of mortgage backed security(s) which includes the troubled mortgage;
18.104.22.168.3 The local servicer of the troubled mortgage; and,
22.214.171.124.4 Local government official or their agent.
126.96.36.199.4.1 On a case by case basis, acting in the best interest of the community to assist the owner in determining the market value of the home, negotiating a payment or rental schedule to stay in the home, what kind of cushion is needed in case conditions change, alternatives to staying in the home and to lessen the impact of the loss of the home by helping them to find and move into an affordable home that for example allows the kids to stay in school, all depending upon the circumstances. Experienced real estate agents would normally be qualified to do or help with this work.
188.8.131.52.4.2 Resolve any irregularities or fraud involved in the origination and trading of the mortgage and the related mortgage backed security. Refer irregularities or fraud that can’t be resolved to the appropriate authorities.
184.108.40.206.4.3 Determine the amount owed on the mortgage based on the new retroactive interest rates and late fees, the approximate market value of the home and property taxes and all fees if the home were to be sold, whether or not the owner can afford it and available options.
220.127.116.11.4.4 Conduct arms length negotiations and evaluate each mortgage and situation individually at the local level with various approaches including loan modifications that could reduce interest rates and eliminate onerous fees, prepayment penalties, stretching it out the mortgage, dividing the home into apartments, selling off parts of larger lots, rent to buy plans, out the mortgage only plans and/or leasehold type contracts. It is to the advantage of both parties to keep the home occupied and not have to go through an eviction or sale of the property. If an agreement cannot be reached, the home could be put on the market and the owner pay a reasonable market rate rent to stay in the home while finding another place to live and the home is sold. If the owner of the property can afford whatever the sales price becomes minus the realtor and other sales fees, then he should have the right of first refusal.
18.104.22.168 Review previous foreclosures to ensure that they were just and that applicable laws and regulations were followed including in particular that mortgage creditors had proved to the authorities involved with the foreclosures that they owned the mortgage. If proof was not provided or if there are irregularities in the foreclosure process appropriate action should be taken
22.214.171.124 Resolve other derivative that derives their value from real property in about the same way that mortgage backed securities and individual mortgages were resolved. Actions include:
126.96.36.199.1 Require that financial institutions owning/holding any derivatives break down each derivative into the individual “instruments (s)”, e.g. mortgages promissary note(s) or contract(s), from which the derivative derived its value and determine the “real property(s)” associated with the instruments(s), maintain proof that they are indeed the owners of the instrument and maintain records of all of the owners, originators, packagers, regulators, transactions and prices for each individual derivative and the related instruments when they changed hands.
188.8.131.52.2 Resolve any fraud involved in the origination and trading of each instrument and the related derivative. Refer irregularities or fraud that can’t be resolved to the appropriate authorities.
184.108.40.206.3 Determine the amount owed on each instrument based on new interest ratess and late fees, the approximate market value of the real property and taxes and fees if the real property were to be sold.
220.127.116.11 Owners of the instruments and real property and the servicer conduct arms length negotiations. Evaluate each instrument and real property with various approaches including lowering interest rates, stretching out the term, dividing the real property, selling off parts, lease to buy plans, lease only plans and/or leasehold type contracts. It is to the advantage of both parties to keep the real property in use. If an agreement cannot be reached, the real property could be put on the market and the owner pay a reasonable market lease rate to continue to use the property while finding a replacement and the real property is sold. The owner of the real property should have the right of first refusal of the best offer minus fees if he can afford the property and can and will make payments.
18.104.22.168.1 In any case choose the best option(s) for the owner of the property and the owner of the mortgage .
22.4.13 Carefully cancel the approximately $230 Trillion in Derivative Bets. Derivatives which do not derive their value from real property are simply used for betting and do not in any way contribute to the economy or mankind. The US government should simply cancel the $230 trillion in derivative bets [derivatives which do not derive their value from real property], declaring them null and void. As no real assets are involved, merely gambling on notional values, the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system. Recommended by Paul Craig Roberts, Institute for Political Economy, in his June 5, 2012 article, Collapse At Hand. Webster Tarpley (tarpley.net) author, historian, economist, journalist, lecturer, and expert on derivatives, US foreign, domestic and economic policy, has been recommending this for years.
22.214.171.124 Build a new banking system, around thousands of smaller banks and financial firms with executives that respect their obligations to the broader economy and have common sense i.e. a sense of community
126.96.36.199 National Reduce the size of large financial institutions by invoking anti-trust laws, separating investment activities into separate institutions and breaking them down into community, city and no larger than state size firms.
188.8.131.52 Nationalize all banks that become insolvent
184.108.40.206 Require reasonable down payments on mortgages and loans to provide a grace period that allows a buyer to move into a more affordable home in case he/she loses a job or their economic situation changes
220.127.116.11 Require that banks prepare accurate balance sheets which reflect actual values of all liabilities and assets including troubled assets and risky investments. Determine which banks are solvent or insolvent and by how much and the reasons for the insolvencies.
18.104.22.168 Government seize insolvent banks and other insolvent financial institutions, replace senior management, and keep them in operation as federal government owned, contractor operated (GOCO) entities so that they continue to function and the work force stays employed.
22.214.171.124 Separate out investment activities Sell off those parts of the banks that have nothing to do with banking.
126.96.36.199 Ultimately break the larger bank into community, city and no larger than state size banks/firms.
188.8.131.52 As soon as practicable turn over branches within a states and allow states to operate them as publicly-owned banks that issue low-interest credit similar to the Bank of North Dakota (BND)
22.4.14 Actions to Reform, Regulate and Revitalize Financial Systems
184.108.40.206 Return all investment activities to the true purposes of capitalism which are for an individual to invests in legitimate, worthwhile businesses that provides real products or services that benefits humankind and receive a return on his investment if and when the companies revenues exceeds its expenses. Paying dividends or any other forms of returns from the investors own money or the money invested by other investors are probably fraudulent Ponzi schemes
220.127.116.11 Stop the corruption of members of the Congress and the Administration by the financial, insurance, real estate and other industries through campaign contributions and lobbying.
18.104.22.168 Reject the theory that financial institution and markets self regulate and replace it with serious financial regulatory reform with realistic financial market theories
22.214.171.124 Extend regulations and oversight to the "shadow banking system,"
126.96.36.199 Reform/establish new regulatory institutions empowered by law to control financial markets and force them to act in the public interest and populate them with well trained officials who believe in serious regulation.
22.4.15 Consider implementing the Proposals for Effectively Regulating the U.S. Financial System to Avoid Yet Another Meltdown , by James Crotty and Gerald Epstein
188.8.131.52 Move all risky investments back on bank balance sheets and require adequate capital to support them.
184.108.40.206 Require due diligence by creators of complex structured financial products.
220.127.116.11 Prohibit the sale of financial securities that are too complex to be sold on exchanges.
18.104.22.168 Transform financial firm incentive structures that induce excessive risk-taking.
22.214.171.124 Extend regulatory over-sight to the “shadow banking system.”
126.96.36.199 Implement a financial pre-cautionary principle. Crotty and Epstein suggested: careful consideration of the "anything not specifically permitted is prohibited" principle.
188.8.131.52 Restrict the growth of financial assets through counter-cyclical capital requirements.
184.108.40.206 Implement lender-of-last-resort actions with a sting. Institutions might be too big to fail, but no CEO should be. The CEOs of the seven largest investment banks received a total of $3.6 billion from 2004-07, yet the market capitalization of their firms declined by $364 billion from their peak values, an average fall of 49 percent. As long as there is financial capitalism, there will be a need for some lender of last resort bailouts, even if all of these proposed policies are implemented. But a key distinction must be made between the financial institution itself and the agents who made the decisions to take risks and benefitted from these decisions – top management, key traders and other richly rewarded operators. These rainmakers must be made to pay significantly when their firms are bailed out.
220.127.116.11 Create a bailout fund financed by Wall Street.
22.4.16 Enact legislation that:
18.104.22.168 Prohibits trading of mortgage backed securities and all other derivatives including, credit default swaps, structured investment vehicles, collateralized debt obligations, repo (repossession) agreements, and other toxic paper.
22.214.171.124 Prohibits commercial and retail banks engaging in investment activities, speculative trading and mergers or collaborating with brokerage firms as was required by the Glass-Steagall Act.
126.96.36.199 “Shadowy” banks, private equity accounts, hedge funds, adjustable rate mortgages or loans, stock options, off-balance sheet accounting, more than one set of books, and the fractional reserve system
188.8.131.52 All trading, buying or selling of derivatives including mortgage backed securities, actual mortgages, promissary notes, contracts and similar instruments with the possible exception that they can be “sold back” to the originator.
184.108.40.206 “Shadowy” banks, private equity accounts and hedge funds.
220.127.116.11 Adjustable rate mortgages.
18.104.22.168 Stock options.
22.214.171.124 Off-balance sheet accountings and more than one set of books.
22.4.18 Restores and strengthens:
126.96.36.199 Uptick rules that require short sale transactions be entered at a price that is higher than the price of the previous trade. This rule prevents short sellers from adding to the downward momentum when the price of an asset is already experiencing sharp declines.
188.8.131.52 Position limits and margin requirements
184.108.40.206 Real oversight over the SEC, regulatory authorities and the Federal Reserve System.
Crotty and Epstein concluded: that we will not be able to enact adequate reforms until two fundamental changes take place. First, the mainstream theory of efficient financial markets that is the foundation of support for the NFA must be replaced by the realistic financial market theories associated with John Maynard Keynes and Hyman Minsky. Recent events should convince any rational economist that the theory of efficient capital markets should be rejected once and for all, though it is far from clear that this ideologically grounded vision will in fact disappear. Second, there must be a broad political mandate in support of serious financial regulatory reform. For too long the Lords of Finance have corrupted the political process. Congress and the President have acted in recent decades as if they were paid employees of financial market interests, which many of them were. Perhaps anger over the $700 billion dollars and the likely recession can galvanize the needed political support for change. The key is to channel the anger into pressure for a new "New Deal" in government regulation of financial markets.
Until we have regulatory institutions empowered by law to control financial markets and force them to act in the public interest and we populate them with well trained officials who believe in serious regulation, we will continue down the disastrous path we have been following for the past three decades.
18. The top 1 percent of families now possess roughly the same amount of wealth as the bottom 90 percent, while 20 individuals have as much wealth as the bottom half. Forty percent of families in the US have zero or negative wealth, meaning their debts surpass their assets. The individuals who comprise the wealthiest 0.1 and 0.01 percent of the population function as their own political weather systems, having at their disposal vast sums of money to buy elections, bribe politicians and otherwise control the political process. The Trump administration is, itself, the political reflection of the oligarchic character of American society, the outcome of a half-century of social counterrevolution overseen by both Democrats and Republicans. Palace coup or class struggle: From “The political crisis in Washington and the strategy of the working class” 13 June 2017, http://www.wsws.org/en/articles/2017/06/13/pers-j13.html?view=print
22.6.1 Financial Regulation: A Framework for Crafting and Assessing Proposals to Modernize the Outdated U.S. Financial Regulatory System, GAO-09-314T January 21, 2009. http://www.gao.gov/new.items/d09314t.pdf
22.6.2 Troubled Asset Relief Program (TARP): Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency, GAO-09-161. http://www.gao.gov/new.items/d09161.pdf
22.6.3 Five articles describing concerns with mortgage base securities, derivatives, deregulation, lobbying, campaign contributions, earmarks, and pork barrel spending at: http://www.sanjuanislander.com/columns/brandt/part-1.shtml
22.6.4 Economic Crisis: Supplement to Undoing the Bush/Cheney Legacy: A Tool Kit for Congress. http://mcli.org/Legacy_Add-On_Econ_Crisis.pdf
22.6.5 Article in On Capitol Hill, Money Is the Root of All Hypocrisy, 21 February 2009, by: Michael Winship, t r u t h o u t | Perspective, http://www.truthout.org/022109Y
Office of the Special Inspector General (SIGTARP) for the Troubled Asset Relief Program Quarterly Report to Congress, July 21, 2009 Advancing Economic Stability Through Transparency, Coordinated Oversight and Robust Enforcement