Emitting Greenbacks
Treasury-issued, debt-free, interest-free money to eliminate intragovernment debt and dramatically reduce domestic holdings of public debt — the kind of money that Lincoln's GOP-led Congress approved during the Civil War.
What Emitting Greenbacks Achieves
Goal 01
Reduce Intragovernment Debt to Zero
Over 20 years
Intragovernment debt — including Social Security obligations — currently stands at $7.65 trillion. The Treasury Department will emit Greenbacks amounting to 5% of the present intragovernment debt per year for 20 years, steadily retiring this obligation without raising taxes or borrowing from private banks.
Goal 02
Reduce Domestic Holdings of Public Debt
From $21.91 trillion to $13.96 trillion in 5 years
The Treasury Department will emit Greenbacks amounting to 5% of GDP for 5 consecutive years. This targeted emission reduces the domestically held portion of the national debt by $7.95 trillion — with little or no inflation (see Recommended Reading below), without new borrowing, and without burdening taxpayers.
What Are Greenbacks?
Greenbacks are debt-free, noninterest money issued directly by the Treasury Department. They are not Federal Reserve Notes — which are debt-based and pay interest to large private banks. The GOP-led Civil War Congress voted for and President Lincoln signed into law the emission of Greenbacks to finance the Union war effort without borrowing from private banks. This is a proven, constitutional tool that has been used before in American history. Moreover, versions of Greenbacks were instrumental in winning the American Revolution and sustaining the prosperity of colonial America.
Key Distinction
Greenbacks are not Federal Reserve Notes. Federal Reserve Notes are debt-based and pay interest to big private banks. Greenbacks are debt-free and noninterest — the government creates them directly, without borrowing.
Recommended Reading
To understand the ins and outs of Greenbacks, I recommend the discussion toward the bottom of the following article:
"It's Time For a Debt Jubilee," by Richard Vague, in Institute for New Economic Thinking, September 11, 2020.
Caveat: Richard Vague correctly points out that it is important to monitor the emission of Greenbacks for inflation. Just as too many Federal Reserve Notes can cause inflation, too many Greenbacks can cause inflation. The Treasury Department should be prepared to slow down Greenback emission, if need be. Even so, America's long experience with the emission of Greenbacks and similar currencies, including during the years 1862 to 1879, very strongly suggests that the Greenback element of the proposed American Prosperity Plan is sound.
Support Bold Monetary Reform
Emitting Greenbacks is a proven, constitutional path to reducing the national debt without raising taxes. Help Dr. Joe bring this vision to Congress.