SEIZING THE MOMENT TO FORGE A POPULAR MOVEMENT TO TRANSFORM THE US BANKING AND MONETARY SYSTEM

A Concept Paper by Nelson N. Johnson

Executive Director, Beloved Community Center of Greensboro (BCC)

Introduction: This four-page concept paper is an attempt to frame, contextualize and sketch out a solutionoriented direction to more effectively engage the growing economic crisis, with a particular focus on the banking and monetary system. It is everywhere apparent that the nation is caught in the grips of an unyielding and seemingly unsolvable economic crisis. Throughout the length and breadth of our nation from Wisconsin to Ohio, from Maine to Mississippi, from North Carolina to North Dakota people are being ground down and thrown into ever growing conflict with each other over reduced resources and declining fortunes of life. There are numerous claims and counter claims as to the causes and solutions to this multipronged dilemma. Electoral lines are being redrawn with obvious gerrymandering; battleground states and regions are being staked out; ideological rallies and counter-rallies are being held; an ongoing assortment of responses and strategic plans are being formulated. Some of these responses and strategies are designed to simply hold on in hopes of preventing further losses of declining resources. Others see openings in this period to broaden ties and to build elements of a transformative movement. The fact that we are engaged in two wars and what look very much like a third one with the unfolding events in Libya does not bode well for a struggling economy. Adding to the instability of the overall international situation, the Middle East is erupting almost daily with new developments that carry yet unknown implications. There are unpredictable social and natural disasters, as in the shooting of Arizona Congresswoman Gabrielle Gifford, the Gulf Coast oil leak, and Japans recent earthquake, tsunami and nuclear crisis. Unforeseen social and natural disasters are likely to continue. When viewed from national and international perspectives, the problems of our nation are daunting, to say the least, and many believe they are downright impossible to solve. The impact of the current multi-faceted crisis is indeed wide and deep. This crisis affects almost every link in a long chain of human suffering and environmental decline, including global warming with all of its implications, collapse of our national infrastructure, joblessness, underemployment, loss of benefits, intensification of racism and anti-immigrant sentiments, threats to social security, health care, education, exploding prison populations and homelessness, growth in youth street groups (gangs), etc. In light of the magnitude of the current set of problems plaguing our nation there is an understandable tendency by certain sectors to focus on the obvious areas of suffering and decline and similarly to reach toward obvious directions for solutions. For many, the most obvious path dictates electing better public officials, changing the political party in power, or strengthening the political party currently in power. In deference to this tendency, it is clear that millions upon millions, who are engaged in various aspects of this holding on work and who participate in civic engagement work in the hope that better people will be elected, are performing critically important work. Moreover, they are an absolutely necessary component for any transformative movement. Yet, it appears that within this
Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System April 4, 2011 -- Page 1 of 6

component, there is a major, potentially unifying, focal element that is missing. It is that missing element that we at the Beloved Community Center think holds the key to forward-thinking movement in this period that can forge solutions to the myriad of social and environmental issues that we now face.

A Complementary Counter-Intuitive Direction

We at the BCC want to propose something of a counter-intuitive notion of forging a broad popular movement within the developing movement, focused on the banking and financial sector. This view is based on the following assumptions: Assumption #1: That the key link in the long chain of conditions, developments, suffering, and opportunities indicated in the paragraphs sketched out above lies within the financial arena, specifically the monetary system. The issue of whether money (our national currency) will continue to be produced and controlled by private banks or whether this most important area of our national life becomes democratized and effectively brought under the control of our government (the people) will affect all of the other areas of social change work more than any other single aspect of our national work. Assumption #2: That it is possible to eliminate the $14 plus trillion national debt without wrecking the domestic or the international economy. The web of debt on the local, state and, especially the national level, is driving the cuts and fueling the ideological battles taking shape and being rooted all across the nation. Assumption #3: That a string of protests resulting in some changes in the banking and monetary policies will not solve the structural, systemic problem driving the debt. As long as the method of fractional reserves, which is a method of creating money out of debt, is in place, then the debt can never be paid off. Furthermore, national income tax revenues, initially created in 1913 to coerce taxpayers to pay off the debt, will soon be unable to pay the interest on the enormous and continually growing debt. The interest on the current debt is around $400 billion annually. Assumption #4: That an informed popular movement that surpasses the popular movement of the 1880s and 1890s that culminated in the presidential campaign in which populist Democrat William Jennings Bryan defeated Republican William McKinley in the popular vote but lost the electoral vote and ultimately lost the presidency will be necessary to bring about the quality of change needed. At the center of the 1896 election was the issue of money, specifically who produced it and controlled it. Assumption #5: That initiating and laying a sound basis for such a popular movement involve focusing over the next 18 months on at least the following four interrelated and overlapping sections of the population: The Faith and Religious Community The Organized Labor and Worker Community The Youth and Student Community Three to four strategic states in which those constituencies, along with others, converge. An organizing strategy, which has as its anchoring tenet massive popular education about the matters of finance, banking, and control of money in our country, must be crafted. Specific principles must be evolved which respect the traditions and customs of each of the key constituencies in order to skillfully bring about the convergence of all the forces that are necessary to give life to a movement.
Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System April 4, 2011 -- Page 2 of 6

Assumption # 6: That the historic moment (timing) for such a movement is right because the issues of debt, money, cuts in services, etc. are creating an opening within the public consciousness that begs to be filled. The discussion (opening) will only increase during this election season. The void will either be filled by purveyors of unrepentant racism, anti-immigrant and anti-Arab hostilities, talk show spins, and/or other such ideological gibberish, which pits people against each other, or it can be filled by an informed view that is anchored in assumptions similar to those expressed above and that, with skillful organizing, holds the promise for a broad, transformative movement that yields quality results for all.

Assumption #7: That a significant part of what is described here is already in play, connected to work currently underway, much of which is not known to the BCC. However, in order to forge the kind of broad based, well conceptualized, intentional movement within the current movement and in order to grow it towards transcending the current movement will require substantial and relatively quick jumpstart-funds. This is especially true if we plan to fully take advantage of the opportunity in the next 18 months. Finally, that foundations will need to collaborate to help further flesh out this conceptualization and generate the necessary funds to get the process started with a view of building into the next 18 months a very, very intentional plan to grow the funds to help sustain this effort beyond 2012.

Some Elaboration and Expansion of the Assumptions

There is so much that needs to be further developed in these assumptions. First, I am well aware that all of the assumptions mentioned earlier can be, and most have been, refuted by experts. It should not be surprising that deliberate efforts are made to present financial, banking and monetary matters as so complicated and confusing that ordinary people, even congresspersons, just cannot grasp it. The picture we get is that only a select few businessmen know how to handle the nations monetary affairs. We must reject this idea. We are challenged to create the most effective popular education system ever so that everyone can see beyond the fog and confusion in such a way as to truly grasp the essential elements of our current monetary system and agree on a path toward a better alternative. Not much has been said about particular forms of organization or structures. Most of this will have to evolve out of a coalescing process. Assuming that the kind of initiative described here takes root, I envision something of a hybrid between a truth and reconciliation process and a political party. On the one hand it is absolutely necessary that people not only know the truth of what happened to their money, the economy, and how we got in so much debt, but people must also to be given the opportunity to collectively grieve our losses and to reconcile with others whom we have blamed. On the other hand, beyond truth and reconciliation work, we have to organize nationally to effect major policy changes. Challenging the status quo and institutions as stubborn and as powerful as the financial/monetary system of our nation requires every bit of the organizational, communication, moral sophistication, and strength that we collectively have. Both aspects of our work (truth initiative and popular, national, changeoriented infrastructure) should be factored into this process. Although there is the need for an organizational form sufficient to take the next step, at this stage I am content to refer to this simply as a process of forging a movement. We have suggested faith, labor and youth as our initial strategic focus with some sense of geographical concentration. Faith is a most essential component of this undertaking. Much of what I have to say here is necessarily rooted in the Christian faith tradition of which I am a part. However, my
Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System April 4, 2011 -- Page 3 of 6

personal confession is that I believe all the major faith traditions are rooted in the same universal spirit and concept of God, or higher power, which I serve. So, while I necessarily speak out of the Christian tradition, faith as I use it here means all the major faith traditions and, therefore, our collective work, as I envision it, is interfaith. In my humble opinion, despite the powerful role faith played in the early Civil Rights Movement, certain forces, subverted the genre of Christian faith represented in the person and theology of Dr. Martin Luther King, Jr. The faith of Dr. King affirmed the dignity, worth and unrealized potential of all humanity. It sought, through loving, non-violent means, to bring the institutions, systems, and nations of the world into harmony with the spirit of Jesus who prayed thy kingdom come; thy will be done on earth as it is in heaven. Sadly this genre of the Christian faith has been greatly undermined and is increasing being replaced by a Christian faith perspective that espouses a combination of narrowness (selfishness), new prosperity (everybody can get rich), and hypocritical other-worldliness,

Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System

April 4, 2011 -- Page 4 of 6

coupled with narrow and false patriotism. The Rev. Jerry Farwells Moral Majority that was initiated in the 1970s is widely considered to be the father of this movement. Over the last 40 years it has broaden and evolved into a powerful player in the politics of what is described as the far right in our nation. All of that notwithstanding, faith still has a critically important role to play. We of the Christian faith, who seek to uphold the spirit and the way of Jesus, cannot in truth be neutral. In so far as there are issues of right and wrong, good and bad, justice and injustice, compassion and hard-heartedness, community and chaos, then faith has legitimate roles to play. In this regard, the teachings and spirit of Jesus are especially poignant. Jesus declares, No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and mammon. I cite that quote because, if God is love and love seeks the affirmation, well-being and care of all humanity and of all creation and if mammon is a representation of money or material things, then to give mammon (money, profits, etc.) priority over the well-being of people is to subvert God. The BCC is particularly well situated to provide leadership to this area of work. Public sector unions and organized labor in general are currently at the center of the economic struggle and, therefore, necessarily are critical players in the banking, monetary issues. In a sense, labor is on the front line, especially public sector unions. Unions are currently being used as scapegoats on which to focus the frustration and anger of a certain sector of the population. However, the emerging unity and fight back in the labor movement is impressive. While we must join with labor in fighting particular issues, we must frame the issue of finance and the monetary policies as the primary issue for the whole nation. Faith and labor must forge a deep, collaborative relationship. Again, BCC is positioned to be helpful in forging greater functional unity between faith and labor. Youth have been the historical source of energy and strong dedication out of which movements have matured. Youth represent the creative, the new, and often the unexpected. The phenomenon of social media, which punctured the monopolistic grip of corporate media, opening new possibilities for networking and movement building, has been largely youth driven. Finally youth are the bridge between today and tomorrow. A strong youth leadership team will be indispensable to this work. I have not tried to develop a budget, as it seems premature. Ideally it would be good to have five clergy organizers, five youth organizers and several labor organizers dedicated to this work but also in support of other related work. I am hopeful that several foundations can jump-start this work. However, in the long run, support for this effort must grow from millions of people. If this process can get up and running in the next several months, then it might be possible with first rate promotional materials, to skillful use technology and effective coalition building to harvest 5 million commitments to give from $12.00 to $60.00 annually, or $1 to $5 monthly, by the end of 2012. To accomplish this end the enormous DEBT and the question of WHO PRODUCES AND CONTROLS MONEY must be made relevant to every electoral campaign and it must be attached to all issues. This is a major popular education challenge and the meaning of DEVELOPING A MOVEMENT WITHIN A MOVEMENT. We need to quickly determine who are the reliable economists, solid leaders from the three sectors (faith, labor, youth), key organizations already engaged in some aspect of this work, first class media and promotional experts, and others who might be attracted to and who can contribute to this direction at this stage? If there is enough agreement, the next step might be discussing who needs to be around the table to further flesh out and develop the direction sketched out in this brief document.
Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System April 4, 2011 -- Page 5 of 6

Thanks for reading these pages. NNJ

Seizing the Moment to Forge a Popular Movement to Transform the US Banking and Monetary System

April 4, 2011 -- Page 6 of 6