MAGA: The Banking Seigniorage Restitution Act

The Banking Seigniorage Restitution Act: Restoring Wealth to the People

   In a world where financial institutions wield unparalleled power, the creation of money—once a sovereign right of governments—has shifted largely into the hands of private commercial banks. Every time a bank issues a loan, it generates money, not from existing reserves, but from thin air. This process, known as money creation through credit issuance, yields a hidden profit: banking seigniorage.

   This seigniorage is an unearned privilege that enriches private entities while the American people shoulder the burdens of debt, inflation, and economic inequality. Shouldn't the value generated by the creation of our nation's money belong to its citizens, rather than private shareholders? 

  The Banking Seigniorage Restitution Act proposes a bold but fair solution:

Transparency: For the first time, commercial banks will report and disclose the profits they derive from creating money.

Accountability: These profits will no longer remain in private coffers but will flow back to their rightful owner—the public treasury.

Public Benefit: The billions recovered will be allocated to reduce the national debt and invest in critical infrastructure, healthcare, and education, ensuring a brighter future for all Americans.

    This Act is not just a piece of legislation; it is a call to restore fairness and equity to the financial system. It is a challenge to reclaim public wealth from private exploitation. And it is a promise to the American people that their government serves them, not powerful financial interests.

   Let us seize this moment to ensure that the wealth generated by our nation's financial system benefits everyone—not just the privileged few.

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Draft Bill

"Banking Seigniorage Restitution Act"

Section 1 – Purpose

This Act establishes a framework to ensure that the economic value generated through the creation of bank money by commercial banks is transferred to the U.S. Treasury for the benefit of the American people.

Section 2 – Definition of Banking Seigniorage

For the purposes of this Act, "banking seigniorage" refers to the economic value derived by commercial banks from the issuance of bank-created money, primarily through credit creation, net of operational costs and mandatory reserves.

Section 3 – Restitution Obligation

1. All commercial banks operating within the United States are required to:

a) Calculate the banking seigniorage generated on a quarterly basis.

b) Transfer the full value of net seigniorage to the U.S. Treasury within thirty days of the end of each quarter.

2. The calculation must be based on methodologies prescribed by the Federal Reserve and audited by independent entities.

Section 4 – Oversight and Transparency

1. The Federal Reserve Board shall oversee the calculation and transfer process, ensuring compliance with the provisions of this Act.

2. Commercial banks must submit detailed quarterly reports on their credit issuance and reserve holdings, subject to public disclosure.

3. The U.S. Treasury shall publish an annual report detailing the amounts received and their allocation.

Section 5 – Penalties for Non-Compliance

In cases of partial or non-compliance, commercial banks will face:

a) A financial penalty equal to double the unpaid seigniorage amount.

b) Suspension of lending operations until full compliance is restored.

Section 6 – Allocation of Funds

The funds transferred to the U.S. Treasury under this Act shall be prioritized for:

a) Reducing the national debt.

b) Funding critical public investments in infrastructure, education, and healthcare.

Section 7 – Effective Date

This Act shall take effect six months following its enactment to allow for implementation.

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Steps to Introduce the Bill in the U.S. Congress

1. Sponsorship: Partner with a member of the House of Representatives or Senate willing to sponsor the bill. Outreach to progressive lawmakers or those focused on financial reform (e.g., advocates of public banking) could be effective.

2. Lobbying: Engage advocacy groups, think tanks, and public organizations to build awareness and support.

3. Public Campaigns: Use media campaigns to educate citizens about banking seigniorage and its potential public benefits.

4. Presentation: The bill can be formally introduced in either the House or Senate, followed by committee reviews and potential amendments.