Webster G. Tarpley
Washington DC, May 8, 2013 — I urge a major
all points mobilization in support of Sen Elizabeth Warren’s Bank on
Students bill mandating that the Federal Reserve provide 0.75% cheap
federal credit for federal student loans (Stafford loans) via the US
Department of Education. This is so far as we know the first bill which
proposes to force the Fed to provide cheap credit to something other
than banks and financial institutions. The substantial benefits in
interest savings to American students groaning under $1 trillion of
high-interest student debt are obvious.
It is vital to point out that Warren’s bill
will not cost the US Treasury or US taxpayers one penny to generate
these formidable benefits. It represents federal lending, not federal
spending. It simply mandates the use of credit creating power which the
Fed has always had, but has insisted using for the benefit of financial
institutions only. The bill would relieve pressure on the federal budget
by freeing up general revenue for other uses. It is a step toward the
restoration not of Keynes, but of Hamilton’s vastly superior American
System of Political Economy.
This bill also represents the first pilot
project for how to get out of the current world economic depression – by
forcing the central bank to act like a national bank, using federal
credit creation to serve not just zombie banks, but also the real
economy.
Clearly Wall Street forces will attempt to
suppress Warren’s proposal. All persons and organizations of good will
need to do everything possible to publicize this bill on internet,
social media, and TV/radio talk shows and GET IT PASSED AND SIGNED BY OBAMA
this spring. Take the news of this bill to campuses and urge students
to demonstrate their strong support before the end of the academic year.
We suggest urgent amendments to extend this debt relief to additional
categories of student loans so as to afford them protection from the
scheduled doubling of the interest rate from 3.4% to 6.8% on July 1.
