Bretton Woods Monetary Institute & Festival

“The aim of the Bretton Woods Conference was the creation of a dynamic world community
in which the peoples of every nation will be able to realize their potentialities in peace.”

Henry Morgenthau, Chairman 1944 Bretton Woods Conference & United States Secretary of the Treasury.

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Year 1 Keystone Project: Toward Getting Our Global House in Order

“The Concord Resolution” is the vehicle for bringing the foregoing monetary reforms “home.” It does this by addressing those worldly realities that are nearest and dearest (i.e. most costly) to us all, that affect us most directly: the condition of our roads, bridges, schools and sewage systems, that is our public works, infrastructure. Citizens in communities across our land and overseas are invited to take up “The Concord Resolution,” to adapt it and adopt it (including by name, e.g. “The Detroit Resolution,” the Madrid Resolution) to your needs and realities. 

Backdrop for The Concord Resolution

In the mid-1990’s a meeting was held with the former President of the Boston Federal Reserve Bank, Frank Morris. At the meeting was the assistant superintendent of a New Hampshire school district and other interested officials and citizens. 

As was the case across the nation then, and all the more so now, the citizens in that school district were facing major tax increases. The increases were in order to fund a bond issue to build new schools that would save the district from being penalized for not keeping up with the codes, as well as with the growing student population.

The meeting began with a noteworthy statement by the host, Mr. Morris, which set the stage: “Most people don’t understand how money is made.” He said, and continued: “When I built this bank, I simply wrote a check.” 

Moved by the candor of the President of Boston’s FED, the individual who organized the meeting responded: “Thank you, Mr. Morris. That’s precisely our point. With all due respect, if you can create money ‘out of thin air’ (in fact, on the basis of our, credit-worthiness?) in order to build your private bank… why can’t we, the people, get access to our own national credit, in order to build public schools for our children? Without, that is, having to pay for the facilities 2 to 3 times over in interest charges to private investors in the bond market, brokered by your major Wall Street banks?”  

The organizer of the meeting went on: “We the People have been made responsible for our national debt through the taxes we are obliged to pay. What would be the reasons that we could not also assume responsibility for the other side of the coin: our national credit? After all, national credit is, as noted, the expression of our credit-worthiness, the productive capacities of the citizens of our nation? It is our COMMON wealth.”

To Mr. Morris’ credit, he acknowledged that the point was a good one. That said, the more significant point was, and remains, that such matters are rarely discussed. Thus, we suggest, the misfortunes that beset our nation and global community; thus the Year 1 Keystone Project that follows.

The Concord Resolution

Public Money for Public Projects

To determine whether the Town will vote to borrow public money to fund the following public works project publicly: _________________. The Treasurer is authorized, with the approval of town officials, to borrow public money by accessing national credit—our common wealth—through our local banking institutions. Or to take any other action relative thereto.”

Public money is money obtained directly from the Federal Reserve System at cost.

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The purpose of “The Concord Resolution” is twofold:

  1. To provide us with a means to get our nation’s “House,” (i.e. infrastructure) in order by lowering the  costs of our public works projects and, thereby, saving tax-payers and communities millions of dollars over the duration of the projects;
  2. The process of accessing national credit can play a major role in helping to avert what many experts foresee as the next financial crisis and, if the crisis occurs, to be in a position to set things right in relatively short order. 

A letter from the Board of Governors of the Federal Reserve System, dated September 14, 2016 has encouraged us to carry on our work:

“With regard to your suggestion about the creation of a new monetary system, it is important to know that the Constitution, under Article 1, Section 8, Clause 18, grants the U.S. Congress the power “to make all laws which shall be necessary and proper for carrying in execution” enumerated powers. These provisions give Congress comprehensive authority over the currency and the monetary system the United States. Only Congress may declare what shall be money and may regulate its value under Article 1, Section 10. Congress was exercising this constitutional power when it pass the Federal Reserve Act of 1913.”

The letter ends:

“Given your proposal, I suggest that you contact your state and federal representatives. Again, we thank you for taking the time write.” 

That the Year 1 Keystone Project is doing, starting even closer to home with our local representatives. We invite you to join us in your communities, near and far.