K.I.S.S. (“Keep It Simple, Smart”) A Plan to Resolve America’s Monetary System and Restore Global Economic Stability
Section I: The Economic Awakening
What Is Money—and Where Is It? For 5,600 years, money was tied to something real—gold, labor, land. Today, most money is created not by governments, but by banks “out of thin air.” This isn’t metaphor. It’s been proven.
Nobel laureate Frederick Soddy defined two kinds of money:
Genuine: backed by goods, labor, capital
Fictitious: created by banks as credit without value (“fairy dust”)
In 2014, UK Prof. Richard Werner gave the first empirical proof of this: He borrowed from a German bank and recorded the transaction—no transfer, no reserves, just a digital entry. Money from nothing.
Frederick Soddy and “The Role of Money”
Frederick Soddy, a Nobel Prize-winning chemist turned economic critic, wrote The Role of Money (1934), where he argued that the modern banking system creates money in a way that he likened to “fairy dust.” He distinguished between two types of money:
Genuine Money: This is money tied to real wealth or something tangible given up, like goods or labor already in existence. It represents a transfer of existing value.
Fictitious Money: This is money created by banks through lending, which Soddy saw as an increase in the money supply without a corresponding increase in real wealth. He famously stated, “Money now is the NOTHING you get for SOMETHING before you can get ANYTHING,” emphasizing its abstract nature when banks issue it as debt.
Soddy criticized the fractional reserve banking system, arguing that it allowed banks to generate “virtual wealth” through loans, leading to exponential debt growth unchecked by physical limits. He saw this as a flaw in the monetary system, creating instability and inequality.
Richard Werner’s Empirical Evidence
Professor Richard A. Werner, a UK-based economist, built on this idea with modern empirical research. In his 2014 paper, “Can banks individually create money out of nothing? — The theories and the empirical evidence” (published in the International Review of Financial Analysis), Werner provided what he claims is the first empirical proof that banks create money “out of thin air.” Here’s how he did it:
Experiment: Werner borrowed money from a small German bank, Raiffeisenbank Wildenberg, while monitoring its internal records. He found that when the bank issued the loan, it didn’t transfer existing funds from other accounts or reserves. Instead, it simply credited his account with new money by adjusting its balance sheet—creating a deposit out of nothing.
Conclusion: This supported the credit creation theory of banking, which posits that individual banks create money when they extend credit, rather than merely lending out existing deposits (as in the financial intermediation or fractional reserve theories). Werner wrote, “The money supply is created as ‘fairy dust’ produced by the banks individually, ‘out of thin air.’”
This aligns with Soddy’s “fictitious” money concept, as the new money wasn’t backed by pre-existing tangible assets but by the borrower’s promise to repay.
Werner’s Formula to Measure Genuine vs. Fictitious Money
Werner expanded his work beyond proving money creation to analyzing its economic impact, particularly in his Quantity Theory of Credit. While he doesn’t explicitly label money as “genuine” and “fictitious” in the same terms as Soddy, he distinguishes between types of credit based on their use, which ties into measuring their amounts:
Credit for GDP Transactions (Productive Credit): Money created for investment in goods and services that increase real economic output (akin to Soddy’s “genuine” money). This grows the economy without necessarily causing inflation.
Credit for Asset Transactions (Unproductive Credit): Money created for speculation, like buying existing assets (e.g., real estate or stocks), which doesn’t add to real wealth and can fuel bubbles or inflation (akin to Soddy’s “fictitious” money).
In his book New Paradigm in Macroeconomics (2005) and related papers, Werner developed a framework to quantify these:
Formula: He uses the credit creation equation, derived from the Quantity Theory of Credit, to measure the total money supply and its allocation. It’s expressed as:\Delta M = \Delta C_R + \Delta C_FWhere: \Delta M
= Change in money supply
\Delta C_R= Change in credit for real economy transactions (productive, “genuine”)
\Delta C_F= Change in credit for financial transactions (unproductive, “fictitious”)
Measurement: By analyzing bank lending data (e.g., from central bank statistics), Werner tracks how much new credit goes to each sector. For instance, in Japan’s 1980s bubble, he found most credit went to real estate, inflating asset prices rather than GDP—evidence of “fictitious” money dominance.
Has This Been Proven?
Soddy’s Claims: Soddy’s ideas were theoretical and observational, not empirically tested in his time. His “fairy dust” critique was vindicated conceptually by later evidence but lacked hard data then.
Werner’s Evidence: Werner’s 2014 experiment is widely cited as the first direct empirical test confirming that banks create money ex nihilo (out of nothing). His findings have been influential, though some economists debate the universality of his results (e.g., does it apply to all banks, or just under specific conditions?). A 2016 follow-up paper, “A lost century in economics: Three theories of banking and the conclusive evidence,” reinforced his conclusions with additional analysis.
Broader Acceptance: The Bank of England’s 2014 article, “Money creation in the modern economy,” also supports this view, stating that most money is created by commercial banks through lending, not by central banks or reserves. This aligns with Werner and indirectly supports Soddy’s critique. Yes, the issue has been proven true in a modern context by Werner’s empirical work, which echoes Soddy’s earlier insights. Banks do create money “out of thin air” when issuing loans, and Werner’s framework allows us to measure its productive (“genuine”) versus speculative (“fictitious”) components. While Soddy’s terms are more poetic, Werner’s data-driven approach provides the scientific backing, making this a settled concept among many heterodox economists today, as of March , 2025.
Section II: The River of Quadrillions
How much money is really moving? In 2020 alone, U.S. financial institutions processed over $4.3 quadrillion in transactions: The total world amount could be over $7,000 trillion in 2020. The FED needs to be audited.
Breakdown of the Figures to Verify
Verification:
FICC GSD ($1,507 trillion): Close to realistic estimates for Treasury and repo clearing, verifiable within a range from DTCC/BIS data, though not exact.
OTC FX and IR Derivatives ($903 trillion): Consistent with U.S. share of global turnover, verifiable within a range from BIS statistics.
XT Futures and Options ($1,890 trillion): Not verifiable; exceeds U.S.-specific data by ~$600–$900 trillion, possibly conflating global totals or notional outstanding amounts.
Sources: Data from www.federalreserve.gov/paymentsystems, stats.bis.org, and DTCC/CME reports support lower totals. The BIS Red Book and Fed data don’t list these exact figures for 2020 and context suggests a broader scope.
Conclusion: The portion is fully confirmed at the stated values. The $1,890 trillion for XT futures and options is the primary outlier, suggesting a possible misinterpretation (e.g., global vs. U.S., or notional vs. turnover). A corrected U.S. total for 2020 is closer to $3.5–$4 quadrillion.
DISCLOSURE: The amount could be over $7,000 trillion in 2020. The FED needs to be audited.
If you need exact 2020 figures, you’d need proprietary DTCC breakdowns or BIS custom datasets, not fully public as of now. The data supports a high transaction volume.
Section III: The Fair Share Proposal
A tiny toll, a massive transformation.
0.3% Financial Transaction Fee
3% Corporate Profit Tax (low but a consistent equalizer.)
3% Federal Perisomal Income Tax (A small equalizer.)
1. Federal Personal Income Tax: 3% (A small equalizer.) “Reverse that program, fix this capitalistic economy to operate for the betterment of the common good of the INDIVIDUAL while at the same time for the common good of the ENTIRE GROUP. With equality and justice for all, this AMERICAN Capitalism could be one of the greatest achievements of mankind. A system to make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
YES, IT IS DOABLE. “We cannot solve our problems with the same thinking we used when we created them”. Einstein.
ASK, “WHY HAS THIS NOT BEEN DONE ? ”The answer was already stated. ”You can’t raise revenues by lowering taxes UNLESS you get the money from somewhere else.” READ: Yes, you can raise revenues by lowering taxes IF you get the money from somewhere else.” LOWER OR ELIMINATE federal personal income taxes, federal corporate profit taxes, and deficit spending all at the same time. Period. It’s simple, “…get the money from somewhere else.”
BUFFETT RULE :: 2025 FEDERAL PERSONAL INCOME TAX ALL INCOME UP TO $500,000(SINGLE) or $1,000,000(JOINT) TAX RATE………ZERO PERCENT (0%). ALL INCOME OVER $500,000 (SINGLE) or $1,000,000 (JOINT) TAX RATE ……..THREE PERCENT(3%)
The revenue raised from this tax goes directly to the “USA-SWF” ‘ FOR THE PEOPLE’.
2. Corporate Profit Tax 3% (low but consistent). A small equalizer tax for excess profits.
The revenue raised from this tax goes directly to the “USA-SWF” ‘ FOR THE PEOPLE’.
3. A 0.3% Financial Transaction Fee: A small financial transactions fee would make the US Dollar the only world wide reserve currency that would ensure redemption at any time!“This fee will also help guarantee economic stability for the world’s reserve currency. ” Come hell or high water.”A small financial transactions fee could correct a number of maladies in our economic system, from the federal debt crisis to the widening wealth divide to the rampant financialization of the economy, while eliminating taxes on income and sales.
The debt ceiling crisis has again brought into focus the perennial gap between what the government spends and what it accumulates in taxes, and the virtual impossibility of closing that gap by increasing taxes or negotiating cuts in the budget.
In a 2023 book titled A Tale of Two Economies: A New Financial Operating System for the American Economy, Wall Street veteran Scott Smith shows that we would need to tax everyone at a rate of 40%, without deductions, to balance the budgets of our federal and local governments – an obvious nonstarter. The problem, he argues, is that we are taxing the wrong things – income and physical sales. In fact, we have two economies – the material economy in which goods and services are bought and sold, and the monetary economy involving the trading of financial assets (stocks, bonds, currencies, etc.) – basically “money making money” without producing new goods or services.
Americans earned $21 trillion in 2021. The monetary economy is defined as the total amount of money that changes hands each year. Smith draws his figures from data that the Federal Reserve publishes annually in the Bank for International Settlements’ Red Book. The Red Book is not all-inclusive; it leaves out such payments as commodity trading, various options, crypto currency trades, and exchange-traded funds. But even its partial accounting shows quadrillions in payments.
EVERY AMERICA STAND UP AND SHOUT,Yes, you can raise revenues by lowering taxes IF you get the money from somewhere else.” LOWER OR ELIMINATE federal personal income taxes, federal corporate profit taxes, and deficit spending all at the same time. Period. It’s simple, “…get the money from somewhere else.” Stop the bleeding “Of The People”. TAX THE USAGE OF MONEY ! ONE AND ONLY ONE FEE COULD BE FOR ALL GOV. SPENDING AND CREATING A SURPLUS.
This revenue flows directly into the Sovereign Wealth Fund (USA-SWF)—a national investment fund designed to reinvest in America, not Wall Street.
USA-SWF MISSION:
Written in 1776: The significance of the US Constitution’s preamble is that it clearly communicates the intentions of the framers and the purpose of the document.
This isn’t a handout. It’s not socialism. It’s smart capitalism—focused on results, not rhetoric. As Einstein said, “We cannot solve our problems with the same thinking we used when we created them.”
Section V: The Modern Monetary System
We must resolve the systemic flaws.
Transactions we don’t seeTower of Speculation – Crashes, bubbles, inequality “AMEND THE FED” — A Call for Public-Centered Monetary ReformThe Federal Reserve, established in 1913, was designed to manage America’s monetary system independently of elected officials. Over time, economists, historians, public banking advocates argue it has become a tool that serves private financial interests over the public good. Henry Ford famously warned, “If the people understood our banking and monetary system, there would be a revolution tomorrow.”The system’s complexity and opacity have allowed it to operate without meaningful public oversight.
ELLEN BROWN On the Fed’s role in crises: “The Federal Reserve bailed out the banks all the way back in September [2019]. Congress could have said then, ‘You guys are bankrupt. We’ll take you over, but the deal is that we’re not just going to pay off your debts and give you back to the private investors. We want you to be a public utility.’ But we didn’t get that chance because the Federal Reserve just took it upon itself to backstop the repo market.” — From an interview with Michael Hudson, reflecting her view that the Fed prioritizes banks over public interest.On nationalizing the Fed: “Funding through the Federal Reserve may be controversial, but establishing a national public infrastructure and development bank should be a no-brainer. The real question is why we don’t already have one, like China, Germany, and other countries that are running circles around us in infrastructure development.” — Suggesting the Fed’s current structure hinders public-focused solutions, from her writings on public banking.On the Fed’s creation: “The Federal Reserve should not have been created and needn’t have been created. When it was created in 1913, it was created specifically for Wall Street to take over the Treasury. Central banks are created to take monetary policy out of the public domain, out of the Treasury, out of electoral politics, and to make it part of unelected politics. Creating the Federal Reserve is the number one policy of oligarchy.” — From an interview with Ellen Brown, emphasizing his belief that the Fed serves elite interests over democracy.On the Fed’s economic impact: “The inherent policy of the Federal Reserve is to create a depression. That is what debt deflation is. As long as you have the Federal Reserve and a privatized banking system, you are mathematically creating the dynamics of exponential debt growth, leading to a permanent debt peonage for the economy.” — From the same interview, critiquing the Fed’s role in perpetuating debt crises.On the Fed’s bias: “The Federal Reserve helicopter only flies over Wall Street. It doesn’t fly over the economy.” — Highlighting his view that the Fed’s policies favor financial markets over the broader public, from a discussion with Ellen Brown.On the Fed’s money creation: “The biggest source of instability is the use money is put to. When banks create money, as the Federal Reserve enables, and it goes into speculative assets rather than productive investment, you get asset bubbles and crashes.” — Paraphrased from his talks and writings, like Princes of the Yen, where he critiques central banks, including the Fed, for misdirecting credit.On central banking flaws: “Central banks like the Federal Reserve claim they control the money supply, but in reality, they’ve handed that power to private banks through fractional reserve banking. The Fed’s policies in the U.S. have fueled speculative booms, like the housing bubble, because they don’t direct credit to the real economy.” — From his broader analysis of central banking, applied to the Fed in various lectures.On the profit of money issuance: “The whole profit of the issuance of money has provided the capital of the great banking business as it exists today.” — This reflects Soddy’s view that banks derive their power and wealth from creating money through fractional reserve lending, not from productive activity.On debt versus wealth: “Debts are subject to the laws of mathematics rather than physics. Unlike wealth, which is subject to the laws of thermodynamics, debts do not rot with old age and are not consumed in the process of living. On the contrary, they grow at so much per cent per annum, by the well-known mathematical laws of simple and compound interest.” — Here, Soddy critiques how fractional reserve banking creates self-perpetuating debt, contrasting it with tangible, perishable wealth.On the banking system’s burden: “There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth.” — Soddy argues that fractional reserve banking traps society in a cycle of escalating debt to sustain economic activity.On converting wealth to debt: “The ruling passion of the age is to convert wealth into debt in order to derive a permanent future income from it—to convert wealth that perishes into debt that endures, debt that does not rot, costs nothing to maintain, and brings in perennial interest.” — This highlights his belief that banks, through fractional reserve practices, transform real wealth into an artificial, interest-bearing debt system for their benefit.On the deception of the system: “The modern banking system is a fraud upon the public, based on the fiction that banks lend out the savings of depositors, when in reality they create credit out of nothing and charge interest for it.” — While not a verbatim quote from a single source, this paraphrases Soddy’s repeated assertion (e.g., in The Role of Money) that fractional reserve banking deceives people into believing money lent is pre-existing, rather than newly created.
Michael HudsonRichard WernerThese quotes reflect their critical stances: Brown advocates for public control over money, Hudson sees the Fed as an oligarchic tool driving debt and inequality, and Werner faults it for enabling speculative bubbles over productive growth. Here are some quotes from Frederick Soddy, a Nobel Prize-winning chemist turned economic critic, regarding banks, fractional reserve banking, and money issuance. Soddy was a vocal opponent of the debt-based monetary system and fractional reserve practices, which he saw as fundamentally flawed and exploitative. These quotes are drawn from his works, particularly Wealth, Virtual Wealth and Debt (1926) and The Role of Money (1934):
AMEND THE FED.
A K.I.S.S., Occam’s razor: requiring that the simplest of competing theories be preferred to the more complex… RESOLUTION. AMEND THE FEDERAL RESERVE BANKING ACT OF 1913. (A) “ONLY ONE BANK MAY ISSUE NEW MONEY. THE CENTRAL RESERVE BANK. PERIOD.” (B) “THE BOARD OF GOVERNORS WILL CONSIST OF SEVEN INDIVIDUALS PRESIDENTCIALLY APPOINTED AND CONGRESSIONALLY CONFIRMED. NONE OF WHOM MAY HAVE BEEN BANKERS OR FEDERAL ELECTED OFFICIALS.
“The public is expected to believe that the misfortunes that beset us are acts of God and that, though we have the science and the necessary equipment and organization to produce wealth in abundance, it is beyond the wit of man to learn how to distribute it.” “Human aspirations toward progress may be taken for granted. Even in total eclipse they are not dead, but only latent…Whereas men, with resources at their disposal ample to build up a civilization of a magnificence and liberality the world has never known… We have the science and the necessary equipment and organization…Years of golden opportunity have been wasted.” (F. Soddy)
NOW WE HAVE AN OPPORTUNITY TO ACCOMPLISH ONE OF MANKINDS GREATEST ACHIEVEMENTS: “DISTRIBUTION FOR THE BENEFIT OF ALL MANKIND.”
Closing Statement
This is not about politics. It’s about truth, fairness, and possibility. The views expressed are not my own—they are verified by AI, supported by Nobel laureates and public data. I don’t want recognition. I want understanding.
Let the money flow with purpose. Let justice rise from transparency. Let our economy serve the people—not the other way around.
Frederick Soddy ” It is important to realize that whichever way it
works it is a case for the bank of
” Heads I win, tails you lose “…”Usually by some such lying phrase as ” Every
loan makes a deposit “
(I feel for you and others in that you are not aware of being victimized.)”
So elaborately has the real nature of this ridiculous proceeding been surrounded with
confusion by some of the cleverest and most skilful advocates the world has ever known, that
it still is something of a mystery to ordinary people, who hold their heads and confess they
are ” unable to understand finance “. It is not intended that they should.”
EVERY AMERICAN, STAND UP AND SHOUT, To allow MONEY to become a source of revenue to private issuers is to create, first, a secret and illicit arm of the government and, last, a rival power strong enough ultimately to overthrow all other forms of government.
“All I did was connect the dots.” – cbasilovecchio
Let the money flow with purpose. Let justice rise from transparency. Let our economy serve the people—not the other way around.
Empirical evidence by UK Professor Richard Werner, (Master of “QE”), Nobel Laureate Frederick Soddy, “The Role of Money”, Author Ellen Brown, many books and over 400 listed articles, Scott A Smith, Investigative reporter, Author of “Tale of Two Economies”, Information VERIFIED true by search of Federal Reserve Bank “RED BOOK”, IMF records, and many other sources.
R.E.A.D.: Read, Examine, Analyze, Decide 
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