Sovereign States Act Could Save America

Written on:November 25, 2014
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The US has accumulated over $17 trillion in national debt and the upward spiral is really an economic time-bomb waiting to explode. Recently, the world’s largest holders of US debt, China and Russia, have both instituted aggressive divesture policies and actions that have resulted in a substantial pull out of US Dollar investments.

Belgium, using fraudulent documentation supplied by the Federal Reserve, European Union and United Nations’ branch known as the International Monetary Fund (IMF), in an effort to stabilize international financial markets, has bought up the dollars/debt forsaken by China and Russia. Had this not occurred, the world would currently be in economic shut-down and Depression mode right now.

Even if the US began an earnest program to repay the national debt, it would take over 63 years, using 10% of current tax revenues (not counting repayment of unfunded liabilities). In other words, the national debt is never going to be repaid. And what is worse is that federal lawmakers and the White House show no signs of letting up on excessive spending, hence the debt is expected to keep growing until, finally, the inevitable financial collapse of the Dollar arrives (which can occur for any number of other reasons now).

Combatting the Crisis

Outside of leaving the US and world in economic shambles due to Dollar collapse, what can be done to solve the problem before it takes hold?

One potential solution is the installation of the Sovereign States Act (SSA). Under the proposal, all states would become fully autonomous sovereignties again, with no direct economic, financial or taxation ties to the Federal Government. Each State would coin its own money and back it by hard resources. For example, all federal lands within the borders of the State would become State owned, hence State assets. States could also back their currencies by precious metals, such as silver or gold to ensure the value and integrity of their currencies.

The new money would be slowly introduced in each state until it fully replaces the US dollar as the standard currency. In order to ensure the States still have a viable Federal Government (as envisioned by the Founders)—a far smaller and specialized federal government whose primary task was that of foreign issue management and national security branch—the States would collect taxes from their citizens and remit quarterly or yearly payments to the Federal Government for its services.

The Federal Government would no longer have the power of the purse, the power of creating debt, or the power to dictate down to States—the Federal Budget would be automatically set, based on actual tax revenues paid to it by the states (no deficit spending would be permitted, except by super-majority vote approval by the States).

Federal Reserve Notes would eventually become worthless and Sovereign State currency would then operate to insulate citizens and states from one another–if one State’s currency should fail, the other States could pick up the slack.

With the removal of the Federal Reserve, there would no longer be a Central Bank system. Each State would control its own financial sector and currency valuation independently. This would then translate to economic flexibility and mobility for all States. Each could pursue their own, unique economies in ways they see fit, without artificial interference from a Central Bank. States would then begin to mirror the normalized pattern of free markets that ebb and flow between growth and recessions but rarely issue pattern resulting in Depressions. And because the States are separate and sovereign, if one or more States falls into a recession, other stronger States will be able to provide the others with economic buffers.

SSA would spur States to seek stand alone policies that mirror other countries in the world. They would seek to foster the types of businesses and jobs that best suit their needs. State citizens would then have more opportunities and choices as States compete for their citizenship. SSA’s best benefit, however, is that it helps Americans avoid disaster when the Federal Reserve currency collapses on the world market. Those States who have more quickly transitioned to a State Currency system will feel much less pain as the Dollar hits bottom. However, once the Dollar does hit bottom, and if States have not prepared, the climb out will be extremely difficult, placing great hardship on the citizenry.

Transitioning Federal Programs and Agencies To The States

As States take on the duties of being countries, the Federal government will forfeit its control over many aspects of our lives, including entitlements and agency services. Fortunately, most States already have many of the same agencies in place that the Fed-Gov has so the transition will easy in that respect. In fact, States will see their revenues rise dramatically while the same services given to their citizens stays in tact because all of the redundancies of the Fed-Gov system will have been omitted–the cost savings passed back to the States. For example, the Fed-Gov’s Environmental Protection Agency is duplicated in most States currently as a State Agency so all such tasks would now fall to the State’s EPA agencies—States get more control, less red tape, less expense and more agility.

Fed-Gov entitlement programs could be transitioned over to States as well. All States currently run entitlement programs so the transition will not be difficult. For example, States would not have a Social Security Retirement and Disability Program that mirrored the Fed-Gov systems, but now will have more money to operate the programs (given that the budgets to operate Fed-Gov programs is no longer needed). States would be free to run their programs as they deem fit, without outside interference from the Fed-Gov.

Fed-Gov Changes, Does Not Go Away

It is important to understand that neither does the Fed-Gov system vanish under the SSA system nor does it alter the US Constitution but with one exception (the power of the purse is shifted from Congress to the States by Amendment). The US must maintain a strong national defense so the Pentagon and its respective defense apparatus must remain in tact (and paid for by the States). Other items of national security interest to the States must also remain in tact within the Fed-Gov system. Basically, any area or program or agency that is currently not part and parcel to most State systems will remain in tact and all those things that are redundant will be transferred to control of the States (i.e. most forms of law enforcement).

Understanding The Dollar Collapse

If States do not divest themselves of the current Fed-Gov system and Dollar, then when the Dollar collapse comes, it will be too late. Citizens will lose their retirement accounts, entitlement will vanish, chaos will rule the day and night and the national will fall into revolution and chaos for decades to come. States will likely lose their sovereignties altogether as revolutionaries take control of certain geographical sectors. Foreign governments, seeking opportunities, could also move on to the national landscape to take control of major resources. Instead of being propped up by State currencies, the entire national defense grid backed by the US Dollar may collapse and take the defense system with it.

The collapse of the US dollar is not fantasy but is, in fact, inevitable and unstoppable. What is not inevitable is how we chose to meet the crisis and resolve it in a way that has the least amount of impact to the American people. Currently, the United Nations is planning on moving in during the crisis period to assume control of the old United States once the Dollar collapse turmoil has subsided (somewhat). The UN announced on the UN website in 2010 that they envisioned the installation of an international government controlled by the UN’s life-appointed leaders (non-elected officials). All that is standing in their way is the last remaining Superpower–the United States. We can either help the UN or help America—not both!

The New Role of Congress

The vast majority of new laws and decisions would come from the States and not Congress. The Post-SSA Congress would now focus only on creating laws that were related to the operating of the Fed-Gov and its mission with respect to foreign issues and the national defense. Laws government citizens and States would no longer be recognized or needed under the new system of State controls. This would, in turn, greatly reduce the control and influence of special interests and the central government’s corruption spread. State lawmakers would now been seen as having more power than Fed-Gov lawmakers, placing more government control close to the citizenry.

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