Index

Proposed MONETARY TRANSPARENCY ACT

Draft # 2, May 2006 suggestions/alterations welcome

Interested parties, please comment to me at: [email protected]

American Monetary Institute, P.O. Box 601, Valatie, NY 12184

Stephen Zarlenga, Director.

An Act to restore publication of the U.S. Federal Reserve Money Stock Measure known as the M3 Monetary Aggregate, and

To publish additional valuable statistics in authoritative convenient form.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SEC 1. SHORT TITLE

This Act may be cited as the Monetary Transparency Act

SEC 2. FINDINGS

The Congress finds that

The collection and timely public reporting of reliable monetary statistics has become an essential analytical element in the areas of monetary, fiscal and public policy decision-making and is essential for transparency in the U.S. monetary system.

Such reporting of the M3 monetary statistic of the United States money supply has over the years become an important anticipated measurement followed and relied upon by financial analysts, economists, investors, professors, students and other members of the public, in their studies and financial decision making.

The continued publication of the M3 measurement is therefore important to maintain an historical continuity in the availability of this statistical tool for now and for future studies.

The announced discontinuance of its publication has created uncertainty among those using this statistic, including the question "what are they hiding?"

Therefore publication of the M3 by the Federal Reserve Board shall continue as before.

Transparency and ease of readability is an essential value in the dissemination of important statistical information by the Federal Reserve System. It alone has the resources, staff and experience to reliably ascertain such data. Reporting it in timely, convenient, and authoritative form can aid the appreciation and adoption of proper monetary, fiscal and public policy measures. To that end, the Federal Reserve System shall use its resources and personnel to provide reliable data and best estimates of several additional statistics as recommended by economists below.

SEC 3

Not later than 60 days after the effective date of this Act, the Federal Reserve shall resume publishing the M3 Monetary Aggregate as it is presently published before March 23, 2006; the effective date of its intended discontinuance as announced by the Federal Reserve System. This shall include the M3 statistics for the period when publication may have lapsed.

SEC 4

The following statistics are to be collected or best estimated and reported on a quarterly basis, unless otherwise specified:

(a) An estimate, quarterly, of the seignorage, not collected by government, through the private creation of purchasing media ("money") through the fractional reserve lending activities of financial institutions.

(b) The applications/purposes (in the aggregate) to which all such loans were applied, in absolute and % of total figures, including:

1) public infrastructure

2) leveraged buyouts and mergers

3) stock trading margins and derivatives trading activity

4) consumer spending

5) mortgage financing

6) building and property acquisition

7) capital spending

(c) The geographic breakdown of all such classes of loans in part (b) of this section

(d) Estimates of the total value of assets in the U.S. by the following economic categories:

1) depreciable capital

2) land

3) government granted privileges including:

i) mineral rights

ii) spectrum rights

iii) water rights

iv) pollution rights

v) patents

4) Goodwill

(e) Undertake the Survey of Consumer Finances every year instead of every three years

(f) A press Conference shall be held quarterly upon the publication of these statistics

(g) Require full audits of the Fed by the Government Accountability Office (GAO).

(h) Hold open meetings on all issues not involving monetary policy.

(i) Relevant statistics describing the then current distribution of wealth in the U.S.

(j) Summarize the present arrearages in public and private pensions.

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