American Monetary Institute

American Money Scene 4-April 2007

Dear Friends,

Attached to this issue of the American Money Scene is the descriptive pamphlet containing the proposed American Monetary Act, and the Monetary Transparency Act. Both are still under development so your suggestions and comments are most welcome. The “explanations” and “background” sections should especially interest you.

As you receive this bulletin, our nation is in crisis and under threat of additional warfare caused largely by those in the highest offices of our own land and in England. However bleak the situation might become, we urge you not to be discouraged – your country needs you to be strong.

2006 was a year of substantial progress for AMI now in its 11th year! We sponsored the 2nd Annual Monetary Reform Conference at Roosevelt University in downtown Chicago and launched AMI chapters in Oregon, Washington State, and Massachusetts. Initial Chapter meetings have also been held in New York, N. Carolina, Maine, and S. Dakota. We continued to develop and refine monetary reform legislation, the American Monetary Act, and the Monetary Transparency Act.

Our primary objective has been kept in view: education of the American public on monetary matters through the distribution of The Lost Science of Money book, presenting the research results of the Institute. You’re invited to become a part of AMI’s progress in 2007, and you’re help is valued  here!

The Lost Science of Money book has a very strong effect on readers: those with some background in the monetary field especially understand what it accomplishes; those who appreciate seeing the problem in the historical context that’s normally left out of money books; those like Ben Franklin, who respect mankind’s actual experience with money systems more than dubious theories about them. The book even converts many hard core “goldbugs” who know there’s a major problem with our money system but mistakenly think gold is the solution!

People tell me that when they read the book a second time, they continue to learn even more from it. An author loves to hear that, after devoting over 12 years, and studying about 800 monetary source materials in creating a book.

Thinking Depends on Language Concepts
The book recounts the battle for three millennia over the control of society’s MONEY POWER. It shows the dividing line of
the fight is whether the money system is privately controlled to enrich the few, or publicly controlled to promote the general welfare. How a society defines money determines who will control it. The book warns that Aristotle’s accurate concept of money (the science of money) is being removed from our language. Even the word “money” is under attack, with the idea of credit substituted for the concept of money.

In recent communications with economists on our Monetary Transparency Act, I was told by one: “I suggest you…forget about “money”, wipe the term from your Act, if not from your vocabulary.”
Folks, if the concept of money is destroyed, then not only would it be impossible to enact monetary reform, but without an accurate concept of money, it would literally become impossible to even think about good money reform!

At one point metals were mistakenly enthroned as a substitute for real money. Today interest bearing credit, loaned by private banks is being brazenly substituted for money. This automatically transfers power and wealth to bankers and financiers. But there’s nothing in their training, experience, philosophy or souls that qualifies them for such control over mankind and they have misdirected society for centuries. With modern weapons this misdirection risks the annihilation of the species. Humanity has already lucked out in two close calls – the 1962 Cuban Missile crisis where McNamara told us we were saved by “blind luck”; and the 1983 false launch alert, where Russian Colonel Stanislov Petrov saved civilization by disobeying his launch orders.

My Meeting at West Point  Military Academy

AMI’s first meeting at West Point Military Academy took place in May 2006. Unfortunately when our Constitution is ignored and trashed, the potential role of military power increases. Where the rule of law fails, the rule of force prevails. West Point now has a copy of The Lost Science of Money in its main library, printed on 300 year paper. This donation was overdue. As mentioned in the book’s intro, West Point was important in researching my book. Our inter-library loan district contains some of the nation’s leading university libraries. Yet I observed that on the number of occasions when a requested book couldn’t be found in any of them, West Point supplied the requested materials. At some time, the military importance of the science of money was well understood there. It will be again.

Usually I’ve been boating on the Hudson River looking up at West Point, situated on a bluff above the river, 50 miles North of New York City. This time from the park-like grounds of the Academy, I was looking down at “World’s End” the bend in the river beneath West Point. It’s the narrowest part of the Hudson and the deepest at over 200 feet; and thanks to its strategic geographic location played such an important role in winning the American Revolution. Perhaps that’s why President Jefferson set up West Point Academy there in 1802.

I noted that my initiative there was followed a few months later by journalist Bill Moyers, who delivered a powerful commencement/graduation speech at West Point.
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AMI Launches a Major Fundraising Drive for 2007

It is very gratifying to receive letters and new “review” books on money from people around the world, who recognize what the AMI has achieved to date, particularly in correctly defining the money problem and its solution through historical case studies, and formulating a workable plan for monetary reform and getting it to a point where it can draw support from all who are concerned with achieving justice in money and economic matters.

We have done this on a very small budget and our progress was made possible through a disproportionate sharing of the real costs of moving forward. Those donating funds and those volunteering their time and thought have been crucial. My own “donation” of time and thought and work has been given, in expectation of only one reward – to see real and substantial progress made in achieving reform of our money system.

Now it is time to enter the next phase – to empower the AMI’s ability to reach a growing audience, to more effectively promote monetary education and reform!

An example: We have for years been working on a film/TV documentary script based on sections of The Lost Science of Money book.

Another: There is a plan whereby individuals donate (at a substantial discount) copies of The Lost Science of Money to their local libraries.

Another:  Our website’s profound capabilities require monthly expenditures for professional help.

Another:  Additional secretarial assistance is now a “must.”

And More: The AMI Monetary Reform Conferences have received very high praise. We’ll continue that level of quality. The development of AMI Chapters around the country is an essential way to localize our efforts. Several Power point presentation topics are ready to be placed on DVD format and distributed. Finally the long awaited short book of my speech presentations over recent years is ready for printing.

Friends, these projects require funding and so I’m solemnly  asking for your help. The objective is to raise $110,000 thru the end of 2007. Please donate now at your limit. Imagine what it would mean to you and your family if real monetary reform can be advanced. If you can see your way to donate a thousand dollars, please do. Or $500 or a hundred dollars, or ten dollars, please do it now. Most of our help comes in the form of AMI Sustaining memberships at $75 or $48 per year.

We’ve just installed a new contact program for foundations and AMI can even automatically deduct a monthly donation by credit card. Foundations will also be approached to help fund AMI. We’ve already done more than enough to be deserving of support from foundations; but in the past our gifts have come mostly from individuals.

I wouldn’t ask your help if I didn’t firmly believe that we truly deserve it and that your donations make a difference in achieving reform! Please use the donation form on page 20. You can also donate using Paypal at our website.

One major goal is to secure an appropriate facility to house our research, library and publications work. Someone trying to sell real estate now, who also needs a tax deduction, might consider donating the real estate to the Institute as a way to exit that investment. They could realize its value through the resulting tax deduction.

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The Ami 2007 Monetary Reform Conference will be at Roosevelt University in beautiful downtown Chicago from September 27th to 30th. You’re cordially invited to attend. We  set a difficult goal: to make it even more informative and enjoyable than 2005 and 2006! Several speakers will return to continue developing their themes, as they are the recognized leaders in their field. A number of new speakers came in 2006 including: Prof. Michael Hudson of UMKC, and Dr. Ed Chambers President of the Industrial Areas Foundation in Chicago with affiliates worldwide. Senator Barrack Obama was trained in community organizing by his organization.

We are still trying to bring in Ralph Nader, and economist Herman Daly from the University of Maryland to make presentations. Trent Schroyer of Ramapo College will speak on economic sustainability. We are hoping that Congressman Dennis Kucinich, now running full steam for President of the United States, will again be able to participate and inspire us! Charles Walters founder of Acres USA and one of the wisest men in America will deliver a crucial talk. Rick Cook just retired from the US Treasury, and heroic whistleblower in the Challenger space shuttle disaster and author of Challenger Revealed, will talk on the American Monetary Act. We are also expanding the agenda this year to bring in leaders from some local currency initiatives to explore areas of co-operation.

Our conferences represent a breakthrough in both thought and action. The situation knowledgeable monetary reformers find ourselves in is that after years of studying monetary history and theory, we already know many if not most of the broad shapes that monetary reform should take. We know from experience that these views have stood the test of time and many challenges from those with less experience in the field or operating under misconceptions or pursuing non-reform agendas. Rather than merely arguing over these main themes, it is time for those of us who understand, to move forward to take the necessary actions to implement those elements that we know must be a part of good reform.

What are these broad national parameters supported by over 3000 years of history? That the control of money systems should shift away from private control toward governmental control. Away from commodity money notions; away from fractional reserve banking – monetizing private credits and loaning them into circulation at interest. Towards money issued interest free by government and spent into circulation for the common good. For details see This is a way for you to make a meaningful difference in the future of our country.

Obviously whoever controls the money system also controls the nation. This control is not being exercised in the interest of America or of humanity. Clearly we must remedy this problem. Have courage friends. Come to our conference and be encouraged.  AND we have a good time! Please don’t feel that “it can’t be done.” No one has tried the right way! It can be done and we are doing it.

That’s how all important “against the odds” progress takes place.

Please send the application form now. You will obtain the early registration discount, and it really helps us to plan and organize this event! For those who can’t travel but are with us in spirit, please consider donating a $175 conference scholarship that we can extend to students.

Washington DC Meetings – March and December, 2006

I met with legislative aides, Congressmen, and union leaders in the nation’s capital. The message of monetary reform resonates and is well received by them. Instead of the normal 15 to 20 minutes many aides are devoting a full hour to meeting with me. That’s thanks to our website created by Chad Ely which they look up before the meetings. If you haven’t seen it recently, take a look at Its been professionally upgraded with streaming video of my website intro. We leave a copy of The Lost Science of Money book with each Congressional office.

Upcoming Speaking Trips of Director Stephen Zarlenga:

In mid-April I’ll give talks in the Kinderhook and Kingston areas of upstate New York, and Boston and New York City. Then in early May, I’m in Kansas City to help launch the AMI Chapter there. You’re welcome to attend all talks. For time and place, email me or leave a message at 518-392-5387 and We’ll forward details. Later in April I’m in Washington DC to continue meetings with Congressional offices.

Friends please remember that continuing these speaking schedules requires some carefully spent money. You can help us in this work by buying a gift copy of ‘The Lost Science of Money’ book, or by making a direct donation with the donation form. Your help is truly appreciated!

The American Monetary Act – AMI’s legislative proposal designed to implement the reform proposed in Chapter 24 of The Lost Science of Money continues to be developed. The present version is attached. This Act represents comprehensive monetary reform, and has its best chance for passage during a major crisis.

Then in response to Ralph Nader’s call for greater monetary transparency at the Federal Reserve System, AND a progressive legislator asking me for some smaller monetary steps that can be taken now, we also helped develop the

Monetary transparency Act which requires the Fed to provide important money statistics in more transparent form, so that newspaper reporters could easily report on them. For example on the distribution of wealth, and on how much the money creation privilege gives the banks each year; and a figure for the total money supply which they no longer provide! We have helped refine this, for speedy introduction. The threat of war with Iran dominates a lot of activity in Congress, and has slowed this process, but we’ll keep on it. Please help us with funding.

The Present Constitutional Crisis

Yes we live in “interesting times” – according to the old Oriental curse. So how do we make the best of it?

“IMPEACH – INDICT – IMPRISON” read a prominent 40 foot long sign at the January 30th Peace Demonstration in Washington DC. But about one third of the country does not agree with those sentiments.

“Who is the President listening to?” a question being asked more and more, as he ignores the views the American people forcefully expressed in the November election; continues to ignore the professional advice of our best military minds; openly despises the bi-partisan views of our House of Representatives and Senate; and ignores the advice of the Baker-Hamilton Commission set up by his father to rescue his troubled son’s “presidency.” We see the President as a tragic figure, in an ever deepening crisis of his own making, but we have far less sympathy for those who knowingly put someone with his mental attitudes into the highest office in America.

Is he following the Neo-Conservative con men – many of whom have already jumped from the sinking ship? If so, Why? If they are not serving American national interests, what are they serving? Again why? Here we probably come back to their mental problems formed in childhood.

Do you know anyone through personal contact who is a neo-conservative? Or are they all found in the appointed upper echelons of Bush Administration; or as media editors, writers and talking heads? To understand how the warped corporate media promoted this war fiasco, FAIR has written an excellent 50 page study quoting which media con men did what. Go to it at and once there you can search the document to see every false move for example by Judith Miller or Richard Perle. Click Control f, type in their name and then keep clicking “find next.” Its truly amazing and clearly pre-meditated. A search there on Dennis Kucinich finds the media repeatedly smearing him for his anti-war position!

The reason for the distrust is that the actions of this administration and their media facilitators are inexplicable in terms of promoting our republic – advancing American democracy. They only make sense if what is being pursued is not democracy, but scorched Earth imperialism.

The Brezinski Foreign Policy Revolt
Arrayed against the neo-conservatives, an important new development occurred in the public network TV questioning of Israel’s influence on America. President Jimmy Carter, Warren Christopher and Zbigniew Brezinski, openly criticized Israel’s influence on American Foreign policy, on the Charlie Rose Show and the Tavis Smiley Show in late December. Tavis, an excellent interviewer, sat frozen as President Carter defended his book criticizing Israel called Peace Not Apartheid. Americans rarely see this because charges of anti-Semitism inevitably follow such criticism. But it does not work to attack these public servants as anti-Semitic. President Carter was untiring and  went many extra miles to bring Israel and Egypt to a peace agreement that has held for over 25 years. Remember the Rose Garden ceremony and the handshake of Begin and Sadat? Christopher was his Secretary of State and Brezinski his National Security Advisor. On the Charlie Rose show about December 17th, for 40 minutes Brezinski openly attacked the AIPAC (American Israel Public Affairs Committee) as holding too much power, and controlling congress through the campaign financing process. It’s interesting that AIPAC’s pro war stance is at odds with a very large percentage of both Israelis; and American Jews, who generally constitute a big part of any anti-war demonstration here.

Brezinski continued his attack on the neo-conservative agenda in testimony to Senator Biden’s Foreign Affairs Committee where he described the hellish mess that sliding into war with Iran would cause. Afterward the two men shook hands and the body language was “well done.” Biden was then viciously attacked by Hillary Clinton’s operatives for his comments on candidate Barrack Obama being “really clean!”

The Attack on the U.S. Constitution
Mr. Bush has been widely reported to have called our American Constitution “just a damn piece of paper!” That’s truly amazing!
We have an administration that is simultaneously moronic in carrying out needed policies, but highly adept at promoting conditions that ripen the potential for a coup d’etat on American soil. How would state governors react to this, with their National Guard units mis-deployed in Iraq? Arguably Mr. Bush was not really elected in either 2000 or 2004, but the Democrats, lacking the backbone to claim their victories don’t deserve much sympathy. It looks like some Bush people will be imprisoned for crimes as high as treason in time of war, but they don’t seem concerned. Do they think a blanket presidential pardon will solve their problems, as the first Bush’s pardon of the Iran Contra criminals did in 1992? Would that be allowed this time?

“Cui Bono?”
The dependable Roman test to identify the source or cause of destructively foolish and incomprehensible situations – who benefits (?) from the madness, may tell us who is causing it. But who, besides Haliburton and Blackwater type corporations are benefiting? Does Haliburton really think they can escape prosecution and fines after the 2008 election, by moving to the Persian Gulf Emirates? Does the Blackwater company really believe America will allow them to keep a fundamentalist Christian private army within our borders?

What does this have to do with Monetary Reform?
It demonstrates the absolute necessity of stopping this warfare now and removing the phony excuses to attack our constitutional rights, including our moral imperative to reform the money system. And yet just stopping this war is not enough. Remember we stopped the Vietnam War, yet look where we are now. We need to remove the structural problems with our money system that create a financial motivation for  warfare!

What is that incentive for warfare? War expenditures are hard to stop politically. The government is forced into more and more debt, borrowing money that has been privately created, and loaned out at interest. That gives the financial sector the incentive for warfare – debt and interest payments to them are increased.

Government created money spent into circulation interest free  removes that motivation for warfare. I’ve asked each of our 2007 conference speakers to relate their presentations to how the present structure of our money system leads to war.
Join us in Chicago! Bye for now!

Stephen Zarlenga