To the extent that the government has a responsibility to maintain a stable, growing economy, it is inappropriate that it be saddled by debt created unnecessarily in the process of money creation through the purchase of Treasury securities. By transferring banks' money-creation capability completely to the Fed, and having the Fed "print" money, this proposal eliminates both the inappropriate side effect of debt and the counter-functional tendency of banks to sit on money created by the Fed during recessions. In this, it is similar to HR6550 introduced in Congress in 2010 and the very similar HR2990 in 2011, but unlike these, it limits the amount of money the Fed can create to what is necessary to achieve GDP growth targets, rather than leaving it open to how much the government wants to spend.

This "less-radical" approach to ending the depression makes use of the same mechanism used to finance World War II. It wasn't the spending as such that helped end the depression, but the way it was financed, creating a direct money-creation connection between the Fed and the Treasury. This approach bypasses the problem of banks hoarding newly-created Fed money in recessions, but, unlike the above proposal, by involving the purchasing of Treasury securities in the pursuit of monetary policy, still causes the creation of government debt.

This most recent proposal has been sent out to economists and economics writers for whom President Obama has respect, suggesting an open letter to the President asking him to declare the present depression an emergency situation, and to set up an agency with the purpose of creating debt-free, interest-free, non-bank-credit new money, and moving it out through channels that will cause the greatest relief to the hardest-hit sectors and move the money out into the economy in the most rapid ways possible.