Letter to the New Mayor of Reykjavik, Iceland from Bill Still

I am the writer/director of "The MoneyMasters" and the new film, "The Secret of Oz".

By coincidence, I landed in Iceland on May 31, 2010, two days after your election.

I was asked to come to Iceland to try to help make suggestions for your economy. We formed something called the Icelandic Monetary Reform Working Group (IMRWG) and met with three members of Parliament, including Birgitta Jonsdottir.

Someone on your staff will be meeting with our group tomorrow (Monday). I just want to get in touch with you personally to briefly explain what it's all about.

We (IMRWG) decided that the BEST thing to do was to try to meet with you to convince you to form the BEST BANK to help relieve the people whose homes were being foreclosed on by the banks. BEST BANK would be modeled on the Bank of North Dakota (BND).

Here is how it works. The City of Reykjavik (CR) creates its own bank. Really, since Iceland has had bad experiences with banks being closely tied with certain political parties, it is probably BEST to call it "Bank of Reykjavik" (BR). But just for fun, let's call it Best Bank (BB).

CR deposits all its tax receipts into BB. Let's say that is 200.000.000 KR per year. This is an asset that can be multiplied by a factor of 9 according to international banking rules. Using the fractional reserve principle that is well accepted by the IMF, that would allow BB to IMMEDIATELY make loans of 1.800.000.000 KR. Since CR completely owns BB, BB could make these loans to anyone it chooses, including the city government, at NO interest -- yes, that's right, ZERO interest. This is completely legal! That is why North Dakota is the ONLY state in the U.S. with a balanced budget, no debt, and the lowest unemployment rate in the nation.

But it gets ever better. The City of Reykjavik has other assets as well. According to the same international banking rules, the CR gets to count the value of all roads, bridges, buildings, etc. into its asset base. That amount is huge! Now, of course, you would not want to inflate the amount of money too much, or take any risk with the assets of CR, so you wouldn't loan out anywhere near as much as you could, but think of the number of people you could help by lending out 2 BILLION KR? Of course, the CR could use this money to help repair the economy in other ways as well as keep taxes low in these difficult economic times. That is what North Dakota does with its bank.

When it comes to houses, there is a problem.The cost of houses went far too high. That needs to be brought down. So you need to consider this. You do not want to keep the price of housing high. Prices must come down. But there are good economists in Iceland which can help you there, including the Gang of 8. 

You have an historic opportunity today to change the Icelandic monetary system. If you approve of Best Bank, the Parliament will follow. If the nation of Iceland escapes the debt money system which the IMF is trying to enslave Iceland in, investment money from around the world will flow into Iceland. My wife and I would gladly deposit our money into Best Bank because we know how strong it would be. Many other Americans would do the same. Once BB is working, other nations will be watching.

Bill Still