A money system that would work for Americans.

These are instructions for reforming the United States money system.   It took a few years of research, as a hobbyist, to come up with this basic idea.   I am inspired from the proposed bill by Dennis Kucinich at http://monetary.org . 

1.  Convert all existing debt, which is based on the 10% reserve requirement system, directly into hard currency.   Banks will then be holding hard cash in reserve for your mortgage instead of just a mortgage document representing the debt based money.   The bank, instead of charging interest to your mortgage, will then own stock in your home and when you sell your home they get a percentage based on how much stock they own in your home.   New loans no longer inflate the money supply.  Require ALL banks have 100% reserve ratio for loans.   Your home now acts as the reserve asset and the mortgage cannot be larger than the value of the asset.

2.  Convert the Federal Reserve into a much smaller government controlled entity that only manages currency trade between the states.   It will be composed of a congress of 50 representatives, 12 judges/zones, and 1 chairman.  This is a legislative, judicial, and executive checks and balances arrangement just like the constitution would have liked. 

3.  Take away the power for the federal government to print money except for precious metal coinage.   Retain the US Mint.

4.  Give states back the sole power to print their own coin and money.  Let the states compete against each other nationally to be currency of choice in retaining its long term value.  Corrupt states will inflate their money and people will not choose to use their money.   States will compete with each other to have more valuable dollars.   Cheating the money supply will not pay for anyone.

5.  Charging interest on loans is against the law.  Instead, lenders take part of the risk by owning stock in the lended money.  If the borrower is successful the lender will earn profit based on the good work of the money or on dividends from the loan.   This is the same as how the stock market works.

6.     Since there is a 100% reserve ratio and since banks, by owning stock in lended money, are operating in a much less risky fashion, the banks need far less regulation and are safe enough to operate on the level of a cheap coffee shop.     Anyone should be allowed to be a bank if they own enough assets to hold reserve on loans they make to others.  The business of banking can be anyones business and does not require any formal binding with law.