This paper shows that the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Security and Exchange Commission have embraced an unconstitutional system of money and finance. This system is designed to deprive the principals (citizens) of their hard earned wealth. It is prone to cause continual decimation of general
welfare and domestic tranquility. The monetary system currently transfers a staggering $150 billion per year from principals to the banks whose shenanigans have wiped out trillions of dollars from principals’ hard earned capital. This paper proposes a constitutional system of money and finance with (a) direct lending of savings from principals
to their government by eliminating a riskless transfer of the interest spread to middlemen banks, (b) removal of the speculative short selling practice and (c) the independence of market making and clearing from traders. The proposed system is urgently necessary to any country that seeks to promote general welfare, domestic tranquility and citizenship rights like those mandated by the U.S. constitution.