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By: A Concerned Citizen

Thank you right up front for coming to this web page. My sincere hope is that you will take the time to read through it and end up signing a petition to your County Supervisors to take appropriate action to insure that the concerns of the people are heard by the Iowa Legislature and Governor.

I begin with speaking about two very tragic accidents that occurred in Clarke County in 2016 that caused loss of life for three teenagers (16, 16, and 19 years of age) and a very close call for seven school children, elementary to high school. What is so important is that neither of these accidents would have been so tragic had there simply been guard rails installed on the very hazardous locations where the accidents occurred. But “guard rails are expensive” was a statement made by the Clarke County Engineer. Of course, expensive guard rails are paid for by taxation and there is only so much money to go around, correct? And are not all ninety-eight of the other Iowa counties experiencing similar problems? There is a way that guard rails and other direly needed infrastructure improvements can be accomplished without taxation. This will be discussed in some depth later

First I urge you to click on the news articles following concerning these two accidents and look at the photos and ask yourself if either of these accidents would have been so severe if only “expensive” guard rails had been in place prior to the accidents. Furthermore, in regard to the bus accident, the approach to the bridge was very muddy on what was supposed to be a “maintained” gravel road and the bus would not respond to the driver steering the bus. 

Proposed Guardrail


Crash #1:    Three teenagers were found dead in a car crash just south of Osceola


Crash #2:  Students injured in Clarke bus accident

Curve where bus crash happened; could have been prevented with a guardrail like the one above.

Muddy road and type of bridge - on what is suppose to be a maintained gravel road.

The front of the bus where it hit the bridge; it could have been prevented with a guardrail. Notice that the damage was intiated by one foot of the bus hitting the bridge railing. A curved guard rail would have moved the bus to the travel portion of the bridge.

This is a photo of the bus overturned after hitting the unprotected railing of the bridge.

Thank you for taking the time to look up those news articles and consider how guardrails installed could have saved lives and injuries. But guardrails are not the only things needed to improve Iowa infrastructure to make our travels safer. I humbly invite you to continue reading and subsequently make your mind up to download the petition and sign it, along with getting others to also do so and deliver the petitions to your County Supervisors.

Most people in Iowa have never been introduced to the concept of creating “Wealth Money”. However, most people in Iowa know that our basic infrastructure is in dire need of repair and improvement. “Basic Infrastructure” includes roads, bridges, levees, waterway dams and canals, etc. – all currently paid for and maintained through taxation – utilizing “Debt Money”.  It matters not if a portion of the funding for Iowa infrastructure comes from the federal government, Iowans are still taxed for that.

How many adults have not heard the phrase “Creating money out of thin air”, regarding how the federal government pays for everything it spends beyond tax collections? What does the word “deficit” mean to you when applied to government? Some years back the Obama administration and the US Congress had nearly a trillion dollars created out of thin air to “improve infrastructure” and the questions I ask are, “Where did all that money go? Have we seen any real improvement to our roads, bridges, etc. in Iowa, along with any other state?” Today the Trump administration promises to spend a trillion dollars over ten years to improve infrastructure. Will that be more money created out of thin air that we and our children and grandchildren and great grandchildren and then theirs will be required to pay for through taxation? What assurance do we have that the money dedicated to infrastructure will actually be used to upgrade it?

As an Iowan do you recall that several years ago the Iowa Legislature passed, and Governor Terry Branstad signed into law, a ten cent increase in the fuel tax? Have you seen any major improvement in the roads and bridges in your area in the intervening years – or have you seen a continued deterioration of your roads and bridges since then?

It was a few years back when I presented this concept to then Iowa Senator Kim Reynolds prior to the beginning of the next general assembly. Kim Reynolds worked to arrange a meeting with some Iowa legislators where internationally recognized monetary expert Byron Dale would travel from Minnesota to Iowa to meet with those legislators to explain how infrastructure could be vastly improved without either debt or taxation, and then answer questions. However it was December in Iowa then and we had a blizzard that came up and the meeting was canceled. Kim Reynolds informed me later that she took the proposal to the Republican Senate caucus and was unable to obtain interest in promoting it for that session. Subsequently Kim Reynolds was elected as Iowa’s Lieutenant Governor. We met and Lieutenant Governor-elect Reynolds urged me not to give up on the project, but offered her advice that what I should do was to prepare a proposed Iowa statute to add to the document that follows hereinafter at the end of this pleading. I did so and have been unable since then to get the Iowa Legislature to look at it.

I now see utilizing a different way of going about it to get the legislation considered – which is to see if concerned citizens will come forward and sign a petition to urge their elected officials on the county level to promote the concept to the state government of Iowa. How many county supervisors in the State of Iowa will be able to truthfully state that the infrastructure in their county is absolutely perfect and they have all the money they need obtained by taxation to keep it that way to protect the lives and property of their constituents?

It really troubles me that I was unsuccessful in gaining legislative interest since I started this project some years back. I should have not been discouraged and kept at it and perhaps it would have become law in Iowa. Had I continued my advocacy perhaps there would have been guardrails installed in the instances set out in the accidents in Clarke County wherein three innocent and promising youngsters were taken from their family, friends, and community. How many other lives and harm across the state could have been avoided if our Iowa infrastructure was vastly improved in the meanwhile?

Prepared and presented by: Dale Mastarone, Osceola, Iowa - Email us to get involved          


A proposed act for Iowa is modeled to a great extent after the proposed Minnesota Transportation Act which was introduced in the 2009 – 2010 session of the Minnesota Legislature as SF No.705, HF888, and which is appended hereafter. 

* * * *

CURRENTLY IOWA’S STATE, COUNTY AND MUNICIPAL GOVERNMENTS maintain approximately 113,000 miles of roads and highways, along with nearly 25,000 bridges. Much of the foregoing is in serious disrepair and some downright dangerous. But there isn’t enough money to go around for repairing or rebuilding anything but the most troublesome. Funding for construction and maintenance of all of Iowa’s public roads and bridges currently comes from the Road Use Tax Fund. A portion of the funds for such work is in the form of fuel taxes and user fees, and another portion is from bonding, i.e. borrowing at interest, and often for each dollar borrowed a dollar and a half or more must be repaid from road use and fuel taxes.

In today’s sick economy people and businesses have curtailed or postponed travel and purchases of new vehicles cutting down tax collections that support maintenance of roads and bridges. Dangerous situations in Iowa are becoming increasingly severe and there is no ray of hope in sight – other than this proposed act -- that does not rely upon tax collections or borrowing.

Regarding Minnesota, Byron Dale sold me on the concept in the early nineties of the past century and it took over a decade for Byron Dale and others (including me) meeting with numerous Minnesota legislators to explain how the bill would work and benefit Minnesota as those folks were stuck in the rut of thinking that public improvements could only come from taxation before minds were opened. It took the collapse of the I-35 bridge in Minneapolis in 2007 with 13 lives lost and injuring 145 for the Minnesota legislature to begin to consider there was needed another way and the transportation act was ultimately introduced into House and Senate Transportation and Commerce committees in the 2009-2010 session. Unfortunately it did not pass muster -- but one must keep in mind that politics in Minnesota are much different than those in Iowa.   

In short, this proposed Iowa Infrastructure Act is such that all of Iowa infrastructure improvement and creation eventually and effectively bypasses the current model of taxing and borrowing at interest to be repaid by more tax dollars. One merely has to abandon the long-accepted concept that the only way to create money is to borrow it into existence at interest to realize beyond any doubt that the results depicted in the following pages are entirely possible.

This is an exercise in the creation of Wealth Money. Wealth Money is simply defined as a combination of Earth’s raw resources and Man’s labor being monetized. At one time in America gold, silver and copper, Earth’s raw resources, were mined by Man’s labor, ore melted and refined, poured into molds then stamped into coins with a dollar value placed on them, thus monetized. Roads and highways, bridges, road and highway guard rails, levees, sewage systems, etc. are built using a combination of Man’s labor and Earth’s raw resources and are monetized in this proposal. 

Assumptions Leading To Positive Results

Introduction: While the following assumptions are somewhat broad and general in nature (ballpark), not precisely accurate according to mix of percentages, the purpose here is to demonstrate the potential positive aspects of the proposed Act. 

THE FIRST assumption to make is that the proposed bill (included later herein) was passed by the Iowa legislature, signed into law and executed. Further assume that the “test phase” of the concept was proven successful, the Iowa Auditor and others confirmed results displayed offered no or little “downside”, and it would be appropriate to enact legislation geared to embrace and encompass a wide range of infrastructure improvement projects that could not be reasonably funded by the current system in place which is relying upon borrowing and taxation. 

ASSUME THAT $1 Billion new debt-free, interest-free money is created by state-chartered banks pursuant to, and in conformity with a follow-up Act to invest into Iowa infrastructure, for example roads, bridges, levees, etc., accomplished in a one-year period.

In the above scenario $52.6 million in state taxes would be deposited into the Iowa treasury. However, when a dollar is spent into the local economy by the State of Iowa, for example in regard to health care improvements, that one dollar “turns” a minimum of six times in the local economy before it leaves the state. Therefore, with all things being equal, well over $300 Million would be collected in state taxes from the initial $1 Billion investment. 

In fiscal year 2016 Iowa collected $734.4 Million in motor fuel taxes. Because roads and bridges can be maintained and improved through the proposed Iowa Infrastructure Act without either debt or taxation, the motor fuel tax could be cut if $1 Billion per year was created for the purpose of ongoing infrastructure improvement.

However, if $2 Billion were invested into Iowa infrastructure each year in the same debt free, tax free manner, the motor fuel tax could be drastically reduced. That would reap a savings of about $500 for the average Iowa family putting 40,000 miles on vehicles @20 mpg. Meanwhile, roads and bridges would be highly maintained and reduce damage to vehicles and increase safety. Vehicle insurance costs should be expected to be reduced. Additionally, the overall business climate would be exceptionally attractive because of vastly improved infrastructure and lower taxation, luring out-of-state companies here.

Going even further, if $10 Billion debt-free, tax-free money was created and spent into the Iowa economy each year to add new infrastructure, perhaps to create high speed intercity rail and pave all gravel farm-to-market roads eventually, the personal and corporate income taxes could be slashed. How would that be possible? Remember the dollar turns 6 times in a local economy before it leaves. If 70% of the $10 Billion is spent for goods and services and that $7 Billion turns 6 times, then $42 Billion is being spent for purchases taxed at 6%, thus generating sales tax revenues of $2.52 Billion.

Please keep in mind that Iowa infrastructure improvement under this proposed program is merely a fraction of goods and services sold and taxed in Iowa, the remainder would fulfill state budget needs. And also remember the $3 Billion (the other 30% from the preceding paragraph) is spent on wages and salaries and at least half of that is ultimately spent on consumer goods and services other than non-taxed food and interest payments on mortgages – and those dollars “turn” multiple times and are taxed again and again on purchases made before leaving Iowa’s economy.     

Q and A:

Q. Is it legal for state-chartered banks to create money in this manner?
   A. Yes, state banks create money every day. They do it by making loans. The money that did not exist in its vaults or on its books is created when the borrower signs the promissory note. The money is extinguished when the loan is repaid. However, in this scenario the money remains in place as an improved road, repaired bridge, etc.

Q.   Would not this be a violation of Article 1, Section 10 of the United States Constitution which reads: “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.” 
   A. Not in any reasonable sense of that Section. No metals are used to be stamped into “coins”, and the wealth money created will not be used “in payment of debts”, as no debts are involved. In other words, think about it this way, when you go to the store and pay cash for an item before it was handed to you over the counter, no “debt” is involved.

Q. What incentive would state banks have to participate in the creation of the money, especially when they would not be charging interest?
   A. The incentive is a better business climate with prosperity beckoning. Banks thrive when times are good and money is being spent in their community. Customers borrow money at interest to buy or remodel homes, buy new cars and trucks, etc. Further, contractors participating in the infrastructure projects have time to time needs to borrow funds as projects are underway and until completion and payment received.

Q. Who is most knowledgeable on the subject?
  A. Byron Dale, internationally recognized monetary expert. See: Web site:


Iowa Transportation
Infrastructure Improvement Act.


1. Applicability. The funding of construction, maintenance and improvement of one or more state, county, city, and town highways, streets, roads, bridges, and transit systems shall be achieved in lieu of taxation, bonding or tolls through a revision to current state-chartered bank regulations pursuant to section 524, whereas this instant section provides for the state-chartered banks to create new bookkeeping entry money as set forth in this section.
2. Statement of Intent. In this Year of our Lord 2018, in the midst of State and National economic stagnation and with tax collections through the Iowa Road Use Tax Fund not expected to increase significantly or sufficiently in the near term to meet the needs of improving Iowa’s deteriorating transportation system this test project is established to seek to meet these and other State needs particular to:
    a. Safety of travelers and prevention of vehicular damage.
    b. Creating well-paying jobs.
    c. Increase state sales, personal income and corporate income tax collections without raising rates of taxation.
3. Use of project money.  The governmental agency, be it from any one of the entities listed in Subd. 1 sponsoring an infrastructure project referenced in Subd 1, shall determine the project to be constructed, using the current methods for selection and development of these projects, then shall submit documentation that shall contain the accepted, verified, and authorized project bid or the amount of funds needed.  
4. Amount of wealth-based money created under this section. There shall be a limitation of total money created under this section of $___ million dollars US, whether it is for one or more test projects. 
5. Origination and movement of new wealth based electronic entry money.  Regulations shall be promulgated by the Iowa Banking Division to accomplish, but not exceed, the purposes of the section:
    a. One or more state chartered bank(s) shall set up an asset monetizing account for the sole purpose of monetizing transportation infrastructure projects and for no other purpose. For all auditing purposes this account will be considered as a separate agency of the state banks and will not be considered as a part of the current on-going banking operations.
     b. First preference for state-chartered banks creating said money for the project(s) shall be the (or those) bank(s) conducting banking services in nearest geographical proximity to the test project(s).  
     c. The state-chartered bank(s) receiving the project information as described in Subdivision 1 shall then electronically transfer the new funds to the account of the governmental agency sponsoring the infrastructure project.  Said agency will use these funds to pay for the project and for no other purpose and shall be responsible for the oversight of the completion of the project, according to the terms of the contract.
     d. No payments of the funds held shall be made by the governmental agency until completion of the project, or specified portions thereof, according to the terms of the contract.       
6. Direction to bank examiners. The state-chartered banks shall be free of any reserve requirements affected by the creation of any and all money that is required under this section and any liability that might be created to the state chartered bank(s) will exist only until the money is transferred.
 7. Auditing; public transparency. The state and legislative auditors shall ensure an ongoing and accurate accounting of the total amount of money created to fund the project(s) under this section.  The state auditor shall update this accounting on the first business day of the third week of each month and make it available online to all Iowa residents.  
8. Criminal Penalty for noncompliance or fraud.  Any noncompliance or fraud relating to this section by any officer or employee of a state-chartered bank; any official or employee of the state, county, city or town; or any officer or employee of a contractor or subcontractor is a state criminal act and is subject to the penalties provided for in the Iowa Criminal Code.
9. Effective Date. This section is effective June 1, 2018, and applies to all projects for which bids for funds are solicited on or after that date.
10.  Test Project(s) Completion Target Date. Any and all test projects instituted under this section shall be completed by or before October 31, 2018, if possible, in order to provide timely reports to the people of Iowa and the Iowa General Assembly as to the efficacy and benefits or detraction of state chartered banks creating wealth-based money to improve Iowa transportation infrastructure, and such reports shall be compiled by the State Auditor, Legislative Auditors, the Governor’s office, and the Iowa Superintendent of Banking with such reports published online on or before December 1, 2018, with provision made for receiving public comment.      

________________ COUNTY,  IOWA

The following people signing the Petition are current inhabitants of _____________ County, Iowa, and said petitioners demand the following:

THEREFORE the people below signing this Petition demand that it be complied with to the letter, and further that no prejudice be insinuated whatsoever because of the age of the signers, as all have an interest in outcome, and all signers are taxpayers because monies they earn, saved or are given and spend personally is taxed in one way or another.

All of those signing this petition assert that they have read and basically understand the forgoing.

Print Name: ________________________Date Signed: _______________
Print Address: ________________________________________________
SIGNATURE__________________________________  Age: _______   

Print Name: ________________________ Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______
Print Name: _________________________Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______  
Print Name: _________________________Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  __________________________________  Age: _______   
Print Name: ________________________ Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______
Print Name: _________________________Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______

Print Name: ________________________Date Signed: _______________
Print Address: ________________________________________________
SIGNATURE:  __________________________________  Age: _______     
Print Name: ________________________ Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______  
Print Name: _________________________Date Signed: ______________
Print Address: ________________________________________________
SIGNATURE:  ____________________________________  Age: _______    
Print Name: ________________________Date Signed: _______________
Print Address: ________________________________________________
SIGNATURE:  __________________________________  Age: _______      

Click here to download Citizen Petition


S.F. No. 705,  as introduced - 86th Legislative Session (2009-2010)   Posted on Feb 12, 2009
1.1A bill for an act
1.2relating to transportation; providing for funding of transportation infrastructure
1.3projects through the cooperation of state-chartered banks; imposing penalties;
1.4proposing coding for new law in Minnesota Statutes, chapter 161.

1.6    Section 1. [161.075] USE OF BANK-CREATED MONEY FOR
1.8    Subdivision 1. Applicability. (a) The funding of all state, county, statutory or home
1.9rule charter city, and town highways, streets, roads, bridges, transit systems, and other
1.10transportation infrastructure projects must be achieved in lieu of taxation or bonding
1.11through the use of state-chartered banks to create money as provided in this section.
1.12(b) For purposes of this section, "state-chartered bank" means a bank chartered
1.13in Minnesota.
1.14    Subd. 2. Use of project money. The governmental agency sponsoring a project
1.15referenced in subdivision 1 shall submit documentation of it to the commissioner of
1.16management and budget for funding. The documentation must contain the accepted,
1.17verified, and authorized project bid. The commissioner of management and budget shall
1.18assign the project a unique project number and shall arrange funding of the authorized bid
1.19value with the wealth-based money authorized by this section.
1.20    Subd. 3. Origination and movement of project money. (a) The commissioner
1.21of management and budget shall notify all state-chartered banks of the project number
1.22and its total bid value. The bid value must be divided among all state-chartered banks in
1.23proportion to their capital and surplus as of the due date of their financial reports submitted
1.24to the commissioner of commerce under section 48.48, for the most recent reporting
2.1period that ended at least 90 days before the date of notification to the state-chartered
2.2banks regarding that project. Using the accepted ability of banks to create money, each
2.3state-chartered bank shall create money equal to its share of the bid value of each project.
2.4(b) Each state-chartered bank shall then electronically transfer this money to the
2.5commissioner of management and budget.
2.6(c) The commissioner of management and budget shall then electronically transfer
2.7this money as payment under the terms of the project contract into a checking account
2.8maintained by the contractor in a state-chartered bank. The commissioner shall make
2.9the payments only at the direction of the governmental agency for which the project
2.10is performed.
2.11    Subd. 4. Direction to bank examiners. The state-chartered banks are free of any
2.12reserve requirements affected by the creation of money required under this section; this
2.13money is deemed to be an asset to the state-chartered bank, to the state, and to the people
2.14of this state, and not as a liability to anyone.
2.15    Subd. 5. Auditing; public transparency. The state auditor and legislative auditor
2.16shall ensure an ongoing and accurate accounting for and of the total amount of this money
2.17created to fund transportation infrastructure projects under this section. The state auditor
2.18shall update this accounting on the first business day of the third week of each month and
2.19make it available online to all Minnesota residents.
2.20    Subd. 6. Criminal penalty for compliance or fraud. (a) Any noncompliance or
2.21fraud relating to this section by any officer or employee of a state-chartered bank; any
2.22official or employee of the state, county, statutory or home rule charter city, or town; or
2.23any officer or employee of a contractor or subcontractor is a felony and is subject to
2.24the penalties provided in paragraph (b).
2.25(b) Any person found guilty of noncompliance or fraud relating to this section is
2.26subject to a fine of up to $100,000,000 and imprisonment of up to 40 years, or both.
2.27    Subd. 7. Pilot project; first real project. (a) The commissioners of management
2.28and budget and transportation shall implement and administer a pilot project, which must
2.29be completed within 90 days after the effective date of this section, to test and ensure the
2.30successful implementation of all procedures required by this section.
2.31(b) The first project after the pilot project must be J. Edward Anderson's Personal
2.32Rapid Transportation System, also called the Intelligent Transportation System.
2.33    Subd. 8. Cooperation required. The commissioners of commerce, transportation,
2.34and management and budget shall work together with the state-chartered banking system
2.35to monetize the state's transportation infrastructure system with wealth-based debt-free
2.36money through the procedure provided in this section.
3.1EFFECTIVE DATE.This section, except subdivision 7, paragraph (a), and
3.2subdivision 8, is effective January 1, 2010, and applies to all projects for which bids are
3.3solicited on or after that date. Subdivision 7, paragraph (a), and subdivision 8 are effective
3.4the day following final enactment.