https://realstoryonbanking.com/2024-07-05daily1.0https://realstoryonbanking.com/references2024-07-05daily0.7https://realstoryonbanking.com/item/is-non-governmental-control-of-bitcoin-a-good-thing-as-bitcoin-enthusiasts-claim_h2_-the-fact-that-a-government-does-not-control-bitcoin-is-promoted-as-a-major-positive-by-bitcoin-enthusiasts_-but-it-bodes-poorly-for-bitcoin_s-future_-cryptocurrency-enthusiasts-promote-the-idea-of-government-less-currency-without-realizing-that-the-history-of-currencies-without-government-support-is-deplorable_-_h2_are-cryptocurrencies-more-digital-than-is-normal-currency_h2_-bitcoin-cannot-be-referred-to-as-digital-money-in-this-definition-because-nearly-all-money-today-is-digital-money_-instead_-it-is-called-_cryptocurrency_-because-it-is-limited-in-quantity-by-a-cryptographic-process-where-units-are-created-through-a-computer-intensive-_mining_-process_-_h2_the-volatility-of-bitcoin_h2_-dean-baker-brings-up-the-following-issue-with-the-volatility-of-bitcoin_-_blockquote_one-of-the-main-features-that-we-value-in-a-currency-is-stability_-this-is-the-basis-for-the-obsession-of-the-federal-reserve-board-and-other-central-banks-with-inflation_-while-they-have-often-carried-their-concerns-about-inflation-too-far_-needlessly-slowing-the-economy-and-throwing-people-out-of-work-at-the-first-vague-hint-of-accelerating-inflation_-there-is-a-real-logic-to-their-concern_-even-less-serious-rates-of-inflation-can-be-a-problem_-certainly_-the-inflation-the-united-states-saw-in-the-1970s-was-a-problem_-it-peaked-at-just-over-10-percent-at-the-end-of-the-decade_-this-inflation-did-not-cause-the-economy-to-collapse-or-even-stop-growth-altogether_-but-it-definitely-made-planning-more-difficult_-and-perhaps-more-importantly_-led-people-to-believe-they-were-being-cheated-as-their-pay-increases-were-quickly-offset-by-rapid-rises-in-prices_-the-story-with-bitcoin-is-the-exact-opposite_-the-value-of-bitcoin-has-been-soaring_-not-plummeting_-but-if-we-think-of-bitcoin-as-a-currency_-this-means-that-we-are-seeing-massive-deflation_-the-price-of-items-measured-in-bitcoin-is-going-through-the-floor_-to-make-this-concrete_-suppose-someone-signed-a-five-year-lease-in-bitcoin_-where-they-agreed-to-pay-two-bitcoins-a-month-for-office-space_-_five-year-leases-are-common-for-commercial-properties_-at-the-start-of-their-lease-in-2016_-they-would-be-paying-an-amount-equal-to-less-than-_800-a-month_-today_-they-would-be-paying-over-_100_000-a-month-for-the-same-space_-anyone-who-committed-to-this-rent-would-either-have-been-forced-into-bankruptcy-or-renegotiated-the-lease_-imagine-the-same-story-with-a-wage-contract_-suppose-a-union-had-negotiated-a-contract-where-its-members-were-paid-two-bitcoins-a-week-in-2016-with-an-inflation-clause-that-provided-for-2-percent-raises-a-year_-if-this-had-been-a-five-year-contract_-these-workers-would-now-be-earning-well-over-_100_000-a-week_blockquote_-and-on-bitcoin-being-somewhat-similar-to-a-trading-card_-but-less-useful_-_blockquote_it_s-still-hard-to-not-see-these-prices-as-the-result-of-bubbles_-since-it-is-difficult-to-see-anything-like-this-much-intrinsic-value-in-other-a-sports-trading-card-or-bitcoin_-the-sports-trading-card-has-the-advantage-in-this-area_-since-at-least-it-is-something_-whereas-bitcoin-is-quite-literally-nothing_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_cepr_span_span_strong_-_strong_a-href_https_cepr_net_bitcoin-and-baseball-cards_-target_blank_-rel_noopener_https_cepr_net_bitcoin-and-baseball-cards_a_strong_-_h2_what-bitcoin-enthusiasts-say_h2_-bitcoin-enthusiasts-think-they-are-rebelling-against-government-currencies_-but-they-actually-have-experience-with-a-_span-style_color_-_1d79cf_strong_private-bank-issued-currency_-_strong_span_-_h2_what-bitcoin-enthusiasts-don_t-say_h2_-bitcoin-is-very-elite-controlled_-people-at-the-originator-level-or-insider-level-of-bitcoin-and-other-cryptocurrencies-stand-to-make-a-lot-of-money_-_h2_span-style_color_-_000000_real-story-on-banking_s-position-on-bitcoin_span_h2_-it-took-a-while-for-us-to-figure-out-bitcoin-and-cryptocurrencies-in-general_-bitcoin-is-based-upon-blockchain-technologies_-which-are-a-washout-in-the-technology-sphere-and-have-mostly-been-used-to-sell-dead-end-blockchain-projects_-this-is-something-we-covered-in-the-following-article_-_h3_span-style_color_-_99cc00_strong_source_strong_-_span_brightwork-research-andamp_-analysis_h3_-_strong_a-href_https_www_brightworkresearch_com_is-blockchain-all-that-innovative-or-is-it-being-overhyped_-target_blank_-rel_noopener_https_www_brightworkresearch_com_is-blockchain-all-that-innovative-or-is-it-being-overhyped_a_strong_-so-the-underpinning-technology-is-a-type-of-tech-hype_-however_-cryptocurrencies-sound-appealing-and-are-based-upon-the-truth-that-private-banking-interests-have-taken-over-the-money-creation-function-in-many-countries-and-that-the-banks-are-run-for-the-benefit-of-the-elites_-and-that-banks-have-stopped-following-any-public-interest-function-and-only-exist-for-profit-maximization_-this-is-entirely-true-and-should-be-addressed-by-pushing-private-banking-out-and-replacing-it-as-much-as-possible-with-public-banking-that-serves-the-public-interest-rather-than-connected-elites_-however_-a-non-government-supported-currency-that-is-_distributed_-through-many-online-ledgers-is-not-a-solution-to-this-problem_-secondly_-cryptocurrencies-are-not-actually-currencies_-they-are-_span-style_color_-_008080_strong_speculative-digital-commodities_strong_span_-that-have-large-fluctuations-in-value_-and-once-viewed-in-this-context_-it-becomes-easy-to-see-that-cryptocurrencies-are-not-and-cannot-be-currencies_-_h2_the-inverse-relationship-between-liking-bitcoin-and-knowledge-of-the-history-of-money_h2_-there-is-a-consistent-feature-around-the-topic-of-cryptocurrencies-that-the-deeper-one-understands-money-and-its-history_-the-less-positive-one-tends-to-be-about-cryptocurrencies_-_h2_how-bitcoin-enthusiasts-take-advantage-of-the-general-poor-understanding-of-money_h2_-the-problem-with-most-of-the-coverage-around-bitcoin-is-that-the-authors-of-these-articles-normally-do-not-understand-the-history-of-money_-the-difference-between-money-and-a-commodity_-and-how-money-functions_-bitcoin-enthusiasts-are-taking-advantage-of-this-lack-of-understanding-of-a-complex-topic-and-can_t-be-very-well-understood-by-reading-mainstream-economists_-who-surprisingly-don_t-spend-time-researching-the-history-of-money_-money-functions-as-a-complexity-that-economists-eliminated-from-their-models-using-barter-as-a-synonym-for-money_-_h2_an-excellent-source-on-whether-bitcoin-can-be-money_h2_-one-of-the-people-that-best-understand-currencies-is-steve-keen_-according-to-steve-keen_-bitcoiners-are-trying-to-create-a-trustless-currency_-_span-style_color_-_1d79cf_strong_which-has-never-existed_strong_span_-bitcoin-enthusiasts-say-that-trust-is-replaced-with-distributed-digital-registers_-however_-that-is-redundancy_-which-is-not-the-same-thing-as-trust_-this-is-explained-in-the-following-article_-_h3_span-style_color_-_99cc00_strong_source_strong_-_span_brightwork-research_h3_-_strong_a-href_https_www_brightworkresearch_com_what-is-the-real-story-with-bitcoin_-target_blank_-rel_noopener_https_www_brightworkresearch_com_what-is-the-real-story-with-bitcoin_a_strong_-steve-keen-elaborates-on-bitcoin-in-the-following-video_-_h3_span-style_color_-_99cc00_source_-_span_steve-keen_h3_-this-is-a-video-where-steve-keen-explains-bitcoin_-https_youtu_be_ttgtw17o0mm2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-terms-currency_-money_-and-cash-are-used-in-ways-that-defy-specific-definitions-that-one-would-ordinarily-assume_li_-_li_we-explain-the-usage-of-these-terms_li_-_ul_-_h2_introduction_h2_-the-terms-currency-and-money-are-often-used-interchangeably_-many-of-the-definitions-that-can-be-found-are-contradictory_-it-is-true-that-the-official-money-of-a-country_-say-the-us-dollar-is-the-currency-and-the-money-of-the-country_-there-should-be-a-better-terminology-to-differentiate-between-a-physical-unit-of-exchange-and-when-that-unit-of-exchange-is-digital_-today-the-vast-majority-of-money-is-digital_-_h2_digital-versus-non-digital-money_h2_-when-people-try-to-draw-a-distinction-between-bitcoin-but-calling-it-digital_-the-problem-is-that-almost-all-money_-as-measured-by-total-units-is-also-digital_-dollars-are-a-physical-representation-of-digital-money_-bitcoin_-while-most-of-the-discussion-around-the-topic-is-digital_-there-are-physical-bitcoin-tokens_-think-right-now_-how-much-cash-do-you-have-on-your-person-and-at-home_-and-now-divide-that-by-your-total-assets_-how-high-is-that-percentage_-generally_-the-percentage-is-around-3_-of-the-total-money-is-held-in-physical-form_-credit-cards-and-debit-cards-have-driven-down-the-size-of-the-physical-currency-due-to-their-ease-of-transactional-use_-furthermore_-as-more-purchases-have-moved-online-credit-and-debit-_and-paypal-or-stripe_-have-pushed-down-the-need-for-physical-money_-_h2_what-about-the-term-cash_h2_-the-term-cash_-which-one-would-think-is-the-line-between-physical-and-non-physical_-is-also-used-in-such-a-way-that-it-often-means-the-difference-between-a-check-and-bank-financing_-when-a-person-offers-to-pay-_cash_-often-they-often-don_t-mean-physical-currency_-cash-now-has-morphed-into-immediate-money_-so-the-term-is-used-in-a-way-that-is-different-from-what-might-be-considered-its-_official_-definition_-_h2_treasury-bonds_h2_-some-terms-to-reflect-money-are-needlessly-differentiated_-one-example-of-this-is-a-treasury-bond_-this-sounds-like-something-very-specific-and-different_-but-it-is-just-a-interest-bearing-savings-account-with-the-treasury_-yet-one-does-not-say-_i-am-opening-a-risk-free-savings-account-with-the-federal-government_-instead-one-says_-_i-am-buying-treasury-bonds_-_h2_equities_-how-the-term-changes-its-meaning-depending-upon-percentage-of-ownership_h2_-equity-means-you-supposedly-own-a-part-of-a-company_-stocks-are-called-equities_-equities-are-consistent-with-their-definition-when-one-has-a-substantial-percentage-of-the-shares-of-a-company_-however_-most-investors-in-equities_-don_t-own-anything_-they-have-the-right-to-sell-the-stock-to-someone-else-or-to-keep-that-stock_-that-is-the-extent-of-their-rights_-stocks-do-have-voting-rights_-however_-at-small-percentages-of-ownership-the-voting-rights-are-irrelevant_-and-at-even-higher-percentages-of-ownership_-voting-is-rigged-by-the-company-so-that-the-voting-is-more-of-a-formality-for-approving-what-they-want-to-be-approved_-_h2_controlling-interest-and-private-equity_h2_-however_-when-a-private-equity-firm-buys-a-company_-they-now-have-equity-and-control-over-that-company_-for-most-equity-purchases_-the-equity-is-just-a-speculative-vehicle-that-is-bid-up-or-down-in-price_-after-its-initial-sale_-which-raises-money-for-the-company_-the-stock-is-just-a-speculative-asset_-as-the-vast-majority-of-_equities_-or-stocks-pay-no-dividends_-it-is-in-a-way-strange-that-investors-still-want-to-hold-them_-_h2_conclusion_h2_-terms-used-to-describe-money-are-used-in-a-way-that-they-often-overlap_-which-removes-their-distinctions-between-one-another2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-greenback-was-debt-free-money-issued-during-the-us-civil-war-and-was-critical-for-the-north_li_-_li_it-is-nearly-impossible-to-find-coverage-of-the-greenback-in-mainstream-economics_li_-_ul_-_h2_introduction_h2_-abraham-lincoln-created-the-greenback-and-wanted-the-us-government-to-issue-its-own-money_-an-idea-by-richard-taylor_-as-lincoln-said-_blockquote_the-government-should-create_-issue-and-circulate-all-the-currency-and-credit-needed-to-satisfy-the-spending-power-of-the-government-and-the-buying-power-of-consumers_-the-privilege-of-creating-and-issuing-money-is-not-only-the-supreme-prerogative-of-government_-but-it-is-the-government_s-greatest-creative-opportunity_blockquote_-lincoln-allowed-passage-of-the-national-bank-act_-which-allowed-private-banks-to-create_-which-lincoln-opposed-and-would-have-likely-reversed_-john-wilks-booth-was-put-up-to-assassinate-lincoln-by-private-banking-interests-as-retaliation_-this-was-to-both-re-establish-a-private-central-bank-and-put-the-us-on-the-gold-standard_-this-quote-is-from-german-chancellor-otto-von-bismark-after-lincoln_s-assassination-_blockquote_the-death-of-lincoln-was-a-disaster-for-christendom_-there-was-no-man-in-the-united-states-great-enough-to-wear-his-boots_-i-fear-that-foreign-bankers-with-their-craftiness-and-tortuous-tricks-will-entirely-control-the-exuberant-riches-of-america_-and-use-it-systematically-to-corrupt-modern-civilization_-they-will-not-hesitate-to-plunge-the-whole-of-christendom-into-wars-and-chaos-in-order-that-the-earth-should-become-their-inheritance_blockquote_-_h3_span-style_color_-_99cc00_source_span_-the-money-masters_h3_-_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_strong_http_www_themoneymasters_com_strong_a_-the-greenbacks-not-only-funded-the-north-in-the-civil-war-but-the-transcontinental-railroad_-the-greenback-helped-the-north_-but-eventually_-the-north-gave-into-private-banking-interests_-as-is-explained-in-the-following-quotation_-_blockquote_in-the-north_-neither-greenbacks_-taxes_-nor-war-bonds-were-enough-to-finance-the-war_-so-a-national-banking-system-was-created-to-convert-government-bonds-into-fiat-money_-and-the-people-lost-over-half-of-their-monetary-assets-to-the-hidden-tax-of-inflation_-in-the-south_-printing-presses-accomplished-the-same-effect_-and-the-monetary-loss-was-total_blockquote_-_h3_span-style_color_-_99cc00_source_span_-g_-edward-griffin-_-az-quotes_h32024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-one-of-the-major-types-of-money_li_-_li_the-important-feature-is-_who_-issue-the-money_li_-_ul_-_h2_introduction_h2_-this-is-the-most-desirable-state-of-affairs-for-central-banking-and-has-numerous-examples-of-being-successful-including-the-us-greenbacks_-the-colonial-script-of-the-colonies-of-what-is-now-the-us_-the-guernsey-pound_-hitler_s-labor-unit-of-exchange_-and-many-others_-however_-this-situation-typically-does-not-last-very-long_-as-private-banking-interests-lobby-to-control-the-money-creation-function-of-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-one-of-the-major-types-of-money_li_-_li_the-important-feature-is-_who_-issue-the-money_li_-_ul_-_h2_introduction_h2_-many-banks-historically-issued-their-own-currencies-in-the-us_-this-is-particularly-true-during-the-18th-century-in-a-period-referred-to-as-_wildcat_-banking_-these-currencies-did-not-have-long-lives_-and-the-practice-is-inherently-unstable2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-one-of-the-major-types-of-money_li_-_li_the-important-feature-is-_who_-issue-the-money_li_-_ul_-_h2_introduction_h2_-the-success-of-paper-money-greatly-depends-upon-whether-a-government-or-private-bank-issues-the-currency_-when-the-government-issues-the-currency_-the-history-is-good_-although-all-monies-eventually-devalue_-some-say-that-gold-or-other-precious-metals-do-not-devalue_-but-commodities-normally-back-a-paper-currency-and-are-rarely-used-for-exchange_-when-private-banking-interests-issue-the-currency-_as-with-the-fed-or-bank-of-england_-and-act-as-the-central-bank_-this-is-a-problem-because_-for-one_-the-money-is-in-a-way-partially-private_-while-living-off-of-the-support-of-the-government_s-ability-to-create-money_-_h2_the-multi-century-fight-over-public-versus-private-banking_h2_-there-has-been-a-multi-century-fight-between-private-bankers-and-the-government-for-the-right-to-issue-fiat-currency_-this-debate-is-hidden-from-the-public-and-seldom-mentioned_-one-can-grow-old-and-die-without-ever-hearing-about-the-debates-on-public-versus-private-banking_-_h2_the-dominant-form-of-banking-today_h2_-today-the-dominant-form-of-central-banks-is-that-the-central-bank-is-in-the-hands-of-private-bankers-but-pretends-to-be-controlled-by-the-government_-because-it-is-in-private-hands_-interest-rates-must-be-charged_-and-enormous-financial-gains-that-go-to-the-private-banker-and-are-hidden-from-the-public-within-the-banking-system_-these-are-rents-extracted-from-the-citizens-for-the-right-to-access-money_-that-at-the-end-of-the-day-is-supported-by-the-faith-in-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_us-continental-script-was-the-debt-free-money-that-followed-the-us-colonial-script_li_-_li_this-is-yet-another-example-of-a-successful-debt-free-money_li_-_ul_-_h2_introduction_h2_-the-continental-script-was-government-created-money-not-based-upon-debt-that-was-issued-during-the-us-revolutionary-war_-this-is-explained-in-the-following-quote_-_blockquote_the-first-act-of-the-new-continental-congress-was-to-issue-its-own-paper-script-proper-properly-called-the-continental-most-of-the-continentals-were-used-as-ious-or-debts-of-the-revolutionary-government-to-be-redeemed-in-coinage-later_-eventually_-_200-million-and-continental-scripts-were-issued_-by-the-end-of-the-war_-the-script-had-been-so-devalued_-that-it-was-basically-worthless_-but-it-still-evokes-the-wonder-and-admiration-of-foreign-observers-because-it-allowed-the-colonialists-to-do-something-that-had-never-been-done-before_-they-succeeded-in-financing-a-war-against-a-major-power-with-virtually-no-hard-currency-of-their-own_-without-taxing-the-people_-franklin-wrote-from-england-during-the-war_-the-whole-is-a-mystery_-even-to-the-politicians-how-we-could-pay-with-paper-what-had-no-previously-fixed-fund_-appropriately-specified-to-redeem-it_-thomas-paine-called-it-a-cornerstone-of-the-revolution_-the-british-bankers_-gold-and-silver-coins_-gold-and-silver-were-regarded-as-far-more-valuable-than-paper-promises-of-a-revolutionary-government-that-may-not-prevail_-and-the-state_s-paper-notes-had-the-taxation-power-to-back-them_-the-problem-might-have-been-avoided-by-making-the-continental-the-sole-official-currency-but-the-continental-congress-did-not-yet-have-the-power-to-enforce-that-sort-of-order_-it-had-no-course-no-police_-no-authority-to-collect-taxes-to-redeem-the-notes-or-contract-the-money-supply_-the-colonies-had-just-rebelled-against-taxation-by-the-british-and-we_re-not-ready-to-commit-to-that-burden-from-the-new-congress_blockquote_-_h3_span-style_color_-_99cc00_strong_source_-_strong_span_the-web-of-debt_h3_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a_-a-major-reason-for-the-devaluation-of-the-continental-was-the-rampant-counterfeiting-by-the-british_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_us-colonial-script-was-the-debt-free-money-that-allowed-the-colonies-of-america-to-flourish_li_-_li_today-it-is-nearly-impossible-to-hear-about-this-debt-free-money_-particularly-from-any-mainstream-economics-source_li_-_ul_-_h2_introduction_h2_-the-strong-economic-performance-of-the-colonies-was-in-part-due-to-colonies-issuing-debt-free-currency_-as-the-colonies-were-not-yet-unified-under-a-central-government_-each-colony-created-its-own-money-and-its-own-public-central-bank_-this-is-explained-in-the-following-quotation_-_blockquote_the-american-colonies-were-an-experiment-in-utopia-in-an-uncharted-territory_-you-could-design-new-systems-and-make-new-rules_-paper-money-was-already-in-use-in-england-but-it-had-fallen-into-the-hands-of-private-bankers_-who-were-using-it-for-private-profit-at-the-expense-of-the-people_-in-the-american-vision-of-this-new-medium-of-exchange-paper-money-was-issued-in-lent-by-provincial-governments_-and-the-proceeds-were-used-for-the-benefits-of-the-people_-the-colonist_s-new-paper-money-finance_-a-period-of-prosperity-that-was-considered-remarkable-for-isolated-colonies-lacking-their-own-silver-and-gold_-by-1750_-benjamin-franklin-was-able-to-write-off-new-england_-and-there-was-abundance-in-the-colonies-in-peace-was-raining-on-every-border_-it-was-difficult-and-even-impossible-to-find-a-happier_-more-prosperous-nation-on-all-the-surface-of-the-globe_blockquote_-_h3_span-style_color_-_99cc00_strong_source_-_strong_span_the-web-of-debt_h3_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a_-_h2_the-holistic-development-of-the-colonial-script_h2_-the-colonial-script-came-about-without-a-great-deal-of-planning-by-the-colonies_-the-script-looked-more-like-a-receipt-than-money-and-is-what-the-colonies-implemented-as-they-did-not-have-their-own-money_-the-banks-that-issued-the-colonial-script-were-entirely-public_-so-in-this-sense_-each-colony-had-_span-style_color_-_1086c2_strong_its-own-public-central-bank_strong_span_-the-fact-that-this-program-was-successful_-without-a-complex-maintenance-apparatus_-illustrates-how-well-a-public-central-bank-can-work_-the-new-england-colonies-were-not-as-successful-with-their-colonial-script-as-they-allowed-too-much-script-into-circulation_-what-must-be-considered-is-how-little-training-the-colonies-had-in-setting-up-this-money-system_-today_-the-issues-with-the-new-england-colonies-could-be-easily-avoided-by-modifying-taxation-to-keep-the-quantity-of-money-in-line-with-the-demand2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_money-is-most-often-an-assumption-rather-than-something-to-be-questioned_-however_-it-is-a-necessary-question-to-ask-what-gives-money-value_li_-_ul_-_h2_introduction_h2_-this-is-a-major-point-of-confusion-and-is-something-that-private-banking-interests-deliberately-exploit_-_strong_money-is-what-governments-say-is-money_strong_-all-that-is-necessary-is-for-the-government-to-declare-that-the-payment-of-taxes-will-only-be-accepted-in-that-money-_and-then-it-must-also-collect-those-taxes_-therefore-is-no-need-to-_span-style_color_-_e03e2d_strong_back_strong_-_span_money-with-anything-else-by-the-assertion-by-the-government-that-it-is-backed-by-the-full-credit-and-faith-of-that-government_-and-that-it-is-to-be-used-for-all-debts_-and-the-history-of-money-backed-by-a-precious-metal-_the-normal-standard_-brings-up-a-number-of-problems-that-are-normally-left-undiscussed_-the-most-successful-currency-in-history-was-the-tally-stick-of-britain_-and-it-was-not-backed-by-any-precious-metal-or-anything-else_-_h2_what-about-devaluation-since-the-us-went-off-the-gold-standard_h2_-those-that-point-to-the-devaluation-of-the-us-dollar-after-1971-when-the-us-halted-international-convertibility-to-gold_-seem-to-leave-out-the-greater-devaluation-of-the-dollar-after-1913-to-1929-when-the-us-was-still-on-not-only-international-convertibility-of-the-dollar-into-gold-but-domestic-convertibility-into-gold-_which-roosevelt-halted-in-1933_-this-is-why-it-is-not-correct-to-point-to-1971-as-the-year-the-us-went-off-the-gold-standard_-as-internal-convertibility-was-suspended-37-years-before-this-time_-this-is-something-rarely-mentioned_-_h2_the-true-history-of-us-dollar-devaluation-from-1913-onward_h2_-the-us-dollar-has-been-continuously-devaluating-_at-different-rates_-since-the-federal-reserve-was-brought-into-effect-in-1914-so-that-the-us-dollar-is-now-worth-roughly-3_-of-what-it-was-in-1913_-and-this-was-a-time-that-was-supposed-_shangri-la_-according-to-mainstream-economics_-that-is-a-time-where-private-banking-interests-control-the-central-bank_-this-is-explained-in-the-following-quotation_-_blockquote_as-vernon-parrington-pointed-out_-the-real-issue-was-not-what-money-consisted-of_-but-who-created-it_-_emphasis-added_-whether-the-medium-of-exchange-was-gold-or-paper-or-numbers-in-the-ledger_-when-it-was-lent-into-existence-by-private-lenders-and-was-owed-back-to-them-with-interest-more-money-would-always-be-owed-back-than-was-created-in-the-first-place_blockquote_-_h3_span-style_color_-_99cc00_strong_source_-_strong_span_the-web-of-debt_h3_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h3_theories-of-state-created-money_h3_-there-are-at-least-two-theories-of-money-that-have-been-proposed_-that-are-over-a-hundred-years-apart-that-support-this-conclusion_-_ol_-_li_the-state-theory-of-money-by-george-friedrich-knapp_li_-_li_the-seinorage-theory-of-money-by-giacinto-auriti_li_-_ol_-both-of-these-people-have-entries-on-this-website2024-07-05daily0.5https://realstoryonbanking.com/item/p_span_the-simec-was-an-experimental-debt-free-currency-issued-by-one-wealthy-individual-in-named-giacinto-auriti_-auriti-was-able-to-prove-that-a-debt-free-currency-was-workable-and-stimulated-purchasing_-_span_p_-_h3_span_the-impact-of-the-simec_span_h3_-_p_span_the-impact-of-the-simec-on-the-italian-town-is-described-as-follows_-_span_p_-_blockquote_span_it-all-began-last-july_-when-professor-auriti_-whose-family-has-been-wealthy-landowners-hereabouts-for-generations_-had-simecs-printed-at-his-own-expense_-then-distributed-them-from-his-palazzo-in-exchange-for-italian-lire_-he-persuaded-about-40-local-merchants-to-honor-them_-promising-to-redeem-each-simec-for-two-lire_-_span_span_achille-pica_-a-haberdasher-on-the-main-square_-described-the-effect-as-electric_-_in-one-day_-he-said_-after-the-introduction-of-the-simec_-_i-did-the-business-of-one-month_-at-a-redemption-rate-of-two-to-one_-mr_-pica_s-shirts_-suits-and-topcoats-went-for-half-price_-about-once-a-week_-he-and-other-merchants-hauled-their-simecs-to-professor-auriti_s-palazzo-where-they-were-exchanged-for-lire_-others_-like-roberto-sciarretta_-who-runs-a-clothing-store-on-the-edge-of-town_-said-they-used-simecs-to-buy-shoes-or-jewelry_-by-mid-august_-the-professor-reckons_-about-2-billion-simecs_-worth-_1_9-million-at-the-professor_s-exchange-rate_-were-in-circulation_-but-the-currency_s-rapid-spread-unsettled-local-officials_-who-ordered-the-financial-police-to-impound-the-simecs-in-circulation_-however_-a-court-in-chieti_-the-provincial-capital_-soon-restored-them_-arguing-that-italian-law-proscribed-counterfeiting-the-national-currency-but-not-printing-money-of-one_s-own_-an-appeal-is-pending_-today_-professor-auriti-estimates-that-about-700-million-simecs-are-in-circulation_-though-he-says_-without-elaborating_-that-they-have-created-liquidity-worth-10-billion-lire_-_span_blockquote_-_p_span_span-style_color_-_99cc00_strong_source_-_strong_span_new-york-times_span_p_-_p_a-href_https_www_nytimes_com_2001_01_30_business_a-legal-tender-of-one-s-own_html_-target_blank_-rel_noopener_strong_https_www_nytimes_com_2001_01_30_business_a-legal-tender-of-one-s-own_html_strong_a_p2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li-style_list-style-type_-none_-_ul_-_li_what-nazi-germany-did-to-revive-their-economy-from-the-lowest-possible-point-using-debt-free-money-is-a-suppressed-story-and-another-vindication-of-debt-free-money_li_-_ul_-_li_-_ul_-_h2_introduction_h2_-the-following-is-a-quote-that-explains-the-money-issued-and-the-logic-of-hitler-in-doing-so_-_blockquote_monetary-theories-of-that-era-says-that-all-money-issued-should-be-back-by-gold-held-in-federal-reserve-or-central-bank_-who-works-independently-then-government_-so-those-bankers-decide-how-much-money-should-be-issued_-hitler-outlawed-the-contemporary-economic-system-of-international-banking-by-issuing-its-own-currency-not-only-monetary-but-also-financial-ones_-hitler-emphasized-that-right-of-issuing-money-should-lie-in-government-not-to-bankers_-who-can-issued-it-for-the-benefit-of-people_-_we-were-not-foolish-enough-to-try-to-make-a-currency-_backed-by_-gold-of-which-we-had-none_-but-for-every-mark-that-was-issued-we-required-the-equivalent-of-a-mark_s-worth-of-work-done-or-goods-produced-_-we-laugh-at-the-time-our-national-financiers-held-the-view-that-the-value-of-a-currency-is-regulated-by-the-gold-and-securities-lying-in-the-vaults-of-a-state-bank_-_strong_-adolph-hitler_strong_-germany-issued-debt-free-and-interest-free-money_-the-german-government-financed-its-entire-regime-without-gold_-and-without-debt_-it-took-the-entire-capitalist-and-communist-world-to-destroy-the-german-revolution_-and-bring-europe-back-under-the-heel-of-the-bankers-so-they-succeed_-hitler-began-his-national-credit-program-by-devising-a-plan-of-public-works_-projects-earmarked-for-funding-included-flood-control_-repair-of-public-buildings-and-private-residences_-and-construction-of-new-buildings_-roads_-bridges_-canals_-and-port-facilities_-the-projected-cost-of-the-various-programs-was-fixed-at-one-billion-units-of-the-national-currency_-one-billion-_em_n_em_em_on-inflationary-bills-of-exchange_-called-labor-treasury-certificates_em_-were-then-issued-against-this-cost_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-mordant-truth_span_span_strong_-_strong_a-href_https_mordant-truth_weebly_com_hilter-monetary-system-real-cause-of-ww2_html_-target_blank_-rel_noopener_https_mordant-truth_weebly_com_hilter-monetary-system-real-cause-of-ww2_html_a_strong_-_h2_funding-the-rise-of-germany_h2_-_blockquote_this-economic-freedom-made-hitler-extremely-popular-with-the-german-people_-germany-was-rescued-from-english-economic-theory_-which-says-that-all-currency-must-be-borrowed-against-the-gold-owned-by-a-private-and-secretive-banking-cartel-_-such-as-the-federal-reserve_-or-the-central-bank-of-europe-_-rather-than-issued-by-the-government-for-the-benefit-of-the-people_blockquote_-throughout-this-website-we-refer-to-the-english-economic-theory_-as-the-british-school-of-economics_-which-has-at-its-center-a-private-central-bank-and-focuses-on-moving-higher-percentages-of-an-economy-towards-debt-service_-the-quote-continues_-_blockquote_canadian-researcher-dr_-henry-makow-_who-is-jewish-himself_-says-the-main-reason-why-the-bankers-arranged-for-a-world-war-against-germany-was-that-hitler-sidestepped-the-bankers-by-creating-his-own-money_-thereby-freeing-the-german-people_-worse_-this-freedom-and-prosperity-threatened-to-spread-to-other-nations_-hitler-had-to-be-stopped_-makow-quotes-from-the-1938-interrogation-of-c_-g_-rakovsky_-one-of-the-founders-of-soviet-bolshevism-and-a-trotsky-intimate_-rakovsky-was-tried-in-show-trials-in-the-ussr-under-stalin_-according-to-rakovsky_-hitler-was-at-first-funded-by-the-international-bankers_-through-the-bankers_-agent-hjalmar-schacht_-the-bankers-financed-hitler-in-order-to-control-stalin_-who-had-usurped-power-from-their-agent-trotsky_-then-hitler-became-an-even-bigger-threat-than-stalin-when-hitler-started-printing-his-own-money_blockquote_-stalin-was-not-supposed-to-lead-russia_-the-chosen-second-to-lenin-was-trotsky_-who-became-ill_-and-was-usurped-by-stalin_-trotsky-is-presented-as-a-great-liberal-intellectual_-but-he-was-a-cat_s-paw-of-international-bankers_-this-next-quote-is-doing-to-seem-very-conspiratorial_-_blockquote_these-facts-do-not-appear-in-any-textbooks-today_-since-jews-own-most-publishing-companies_-what-does-appear-is-the-disastrous-runaway-inflation-suffered-in-1923-by-the-weimar-republic_-which-governed-germany-from-1919-to-1933_-today_s-textbooks-use-this-inflation-to-twist-truth-into-its-opposite_-they-cite-the-radical-devaluation-of-the-german-mark-as-an-example-of-what-goes-wrong-when-governments-print-their-own-money_-rather-than-borrow-it-from-private-cartels_blockquote_-the-problem-with-critiquing-the-quote-is-it-is-true_-textbooks-and-other-books-explain-weimar-republic-hyperinflation-into-being-government-determined_-however_-the-reichsbank-was-a-private-central-bank-at-the-time_-it-is-also-true-that-publishing-is-highly-concentrated-in-jewish-ownership_-which-is-aligned-with-private-banking-interests_-which-again-is-similarly-highly-concentrated-in-jewish-ownership_-one-can-call-this-antisemitic-if-one-likes_-but-the-ad-hominem-is-not-an-argument-against-the-evidence-presented_-furthermore_-the-history-of-nazi-germany_s-debt-free-money-has-been-suppressed_-there-is-not-double-about-this_-all-of-the-wikipedia-entries_-for-example_-state-nazi-germany-financed-its-economic-success-from-1935-onward-with-debt_-not-with-debt-free-money_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_national-vanguard_span_span_strong_-_strong_a-href_https_nationalvanguard_org_2015_08_how-hitler-defied-the-bankers_-target_blank_-rel_noopener_https_nationalvanguard_org_2015_08_how-hitler-defied-the-bankers_a_strong_-_h2_where-is-this-history_h2_-one-can-find-very-little-coverage-of-debt-free-money-issued-by-nazi-germany_-germany_s-success-with-debt-free-money-needs-to-be-analyzed-without-consideration-for-the-parts-of-the-nazis-that-were-detestable_-the-fact-that-the-nazis-had-concentration-camps-do-not-eliminate-the-reality-of-nazi-germany_s-experience-with-debt-free-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-renminbi-is-a-debt-free-money_-and-modeled-on-successful-debt-free-monies-throughout-asia_li_-_li_mainstream-economists-and-media-cover-the-renminbi-without-mentioning-this-important-feature_li_-_ul_-_h2_introduction_h2_-the-chinese-followed-the-american-school-of-economics-and-created-their-_span-style_color_-_1977cf_strong_own-debt-free-currency-in-1950_strong_span_-the-renminbi-does-not-float-against-other-currencies_-economists-continually-talk-about-china_s-debt-levels_-but-this-is-curious-because-china-does-not-have-a-private-central-bank_-therefore-trying-to-determine-china_s-debt-level-is-nonsensical_-china-has-not-outsourced-its-central-banking-to-a-private-bank-that-creates-debt-based-money_-it-is-rather-amazing-how-few-mainstream-economists-even-understand-this_-this-is-explained-in-the-following-quotation-_blockquote_the-commonly-held-explanation-for-this-impressive-growth-is-that-the-chinese-are-willing-to-work-for-one-of-master-slave-wages_-but-the-starving-poor-of-africa_-indonesia_-and-latin-america-are-equally-willing_-yet-their-economies-are-languishing_-something-else-distinguishes-china_-and-one-key-difference-is-that-it-is-its-banking-system_-china-has-a-government-issued-currency-and-a-system-of-national-banks-that-are-actually-owned-by-the-nation_-besides-its-populist-banking-system_-china-is-distinguished-by-keeping-itself-free-of-the-debt-web-of-the-imf-and-the-international-banking-cartel-and-by-refusing-to-let-its-currency-float-a-policy-that-is-fended-off-the-currency-manipulators-of-the-international-speculators_-the-chinese-government-which-can-print-its-own-money-and-doesn_t-need-to-go-into-debt-can-afford-to-let-some-struggling-businesses-carry-perpetual-debt-on-their-books_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-guernsey-pound-is-one-of-many-examples-of-successful-debt-free-money_li_-_li_there-is-no-debt-free-money-that-private-banking-interests-or-compliant-media-want-the-public-to-know-about_li_-_ul_-_h2_introduction_h2_-the-debt-free-money-issued-by-guernsey-that-has-been-issued-as-needed_-grown-enormously-over-decades-and-has-_strong_span-style_color_-_0e9cc7_not-been-inflationary_span_strong_-_h2_private-bankers-stand-ready-to-stop-all-debt-free-money_h2_-the-island-of-guernsey-had-tremendous-success-with-their-own-government-debt-free-money_-however_-both-the-public-and-the-politicians-were-told-that-this-multi-decade-success-was-irresponsible_-this-is-explained-in-the-following-quotation_-_blockquote_as-the-new-currency-was-paid-out-into-circulation-among-the-people_-exchanges-were-being-expedited_-the-wage-earners-went-to-the-shopkeepers_-the-shopkeepers-went-to-the-producers_-the-producers-bought-enough-to-increase-their-production_-the-currency-was-accepted-everywhere_-the-government-took-measures-against-inflation-by-decreeing-that-money-would-be-withdrawn-by-taxes_-so-it-does-not-accumulate_-and_-in-fact_-the-money-was-retired-on-schedule-by-taxes_-but_-as-the-increasing-activity-required-a-corresponding-volume-of-money_-other-issues-were-brought-out-by-the-government-for-other-works_-on-october-12_-1822_-the-new-market-house-was-completed-and-opened_-not-a-penny-of-public-debt-on-this-public-enterprise_-the-bankers-intervene-at-the-time-of-the-original-issue_-there-was-no-bank-upon-the-island_-this-explain_-without-doubt_-why-there-was-no-opposition-to-the-issue-of-state-money_-but-ten-years-after-the-first-issue_-the-island-had-become-so-prosperous_-thanks-to-the-activity-allowed-by-a-sufficient-volume-of-money_-that-the-banks-of-england-had-en-eye-on-this-island_-english-bankers-set-up-branches-in-the-island-and-brought-the-population-around-to-orthodox-rules_-_it-was-unsound_-they-said_-_to-let-the-government-finance-its-enterprises-without-getting-into-debt_-the-bankers-did-everything-to-stop-further-issues-to-introduce-the-system-of-interest-bearing-loans-to-the-government-and-to-withdraw-from-the-island-the-state-money-that-had-been-paid-out-into-circulation_-there-was-some-resistance_-but-the-bankers-won-their-point_-with-their-usual-methods_-and-on-october-9_-1836_-the-states-of-guernsey-had-abdicated-their-sovereign-prerogative-over-the-control-of-the-volume-of-money_-from-then-on_-the-amount-of-the-national-currency-decreased-gradually_-and-was-replaced-by-money-issued-by-private-bankers-in-the-form-of-loans-getting-the-island-into-debt_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-journal_span_span_strong_-_strong_a-href_https_www_michaeljournal_org_articles_social-credit_item_guernsey-s-monetary-experiment_-target_blank_-rel_noopener_https_www_michaeljournal_org_articles_social-credit_item_guernsey-s-monetary-experiment_a_strong_-the-story-does-not-end-there_-as-guernsey_s-debt-free-money-was-created-again-after-this_-and-the-island-still-uses-much-of-this-money_-however_-the-point-is-made-that-anyplace-debt-free-money-is-successful_-private-bankers-will-defend-upon-that-area-to-tell-the-public-and-the-politicians-that-what-they-are-doing-is-impossible-and-that-money-can-only-come-from-debt_-their-proposal-is-very-similar-to-the-groucho-marx-quote_-_blockquote_who-are-you-going-to-believe_-me-or-you-lying-eyes_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li-style_list-style-type_-none_-_ul_-_li_the-tally-stick-was-an-important-innovation-in-the-history-of-money_li_-_li_the-tally-stick-was-the-most-stable-known-type-of-money-and-it-was-fiat-money-not-backed-by-anything_li_-_ul_-_li_-_ul_-_h2_introduction_h2_-_ul_-_li_the-tally-stick-was-created-in-1100-in-england_li_-_li_the-tally-stick-was-the-longest-lasting-and-most-stable-fiat-currency_-for-over-500-years_-could-not-be-counterfeited-as-the-sides-of-the-split-stick-needed-to-match_li_-_li_the-tally-stick-was-eventually-overturned-by-banking-interest_li_-_li_the-success-of-the-demonstrates-that-a-fiat-currency-can-be-anything_-and-the-tally-stick-was-not-backed-by-any-precious-metals_-this-is-explained-in-the-following-quotation_li_-_ul_-_blockquote_the-english-tally-system-originated-with-king-henry-the-first-son-of-william-the-conqueror-who-took-the-throne-in-1100-ad-the-printing-press-had-not-yet-been-invented-and-taxes-were-paid-directly-with-goods-produced-by-the-land_-under-king-henry_s-innovative-system_-payment-was-recorded-with-a-piece-of-wood-that-had-been-notched-and-split-in-half_-one-half-was-kept-by-the-government-and-the-other-by-the-recipient_-to-confirm-payment_-the-two-halves-were-matched-to-make-sure-they-tallied-sense_-no-stick-splits-and-an-even-manner-on-since-the-notches-tally-the-songs-were-cut-right-through-both-of-the-pieces-of-wood_-the-method-was-virtually-foolproof-against-forgery_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_one-view-of-money-the-modern-view_-however_-another-view-is-that-money-should-only-be-considered-and-used-as-a-tally_li_-_ul_-_h2_introduction_h2_-to-tally-means-to-count_-tally-sticks-were-named-such-as-they-counted-the-goods-and-services-that-the-government-purchased-as-part-of-its-spending_-_h2_the-tally-sticks-versus-precious-metals-as-money-model_h2_-the-gold-or-precious-metal-model-of-money_-where-money-has-an-intrinsic-value_-has-not-proven-to-be-an-effective-money-model_-instead_-money-is-a-public-good-and-a-_span-style_color_-_3078c9_strong_tally_-of-goods-and-services_strong_span_-tally-sticks-were-advances-on-taxes-to-be-paid_-soon_-as-with-money-set-up-as-payment-for-taxes_-they-became-used-as-a-means-of-exchange_-this-is-explained-in-the-following-quotation_-_blockquote_tally-sticks-have-no-real-sound-value-themselves-and-cannot-become-scarce_-they_re-just-a-measure-of-the-goods-and-services-in-the-market_-by-collecting-18-tallies-for-18-baskets-you-have-kept-your-baskets-private-stable-and-you-now-have-extra-money-to-put-in-your-straw-mattress-for-a-rainy-day_blockquote_-_blockquote_when-you-need-extra-tallies-to-build-a-larger-house-you-borrow-them-from-the-accountant-who-tallies-the-debt-when-in-accounting-entry_-you-pay-principal-and-interest-on-this-loan-by-increasing-your-basket-production-in-trading-the-additional-baskets-for-additional-tallies-who-pockets-the-interest_-there_s-no-shortage-of-tallies-as-they-are-pegged-to-the-available-goods-and-services_-they-multiply-along-with-this-real-wealth_-but-they-don_t-inflate-beyond-real-wealth_-this-is-because-tallies-and-wealth-goods-and-services-are-come-into-existence-at-the-time-when-you-are-comfortable-with-your-level-of-production_-say-20-baskets-a-month_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a_-_h2_commodities-versus-money_h2_-people-often-propose-to-use-either-a-commodity-_gold_-silver_-as-money_-the-concept-is-that-the-commodity-has-value_-therefore_-the-leap-of-logic-is-to-make-a-paper-or-portable-money-_backed-by_-the-commodity-of-value_-however_-a-good-form-of-money-is-not-itself-inherently-valuable_-and-there-are-few-examples-of-commodities-being-used-as-money-in-history_-the-most-workable-theories-of-money-are-called-either-the-credit-theory_-state-theory_-or-the-seignorage-theory-of-money_-all-of-these-theories-state-that-money-is-a-type-of-social-credit2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_gold-is-commonly-thought-to-be-a-good-money_li_-_li_interestingly_-this-assumption-is-so-common-that-it-requires-investigating-to-find-out-it-is-not_li_-_ul_-_h2_introduction_h2_-gold-has-habitually-been-the-medium-of-exchange-controlled-by-private-banking-interests-and-goldsmiths_-private-banking-interests-have-repeatedly-used-gold-_strong_span-style_color_-_169179_span-style_color_-_398db6_against-government-currencies-to-try-to-undermine-the-government-currency_span_span_strong_-_h2_how-private-banking-interests-continually-seek-to-monopolize-gold-and-undermine-fiat-currencies-with-gold_h2_-private-banking-interests-prevent-gold-as-a-stabilizing-force-when-there-is-little-evidence-this-is-true_-gold-has-many-limitations-as-a-currency-or-as-support-for-the-money_-including-its-scarcity_-private-banking-interests-prefer-gold-as-they-can-_strong_span-style_color_-_e03e2d_monopolize_span_strong_-it_-according-to-steve-keen_-the-global-quantity-of-gold-is-roughly-two-swimming-pools-of-gold_-gold-supported-monies-are-a-logical-fallacy-created-by-bankers-that-try-to_span-style_color_-_2773d6_strong_-wrest-control-of-the-banking-system-and-the-ability-to-issue-money-from-the-government_strong_span_-_h2_benjamin-franklin-on-gold-as-money_h2_-this-reality-was-observed-by-benjamin-franklin-when-the-us-colonies-created-their-own-money_-as-is-explained-in-the-following-quotation_-_blockquote_when-gold-was-a-medium-of-exchange_-money-determined-production-rather-than-the-production-determining-the-money-supply_-when-gold-was-plentiful_-things-got-produced-when-it-was-scarce_-men-were-out-of-work-and-people-knew-want_-the-virtue-of-the-government-issued-paper-script-was-that-it-could-grow-along-with-productivity_-allowing-potential-to-become-real-wealth_-the-new-paper-money-did-more-than-make-the-colonies-independent-of-the-british-bankers-and-their-goal-that-actually-allow-the-colonists-to-finance-their-local-governments-without-taxing-the-people_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_what-is-the-need-for-metal-backing-money_h2_-there-is_strong_-no-need_strong_-for-money-to-be-backed-by-any-hard-asset_-history-has-shown-that-whatever-the-government-calls-money-_even-a-split-wooden-stick-in-the-form-of-the-british-tally-stick_-becomes-money_-as-long-as-that-money-is-declared-as-necessary-to-pay-taxes_-private-bankers-have-less-than-zero-interest-in-following-honest-arguments-because-honest-arguments-lead-to-the-government-issuing-its-own-money-without-interference-from-private-banking-interests_-the-historical-problem-with-using-a-commodity-_gold-is-a-commodity_-as-money-is-that-commodities-are-not-stable_-this-is-explained-in-the-following-quotation_-_blockquote_the-purpose-of-money-is-to-tally-the-value-of-goods-and-services-traded_-facilitating-commerce-between-buyers-and-sellers_-if-the-yardstick-by-which-value-is-tallied-keeps-stretching-and-shrinking-itself_-commerce-is-impaired_-during-the-gold-rush-of-the-1850s_-the-supply-of-gold-shot-up-and-consumer-prices-shot-up-with-it_-from-1917-to-1920_-the-gold-supply-surged-again_-as-gold-came-pouring-into-the-country_-in-exchange-for-war-materials_-the-money-supply-became-seriously-inflated-and-consumer-prices-doubled_-although-the-money-supply-was-supposedly-being-strictly-regulated-by-the-federal-reserve_-during-the-1970s_-the-value-of-gold-soared-from-_440-an-ounce-to-_800-an-ounce_-dropping-back-to-a-low-of-_255-per-ounce-in-february-of-2001_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_h2_the-gold-cycle_h2_-the-impact-of-gold-is-to-_span-style_color_-_398db6_strong_appreciate_strong_span_-during-times-of-economic-instability_-then-decline-again-when-stability-is-regained_-gold-is-much-discussed-without-realizing-that-it-has-very-little-applicability-for-anything-but-as-a-_nervous-investment_-_h2_gold-and-slavery_h2_-gold-also-has-a-long-history-of-being-connected-to-slavery_-and-it-is-not-clear-if-gold-and-slavery-may-have-arisen-together_-this-is-explained-in-the-following-documentary_-_strong_span-style_color_-_99cc00_source_-_span_dw-documentary_strong_-https_www_youtube_com_watch_v_inqvc9c-3k82024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li-style_list-style-type_-none_-_ul_-_li_silver-is-commonly-thought-to-be-a-good-money_li_-_li_interestingly_-this-assumption-is-so-common-that-it-requires-investigating-to-find-out-it-is-not_li_-_ul_-_li_-_ul_-_h2_introduction_h2_-much-less-used-than-gold-and-the-reason-is-it-is-not-sufficiently-scarce-to-allow-private-banking-interests-to-monopolize_-this-is-why-they-do-not-propose-a-silver-standard_-even-though-the-concept-of-a-precious-metal-backing-a-currency-would-be-the-same_-was-the-center-of-the-us-silvers-who-wanted-to-use-it-to-replace-gold_-the-bank-of-england-sent-over-an-agent_-ernest-seyd_-in-1872-to-bribe-us-politicians-to-demonetize-silver_-he-was-successful_-in-1874-seyd-said-the-following-_blockquote_in-1872-i-went-to-america-in-the-winter-of-1872-authorized-to-secure-if-i-could_-the-passage-of-a-bill-demonetizing-silver_-it-was-in-the-interests-of-those-i-represented-the-governors-of-the-bank-of-england-to-have-it-done_-by-1873-gold-coins-were-the-only-form-of-coin-money_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_history-has-shown-there-to-be-many-problems-with-using-precious-metals-as-money_li_-_li_the-reality-is-that-precious-metals-are-only-in-very-rare-circumstances-actually-money_li_-_ul_-_h2_introduction_h2_-precious-metals-are-often-lauded-for-their-historical-use-as-money_-however_-there-are-normally-large-gaps-in-the-explanation-of-the-historical-use-of-precious-metals-which-leads-to-large-oversimplification_-_h2_gold-as-money_h2_-in-the-case-of-gold_-even-when-gold-was-used-as-money_-paper-slips-or-receipts-were-still-used-to-represent-the-gold-instead-of-directly-trading-the-gold_-this-is-nothing-more-than-gold-backed-paper-money_-which-is-not-using-gold-as-money_-_h2_when-the-us-stopped-internal-convertibility-of-the-dollar-into-gold_h2_-up-until-fdr-stopped-the-practice-the-us-dollar-was-redeemable-for-gold_-so-this-is-essentially-a-similar-system_-even-in-countries-with-very-high-inflation_-_strong_span-style_color_-_398db6_gold-is-still-very-rarely-used-as-the-direct-medium-of-exchange_-_span_strong_-this-is-further-elaborated-in-the-following-quotation_-_blockquote_to-be-workable-and-efficient_-the-monetary-system-needs-to-be-supplemented-with-checkbook-money-and-electronic-money_-but-that-means-exposing-it-to-the-same-tampering-and-manipulation-to-which-the-current-fiat-system-is-subject_-there-was-also-the-problem-discussed-earlier-of-keeping-gold-coins-in-circulation_-if-the-coins-are-stamped-with-a-value-that-is-the-actual-market-value-of-the-metal-of-the-time-that-coin-is-produced_-they-are-liable-to-get-smelted-for-their-metal-as-soon-as-the-market-value-goes-up_-coins-are-therefore-usually-issued-with-a-face-value-or-nominal-value-that-is-far-in-excess-of-their-intrinsic-worth_-but-that-destroys-a-very-thing-the-coins-are-supposed-to-be-good-for-preserving-value_-the-more-serious-downside-of-using-gold-as-a-medium-of-exchange-is-that-productivity-becomes-tied-to-the-availability-of-the-metal_-when-gold-flooded-the-market-after-a-major-gold-discovery-in-the-19th-century_-there-was-plenty-of-money-to-hire-workers-so-production-and-employment-went-up_-when-gold-was-scarce-as-when-the-bankers-raise-interest-rates-and-called-in-loans_-there-was-insufficient-money-to-hire-workers-so-production-and-employment-went-down_-but-what-did-the-availability-of-gold-have-to-do-with-the-ability-of-farmers-to-farm_-of-miners-to-mine_-and-builders-to-build_-not-much_blockquote_-_blockquote_instead-countries-begin-to-use-the-currencies-from-other-countries-that-are-stable_-the-logistics-problems-with-gold-are-explained-in-the-following-quotation_blockquote_-_blockquote_there-are-major-practical-problems-involved-in-using-gold-as-a-medium-of-exchange_-if-only-gold-is-used-pennies_-nickels-and-dimes-will-be-so-small_-they_ll-get-lost-in-your-wallet_-while-large-purchases-such-as-houses-will-have-to-be-transacted-and-gold-bars-too-heavy-to-carry-in-a-suitcase_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_why-private-banking-has-not-focused-on-silver-as-money_h2_-as-for-silver_-due-to-its-far-greater-abundance_-silver-is-_strong_less-controllable_strong_-by-private-banking-interests_-which-is-why-it-has-been-the-populist-metal-versus-gold_-its-lower-value-per-ounce-means-that-its-weight-must-be-much-higher_-for-private-banking-interests_-a-good-money-is-one-they-can-buy-up_-monopolize-and-control_-and-the-scarcity-of-gold-makes-this-metal-the-preferred-metal-for-private-bankers2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_precious-metals-are-often-proposed-as-a-good-form-of-money-when-there-are-severe-economic-problems_li_-_li_less-frequently-discussed-is-the-use-of-guns-and-ammunition_li_-_ul_-_h2_introduction_h2_-guns-and-ammunition-appreciate-during-times-of-instability_-depending-upon-the-gun-of-course_-during-stable-times_-guns-are-valued-at-the-cost-of-replacement-through-manufacturing_-however_-during-unstable-times_-guns-are-valued-for-what-they-can-do_-guns-are-difficult-to-counterfeit-and-can-be-proven-to-be-functional-at-the-time-of-the-transaction-by-shooting-bullets-at-targets_-while-guns-might-be-considered-a-large-denomination_-ammunition-can-be-sold-in-small-denominations_-during-times-of-great-instability_-guns-can-be-a-more-desirable-asset-to-own-than-precious-metals2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_gold-has-an-abysmal-history-as-either-money-or-serving-as-a-backing-for-fiat-money_li_-_ul_-_h2_introduction_h2_-some-of-the-best-selling-books-on-economics_-investing_-and-money-routinely-have-_span-style_color_-_e03e2d_strong_false-histories_strong_span_-of-gold-as-money_-a-good-example-is-found-in-the-book-the-everything-bubble_-see-the-following-quotation_-_blockquote_in-the-aftermath-of-wwi_-many-countries-in-europe-abandoned-any-link-between-their-currencies-and-gold_-as-soon-as-they-did-this_-they-began-printing-vast-amounts-of-their-currencies_-the-currency-debasement-resulted-in-the-british-pound_-french-franc_-and-german-reichsmark-losing-considerable-value-against-the-us-dollar_-this-combined-with-capital-fleeing-europe-for-the-united-states_-pushed-the-us-dollar-higher-for-a-time_blockquote_-this-part-about-inflation-is-genuine_-but-the-reasons-provided-are-not_-the-quote-presumes-that-currencies-should-be-linked-to-gold-and-that-delinking-them-from-gold-leads-to-inflation_-furthermore_-the-quote-said-many-countries-began-printing-vast-amounts-of-their-currencies_-this-is-inaccurate_-the-private-central-banks-produced-inflation_-_strong_span-style_color_-_1d79cf_not-the-governments_span_strong_-all-of-the-european-governments-at-this-time-had-private-central-banks_-in-the-case-of-germany_-it-was-the-reichsbank-that-was-producing-reichmarks-for-speculators_-_h2_what-is-also-left-out_h2_-all-of-these-countries-were-recovering-from-wwi-and-had-depressed-productive-capacity_-this-meant-more-money-was-in-circulation-than-there-was-demand_-the-author-of-this-book-leaves-out-why-these-countries-dropped-the-linkage-to-gold-and-also-leaves-out-the-flawed-history-of-gold-backed-currencies_-this-is-commonplace_-it-is-rare-for-people-that-work-or-writes-on-finance-to-understand-money-and-its-history_-if-they-did_-they-would-not-make-the-errors-that-are-so-frequent_-as-in-the-above-example_-_strong_span-style_color_-_99cc00_source_-_span_the-everything-bubble_strong_-_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_strong_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_there-are-three-types-of-money_-fiat_-commodity_-and-credit_li_-_ul_-_h2_introduction_h2_-this-quote-explains-the-three-types-of-money_-_blockquote_historically_-there-have-been-three-categories-of-money_-commodity_-credit_-and-fiat_-commodity-money-consists-of-some-durable-material-of-intrinsic-value_-typically-gold-or-silver-coin_-which-has-some-value-other-than-as-a-medium-of-exchange_-gold-and-silver-have-industrial-uses-as-well-as-an-aesthetic-value-as-jewelry_-credit-money-refers-to-the-liability-of-some-individual-or-firm_-usually-a-checkable-bank-deposit_-fiat-money-is-a-tax-credit-not-backed-by-any-tangible-asset_blockquote_-this-is-a-curious-explanation-of-money-because-virtually-no-one-considers-or-talks-of-credit-as-money-or-thinks-of-fiat-money-as-a-tax-credit_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_soft-currency-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-center-for-economic-policy-research-is-one-of-the-most-important-non-mainstream-economist-organizations_li_-_ul_-_h2_introduction_h2_-the-cepr-is-one-of-the-most-important-counter-mainstream-economics-websites-and-publishers_-its-co-founders-are-dean-baker-and-mike-weisbrot2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-european-central-bank-is-often-thought-to-support-the-eu-countries_-but-it-is-a-primary-force-for-bad-outcomes-for-these-countries_li_-_ul_-_h2_introduction_h2_-the-ecb-is-described-in-the-following-quotation_-_blockquote_its-stock-held-by-the-eu-27-member-countries_-and-the-ecb-is-based-in-frankfurt_-which-is-the-point-of-origin-of-the-rothschilds-banking-family-which-also-dominates-the-bank-of-england-and-which-had-controlling-interest-in-all-of-the-private-banking-interest-us-central-banks_-three-banks_-the-bank-of-france_-the-german-bundesbank-and-the-bank-of-italy-control-62_-of-the-bank_s-paid-up-capital_-loans-from-the-eu-and-therefore-the-ecb-are-met-with-requirements-for-austerity_-the-following-describes-the-fact-that-nearly-all-of-the-individual-central-banks-in-the-ec-member-countries-are-public_-_moreover_-the-fed_s-private-ownership-is-now-out-of-step-with-practically-every-other-major-central-bank-around-the-world_-for-example_-the-bank-of-canada-and-the-bank-of-england-became-public-in-1938-and-1946_-respectively_-while-the-european-central-bank-has-been-a-public-institution-since-its-inception-in-the-1990s_-nearly-all-of-the-19-national-central-banks-in-the-eurozone-are-fully-public_-the-lone-exceptions-are-belgium_-greece_-and-italy_-and-the-bank-of-japan-and-the-swiss-national-bank-each-have-miniscule-amounts-of-outstanding-shares_-the-majority-of-which-are-held-by-other-public-institutions_-_strong_-a-public-fed_-why-and-how_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_economic-policy-institute_span_span_strong_-_strong_a-href_https_www_epi_org_publication_making-the-federal-reserve-fully-public-why-and-how_-target_blank_-rel_noopener_https_www_epi_org_publication_making-the-federal-reserve-fully-public-why-and-how_a_strong_-however_-this-begs-why-the-individual-central-banks-in-europe-appear-to-follow-the-interests-of-private-bankers-rather-than-public-banking_-the-creation-of-the-ecb-is-curious-because-the-following-quote-from-fed-critic-and-us-congressman-louis-mcfadden-indicated-that-international-banking-interests-had-a-desire-to-be-supernational_-_blockquote_the-federal-reserve-bank-of-new-york-is-eager-to-enter-into-close-relationship-with-the-bank-for-international-settlements_the-conclusion-is-impossible-to-escape-that-the-state-and-treasury-departments-are-willing-to-pool-the-banking-system-of-europe-and-america_-setting-up-a-world-financial-power-independent-of-and-above-the-government-of-the-united-states_the-united-states-under-present-conditions-will-be-transformed-from-the-most-active-of-manufacturing-nations-into-a-consuming-and-importing-nation-with-a-balance-of-trade-against-it_-_strong_-louis-mcfadden-_-az-quotes_strong_blockquote_-and-this-quote-_blockquote_the-powers-of-financial-capitalism-had-a-far-reaching-aim_-nothing-less-than-to-create-a-world-system-of-financial-control-in-private-hands-able-to-dominate-the-political-system-of-each-country-and-the-economy-of-the-world-as-a-whole_-this-system-was-to-be-controlled-in-a-feudalist-fashion-by-the-central-banks-of-the-world-acting-in-concert_-by-secret-agreements-arrived-at-in-frequent-meetings-and-conferences_-_strong_-carroll-quigley-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/ostensibly-designed-to-support-international-infrastructure-investment_-but-also-a-cat_s-paw-of-private-banking-interests_-the-eib-is-a-major-promoter-of-highly-corrupt-ppps_-or-public-private-partnerships_-which-place-the-infrastructure-investment-off-of-the-country_s-balance-sheets-which-is-promoted-by-the-eu_s-restrictions-on-government-spending-and-on-the-eu_s-eurostat-rule-that-place-ppp-projects-off-of-each-country_s-balance-sheets_-the-primary-purpose-of-the-eib-is-to-_guide_-public-investment-to-corrupt-private-entities-that-are-connected-to-the-eib_-the-eib_-while-named-europe_-functions-in-africa_-reducing-the-effcicency-and-increasing-the-waste-in-infrastructure-projects-there-as-well_-the-corruption-built-into-the-eib-and-the-ppps-it-endores-is-found-in-the-following-quotation_-_as-more-and-more-government-functions-get-privatized_-states-become-pay-to-play-paradises_-in-which-both-political-contributions-and-contracts-for-friends-and-relatives-become-a-quid-pro-quo-for-getting-government-business_-a-corrupt-nexus-of-privatization-and-patronage-that-is-undermining-government-across-much-of-our-nation_-paul-krugman_-and-in-this-quotation_-_in-the-water-sector_-courts-in-france-have-convicted-executives-and-public-officials-for-bribes-paid-by-suez-and-veolia-subsidiaries-in-the-cities-of-grenoble-and-angouleme-and-the-island-of-reunion_-a-1997-report-by-the-cour-des-comptes_-france_s-national-audit-body_-said-that-the-system-of-_delegated-management_-on-which-suez-and-veolia-built-their-national-dominance-was-systematically-flawed_-_the-lack-of-supervision-and-control-of-delegated-public-services_-aggravated-by-the-lack-of-transparency-of-this-form-of-management_-has-led-to-abuses_-in-2002-a-senior-executive-of-vivendi-_now-veolia_-was-convicted-of-planning-to-bribe-local-politicians-in-the-both-the-majority-and-opposition-parties-of-milan-city-council-in-order-to-win-the-tender-for-a-wastewater-treatment-plant-in-the-south-of-milan_-italy_-why-ppp-doesn_t-work2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-european-bank-for-reconstruction-and-development-is-an-infrastructure-bank-that-is-used-to-control-and-privatize-infrastructure_li_-_ul_-_h2_introduction_h2_-the-ebrd-is-like-the-eib-in-that-they-are-a-cat_s-paw-for-private-investment-banks_-but-in-eastern-europe2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-imf-is-an-international-banking-cartel-that-imposes-neoliberal-policies-on-countries-through-banking-control_li_-_ul_-_h2_introduction_h2_-the-imf-was-formed-in-order-to-establish-exchange-rates_-however_-they-now-follow-neoliberal-policies-which-seek-to-get-countries-into-hock_-and-they-enforce-austerity-on-these-countries-and-turn-them-into-colonies-of-the-us-and-europe_-countries-that-follow-the-neoliberal-imf-economists-find-themselves-far-worse-off_-those-countries-that-ignore-the-imf-flourish_-_h2_who-funds-the-imf_h2_-the-imf-is-funded-by-the-us-treasury_-it-pretends-to-be-an-_international-organization_-with-_190_-member-countries_-but-that-is-a-cover-story_-the-imf-is-an-extension-of-both-us-foreign-policy-and-international-banking-interests_-for-example_-when-hugo-chavez-was-deposed-in-a-military-coup-that-was-a-coordinated-effort-between-the-cia_-multinationals_-and-the-political-elite-in-venezuela_-the-imf-immediately-moved-to-recognize-the-new-government_-even-though-it-was-not-elected_-the-imf-seemed-to-recognize-the-new-political-regime-incredibly-quickly_-almost-as-if-they-knew-it-was-going-to-happen-before-it-happened_-almost-as-if-they-participate-in-meetings-with-the-cia-and-had-an-action-ready-to-go-which-would-make-the-coup-appear-as-if-it-was-legitimate-through-imf-recognition_-another-entity-that-quickly-supported-the-coup-was-the-new-york-times_-which-also-may-have-been-given-a-tip-by-us-authorities-that-it-was-going-to-happen_-the-faux-international-nature-of-the-imf-is-explained-in-the-following-quotation_-_blockquote_the-international-monetary-fund-appears-to-be-a-part-of-the-united-nations_-much-as-the-federal-reserve-system-appears-to-be-a-part-of-the-united-states-government_-but-it-is-entirely-independent_-it-is-funded-on-a-quota-basis-by-its-member-nations_-almost-two-hundred-in-number_-the-greatest-share-of-capital_-however_-comes-from-the-more-highly-industrialized-nations-such-as-great-britain_-japan_-france_-and-germany_-the-united-states-contributes-the-most_-at-about-twenty-per-cent-of-the-total_-in-reality_-that-twenty-per-cent-represents-about-twice-as-much-as-the-number-indicates_-because-most-of-the-other-nations-contribute-worthless-currencies-which-no-one-wants_-the-world-prefers-dollars_-one-of-the-routine-operations-at-the-imf-is-to-exchange-worthless-currencies-for-dollars-so-the-weaker-countries-can-pay-their-international-bills_-this-is-supposed-to-cover-temporary-cash-flow_-problems_-it-is-a-kind-of-international-fdic-which-rushes-money-to-a-country-that-has-gone-bankrupt-so-it-can-avoid-devaluing-its-currency_-the-transactions-are-seldom-paid-back_-although-escape-from-the-gold-exchange-standard-was-the-long-range-goal-of-the-imf_-the-only-way-to-convince-nations-to-participate-at-the-outset-was-to-use-gold-itself-as-a-backing-for-its-own-money-supply_at-least-as-a-temporary-expedient_-as-keynes-explained-it_-i-felt-that-the-leading-central-banks-would-never-voluntarily-relinquish-the-then-existing-forms-of-the-gold-standard_-and-i-did-not-desire-a-catastrophe-sufficiently-violent-to-shake-them-off-involuntarily_-the-only-practical-hope-lay_-therefore_-in-a-gradual-evolution-in-the-forms-of-a-managed-world-currency_-taking-the-existing-gold-standard-as-a-starting-point_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h2_how-the-imf-works_h2_-_blockquote_whereas-the-international-monetary-fund-is-evolving-into-a-world-central-bank-which-eventually-will-issue-a-world-currency-based-on-nothing_-its-sister-organization_-the-world-bank_-has-become-its-lending-agency_-acting-as-savior-of-the-world_-it-seeks-to-aid-the-underdeveloped-nations_-to-feed-the-hungry_-and-to-bring-a-better-life-to-all-mankind_-in-pursuit-of-these-humanitarian-goals_-it-provides-loans-to-governments-at-favorable-terms_-usually-at-rates-below-market_-for-terms-as-long-as-fifty-years_-and-often-with-no-payments-due-until-after-ten-years_-funding-for-these-loans-comes-from-member-states-in-the-form-of-a-small-amount-of-cash_-plus-promises-to-deliver-about-ten-times-more-if-the-bank-gets-into-trouble_-the-promises_-described-as-_-callable-capital_-constitute-a-kind-of-fdic-insurance-program-but-with-no-pretense-at-maintaining-a-reserve-fund_-_in-that-sense-it-is-more-honest-than-the-real-fdic-which-does-maintain-the-pretense-but_-in-reality_-is-based-on-nothing-more-than-a-similar-promise_-based-upon-the-small-amount-of-seed-money-plus-the-far-greater-amount-of-_credits_-and-_promises_-from-governments-of-the-industrialized-countries_-the-world-bank-is-able-to-go-into-the-commercial-loan-markets-and-borrow-larger-sums-at-extremely-low-interest-rates_-after-all_-the-loans-are-backed-by-the-most-powerful-governments-in-the-world-which-have-promised-to-force-their-taxpayers-to-make-the-payments-if-the-bank-should-get-into-trouble_-it-then-takes-these-funds-and-relends-them-to-the-underdeveloped-countries-at-slightly-higher-rates_-making-a-profit-on-the-arbitrage_-the-unseen-aspect-of-this-operation-is-that-the-money-it-processes-is-money-which_-otherwise_-would-have-been-available-for-investment-in-the-private-sector-or-as-loans-to-consumers_-it-siphons-off-much-needed-development-capital-for-private-industry_-prevents-new-jobs-from-being-created_-causes-interest-rates-to-rise_-and-retards-the-economy-at-large_-although-most-of-the-policy-statements-of-the-world-bank-deal-with-economic-issues_-a-close-monitoring-of-its-activities-reveal-a-preoccupation-with-social-and-political-issues_-this-should-not-be-surprising-considering-that-the-bank-was-perceived-by-its-founders-as-an-instrument-for-social-and-political-change_-the-change-which-it-was-designed-to-bring-about-was-the-building-of-world-socialism_-and-that-is-exactly-what-it-is-accomplishing-today_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-the-change-the-imf-proposes-is-always-neoliberalism_-which-is-to-financialize-economies_-privatize-their-infrastructure_-and-reduce-the-impact-of-participatory-government_-making-private-banking-interest-the-primary-decision-makers-in-all-countries_-_h2_how-the-imf-supports-regimes-friendly-to-the-us_h2_-whether-and-how-much-countries-get-from-the-imf-is-highly-politically-determined-by-what-us-foreign-policy-thinks-of-a-regime_-this-is-expressed-in-the-following-quotation_-_blockquote_nowhere-is-this-pattern-more-blatant-than-in-africa_-julius-nyerere_-the-dictator-of-tanzania_-is-notorious-for-his-_villagization_-program-in-which-the-army-has-driven-the-peasants-from-their-land_-burned-their-huts_-and-loaded-them-like-cattle-into-trucks-for-relocation-into-government-villages_-the-purpose-is-to-eliminate-opposition-by-bringing-everyone-into-compounds-where-they-can-be-watched-and-controlled_-meanwhile-the-economy-staggers_-farms-have-gone-to-weed_-and-hunger-is-commonplace_-yet_-tanzania-has-received-more-aid-per-capita-from-the-world-bank-than-any-other-nation_-in-uganda_-government-security-forces-have-engaged-in-mass-detentions_-torture_-and-killing-of-prisoners_-the-same-is-true-under-the-terrorist-government-in-zimbabwe_-yet_-both-regimes-continue-to-be-the-recipients-of-millions-of-dollars-in-world-bank-funding_-zimbabwe-_formerly-rhodesia_-is-a-classic-case_-after-its-independence_-the-leftist-government-nationalized-_confiscated_-many-of-the-farms-previously-owned-by-white-settlers_-the-most-desirable-of-these-lands-became-occupied-by-the-government_s-senior-ruling-party-officials_-and-the-rest-were-turned-into-state-run-collectives_-they-were-such-miserable-failures-that-the-workers-on-these-farmlands-were_-themselves_-soon-begging-for-food_-not-daunted-by-these-failures_-the-socialist-politicians-announced-in-1991-that-they-were-going-to-nationalize-half-of-the-remaining-farms-as-well_-and-they-barred-the-courts-from-inquiring-into-how-much-compensation-would-be-paid-to-their-owners_-the-imf-was-represented-in-zimbabwe-at-the-time-by-michel-c-a-m-d-e-s-s-u-s-_-the-governor-of-the-central-bank-of-france_-and-a-former-finance-minister-in-francois-mitterrand_s-socialist-government_-after-being-informed-of-zimbabwe_s-plan-to-confiscate-additional-land-and-to-resettle-people-to-work-on-those-lands_-c-a-m-d-e-s-s-u-s-agreed-to-a-loan-valued-at-42-billion-rands-with-full-knowledge-that-much-of-it-would-be-used-for-the-resettlement-project_-perhaps-the-worst-violations-of-human-rights-have-occurred-in-ethiopia-under-the-marxist-regime-of-mengistu-haile-mariam_-the-famine-of-1984-85_-which-threatened-the-lives-of-millions-of-people_-was-the-result-of-government-nationalization-and-disruption-of-agriculture_-massive-resettlement-programs-have-torn-hundreds-of-thousands-of-people-from-their-privately-owned-land-in-the-north-and-deported-them-to-concentration-camp-_villages_-in-the-south_-complete-with-guard-towers_-a-report-by-a-french-voluntary-medical-assistance-group_-doctors-without-borders_-reveals-that-the-forced-resettlement-program-may-have-killed-as-many-people-as-the-famine-itself_1-dr_-rony-brauman_-director-of-the-organization_-describes-their-experience_-armed-militiamen-burst-into-our-compounds_-seized-our-equipment-and-menaced-our-volunteers_-some-of-our-employees-were-beaten_-and-our-trucks_-medicines-and-food-stores-confiscated_-we-left-ethiopia-branded-as-enemies-of-the-revolution_-the-regime-spoke-the-truth_-the-atrocities-committed-in-the-name-of-mengistu_s-master-plan-did-make-us-enemies-of-the-revolution_-in-the-1980s_-the-world-was-saddened-by-photographs-of-starving-children-in-ethiopia_-but-what-the-west-did-not-realize-was-that-this-was-a-planned-famine_-it-was-modelled-after-stalin_s-j-_ethiopia-bars-relief-team_-by-blaine-harden_-washington-post_-december-3_-1985_-p_-a-21_-_-_famine-aid_-were-we-duped_-by-dr_-rony-brauman_-raider_s-digest_-october-_1986_-p_-7_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_imf-and-world-bank-as-protege-of-the-fed_span_h1_-while-the-fed-was-setup-to-be-purely-a-central-bank-and-focused-on-the-money-of-the-us_-it-has-since-its-inception-been-involved-in-international-affairs_-negatively-intervening-in-the-affairs-of-other-countries_-this-pattern-has-grown-as-time-has-progressed-from-its-origination-in-1913_1914_-this-is-expressed-in-the-following-quotation_-_blockquote_the-imf_world-bank-is-the-protege-of-the-federal-reserve_-it-would-not-exist-without-the-flow-of-american-dollars-and-the-benevolence-of-american-leadership_-the-fed-has-become-an-accomplice-in-the-support-of-totalitarian-regimes-throughout-the-world_-as-stated-at-the-beginning-of-this-study_-that-is-one-of-the-reasons-it-should-be-abolished_-it-is-an-instrument-of-totalitarianism_-while-the-top-leaders-and-theoreticians-at-the-imf-and-world-bank-dream-of-world-socialism_-the-middle-managers-and-political-rulers-have-more-immediate-goals-in-mind_-the-bureaucracy-enjoys-a-plush-life-administering-the-process_-and-the-politicians-on-the-receiving-end-obtain-wealth-and-power_-ideology-is-not-their-concern_-socialism_-capitalism_-fascism_-it-makes-no-difference-to-them-as-long-as-the-money-flows_-graham-hancock-has-been-an-astute-observer-of-the-international-aid-_industry_-and-has-attended-their-plush-conferences_-he-knows-many-of-the-leading-players-personally_-in-his-book_-lords-of-poverty_-he-speaks-of-the-imf_s-structural-adjustment-loans_-corrupt-ministers-of-finance-and-dictatorial-presidents-from-asia_-africa_-and-latin-america-are-tripping-over-their-own-expensive-footwear-in-their-unseemly-haste-to-_get-adjusted_-for-such-people_-money-has-probably-never-been-easier-to-obtain-than-it-is-today_-with-george-bernard-shaw_-the-intelligent-woman_s-guide-to-socialism-and-capitalism-i928_-rpt_-new-brunswick_-new-jersey_-transaction-books_-1984_-p_-470_blockquote_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-true-purpose-of-imf-and-world-bank-loans-_span_h1_-this-is-explained-in-the-following-quotation_-_blockquote_loans-from-the-imf_world-bank-are-used-primarily-to-perpetuate-themselves-and-their-ruling-parties-in-power_and-that-is-exactly-what-the-imf_world-bank-intends_-rhetoric-about-helping-the-poor-notwithstanding_-the-true-goal-of-the-transfer-of-wealth-disguised-as-loans-is-to-get-control-over-the-leaders-of-the-less-developed-countries_-after-these-despots-get-used-to-the-taste-of-such-an-unlimited-supply-of-sweet-cash_-they-will-never-be-able-to-break-the-habit_-they-will-be-content_already-are-content_to-become-little-gold-plated-cogs-in-the-giant-machinery-of-world-government_-ideology-means-nothing-to-them_-capitalist_-communist_-socialist_-fascist_-what-does-it-matter-so-long-as-the-money-keeps-coming_-the-imf_world-bank-literally-is-buying-these-countries-and-using-our-money-to-do-it_-the-recent-inclusion-of-red-china-and-the-former-soviet-bloc-on-the-list-of-imf_world-bank-recipient-countries-signals-the-final-phase-of-the-game_-now-that-latin-america-and-africa-have-been-_purchased_-into-the-new-world-order_-this-is-the-final-frontier_-in-a-relatively-short-time-span_-china_-russia_-and-the-eastern-european-countries-have-now-become-the-biggest-borrowers-and_-already_-they-are-in-arrears-on-their-payments_-this-is-where-the-action-will-lie-in-the-months-ahead_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_fedspeak-is-an-orwellian-method-of-speaking-that-seeks-to-deceive-listeners_li_-_ul_-_h2_introduction_h2_-the-point-of-fedspeak-is-to-confuse-the-audience-as-to-the-reality-of-what-the-fed-does_-for-example_-fed-chairman-was-known-as-being-notorious-inscrutable_-the-term-was-coined-by-ellen-brown2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-bank-of-england-is-a-central-bank-that-has-been-a-force-for-domination-by-private-bankers-since-its-inception_li_-_ul_-_h2_introduction_h2_-this-is-a-private-banking-controlled-central-bank-that-masquerades-as-being-controlled-by-the-british-government_-the-bank-of-england-formed-due-to-king-william-iii-needing-a-loan-in-1694-for-a-war-with-france_-this-marks-the-original-sin-for-the-evolution-of-private-banking-interests_-since-this-time_-the-bank-of-england-has-been-a-major-world-exporter-of-the-corrupt-and-extractive-private-central-bank-model2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-first-bank-of-the-united-states-was-created-as-a-private-central-bank-after-the-american-revolution_li_-_ul_-_h2_introduction_h2_-this-was-the-first-attempt-of-the-private-banking-interests-to-take-over-us-money-creation_-its-charter-renewal-was-blocked-in-party-by-the-efforts-of-james-madison_-bank_s-stockholders-were-kept-secret-initially_-but-upon-dissolution_-it-was-discovered-80_-of-the-stockholders-were-foreign-banks_-a-major-stockholder-being-the-bank-of-england-that-was-controlled-by-the-rothschilds_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-early-us-debates-over-centralized-banking-_span_h1_-the-creation-of-the-first-bank-of-the-united-states-was-the-subject-of-great-debate_-this-is-explained-in-the-following-quotation_-_blockquote_these-fears-of-centralized-banking-would-continue-for-generations_-they-would-erupt-in-full-force-during-the-debates-over-the-first-bank-and-the-second-bank-of-the-united-states_-the-national-dialogue-involved-in-the-chartering-of-these-two-banks-became-deeply-charged-and-highly-consequential-for-both-their-friends-and-foes-and-caused-so-much-anxiety-and-debate-that-a-national-bank-was-twice-created-and-twice-defeated_-the-first-bank-of-the-united-states_-championed-by-alexander-hamilton_-approved-by-president-george-washington_-and-opposed-by-thomas-jefferson-and-james-madison_-was-given-a-twenty-year-charter-in-1791_-when-the-charter-expired-in-1811_-the-populist-proagrarian-opponents-won-over-the-commercial-class_s-advocacy-by-a-single-vote_-and-the-bank-was-dead_29-increasingly_-fears-of-bank-power-clashed-with-economic-efficiency_-the-national-government-needed-credit_-and-a-uniform-currency-aided-by-a-national-bank-was-the-only-way-to-achieve-it_-this-caused-one-early-opponent_-james-madison_-to-change-his-mind-about-banking-once-he-became-president_-after-the-war-of-1812_-the-fiscal-state-of-the-nation-was-in-disarray_-and-president-madison-pushed-for-a-second-national-bank_-the-second-bank-of-the-united-states-was-chartered-in-1816_-madison-used-the-bank-to-fund-the-government-after-the-war-and-restore-fiscal-order_-but-the-bank-never-became-popular-or-widely-accepted_-in-part-thanks-to-president-andrew-jackson-leading-a-vehement-opposition-to-the-bank_-referred-to-as-a-_bank-war_-jackson-used-his-executive-power-to-remove-the-bank_s-funds_-and-the-bank-fought-back-by-calling-in-its-loans-and-bankrupting-many-banks-in-the-country_-the-dispute-was-best-described-by-jackson-himself_-_the-bank-is-trying-to-kill-me_-but-i-will-kill-it_jackson-shared-jefferson_s-agrarian-disdain-for-banks-and-was-concerned-that-the-national-bank-would-concentrate-financial-power-and-influence-to-the-detriment-of-the-_common-man_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-underscores-the-point-that-james-madison-did-not-understand-banking_-he-never-needed-to-create-a-bank_-as-the-us-never-needed-to-borrow-any-money_-it-is-impossible-to-have-a-need-to-borrow-something-that-you-can-create_-this-fact-is-hidden-from-politicians-by-bankers2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-second-bank-of-the-united-states-was-created-as-a-private-central-bank-after-the-american-revolution_li_-_ul_-_h2_introduction_h2_-this-was-the-second-attempt-of-the-private-banking-interests-to-take-over-us-money-creation_-the-foreign-ownership-was-virtually-identical-to-the-first-bank-of-the-united-states_-study-shows-that-politicians-were-much-more-knowledgeable-about-the-problems-with-a-private-central-bank_-this-knowledge-has-dissipated-in-the-modern-era_-with-most-politicians-having-no-idea-how-the-fed_-the-latest-private-central-bank-functions_-or-how-it-does-not-serve-a-public-good-function_-_h2_the-nonrenewal-of-the-second-bank-of-the-united-states_h2_-the-following-describes-the-opposition-to-the-second-bank-of-the-united-states_-_blockquote_senator-thomas-hart-benton-of-missouri-stated-in-1831_-_i-object-to-the-renewal-of-the-charter-of-the-bank-of-the-united-states-because-i-look-upon-the-bank-as-an-institution-too-great-and-powerful-to-be-tolerated-in-a-government-of-free-and-equal-laws_-its-power-is-that-of-a-purse_-a-power-more-potent-than-the-sword_-a-strong-coalition-of-small-bankers-and-farmers-and-their-strong-ally-in-the-white-house-led-the-charge_-and-in-1836_-the-second-bank_s-twenty-year-charter-was-allowed-to-expire_-jackson_s-fears-were-naive-and-misguided_-he-thought-that-by-killing-the-central-bank_-he-was-diminishing-private-bank-power-and-elevating-_the-people_-in-fact_-without-a-central-bank-to-provide-liquidity-and-stability_-the-nation-would-enter-an-era-of-repeated-banking-crises_-historian-charles-geisst-explained_-_by-curtailing-the-development-of-a-central-bank_-the-commercial-banking-institutions-of-the-day-were-given-more-de-facto-power-over-their-own-states_-banking-systems-than-otherwise-might-have-been-the-case_-investment-firms-took-advantage-of-the-federal-government_s-absence-from-the-banking-sphere-to-enter-unregulated-securities-and-bonds-markets_-creating-unstable-and-panic-ridden-financial-markets-that-otherwise-could-have-been-supervised-and-overseen-by-a-strong-central-bank-that-had-the-nation_s-financial-health-as-its-first-priority_-still_-jackson-felt-empowered-to-get-rid-of-the-bank_-based-on-his-fears_-government-policies_-no-matter-how-erroneous_-trumped-bank-profitability_-it-is-important-to-point-out-the-stakes-in-these-early-debates_-both-advocates-and-opponents-of-the-early-banks-recognized-that-national-and-centralized-banking-could-solve-formidable-financial-problems-and-increase-credit-to-both-the-government-and-the-populace_-the-debates-surrounding-these-banks-did-not-focus-on-the-profitability-or-success-of-the-bank-itself_-but-about-what-a-national-bank-meant-for-the-country_-it-was-a-debate-about-the-nature-of-the-democracy_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-gets-to-the-topic-of-how-banking-charters-used-to-be-limited_-_blockquote_in-particular_-early-state-laws-attempted-to-keep-banks-small-and-short-lived_-in-keeping-with-widely-held-fears-of-concentrated-economic-power_-the-state-of-new-york_-for-example_-issued-all-of-its-banks-charters-with-an-expiration-date_-legislatures-renewed-the-charters-subject-to-conditions-or-more-commonly_-denied-requests-for-charter-extensions-to-keep-banks-from-amassing-too-much-power-or-market-share_-in-addition_-state-law-imposed-participation-requirements-to-prevent-privately-controlled-banks-from-being-dominated-by-a-few-individuals-or-economic-interests_-one-historian-asserts_-_in-practice-state-legislatures-viewed-banking-corporations-as-instrumentalities-of-the-state_-established-to-serve-various-public-purposes-as-well-as-the-private-interests-of-stockholders-and-borrowers_-in-schaake-v_-dolley_-the-kansas-supreme-court-explained-that-banking-is-not-_a-matter-of-private-concern-only_-like-the-business-of-the-merchant_-and-for-all-purposes-of-legislative-regulation-and-control-it-may-be-said-to-be-_affected-with-a-public-interest_-_-the-court-made-it-clear-that-banking-needs-to-be-distinguished-from-_ordinary-private-business_-because-of-its-_public-nature_-because-banks-received-_public-patronage_-a-state-bank-was-_a-trustee-of-the-fiscal-affairs-of-the-people-and-of-the-state_-the-most-important-charter-impositions_-and-the-most-long-lasting_-were-prohibitions-on-bank-size-and-location_-unit-banking_-wherein-a-single-bank-operates-in-a-single-region_-was-the-norm-in-u_s_-banking-for-almost-two-centuries_-most-banks-did-not-open-branches-outside-a-state_-or-even-within-a-state-in-many-cases_-for-much-of-u_s_-banking-history_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-this-was-designed-to-control-banks_-however_-bank-charters-are-now-no-longer-designed-to-expire_-this-of-course-places-the-power-with-banks_-both-central-banks_-and-private-banks2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-banking-act-brought-into-existence-the-federal-reserve-bank-of-the-us_-which-is-the-us-central-bank_li_-_ul_-_h2_introduction_h2_-the-us-federal-reserve-act-was-passed-before-christmas-and-written-in-a-way-such-that-those-that-voted-on-it-could-barely-tell-what-it-meant_-the-promoters-of-the-act-granted-fake-concessions-to-put-the-mind-at-of-east-of-those-that-opposed-a-private-central-bank_-if-the-politicians-knew-what-they-were-voting-for_-it-is-unlikely-this-act-of-1913-would-have-been-passed_-this-quote-from-us-congressman-charles-limburgh-described-what-he-saw-as-the-reason-for-this-act_-_blockquote_the-aldrich-plan-_the-first-name-for-the-us-federal-reserve-act_-is-the-wall-street-plan_-it-means-another-panic_-if-necessary_-to-intimidate-the-people_-aldrich_-paid-by-the-government-to-represent-the-people_-proposes-a-plan-for-the-trusts-instead_-_strong_-az-quotes_strong_blockquote_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_woodrow-wilson-on-the-federal-reserve-act-_span_h1_-woodrow-wilson-was-run-by-morgan-bank-in-the-1912-election-and-only-won-because-morgan-bank-split-the-ticket-against-willam-taft-by-bringing-theodore-roosevelt-out-of-retirement_-wilson-ran-against-a-central-bank_-however_-just-one-year-later-the-federal-reserve-act-is-passed_-wilson_s-involvement-is-explained-in-the-following-quotation_-_blockquote_progressives_-including-william-jennings-bryan_-fiercely-opposed-it-because-they-wanted-central-banking-under-public_-not-private_-control_-democrat-woodrow-wilson-agreed-that-the-plan-was-unacceptable-in-a-democracy-and-killed-it-during-the-1912-election_-he-articulated-his-position-on-centralized-banking-power-on-the-campaign-trail_-_the-great-monopoly-in-this-country-is-the-monopoly-of-big-credits_-so-long-as-that-exists_-our-old-variety-and-freedom-and-individual-energy-of-development-are-out-of-the-question_-a-great-industrial-nation-is-controlled-by-its-system-of-credit_-our-system-of-credit-is-privately-concentrated_-the-growth-of-the-nation_-therefore_-and-all-our-activities-are-in-the-hands-of-a-few-men_-who_-even-if-their-actions-be-honest-and-intended-for-the-public-interest_-are-necessarily-concentrated-upon-the-great-undertakings-in-which-their-own-money-is-involved-and-who_-necessarily_-by-every-reason-of-their-own-limitations_-chill-and-check-and-destroy-genuine-economic-freedom-_-and-the-true-liberties-of-men_-once-in-office_-the-wilson-administration-set-out-to-form-a-central-bank-to-meet-the-needs-of-private-bankers-but-allay-populist-fears_-the-1913-federal-reserve-act-reflected-such-a-compromise_-the-act-created-twelve-regional-federal-reserve-banks-across-the-country-with-the-ability-to-offer-transaction-services-and-make-emergency-loans_-these-banks_-shares-would-be-owned-by-_member-banks_-individual-banks-within-the-geographic-district-that-joined-the-system_-they-could-also-elect-a-majority-of-its-directors_-but-a-centralized-federal-reserve-board_-appointed-by-the-president-and-confirmed-by-the-senate_-would-have-the-final-say-about-policy-and-make-national-monetary-policy_-the-system-was-a-blend-of-private-and-public_-regional-and-central_-progressive-and-capitalist_-hamiltonian-and-jeffersonian_-it-was-a-nod-to-big-banks_-small-banks_-and-populists_-merging-a-desire-for-order-and-efficient-banking-on-one-hand-with-a-fear-of-concentrated-banking-power-and-the-control-of-money-in-the-hands-of-a-few-on-the-other_the-central-bank-was-up-and-running-by-1914_-but-it-had-yet-to-gain-the-tools-required-to-stem-the-panic-of-the-great-depression_-the-bank-would-grow-much-more-powerful-and-centralized-over-time_in-parallel-wit_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-change-history-to-reflect-the-information-they-want-to-be-accepted_li_-_li_a-perfect-example-of-this-is-found-in-wikipedia_s-page-on-the-reichsbank_li_-_ul_-_h2_introduction_h2_-_span-style_color_-_000000_the-reichsbank-is-described-by-wikipedia-as-follows_-_span_-_blockquote_span-style_color_-_000000_the-reichsbank-was-founded-on-1-january-1876_-shortly-after-the-establishment-of-the-german-empire-in-1871_-the-mark_-formerly-backed-by-gold_-evolved-into-the-papiermark-_paper-mark_-backed-by-nothing_-a-1937-law-re-established-the-reich-government_s-control-of-the-reichsbank_-and-in-1939_-the-reichsbank-was-renamed-the-deutsche-reichsbank-_bank-of-the-german-reich_-lit_-_bank-of-the-german-realm_-and-placed-under-the-direct-control-of-adolf-hitler_-with-walther-funk-as-the-last-president-of-the-reichsbank_-from-1939-to-1945_-a-1937-law-re-established-the-reich-government_s-control-of-the-reichsbank_-and-in-1939_-the-reichsbank-was-renamed-the-deutsche-reichsbank-_bank-of-the-german-reich_-lit_-_bank-of-the-german-realm_-and-placed-under-the-direct-control-of-adolf-hitler_-with-walther-funk-as-the-last-president-of-the-reichsbank_-from-1939-to-1945_span_blockquote_-_span-style_color_-_000000_strong_span-style_color_-_99cc00_source_-_span_wikipedia_strong_span_-_a-href_https_en_wikipedia_org_wiki_economy_of_nazi_germany_-target_blank_-rel_noopener_span-style_color_-_000000_strong_https_en_wikipedia_org_wiki_economy_of_nazi_germany_strong_span_a_-_h2_span-style_color_-_000000_what-is-wrong-with-this-explanation-by-wikipedia_span_h2_-_span-style_color_-_000000_this-is-a-curious-quote-because-it-leaves-out-the-nazi_s-establishment-of-debt-free-government-issued-money_-it-is-repeatedly-stated-in-different-entries-in-wikipedia-that-the-nazis-went-into-debt_-which-led-to-their-economic-expansion_-_span_-_h2_is-anything-missing-from-this-explanation_h2_-yes_-germany-had-lost-wwi_-and-it-faced-a-great-decline-in-its-productive-capacity_-this-meant-that-more-money-was-in-the-system-than-there-were-goods-and-services_-however_-the-german-debt-free-money_-based-upon-the-us-debt-free-greenback_-was-an-enormous-boon-to-the-german-economy_-this-success-in-debt-free-money-placed-nazi-germany-in-the-crosshairs-of-international-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-eu-is-not-what-it-appears-to-be_li_-_li_private-banking-interests-drive-the-eu-to-operate-as-it-does_li_-_ul_-_h2_introduction_h2_-the-eu-was-marketed-as-one-thing-that-was-supposed-to-improve-the-prosperity-of-a-common-market_-however_-in-reality_-it-is-a-way-for-private-banking-interests-of-the-large-and-more-powerful-countries-to-apply-the-british-system-to-smaller-countries_-_h2_the-strategy-of-the-eu-as-controlled-by-private-banking-interests_h2_-the-ecb-is-the-central-bank-of-the-eu_-and-it-is-entirely-controlled-by-the-private-central-banks-of-european-countries_-like-the-imf-and-world-bank_-the-strategy-is-to-entice-countries-into-joining-the-eu_-cut-off-their-options-_by-taking-over-their-money-and-their-monetary-policy-and-many-other-policy-areas_-and-leave-them-only-the-option-to-borrow-money_-this-is-a-massive-reduction-in-the-sovereignty-of-the-smaller-eu-member-countries_-this-is-explained-in-the-following-quotation_-_blockquote_the-european-union-is-made-up-of-28-countries_-nineteen-of-those-countries-have-given-up-their-currencies-for-the-euro_-in-essence_-these-nineteen-countries-have-turned-into-states_-this-was-the-point_-after-all_to-create-_the-united-states-of-europe_-_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_however_-in-doing-so_-the-countries-gave-up-something-important_they-gave-up-their-domestic-fiscal-policy-independence_-in-2012_-the-eu-countries-adopted-a-conservative-fiscal-spending-treaty-which-put-government-budgets-under-the-careful-eye-of-the-central-government-in-brussels_-even-though-the-eu-countries-have-a-vote-in-the-european-union-parliament-and-still-control-their-own-central-banks_-for-all-intents-and-purposes_-these-become-subservient-to-the-fiscal-demands-of-several-large-countries-in-the-eu_-all-countries-in-the-eu-admired-the-deutsche-mark-for-its-stability_-in-fact_-before-the-euro_-the-continent-created-the-european-exchange-rate-mechanism-_erm_-in-which-numerous-currencies-were-essentially-pegged-to-the-value-of-the-deutsche-mark_-so-with-the-introduction-of-the-euro_-europe-essentially-adopted-the-deutsche-mark-as-its-currency_-and-with-it_-they-adopted-the-fiscal-policies-of-germany_-german-policymakers-have-therefore-written-these-conservative-spending-rules-into-the-eu-treaties-by-imploring-each-country-to-run-a-balanced-budget_-_span_-_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_second_-germany-also-exports-a-significant-percentage-of-its-industrial-output_-so-it-wants-the-value-of-the-euro-to-remain-relatively-low_-to-keep-the-euro-low_-germany-has-to-keep-inflation-low_-and-to-keep-inflation-low_-the-government-has-to-limit-consumer-demand_-so-even-though-german-citizens-earn-higher-than-average-salaries_-the-government-subjects-citizens-to-higher-than-average-taxes-and-social-security-payments_-this-limits-consumption-and-decreases-the-demand-for-imports_-germans_-by-their-upbringing_-view-themselves-as-a-rather-frugal-tribe_-but-this-is-not-an-accident_-the-german-government-imposes-frugality-on-its-citizens-through-its-tax-policies-to-limit-consumer-demand_-keep-inflation-low_-and-exports-high_-countries-that-rely-on-other-industries-besides-manufacturing_-like-italy-and-greece_-hate-the-euro-because-they-need-more-domestic-spending-to-improve-their-economies_-the-fiscal-spending-restraints-are-suffocating-them_-the-solution-would-be-to-allow-the-eu-countries-greater-flexibility-in-budgeting_-rather-than-running-balanced-budgets_-the-eu-could-allow-individual-countries-to-run-budget-deficits-of-5_-10_-if-they-prove-that-inflation-hasn_t-increased-materially_-_span_strong-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_-contrahour_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_-target_blank_-rel_noopener_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_a_strong_-once-the-money-is-borrowed-through-the-ecb_-then-the-eu-applies-neoliberal-austerity-measures-against-that-country_-steve-keen-has-stated-that-he-believes-the-eu-will-eventually-fall-apart-and-that-the-earlier-each-country-can-get-out-of-the-eu_-the-better-for-those-countries_-the-eu-is-completely-undemocratic_-as-is-covered-in-this-video_-https_www_youtube_com_watch_v_aqucxiqlxpk-_em_a-major-objective-of-the-eu-is-to-drive-down-labor-wages-by-using-workers-from-low-cost-countries-_hence-the-_free-trade_-model_-as-is-explained-in-this-video_-_em_-https_www_youtube_com_watch_v_c_yllpvllmm-_em_as-is-explained-in-this-interview-with-a-spanish-woman_-the-villages-in-spain-are-just-_emptying-out_-europe-_by-which-she-means-the-eu_-is-a-_mafia_-or-loosely-translated-_big-scam_-alignment-of-the-major-media-entities-ensures-that-criticism-of-the-eu-is-muted_-a-video-like-this-is-uncommon_-particularly-from-an-establishment-media-entity_em2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_credit-unions-began-their-life-with-a-social-good-function_li_-_li_this-is-different-than-the-profit-maximization-goals-of-most-banks_li_-_ul_-_h2_introduction_h2_-_h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_credit-unions-began-their-life-with-a-social-good-function_li_-_li_this-is-different-than-the-profit-maximization-goals-of-most-banks_li_-_ul_-_h2_introduction_h2_-what-is-little-discussed-is-that-the-banking-entities-in-the-us-with-the-highest-ratings-by-their-customers-are-not-private-banks-but-credit-unions_-credit-unions-are-community-banks-and-unlike-a-standard-private-bank_-credit-unions-are-set-up-legally-as-non-profits_-this-means-they-pay-back-any-profits-they-do-accrue-to-their-members_-credit-unions-are-normally-set-up-to-serve-a-targeted-customer-base_-like-teachers-in-a-region-or-the-employees-of-a-state_-under-a-situation-where-private-banking-was-to-be-eliminated_-credit-unions-are-a-likely-outcome_-however_-once-again_-credit-unions-receive-their-money-creation-capability-entirely-from-the-government_-and-they-charge-interest-rates_-as-has-been-explained-in-other-entries_-interest-rates-are-only-necessary-when-there-is-a-private-central-bank-and-private-banks_-credit-union-employees-would-be-prime-candidates-to-be-rolled-into-a-us-government-banking-system_-_h2_the-reason-for-credit-unions_h2_-credit-unions-arose-due-to-the-limitations-of-traditional-banks-in-serving-the-normal-person_-this-is-expressed-in-the-following-quotation_-_blockquote_until-the-1900s_-most-commercial-banks-serviced-the-wealthy_-the-poor-and-middle-class-_before-such-terms-even-existed_-put-their-savings-under-their-mattresses-and_-should-they-need-credit_-were-left-to-the-mercy-of-loan-sharks_-eventually_-alternative-movements-began-to-fill-the-void_-and-in-time_-the-state-blessed-each_-banks-with-specific-missions-to-help-the-poor-overcame-economic-obstacles-to-challenge-and-ultimately-reject-the-profit-motivated-culture-of-mainstream-banks_1-they-were-movements-aimed-at-wage-workers_-small-farmers_-and-the-unbanked_and-their-innovative-structures-would-revolutionize-the-banking-sector_-but-over-time_-and-largely-because-of-deregulation_-these-missions-changed_-today_-those-banks-once-established-for-the-purpose-of-helping-the-lower-classes-are-practically-indistinguishable-from-mainstream-banks_-it-is-one-of-the-biggest-losses-of-deregulation_-and-one-that-is-universally-ignored_the-united-states-has-lost-its-banks-with-souls_-the-credit-union-was-based-on-the-principle-of-cooperative-credit_-a-group-of-people-would-pool-their-funds-and-lend-them-to-group-members-on-a-rotation-or-based-on-need_-this-is-essentially-how-traditional-banks-operated_pooling-a-community_s-deposits-and-lending-them-out-to-the-same-community_but-the-traditional-bank-had-an-owner-or-shareholders-making-a-profit-from-the-interest-paid-on-loans_-credit-unions-cut-out-the-owners-and-the-profits-in-order-to-serve-the-poor_-their-motto-was-_banks-of-the-people_-by-the-people_-and-for-the-people_-these-cooperative-credit-unions-started-as-a-way-to-help-european-farmers-purchase-land-after-the-breakdown-of-feudalism_-in-1864_-friedrich-wilhelm-raiffeisen-created-the-first-one-in-germany_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_what-was-the-driving-force-behind-the-credit-unions_h2_-_blockquote_though-the-united-states-never-had-a-feudal-system-like-europe_-the-poor-could-only-access-credit-through-loan-sharks-and-pawnshops-that-offered-interest-rates-at-up-to-50-percent-of-the-value-of-the-loan_-many-decried-the-injustices-of-the-system-as-_legalized-robbery_-early-credit-union-advocates-thus-aimed-to-bring-_banking-facilities-to-all-classes_to-the-poor-man-as-well-as-the-rich-man_-to-the-workingman-and-the-farmer-as-well-as-the-manufacturer-and-capitalist_-in-1900_-alphonse-desjardins-organized-the-first-credit-union-in-north-america-in-levis_-canada_-desjardins-was-frustrated-by-the-lack-of-banking-options-for-wage-earners-in-canada-and-the-high-rate-lenders-that-dominated-the-market_-as-a-journalist_-he-had-been-particularly-moved-by-testimony-he-had-heard-while-reporting-on-parliamentary-hearings-of-a-low-income-worker-who-had-been-charged-1200-percent-interest-on-a-small-loan_-desjardins-began-studying-possible-remedies-to-this-growing-problem-and-ran-across-a-mention-of-the-european-credit-union-movement_-he-decided-to-start-a-cooperative_-modeled-after-the-german-raiffeisen-credit-unions_-from-his-own-home_-he-handled-all-the-transactions-himself-and-did-not-pay-himself-a-salary_-membership-was-open-to-anyone-in-the-community-who-was-determined-to-be-in-_good-standing_-and-a-committee-of-members-decided-which-loans-to-make-based-on-a-person_s-character-and-record-of-financial-stability_-desjardins-focused-on-small-loans_-which-came-from-members_-deposits_-during-its-first-six-years_-the-credit-union-made-_200_000-in-loans_-with-zero-defaults_-and-actually-earned-modest-profits_-which-it-distributed-to-members-as-dividends_-the-close-group-dynamic-was-the-reason-behind-the-low-default-rate_-with-such-a-low-default-rate_-the-credit-union-didn_t-need-to-charge-high-interest-and-thus_-could-successfully-lend-to-the-poor_9the-credit-union-movement-migrated-to-the-united-states-a-few-years-later_-and-its-father-would-be-edward-albert-filene_-the-son-of-a-jewish-immigrant-and-the-owner-of-filene_s-department-store_-filene-was-a-fair-and-conscientious-employer-as-well-as-a-wealthy-and-curious-philanthropist_-in-1907_-he-traveled-around-the-world-and-was-shocked-by-the-poverty-he-witnessed-in-india-and-the-philippines_-his-travels-convinced-him-that-these-poor-villagers-needed-adequate-credit-and-the-ability-to-own-land_-he-was-appalled-that-they-had-to-borrow-money-at-very-high-interest-just-to-pay-for-special-occasions_-such-as-weddings_blockquote_-_h2_passing-of-the-credit-union-membership-access-act_h2_-_blockquote_six-months-after-the-supreme-court_s-decision_-congress-passed-the-credit-union-membership-access-act-_cumaa_with-near-unanimous-support_to-_ratify-the-longstanding-policy-of-the-_ncua_-with-regard-to-_the_-field-of-membership-_in_-federal-credit-unions_-by-_specifically-authoriz_ing_-multiple-common-bond-federal-credit-unions_-most-significantly_-the-act-exempted-credit-unions-from-the-community-reinvestment-act_-an-act-aimed-at-providing-banking-access-to-low-income-individuals_-the-exemption-resulted-directly-from-credit-union-lobbying_-to-repeat_-the-credit-union-industry_-created-to-serve-the-poor_-now-fought-against-a-law-requiring-it-to-serve-the-poor_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h2_what-mainstream-private-banking-thought-of-credit-unions_h2_-_blockquote_credit-unions-were-an-ideological-rejection-of-mainstream-banking_a-purposeful-system-of-credit-that-favored-the-common-good-above-profits_-communities-over-institutions_-and-mutual-control-over-hierarchy_-the-movement-was-a-practical-populist-response-to-the-deep-seated-antipathy-toward-concentrated-power-and-control-in-banking-that_-by-the-1900s_-was-one-of-the-defining-features-of-the-united-states_-bergengren-built-on-the-populist-rhetoric-of-the-time-when-he-described-the-credit-union-as-_the-schools-for-the-masses_-that-would-beget-_financial-democracy_-or-freedom-from-_the-absolute-control-of-those-who-_-are-using-money-solely-for-their-own-profit_-without-the-requisite-understanding-that-they-have-no-right-to-use-money-except-for-the-common-good-and-social-interest-of-all-the-people_-and-that-the-wholly-selfish-use-of-it-will-bring-with-it-radical-movements_-revolution-and-war_-bergengren-was-convinced-that-cooperatives-were-the-way-of-the-future-and-that-_in-the-long-run-we-cannot-develop-economic-democracy-on-the-principle-of-dog-eat-dog-and-the-theory-that-the-shrewdest_-the-most-unscrupulous_-the-smartest-of-our-number_-should-survive-at-the-expense-of-all-the-rest-of-us_-he-denounced-fascism-and-communism_-claiming-that-a-truly-democratic-economy-could-only-be-achieved-through-cooperatives-and-the-_principle-of-human-brotherhood_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-however_-clearly_-we-are-back-to-the-principle-of-dog-eat-dog_-and-the-shrewdest-should-survive-at-the-expense-of-the-rest_-_h2_how-credit-unions-used-information-about-customers-to-reduce-risk_h2_-a-major-proposal-by-payday-lending-stores-is-that-they-need-to-charge-usurous-interest-rates-to-turn-a-profit_-however_-the-early-credit-unions-did-not-need-to-do-this-to-be-profitable_-this-is-expressed-in-the-following-quotation_-_blockquote_instead-of-charging-high-interest-to-offset-the-risk-of-default_-the-credit-union-used-personal-knowledge-of-an-applicant-and-group-supervision-of-a-loan_-congress-wrote-this-innovation-into-law-to-create-_a-cohesive-association-in-which-the-members-are-known-by-the-officers-and-by-each-other-in-order-to-_ensure-both-that-those-making-lending-decisions-would-know-more-about-applicants-and-that-borrowers-would-be-more-reluctant-to-default_-_-this-structure-enabled-_credit-unions_-unlike-banks_-_to_-_loan-on-character_-_-these-founding-principles-allowed-the-credit-union-industry-to-thrive-and-help-its-members-for-many-years_-in-1935_-only-3_372-credit-unions-existed-across-the-country_-with-approximately-640_000-members_-after-the-fcua_-the-industry-grew-rapidly_-with-one-hundred-new-credit-unions-and-6_000-new-members-joining-each-month_-after-world-war-ii_-from-1945-to-1955_-the-number-of-credit-unions-in-the-united-states-doubled-_from-8_683-to-16_201_-and-membership-tripled-_from-2_8-million-to-8_1-million_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-modern-credit-unions-changed-over-time_span_h1_-as-time-passed_-us-credit-unions-began-to-shed-their-original-function-and-to-move-_up-market_-and-leaving-behind-lower-income-customers_-this-is-explained-in-the-following-quotation_-_blockquote_today_-credit-unions-are-much-like-mainstream-banks_-the-american-bankers-association-argues-that-credit-unions-are-not-fulfilling-their-mission-to-serve-the-underserved_55-of-course_-the-banks-are-biased_-but-the-assertion-is-not-unfair_-a-2006-government-accountability-office-study-concluded-that-compared-to-banks_-credit-unions-are-more-likely-to-serve-middle-and-upper-income-people-than-lower-income-people_56-notably_-some-even-claim-that-credit-unions-_come-in-and-cherry-pick-the-most-profitable-_banking_-business-and-then-give-nothing-back-to-the-community_-a-practice-far-from-the-original-mission-of-the-cooperatives-that-filene-and-then-roosevelt-embraced_-the-lore-of-the-credit-union-has-outlived-its-reality_-for-many_-the-credit-union-still-stands-as-the-answer-to-everything-that-is-wrong-with-banking_-to-be-sure_-credit-unions-do-differ-from-banks_-though-they-are-now-quite-large_-none-are-as-large-as-the-too-big-to-fail-banks_-in-addition_-their-structure-limits-their-appetite-for-risk_-credit-union-boards-still-consist-of-community-members_-even-though-their-mission-is-to-make-a-profit_-they-are-not-willing-to-make-profits-at-all-costs_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-there-is-now-doubt-that-credit-unions-are-better-than-normal-private-banks_-but-as-the-quote-explains-they-have-diverged-from-their-original-purpose2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_post-office-banking-is-in-the-us_s-history-and-is-also-commonly-found-in-other-countries_li_-_li_private-banking-interests-strongly-opposed-any-government-involvement-of-competition-in-banking_li_-_ul_-_h2_introduction_h2_-what-is-little-discussed-is-that-the-banking-entities-in-the-us-with-the-highest-ratings-by-their-customers-are-not-private-banks-but-credit-unions_-credit-unions-are-community-banks-and-unlike-a-standard-private-bank_-credit-unions-are-set-up-legally-as-non-profits_-this-means-they-pay-back-any-profits-they-do-accrue-to-their-members_-credit-unions-are-normally-set-up-to-serve-a-targeted-customer-base_-like-teachers-in-a-region-or-the-employees-of-a-state_-under-a-situation-where-private-banking-was-to-be-eliminated_-credit-unions-are-a-likely-outcome_-however_-once-again_-credit-unions-receive-their-money-creation-capability-entirely-from-the-government_-and-they-charge-interest-rates_-as-has-been-explained-in-other-entries_-interest-rates-are-only-necessary-when-there-is-a-private-central-bank-and-private-banks_-credit-union-employees-would-be-prime-candidates-to-be-rolled-into-a-us-government-banking-system_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-importance-of-the-us-post-office-in-us-history_span_h1_-the-importance-of-the-us-post-office-is-covered-in-the-following-quotation_-_blockquote_in-an-1832-encyclopedia-article-about-the-american-post-office_-political-theorist-francis-lieber-ranked-it-with-the-printing-press-and-the-mariner_s-compass-as-_one-of-the-most-effective-instruments-of-civilization_1-most-nineteenth-century-americans-agreed_-the-postal-system-was-_one-of-the-most-notable-features-of-american-public-life_-it-erased-community-borders-and-connected-the-spacious-country_leveling-the-information-playing-field-by-disseminating-information-and-public-discourse_-one-contemporary-observed-that-it-enabled-a-better-democracy-than-that-enjoyed-by-the-greeks_-romans_-or-any-other-celebrated-civilization-because-it-provided-a-medium-for-communication-to-spread-to-each-corner-of-the-land_-_penetrating-its-darkened-regions_-and-equalizing_-elevating_-and-harmonizing-_-the-social-position-and-geographical-distribution-of-the-people_-and_-said-one-historian_-it-was-the-_agent-of-change_-that-set-in-motion-a-democratic-revolution-that-_transformed-american-public-life_-the-u_s_-post-office-department-was-_quite-literally-without-precedent-in-the-history-of-the-world_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_history-of-us-postal-banking-_span_h1_-_blockquote_deposits-in-postal-banks-remained-stable-in-the-1920s_-but-in-the-1930s_-the-postal-banks-swelled-with-an-influx-of-depositors-running-away-from-banks_-in-1930-alone_-almost-fifty-thousand-new-depositors-fled-to-postal-banks-with-almost-_22-million-in-additional-deposits_-totaling-_191-million-in-deposits_-those-deposits-continued-to-double-every-year-for-the-next-three-years_-postal-banks_-regional-focus-also-shifted-dramatically-during-the-great-depression_-from-immigrant-hubs-in-the-northeast-and-west-to-the-midwest-and-the-south_-where-bank-failures-were-more-prevalent_-by-1929_-only-39-percent-of-depositors-were-foreigners_-not-only-were-fewer-immigrants-coming-to-america_-but-those-who-had-started-with-postal-banking-accounts-graduated-to-regular-bank-accounts_-by-1934_-postal-banks-had-_1_2-billion-in-deposits_about-10-percent-of-the-entire-commercial-banking-system_-the-times-reported-postmaster-walter-brown_s-explanation_-_the-postal-savings-system-is-a-logical-refuge-for-the-timid_-and-functions-best-in-areas-of-financial-stress_-a-historian-analyzing-the-postal-banks-in-1936-said-that-this-rise-in-deposits-meant-that-the-post-office-would-significantly-influence-the-banking-system_-this-was-confirmed-by-a-2013-economic-analysis-showing-that-postal-banking-actually-reduced-bank-runs-during-the-great-depression-by-infusing-liquidity-into-local-banks-and-by-providing-a-safe-haven-for-deposits_-in-1933_-congress-finally-approved-the-collection-of-postal-bank-deposits-by-the-treasury-in-order-to-help-pay-for-mounting-government-debts_-president-roosevelt-started-selling-postal-savings-bonds-and-eventually_-treasury-bonds_-through-1935_-but-roosevelt-chose-to-deemphasize-the-postal-banks-as-a-method-of-banking-reform_-he-had-his-eyes-set-on-much-broader-reforms_-including-creating-a-federal-deposit-insurance-fund-to-quell-the-instability-in-banks_-once-federal-deposit-insurance-corporation-_fdic_-insurance-was-created_-banks-became-safe-enough-for-even-the-most-timid-depositors_-funds-flowed-out-of-postal-banks-and-back-into-mainstream-banks-almost-immediately_-in-1941_-the-post-office-began-courting-patriotic-citizens-with-_defense-savings-stamps_-which-were-treasury-bonds-used-to-fund-the-war_-the-post-office-heavily-advertised-these-bonds-in-schools_-magazines_-newspapers_-and-radio-ads_-in-fact_-the-majority-of-these-bonds-were-sold-to-schoolchildren-using-a-robust-advertising-campaign-and-the-slogan-_buy-war-bonds_-there-was-no-age-minimum-for-buying-the-bonds_-and-the-young-and-the-small-savers-poured-in-money-so-that-they-too-could-help-uncle-sam_-during-their-first-year_-the-bonds-brought-in-over-_100-million_-the-postmaster-general-report-reveals-that-war-bonds-became-the-post-office_s-most-popular-service-until-the-end-of-world-war-ii_-deposits-actually-jumped-in-1947-to-their-historic-peak-of-_3_4-billion-in-deposits-and-4-million-users_-one-reason-for-the-boost-is-that-in-the-1940s_-the-uspss-introduced-the-world-to-banking-by-mail_-many-servicemen-abroad-deposited-their-earnings-into-postal-banks_123-by-the-end-of-world-war-ii_-the-government-had-raised-about-_8-billion-in-additional-war-funding-through-war-bonds-and-treasury-bonds-sold-through-the-post-office_-the-post-office-banks-did-not-lend-consumer-or-mortgage-credit_-but-in-wartime_-they-were-successfully-retooled-to-solicit-investments-in-u_s_-savings-bonds-and-war-stamps_-by-the-1950s_-deposit-insurance-had-become-a-resounding-success_-practically-halting-the-tide-of-bank-failures-and-boosting-confidence-in-the-system_-with-no-war-to-fund_-deposits-rapidly-flowed-out-of-the-post-office-and-back-into-banks-at-a-rate-of-about-a-10-percent-loss-per-year-for-three-years-starting-in-1950_-although-postal-banks-had-enjoyed-locational-advantages-during-the-previous-era_-there-were-now-more-roads-and-cars_-allowing-rural-dwellers-to-reach-banks_not-to-mention-the-creation-of-banking-by-mail_-which-most-banks-had-by-then-adopted_-by-1950_-68-percent-of-the-nation_s-towns-and-cities-had-both-postal-savings-depositories-and-banks_-and-because-banks-could-pay-higher-interest-than-the-post-office-and-had-become-just-as-safe_-the-uspss-no-longer-presented-an-attractive-option-for-depositors_-poverty-and-immigration-were-also-at-a-historic-low_-this-was-the-heyday-of-banking_-during-the-postwar-economic-boom_-thrifts_-credit-unions_-and-commercial-banks-proliferated-into-many-neighborhoods_-and-most-people-could-open-a-bank-account-if-they-wanted-one_-decades-later_-however_-this-would-no-longer-be-the-case_-banks-abandoned-poor-areas_-post-offices-remained_-but-without-any-banking-functions_by-1952_-after-two-government-studies-found-that-the-uspss-was-no-longer-justified-and-that-the-program_s-original-goals-likely-no-longer-applied_-bills-began-being-introduced-to-end-the-uspss_-the-first-was-proposed-in-1952-by-first-term-senator-wallace-f_-bennett-_r-ut_-the-father-of-bob-bennett-_r-ut_-and-a-member-of-the-senate-banking-committee_-eisenhower_s-postmaster-general_-arthur-summerfield_-attempted-to-raise-the-deposit-limit-in-1957-to-save-the-system_-but-both-of-president-lyndon-johnson_s-postmaster-generals-supported-legislation-to-end-it_in-1966_-the-uspss-was-officially-abolished-as-part-of-johnson_s-streamlining-of-the-federal-government_-there-were-fewer-than-one-million-account-holders-at-the-time_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-the-us-post-office-tied-the-country-together-_span_h1_-_blockquote_tocqueville-remarked-that-in-america_-unlike-in-european-countries_-an-uneducated-_backwoodsman_-in-far-flung-michigan-knows-just-as-much-about-the-affairs-of-the-government-as-those-living-in-the-capital_-_there-is-an-astonishing-circulation-of-letters-and-newspapers-among-these-savage-woods_-i-do-not-think-that-in-the-most-enlightened-rural-districts-of-france-there-is-intellectual-movement-either-so-rapid-or-on-such-a-scale-as-in-this-wilderness_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-prestige-of-being-postmaster-general-_span_h1_-_blockquote_the-highly-coveted_-distinctive-position-of-postmaster-in-each-town-was-given-to-its-most-prominent-and-trusted-citizen_-the-fact-that-women-and-blacks-were-explicitly-excluded-from-being-postmasters-was-a-fighting-cause-for-both-groups-for-nearly-a-century_-the-exclusion-instilled-institutional-racism-and-sexism-that-prohibited-their-full-participation-in-public-and-political-life_-frederick-douglass-complained-that-the-fact-that-blacks-were-_not-trusted-even-to-carry-a-mail-bag-twenty-yards-across-the-street_-stigmatized-the-race-and-inculcated-a-sense-of-their-inferiority_-the-postal-policies-of-racial-and-gender-exclusion-proved-to-be-significant-barriers-for-these-groups-precisely-because-the-post-office-came-to-represent-democratic-equality_the-post-office-act-of-1792_-supported-by-george-washington_-james-madison_-and-alexander-hamilton_-has-been-called-_one-of-the-most-important-single-pieces-of-legislation-to-have-been-enacted-by-congress-in-the-early-republic_-the-act-made-several-crucial-decisions-that-would-shape-our-first-rate-democracy-and-economy_-first_-it-was-decided-that-the-federal-government-would-financially-support-the-post-office-without-requiring-it-to-produce-a-surplus-like-its-counterparts-in-europe_11-it-was-to-be-self-sustaining-but-not-profitable-and-when-needed_-supplemented-by-the-treasury_-this-made-the-post-office-department-the-largest-government-agency-by-far-during-this-time_-second_-the-post-office-would-serve-every-community-without-regard-to-profit_-in-other-words_-profitable-routes-_along-the-eastern-seaboard_-would-subsidize-the-east-to-west-routes_-other-shippers-could-compete-with-the-post-office-along-these-routes_-but-the-post-office-could-not-discontinue-any-route-without-congressional-approval_-third_-congress-would-subsidize-the-dissemination-of-newspapers-through-the-post-office_-the-subsidy_-financed-by-merchants-who-paid-handsomely-to-mail-letters_-reduced-the-price-of-newspapers-by-700-percent_-in-other-words_-wealthy-northeasterners-were-paying-for-information-to-be-carried-to-the-rural-farmers-of-the-south-and-west_-information-was-critical-to-participating-in-the-economy-and-in-the-political-process_-so-the-federal-government-enabled-the-flow-of-information-to-all-regions-without-worrying-about-costs_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-importance-of-the-post-office-in-early-america-and-post-office-banking_span_h1_-_blockquote_the-federal-government-was_-in-the-modern-words-of-grover-norquist_-_so-small-you-could-drown-it-in-a-bathtub_-when-it-decided-to-financially-support-the-post-office_-in-effect_-the-postal-service-was-one-of-the-only-services-the-federal-government-provided_-even-fiscal-conservatives-like-alexander-hamilton-endorsed-its-foundational-principle_-communities-over-profits_20-_the-federal-government-rejected-this-principle-in-1970-when-it-decided-that-the-post-office-should-be-cut-off-from-the-government-and-left-to-fend-for-itself_many-have-forgotten-that-the-post-office-made-much-of-the-budding-american-economy-possible_-upon-explaining-successful-retailer-montgomery-ward_s-ability-to-use-free-market-competition-to-revolutionize-sales-in-america_-even-thomas-sowell_-an-unabashed-proponent-of-laissez-faire-free-markets-operating-without-government-intervention_-observed_-_montgomery-ward-cut-delivery-costs-by-operating-as-a-mail-order-house_-selling-directly-to-consumers-all-over-the-country-from-its-huge-warehouse-in-chicago_-using-the-government_s-already-existing-mail-delivery-system-to-deliver-its-products-to-customers-at-lower-cost_-the-beauty-of-this-organization-is-that-because-it-focused-on-access-to-communities-over-profits_-it-was-able-to-adapt-and-offer-different-services-to-accommodate-the-needs-of-the-country_-its-central-mission-being-equality-of-access_-it-was-not-long-after-its-creation-before-that-encompassed-financial-inclusion_-postal-banking-started-in-great-britain-in-1861_-from-the-beginning_-the-goal-of-postal-banking-abroad-was-financial-inclusion_-postal-banks-were-such-a-success-in-england-that-one-contemporary-called-them-_the-greatest-boon-ever-conferred-on-the-working-classes-of-this-country_-in-england_-postal-banks-were-geared-toward-_the-humbler-classes_-and-offered-a-low-interest-rate-of-2-percent-on-deposits_-below-those-of-existing-banks_-once-the-british-system-started_-word-spread-internationally-through-the-fastest-means-available-at-the-time_-the-post-office_-the-idea-quickly-spread-across-the-british-empire-to-new-zealand-in-1876_-to-canada-in-1868_-and-to-new-south-wales-in-1871_-after-two-decades_-almost-every-western-country_plus-japan_had-adopted-nationwide-postal-banking_-germany-was-the-only-country-that-chose-not-to-implement-postal-banking-because-it-already-had-an-extensive-network-of-savings-banks-and-credit-unions_-germany_s-savings-banks-formed-a-national-union-to-fight-the-creation-of-a-postal-banking-system_-and-it-wasn_t-until-1939-that-hitler_s-third-reich-overcame-this-opposition-and-established-postal-banking_-in-1871_-president-ulysses-s_-grant_s-postmaster-general_-john-creswell_-proposed-postal-savings-banks-in-the-united-states-modeled-after-those-in-great-britain_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_post-offices-could-offer-services-to-uncovered-areas_span_h1_-_blockquote_the-post-office_-with-its-rich-history-and-public-mission_-proved-the-obvious-choice-for-providing-this-service_-with-branches-in-communities-where-no-bank-and-certainly_-no-savings-bank_-would-go_-the-post-office-could-potentially-do-with-savings-what-it-had-with-information_democratize-banking_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_postmasters-supporting-post-office-banking-_span_h1_-_blockquote_almost-every-postmaster-general_-from-the-time-of-creswell_s-initial-proposal-until-it-passed_-supported-postal-banking_45-the-only-gap-occurred-during-the-two-terms-of-grover-cleveland-_1885_1889_-1893_1897_-the-only-democrat-to-hold-office-during-the-forty-years-of-debate_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-postal-banking-stopped-bank-runs-_span_h1_-_blockquote_the-public-and-the-press-failed-to-note-the-centrality-of-postal-banking-in-one-of-the-most-crucial-periods-of-banking-reform-in-our-country_-postal-banking-almost-proved-to-be-the-alternative-to-fdic-insurance-and-served-as-such-from-1911-until-1933_-the-system-prevented-many-bank-runs-during-a-turbulent-time-in-the-nation_s-banking-history_essentially-serving-as-a-central-bank-before-the-federal-reserve-was-up-to-the-task_-the-deposits-that-flowed-into-the-postal-banks-from-the-poor-were-centralized-in-the-treasury_-as-well-as-in-localities_-and-then-infused-back-into-banks-during-times-of-need_-postal-banking-helped-fund-world-war-ii-and-reduced-government-deficits-after-the-great-depression_most-crucially_-postal-banking-was-the-most-successful-experiment-in-financial-inclusion-in-the-united-states_-more-effective-than-any-other-philanthropic-or-mutual-effort-to-bank-the-poor_-postal-banking-brought-millions-of-new-immigrants-and-rural-dwellers-into-the-u_s_-banking-system-all-at-once_-one-of-the-central-aims-of-the-postal-banks-was-also-the-most-difficult-to-measure_-teaching-habits-of-thrift-and-saving-to-the-poor_-in-1970_-as-the-market-based-philosophy-swept-the-banking-world_-the-post-office-was-also-transformed_-for-one_-it-was-spun-off-the-federal-government-and-required-to-fund-itself_-it-would-no-longer-receive-government-help-to-support-unprofitable-routes_-further_-it-would-have-to-balance-its-own-budget_-even-if-that-meant-cutting-services_-in-the-last-decade_-as-internet-technology-has-fundamentally-changed-the-way-in-which-we-communicate_-the-very-purpose-and-necessity-of-the-post-office-has-been-called-into-question_-the-institution-has-struggled-financially-due-to-technological-change-as-well-as-competition-from-private-companies-like-the-united-parcel-service-and-fedex_-but-its-fiscal-woes-also-have-political-roots_-in-2006_-congress-forced-the-post-office-to-prefund-its-employee-pension-plans-_something-not-required-of-any-other-government-agency_a-political-maneuver-some-claim-was-designed-to-hasten-the-institution_s-decline_-the-legislation-immediately-caused-a-_5_5-billion-shortfall-per-year_-from-which-the-postal-service-has-yet-to-recover_128the-structure-of-the-postal-system-today-is-a-mix-of-public-and-private_-but-the-bottom-line-is-that-it-is-a-federal-agency-that-is-not-funded-by-the-public-fisc_-after-the-passage-of-the-postal-reorganization-act-in-1970_-which-relegated-the-united-states-postal-service-_usps_-from-a-cabinet-department-into-an-independent-agency_-the-usps-began-operating-somewhat-like-a-business_-unlike-government-owned-corporations-such-as-amtrak_-the-usps-is-still-a-federal-agency-and-is-governed-by-an-eleven-member-board-of-governors_-nine-of-whom-are-presidential-appointees-who-serve-staggered-terms_129-the-postal-reorganization-act-cut-the-purse-strings-to-the-usps_-and-it-shifted-from-relying-on-taxpayer-money-to-cover-the-cost-of-operations-to-generating-revenue-from-postage_130-the-post-office-has-a-revolving-fund-with-the-treasury_-into-which-it-must-deposit-all-revenues-and-profits-from-its-products_-in-other-words_-the-usps-has-no-shareholders-or-investors-who-make-money-if-it-becomes-profitable_-the-problem_-however_-is-that-the-postal-service-has-not-been-making-a-profit-but-has-been-operating-under-a-deficit-since-2006_-the-treasury-has-loaned-the-postal-service-a-total-of-_15-billion-since-the-2006-legislative-change_-and-it-reached-its-debt-limit-in-2012_-and-so_-amid-financial-woes-and-a-decreased-demand-for-physical-mail_-the-u_s_-postal-service-has-begun-to-cut-costs-and-services_-without-a-new-revenue-source_-it-will-be-forced-to-cut-routes-and-in-time_-potentially-shut-down-an-establishment-that-helped-shape-america-as-an-egalitarian-democracy_-it-is-within-this-context-that-calls-for-reviving-the-postal-banking-system-can-be-heard_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_amount-spend-on-financial-fees-by-the-unbanked-_span_h1_-_blockquote_current-estimates-show-that-the-unbanked-spend-_89-billion-each-year-on-financial-fees-and-services_2-all-of-this-money-goes-to-alternative-financial-service-providers_payday-lenders_-check-cashers_-and-other-nonbanks-that-charge-high-fees-to-store-and-move-people_s-money_-providing-these-services-at-much-lower-costs-has-a-triple-advantage-of-reviving-the-beleaguered-but-too-important-to-fail-postal-service_-putting-the-money-back-in-the-pockets-of-the-poor_-and-providing-an-alternative-to-a-harmful-industry-that-has-proved-nearly-impossible-to-regulate-away_-postal-banking-may-seem-radical-to-many-in-the-united-states-who-remain-convinced-that-banking-should-be-a-_private-market_-free-from-_government-intervention_-but-it-is-a-mundane-part-of-life-for-the-rest-of-the-world_-postal-banking-abroad-is-the-norm_-not-an-aberration_-postal-banking-has-operated-in-many-western-countries-since-the-1800s_-and-currently_-fifty-one-countries-use-postal-banking-as-their-primary-method-of-financial-inclusion_only-6-percent-of-postal-carriers-worldwide-do-not-offer-banking-services_-_it-is-estimated-that-postal-banking-has-banked-over-one-billion-people-worldwide_-a-variety-of-models-exist-worldwide_some-focus-on-the-poor-and-others-offer-postal-banking-services-to-the-entire-population_-in-fact_-the-united-states-is-one-of-the-only-developed-countries-in-the-world-without-a-postal-banking-network_-however_-we-do-not-need-to-look-abroad-for-a-justification-or-even-a-model-for-postal-banking-when-we-can-refer-to-our-own-rich-history_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_percent-of-population-that-does-not-deposit-money-banks-_span_h1_-_blockquote_a-2015-survey-shows-that-over-half-the-population-has-savings-that-they-do-not-deposit-in-banks-and-many-admit-they-store-their-cash-in-sock-drawers_-cookie-jars_-under-mattresses_-or-in-their-freezers_-it-is-possible-that-just-as-in-the-1900s_-hoarded-money-from-across-the-country-would-pour-into-the-postal-banks-from-under-mattresses_-from-prepaid-cards_-or-from-funds-otherwise-wired-abroad_-historically_-only-federal-government-involvement-in-credit-markets-has-increased-lending-and-lowered-the-costs-of-credit_-by-insuring-deposits_-providing-liquidity-through-the-central-bank_-creating-secondary-markets-enabled-by-government-sponsored-enterprises-_gses_-and-constructing-a-structure-of-government-support_-private-banks-have-been-able-to-lend-at-unprecedented-levels_-postal-banks-could-connect-to-this-existing-apparatus-and-route-credit-directly-to-borrowers-without-having-to-circulate-the-money-through-the-bloated-banking-system_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-incentives-of-the-post-office-with-banking-_span_h1_-_blockquote_the-post-office-is-an-independent-agency-connected-to-the-federal-government_-which-means-that-all-excess-profits-are-forfeited-to-the-treasury_-because-the-post-office-has-no-shareholders-demanding-a-return-on-investment_-it-is-unlikely-to-be-motivated-to-take-advantage-of-its-customers-for-private-gain_-all-gains-will-be-public_-as-will-losses_-a-board-of-directors_-presumably-public-representatives-chosen-by-a-democratically-elected-president_-would-be-tasked-to-oversee-its-activities_in-addition_-the-post-office-can-naturally-reduce-the-high-costs-of-lending-to-the-poor-because-of-its-already-large-network-of-existing-branches_-compared-to-payday-lenders_-the-post-office-can-use-its-present-infrastructure-and-staff_-thus-saving-money-otherwise-spent-on-advertising_-marketing_-personnel_-and-stores_-it-can-add-revenue-on-day-one-without-the-expense-of-starting-from-scratch_blockquote_-this-is-critical-because-of-how-profit-incentives-have-turned-private-banking-into-a-highly-unethical-industry_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-post-offices-can-serve-regions-foresaken-by-the-banks-_span_h1_-_blockquote_finally_-because-the-post-office-never-left-the-regions-forsaken-by-the-banks-and-other-businesses_-it-has-developed-an-ongoing-relationship-of-trust-with-these-communities_-many-unbanked-individuals-already-buy-money-orders-at-their-local-post-office_-this-means-that-the-post-office-has-access-to-a-customer-base-that-is-not-comfortable-in-banks_-surveys-of-the-unbanked-show-that-minority-groups-are-significantly-more-likely-to-be-unbanked-than-other-groups_-this-is-especially-true-in-certain-regions-of-the-country_-such-as-the-south-for-blacks_-regardless-of-income-or-financial-status_-certain-groups-simply-do-not-patronize-banks-because-they-do-not-trust-them_-but-the-cultural-and-class-barriers-that-keep-many-people-away-from-mainstream-banks-do-not-exist-at-the-local-post-office_in-many-inner-city-and-rural-communities_-the-post-office-is-the-crowded-and-bustling-place-where-the-neighborhood-gathers-to-do-its-business_-helped-by-clerks-who-are-members-of-that-same-community_-even-those-who-never-go-to-their-local-post-office-branch-are-familiar-with-the-mail-carrier-who-visits-their-home-daily_-and-following-history_s-cue_-the-postal-network-can-offer-information-in-more-languages-than-do-banks-and-appeal-to-the-large-population-of-immigrants_-or-even-the-undocumented_-who-have-money-to-save_-but-no-access-to-banks_-many-of-these-workers-currently-send-their-money-abroad_money-that-can-be-induced-to-stay-within-america_s-borders_-as-it-was-in-the-1900s_-this-can-be-a-surprising-source-of-revenue-for-the-postal-banks_trust_-especially-in-banking_-consists-of-more-than-just-a-_nice-feeling_-it-is-a-way-to-lower-costs-and-reduce-barriers-of-entry_-this-was-the-point-of-government-deposit-insurance_-banks-cannot-survive-if-their-customers-do-not-trust-them-to-hold-and-lend-their-money_-it-is-hard-to-predict-whether-the-public-will-warm-to-postal-banking_-but-in-light-of-historical-and-international-experience-and-the-significant-modern-distrust-of-fringe-banks_-the-public-may-view-the-post-office-as-a-safer-and-more-trustworthy-place-to-store-funds_-if-this-is-the-case_-the-post-office-may-even-decide-to-forego-the-added-costs-and-regulatory-burdens-of-fdic-deposit-insurance-because-the-post-office_s-position-as-a-federal-agency-and-its-access-to-the-treasury_s-deep-pockets-can-fulfill-essentially-the-same-function-as-fdic-insurance_-if-the-goal-of-federally-funded-deposit-insurance-has-been-to-stop-bank-runs_-it-would-be-redundant-for-a-deposit-account-linked-to-the-federal-government-to-also-be-insured-by-it_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_postal-banking-considered-safer-than-federal-deposit-insurance-_span_h1_-_blockquote_in-fact_-in-the-1900s-postal-banking-was-considered-a-safer-and-more-complete-substitute-to-quell-banking-panic-than-federal-deposit-insurance_the-public-already-trusts-the-u_s_-postal-service-and-this-trust-is-not-undeserved_-the-post-office-enjoys-a-history-of-service-to-the-american-people-unrivaled-by-any-other-institution-or-government-entity_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_post-office-as-foil-for-the-banking-industry-_span_h1_-_blockquote_in-a-way_-the-post-office-serves-as-a-perfect-foil-for-the-banking-industry_-the-latter-receives-hefty-federal-government-support-and-rejects-any-public-serving-function-and-the-former-is-currently-receiving-limited-federal-government-support-and-yet-views-public-service-as-its-primary-mission_-even-today_-the-stated-mission-of-the-u_s_-postal-service-is-_to-provide-postal-services-to-bind-the-nation-together-through-the-personal_-educational_-literary_-and-business-correspondence-of-the-people_-it-shall-provide-prompt_-reliable_-and-efficient-services-to-patrons-in-all-areas-and-shall-render-postal-services-to-all-communities_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-private-banking-interests-will-fight-post-office-banking-_span_h1_-_blockquote_the-ideological-opposition_-much-like-in-the-1800s_-will-likely-revolve-around-the-idea-of-too-much-state-intervention-in-markets_-a-slide-toward-socialism_-and-an-overbearing-or-paternalistic-state_-if-the-reader-has-made-it-this-far-in-the-book_-hopefully_-that-line-of-reasoning-can-be-dismissed-outright_-pitting-a-public-option-against-a-private-banking-market-is-a-handy-rhetorical-tool_-but-it_s-just-smoke-and-mirrors_-the-banking-system-exists-on-a-foundation-of-heavy-state-intervention_opposition-will-also-come-from-banks_-which-for-two-centuries-have-reliably-and-consistently-opposed-any-potential-threat-to-their-market-share_even-before-they-are-certain-it-will-be-a-threat_-when-the-post-office-inspector-general_s-office-released-its-white-paper-report-with-the-banking-proposal_-many-in-the-banking-industry-quickly-responded-that-not-only-were-they-already-meeting-market-needs-but-that-it-also-was-a-terrible-idea_the-worst-idea-since-the-ford-edsel_-the-credit-union-lobbyists-have-also-opposed-the-idea_-reasserting-that-they-are-meeting-these-needs_-these-claims-were-made-a-hundred-years-ago-about-postal-banking_-and-they-were-as-wrong-then-as-they-are-now_-banks-are-no-longer-interested-in-small-accounts-or-small-loans_-policymakers-beholden-to-payday-lenders-will-also-likely-oppose-the-bill-by-saying-that-payday-lenders-do-their-best-to-meet-the-needs-of-a-hard-to-bank-public_-although-any-market-share-the-post-office-takes-would-come-directly-from-the-payday-lending-industry_-that-industry_s-destruction-due-to-cheaper-credit-cannot-be-lamented-too-greatly_-the-large-and-profitable-payday-industry-serves-very-little-public-purpose-besides-meeting-the-credit-demands-of-the-desperate-with-interest-rates-only-the-desperate-would-pay_others-will-point-to-the-practical-difficulties-of-an-inefficient-government-agency_s-ability-to-manage-the-complexity-of-offering-financial-services-to-a-large-sector-of-the-population_-it-is-worth-noting-at-this-point-that-the-post-office-manages-to-deliver-mail-to-every-mailbox-in-the-country-daily_-even-to-remote-u_s_-territories-that-other-shippers-will-not-service_-some-claim-that-postal-employees_-who-are-trained-to-sort-mail-and-sell-stamps_-will-not-be-able-to-operate-financial-instruments_-however_-these-critics-underestimate-postal-employees_-unlike-many-similarly-situated-companies_-the-post-office-still-offers-its-staff-a-route-to-the-middle-class_-as-such_-they-are-able-to-recruit-many-talented-and-loyal-employees_not-only-are-postal-employees-capable-individuals_-but-providing-simple-financial-products-does-not-require-years-of-skilled-training_-consider-the-numerous-bank-tellers-or-wal-mart-and-cash-america-employees-who-manage-this-very-thing-while-earning-smaller-hourly-wages-and-fewer-benefits-than-postal-employees_-can-the-post-office-handle-the-challenges-of-becoming-a-quasibanking-institution_-there-is-no-indication-it-cannot_-especially-with-the-help-of-specialized-banking-and-industry-experts-who-would-almost-certainly-be-enlisted-to-help-with-the-transition_-the-post-office-can-even-partner-with-banks-or-credit-unions-for-their-servicing-and-automated-teller-machine-functions_others-have-pointed-to-the-epic-demise-of-the-gses-fannie-mae-and-freddie-mac-during-the-financial-crisis-as-a-reason-to-avoid-government-intrusion-into-credit-markets_-however_-this-clearly-misunderstands-the-causes-of-fannie-mae_s-and-freddie-mac_s-failures_-the-gses_-particularly-fannie-mae_-successfully-brought-mortgage-lending-to-the-american-people_-by-creating-a-secondary-market-for-mortgage-loans-and-acting-as-the-central-intermediaries-for-all-mortgage-lending_-they-made-mortgages-accessible-to-all-from-the-time-they-were-created-until-they-were-privatized_-the-problem-with-their-privatization-was-that-they-retained-the-implicit-support-of-the-federal-government_the-markets-treated-the-gses-as-though-they-had-the-federal-government_s-backing-when-they-did-not_-the-private-shareholders-who-controlled-these-institutions-were-incentivized-to-profit-in-the-short-term-by-taking-on-too-much-risk_-which-made-them-inherently-unstable_-the-government-did-not-share-in-the-corporation_s-profits-during-the-housing-bubble_-but-when-fannie-mae-failed-because-it-had-taken-on-too-much-mortgage-risk_-the-federal-government-had-to-take-on-its-losses-and-bail-it-out-as-the-market-had-assumed-it-would_the-problem-of-public-losses-and-privatized-gains-is-inherent-to-any-government-supported-bank_-but-it-was-magnified-with-the-gses-due-to-their-size-and-their-ambiguous-nature-as-quasigovernment-entities_-the-same-circumstances-doomed-freedman_s-savings-bank_-the-facade-of-government-support-over-a-privately-run_-profit-motivated-institution_-an-institution-that-operates-for-the-benefit-of-private-shareholders-yet-advertises-that-it-is-a-public-institution-is-a-dangerous-lie_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-bank-of-north-dakota-is-the-only-state-bank-left-in-the-us_li_-_li_the-bank-of-north-dakota-is-a-model-for-other-states-to-follow_li_-_ul_-_h2_introduction_h2_-this-is-the-only-state-owned-bank-in-the-us_-a-model-of-other-public-banks-uses-it-by-ellen-brown_-the-history-of-the-bnd-is-explained-at-this-_a-href_https_bnd_nd_gov_history-of-bnd_-target_blank_-rel_noopener_strong_link_-_strong_a_-the-other-state-owned-banks-_alabama_-kentucky_-illinois_-vermont_-georgia_-tennessee_-missouri_-virginia_s_-were-eliminated-due-to-political-pressure-by-private-banking-interests_-other-states-have-analyzed-the-bnd-for-whether-they-should-open-their-own-state-banks_-state-banks-could-work-seamlessly-with-a-us-government-public-central-bank_-the-bnd-has-a-single-branch-and-has-most-likely-survived-because-it-has-not-attempted-to-compete-with-private-banks-or-expand_-the-bnd-is-virtually-never-mentioned-in-articles-about-banking_-even-though-it-has-been-a-stability-and-ag-glowing-success-model_-ellen-brown-is-the-only-prominent-author-to-bring-up-the-existence-of-this-bank_-ellen-brown-states-the-following-about-the-bnd_-_blockquote_the-bnd-maximizes-its-profits-and-its-ability-to-serve-the-community-by-eliminating-profiteering-middlemen_-it-has-no-private-shareholders-bent-on-short-term-profits_-no-high-paid-executives_-no-need-to-advertise-for-depositors-or-borrowers_-and-no-need-for-multiple-branches_-it-has-a-massive-built-in-deposit-base-since-the-state_s-revenues-must-be-deposited-in-the-bnd-by-law_-it-does-not-compete-with-north-dakota_s-local-banks-in-the-retail-market-but-instead-partners-with-them_-the-local-bank-services-and-retains-the-customer_-while-the-bnd-helps-as-needed-with-capital-and-liquidity_-largely-due-to-this-amicable-relationship_-north-dakota-has-nearly-six-times-as-many-local-financial-institutions-per-person-as-the-country-overall_-its-emergency-capabilities-were-demonstrated-in-1997-when-record-flooding-and-fires-devastated-grand-forks_-north-dakota_-east-grand-forks-on-the-minnesota-side-of-the-red-river_-the-town-and-its-sister-city_-lay-in-ruins_-the-response-of-the-bnd-was-immediate-and-comprehensive_-demonstrating-financial-flexibility-and-public-generosity-that-no-privately-owned-bank-could-match_-the-bnd-quickly-established-nearly-_70-million-in-credit-lines-and-launched-a-disaster-relief-loan-program_-worked-closely-with-federal-agencies-to-gain-forbearance-on-federally-backed-home-loans-and-student-loans_-and-reduced-interest-rates-on-existing-family-farm-and-farm-operating-programs_-in-the-2020-crisis_-north-dakota-shone-again_-leading-the-nation-in-getting-funds-into-the-hands-of-workers-and-small-businesses_-unemployment-benefits-were-distributed-in-north-dakota-faster-than-in-any-other-state_-and-small-businesses-secured-more-payroll-protection-program-funds-per-worker-than-in-any-other-state_-_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_-_strong_-ellen-brown_strong_span_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_ellen-brown_span_span_strong_-_strong_a-href_https_ellenbrown_com_2021_03_04_will-2021-be-public-bankings-watershed-moment_more-15314_-target_blank_-rel_noopener_https_ellenbrown_com_2021_03_04_will-2021-be-public-bankings-watershed-moment_more-15314_a_strong_-_h2_other-states-studying-the-bnd-for-the-potential-to-start-their-own-banks_h2_-the-state-of-massachusetts-performed-a-study-into-creating-a-state-bank-investigating-the-bnd_-here-is-one-quote-from-that-study_-_blockquote_members-of-the-north-dakota-banking-community-initially-feared-that-a-state-owned-bank-would-drive-small-businesses_-to-soothe-these-concerns_-the-north-dakota-legislature-imposes-limits-on-bnd-activities_-the-bank-was-initially-prohibited-from-opening-branches_-engaging-in-retail-banking_-and-providing-commercial-lending-other-than-farm-real-estate-loans_-bnd-has-shown-a-profit-each-year_-according-to-data-available-since-1971_-in-fact_-bdn-has-consistently-produced-high-returns-on-its-assets-compared-to-size-private-banks-similarly_-this-could-indicate-that-bnd_-on-average_-is-more-successful-in-its-lending-and-investments-than-its-private-sector-peers_-has-a-lower-cost-of-funds-or-operations_-or-benefits-from-its-tax-exempt-status-or-some-combination-thereof_-bnd-accounts-for-about-15-percent-of-total-deposits-of-banks-with-operations-in-north-dakota-more-than-any-other-bank-in-the-state_-in-the-past-five-years_-bnd-saw-similar-shares-of-its-loans-fall-into-delinquency-than-comparably-sized-banks-across-the-nation_-bnd-deposits-are-backed-by-the-full-faith-and-credit-of-the-state-of-north-dakota-and-are-not-insured-by-the-fdic_-as-the-nation_s-unemployment-rate-hovered-near-10-percent-in-late-2009_-north-dakota_s-unemployment-rate-stayed-below-4_5-percent_-some-policymakers-in-other-parts-of-the-nation-have-summarized-that-north-dakota_s-relatively-benign-surmised-that-north-dakota_s-relatively-benign-recession-might-be-attributable-in-part-of-the-existence-of-a-state-owned-bank_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_politico_span_span_strong_-_strong_a-href_https_www_politico_com_states_f_id_0000015b-5330-d932-a97b-f3fc404f0001_-target_blank_-rel_noopener_https_www_politico_com_states_f_id_0000015b-5330-d932-a97b-f3fc404f0001_a_strong_-at-the-end-of-the-study_-the-authors-point-out-the-expense-of-creating-a-state-bank_-this-is-amusing-or-sad-because-the-authors-did-not-understand-the-costs-a-state-incurs-by-not-having-a-state-bank_-having-a-state-bank-allows-a-state-to-place-all-tax-revenues-into-that-bank-and-keep-away-from-private-banks-and-wall-street_-this-point_-as-well-as-the-math_-is-explained-by-ellen-brown-in-the-following-video_-https_www_youtube_com_watch_v_yh0ijo8cbvoandamp_t_583s-the-state-of-vermont-performed-a-similar_-here-is-one-quote-_blockquote_what-might-the-rewards-be-of-vermont-owning-and-operating-its-own-bank_-an-examination-of-the-bank-of-north-dakota_s-audited-financial-statements-reveals-that-it-transferred-_30mm-to-the-north-dakota-general-fund-in-2006_-2007_-and-2008_-expressed-as-a-percentage_-it-cost-the-bank-of-north-dakota-3-tenths-of-one-percent-of-their-loan-assets-from-a-salary-and-benefits-perspective-to-originate-and-service-their-loans_-it-appears-at-least-theoretically-possible-to-create-an-entity-that-operates-far-less-expensively-and-at-a-profit-and-therefore-is-able-to-pay-a-dividend-to-the-state-each-year-rather-than-the-reverse-whereby-the-state-needs-to-appropriate-funds-for-these-organizations-on-a-regular-ongoing-basis_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_vtdigger_span_span_strong_-_strong_a-href_https_vtdigger_org_2010_01_25_expert-testimony-should-vermont-form-a-state-owned-bank_-target_blank_-rel_noopener_https_vtdigger_org_2010_01_25_expert-testimony-should-vermont-form-a-state-owned-bank_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-central-bank-of-guernsey-issues-the-debt-free-guernsey-pound_li_-_ul_-_h2_introduction_h2_-guernsey-is-not-a-country-but-a-british-crown-dependency_-however_-its-banking-is-separate-from-the-uk-while-it-uses-the-same-currency_-the-british-pound_-so-for-monetary-purposes_-is-listed-here-as-a-country_-guernsey-issued-its-own-currency-that-became-accepted-as-it-was-declared-it-could-be-used-to-pay-taxes_-guernsey-is-a-direct-contradiction-of-private-banking-interest-claims_-this-is-explained-by-the-following-quotation-_blockquote_it-has-no-inheritance-tax_-no-capital-gains-tax_-and-no-federal-tax_-commercial-bank-service-private-lenders_-but-the-government-itself-never-goes-into-debt_-when-it-wants-to-create-some-public-worker-service_-it-just-issues-the-money-it-needs-to-pay-for-the-work_-and-the-guernsey-government-has-been-issuing-its-own-money-for-nearly-two-decades_-during-that-time_-the-money-supply-has-mushroomed-to-about-25-times-its-original-size_-yet-the-economy-has-not-been-troubled-by-plight-by-price-inflation_-and-it-has-remained-prosperous-and-stable_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_why-private-banking-interests-don_t-want-you-to-know-about-guernsey_h2_-private-banking-interests-do-not-like-examples-of-non-orthodox-banking-success-stories-where-debt-free-money-is-issued-without-the-involvement-of-private-bankers_-the-web-of-debt-hypothesizes-that-the-only-way-guernsey-has-been-allowed-to-_get-away-with-it_-is-that-the-island-and-island-population-is-so-small-with-only-about-63_000-inhabitants_-however_-the-bank-of-england-has-repeatedly-opened-branches-on-the-island-throughout-the-years-and-pressured-the-inhabitants-to-move-towards-_responsible_-debt-based-and-private-banking-controlled-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-commonwealth-bank-of-australia-was-once-a-public-bank-that-issued-debt-free-money_li_-_li_this-bank-has-been-ruined-by-private-banking-interests-to-eliminate-the-public-good-function_li_-_ul_-_h2_introduction_h2_-a-government-run-bank-that-took-on-central-banking-authority-in-1920_-the-cb-was-instrumental-in-helping-australia-in-ww-i-the-ww-ii-and-the-great-depression-and-was-a-major-part-of-australia_s-economic-success-before-its-privatization_-after-the-cb-was-privatized-in-19912024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-an-entity-designed-to-promote-public-banks_li_-_ul_-_h2_introduction_h2_-this-entity-is-designed-to-promote-the-growth-of-public-banking-and-is-an-outgrowth-of-the-work-of-ellen-brown_-their-website-is-here-_a-href_https_www_publicbankinginstitute_org_strong_the-public-banking-institute_-_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fdic-is-insurance-for-the-banking-system-in-the-us_li_-_li_it-is-a-massive-subsidy-to-private-banking-interests-and-has-since-been-expanded-to-investment-banks_li_-_ul_-_h2_introduction_h2_-the-fdic-is-the-federal-depository-insurance-corporation-and-was-brought-into-existence-after-the-bank-failures-of-the-great-depression-and-instituted-as-part-of-the-1933-banking-act_-there-are-concerns-as-to-the-fdic_s-resources-given-the-increase-in-the-riskiness-of-banking_-this-is-explained-in-the-following-quotation_-_blockquote_in-theory_-deposits-up-to-_250_000-are-protected-by-fdic-insurance_-but-the-fdic-fund-had-only-93-billion-in-it-at-the-end-of-2017_-total-us-bank-deposits-are-close-to-17-trillion_-of-which-about-half-are-covered-by-the-fdic-insurance-in-the-2013-article-in-usa-today-titled-can-fdic-handle-the-failure-of-a-mega-bank_-financial-analyst-darrell-delamaide-warned-the-biggest-failure-the-fdic-has-handled-was-washington-mutual-in-2008_-and-while-that-was-plenty-big-with-307-billion-in-assets_-it-was-a-small-fraction-heard-with-the-2_5-trillion-trillion-in-assets-today-at-jp-morgan-chase-and-2_2-trillion-at-bank-of-america-or-1_9-trillion-at-citicorp_-there-is-there-was-no-possibility-that-the-fdic-could-take-on-the-rescue-of-a-city-group_-or-bank-of-america-when-the-full-fledged-financial-crisis-broke-in-the-fall-that-year_-and-threatened-the-solvency-of-even-the-biggest-spikes_-the-fdic-has-a-credit-line-with-the-treasury-up-to-500-billion-but-who-would-pay-that-massive-loan-back-in-theory-it-would-be-the-member-banks_-but-a-major-crisis-could-render-the-whole-banking-industry-insolvent-as-effectively-happened-in-2008_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong_-_h2_is-the-fdic-insurance_h2_-the-fdic-does-not-insure-all-banks-equally-but-is-in-particular-a-giveaway-program-for-the-largest-and-most-connected-banks_-as-is-explained-in-the-following-quotation_-_blockquote_it-will-be-recalled-from-the-previous-chapter-that-the-fdic-is-not-a-true-insurance-program-and_-because-it-has-been-politicized_-it-embodies-the-principle-of-moral-hazard-and-it-actually-increases-the-likelihood-that-bank-failures-will-occur_-the-fdic-has-three-options-when-bailing-out-an-insolvent-bank_-the-first-is-called-a-payoff_-it-involves-simply-paying-off-the-insured-depositors-and-then-letting-the-bank-fall-to-the-mercy-of-the-liquidators_-this-is-the-option-usually-chosen-for-small-banks-with-no-political-clout_-the-second-possibility-is-called-a-sell-off-_-and-it-involves-making-arrangements-for-a-larger-bank-to-assume-all-the-real-assets-and-liabilities-of-the-failing-bank_-banking-services-are-uninterrupted-and_-aside-from-a-change-in-name_-most-customers-are-unaware-of-the-transaction_-this-option-is-generally-selected-for-small-and-medium-banks_-in-both-a-payoff-and-a-sell-off_-the-fdic-takes-over-the-bad-loans-of-the-failed-bank-and-supplies-the-money-to-pay-back-the-insured-depositors_-the-third-option-is-called-bailout_-and-this-is-the-one-which-deserves-our-special-attention_-irvine-sprague_-a-former-director-of-the-fdic_-explains_-_in-a-bailout_-the-bank-does-not-close_-and-everyone_insured-or-not_is-fully-protected_-such-privileged-treatment-is-accorded-by-fdic-only-rarely-to-an-elect-few_-1-that_s-right_-he-said-everyone_insured-or-not_is-fully-protected_-the-banks-which-comprise-the-elect-few-generally-are-the-irvine-h_-sprague_-bailout_-an-insider_s-account-of-bank-failures-and-rescues-_new-york_-basic-books_-1986_-p_-23_-favoritism-toward-the-large-banks-is-obvious-at-many-levels_-one-of-them-is-the-fact-that_-in-a-bailout_-the-fdic-covers-all-deposits_-whether-insured-or-not_-that-is-significant_-because-the-banks-pay-an-assessment-based-only-on-their-insured-deposits_-so_-if-uninsured-deposits-are-covered-also_-that-coverage-is-free_more-precisely_-paid-by-someone-else_-what-deposits-are-uninsured_-those-in-excess-of-_100_000-and-those-held-outside-the-united-states_-which-banks-hold-the-vast-majority-of-such-deposits_-the-large-ones_-of-course_-particularly-those-with-extensive-overseas-operations_2-the-bottom-line-is-that-the-large-banks-get-a-whopping-free-ride-when-they-are-bailed-out_-their-uninsured-accounts-are-paid-by-fdic_-and-the-cost-of-that-benefit-is-passed-to-the-smaller-banks-and-to-the-taxpayer_-this-is-not-an-oversight_-part-of-the-plan-at-jekyll-island-was-to-give-a-competitive-edge-to-the-large-banks_-unity-bank-the-first-application-of-the-fdic-essentiality-rule-was_-in-fact_-an-exception_-in-1971_-unity-bank-and-trust-company-in-the-roxbury-section-of-boston-found-itself-hopelessly-insolvent_-and-the-federal-agency-moved-in_-this-is-what-was-found_-unity_s-capital-was-depleted_-most-of-its-loans-were-bad_-its-loan-collection-practices-were-weak_-and-its-personnel-represented-the-worst-of-two-worlds_-overstaffing-and-inexperience_-the-examiners-reported-that-there-were-two-persons-for-every-job_-and-neither-one-had-been-taught-the-job_-with-only-_11_4-million-on-its-books_-the-bank-was-small-by-current-standards_-normally_-the-depositors-would-have-been-paid-back_-and-the-stockholders_like-the-owners-of-any-other-failed-1_-sprague_-pp_-27-29_-2_-the-bank-of-america-is-the-exception_-despite-its-size_-it-has-not-acquired-foreign-deposits-to-the-same-degree-as-its-competitors_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-imf-is-designed-to-represent-global-private-banking-interests-and-to-undermine-the-sovereignty-of-countries_-eliminating-the-effectiveness-of-participatory-governments_li_-_ul_-_h2_introduction_h2_-the-imf-or-international-monetary-fund-was-originally-created-to-facilitate-currency-transactions_-however_-it-has-changed-into-a-mousetrap-for-foreign-countries-that-like-the-world-bank-uses-a-strategy-of-getting-weaker-countries-in-debt-and-then-setting-the-terms-for-the-debt-being-whatever-the-more-powerful-countries-and-powerful-private-banking-interests-that-pull-the-imf_s-strings-what-that-country-to-do_-normal-terms-are-implementing-austerity_-running-balanced-budgets-or-budget-surpluses_-opening-up-to-_free-trade_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-bis-represents-private-banking-interests-globally_li_-_ul_-_h2_introduction_h2_-the-bank-of-international-settlements-or-bis_-it-is-a-type-of-central-bank-superbank_-and-this-little-known-bank-has-been-called-the-most-powerful-bank-in-the-world2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-world-economic-forum-is-a-cartel-of-billionaire-private-banking-interests-that-coordinate-with-each-other-to-promote-corrupt-privatization_-fake-charities_-and-control-over-governments_li_-_ul_-_h2_introduction_h2_-a-cat_s-paw-of-world-private-banking-and-big-money-interests_-the-wef-puts-on-the-davos-in-switzerland_-the-wef-pretend-to-be-a-type-of-think-tank-with-virtuous-motivations_-their-website-is-filled-with-alternative-energy-proposals-and-how-to-make-things-for-a-better-future_-still_-the-wef-only-exists-to-push-for-pushing-things-like-privatization-and-the-takeover-of-public-infrastructure-projects-by-corrupt-private-banking-interests_-the-eu-has-a-specific-provision-called-the-eurostat-rule_-which-allows-public-debt-to-be-recategorized-as-private-debt-if-the-project-is-part-of-a-ppp_-the-eu-offers-_55-b-in-structural-funds-and-other-grants-that-can-only-be-used-for-ppp-projects_-this-illustrates-the-connectivity-between-the-eu-and-private-banking-interests_-the-eu-pushes-its-member-countries-towards-corrupt-and-wasteful-ppp-projects-to-benefit-the-interests-of-those-connected-to-the-eu_-these-private-banking-interests-then-lobby-the-eu-to-be-even-more-promotional-of-ppps_-the-european-investment-bank-even-has-a-_european-ppp-expertise-center_-to-help-consult-and-advise-member-countries-looking-to-engage-in-ppps_-the-website-promotes-what-a-great-thing-ppps-are_-as-you-can-see-at-this-_a-href_https_www_eib_org_epec_-target_blank_-rel_noopener_strong_link_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-progressive-think-tank-that-promotes-policies-that-are-in-the-public-interest_li_-_ul_-_h2_introduction_h2_-the-roosevelt-institute-is-along-with-the-cerp-one-of-the-few-progressive-think-tanks_-unlike-the-cepr_-while-the-ri-has-great-ideas_-they-are-virtually-never-brought-up-or-invited-to-speak-on-mainstream-media-outlets_-it-is-very-clear_-private-banking-interests-control-mainstream-media-outlets-through-both-direct-ownership-and-advertising_-progressive-think-tanks-cannot-gain-exposure-to-their-ideas-if-they-benefit-the-overall-society-versus-the-narrow-interests-of-private-banking2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_blackrock-is-a-combination-hedge-fund-and-consulting-company-that-is-highly-corrupt-and-focused-on-predatory-financial-activities_li_-_ul_-_h2_introduction_h2_-a-largely-unregulated-shadow-bank_hedge-fund_-etc_-with-over-_7-t-in-assets_-this-is-a-good-video-that-explains-what-blackrock-is_-https_youtu_be_a4foal20uta-they-are-described-by-ellen-brown-as-follows_-_blackrock-was-founded-in-1988-in-partnership-with-the-blackstone-group_-a-multinational-private-equity-management-firm-that-would-become-notorious-after-the-2008-09-banking-crisis-for-snatching-up-foreclosed-homes-at-firesale-prices-and-renting-them-at-inflated-prices_-blackrock-first-grew-its-balance-sheet-in-the-1990s-and-2000s-by-promoting-the-mortgage-backed-securities-_mbs_-that-brought-down-the-economy-in-2008_-knowing-the-mbs-business-from-the-inside_-it-was-then-put-in-charge-of-the-federal-reserve_s-_maiden-lane_-facilities_-called-_special-purpose-vehicles_-these-were-used-to-buy-_toxic_-assets-_largely-unmarketable-mbs_-from-bear-stearns-and-american-insurance-group-_aig_-something-the-fed-was-not-legally-allowed-to-do-itself_-blackrock-really-made-its-fortunes_-however_-in-_exchange-traded-funds_-_etfs_-it-gained-trillions-in-investable-assets-after-it-acquired-the-ishares-series-of-etfs-in-a-takeover-of-barclays-global-investors-in-2009_-by-2020_-the-wildly-successful-ishares-series-included-over-800-funds-and-_1_9-trillion-in-assets-under-management_-the-etfs-were-trading-well-below-the-value-of-their-underlying-bonds_-which-were-dropping-like-a-rock_-some-etfs-were-failing-altogether_-the-problem-was-something-critics-had-long-warned-of_-while-etfs-are-very-liquid_-trading-on-demand-like-stocks_-the-assets-that-make-up-their-portfolios-are-not_-when-the-market-drops-and-investors-flee_-the-etfs-can-have-trouble-coming-up-with-the-funds-to-settle-up-without-trading-at-a-deep-discount_-and-that-is-what-was-happening-in-march_-according-to-a-may-3-article-in-the-national_-_blockquote_the-sector-was-ultimately-saved-by-the-us-federal-reserve_s-pledge-on-march-23-to-buy-investment-grade-credit-and-certain-etfs_-this-provided-the-liquidity-needed-to-rescue-bonds-that-had-been-floundering-in-a-market-with-no-buyers_-prof_-clements-states-that-if-the-fed-had-not-stepped-in_-_a-_doom-loop_-could-have-materialized-where-continued-selling-pressure-in-the-etf-market-exacerbated-a-fire-sale-in-the-underlying-_bonds_-and-again-vice-versa_-in-a-procyclical-pile-on-with-devastating-consequences_-he-observes_-there_s-an-unsettling-form-of-market-alchemy-that-takes-place-when-illiquid_-over-the-counter-bonds-are-transformed-into-instantly-liquid-etfs_-etf-_liquidity-transformation_-is-now-being-supported-by-the-government_-just-like-liquidity-transformation-in-mortgage-backed-securities-and-shadow-banking-was-supported-in-2008_-blackrock-got-a-bailout-with-no-debate-in-congress_-no-_penalty_-interest-rate-of-the-sort-imposed-on-states-and-cities-borrowing-in-the-fed_s-municipal-liquidity-facility_-no-complicated-paperwork-or-waiting-in-line-for-scarce-small-business-administration-loans_-no-strings-attached_-it-just-quietly-bailed-itself-out_-daniela-gabor_-professor-of-macroeconomics-at-the-university-of-western-england-in-bristol_-concluded-after-following-a-number-of-regulatory-debates-in-brussels-that-it-was-no-longer-the-banks-that-wielded-the-financial-power_-it-was-the-asset-managers_-she-said_-we-are-often-told-that-a-manager-is-there-to-invest-our-money-for-our-old-age_-but-it_s-much-more-than-that_-in-my-opinion_-blackrock-reflects-the-renunciation-of-the-welfare-state_-its-rise-in-power-goes-hand-in-hand-with-ongoing-structural-changes_-in-finance_-but-also-in-the-nature-of-the-social-contract-that-unites-the-citizen-and-the-state_-public-policy-is-made-today-in-ways-that-favor-the-stock-market_-which-is-considered-the-barometer-of-the-economy_-although-it-has-little-to-do-with-the-strength-of-the-real_-productive-economy_-giant-pension-and-other-investment-funds-largely-control-the-stock-market_-and-the-asset-managers-control-the-funds_-that-effectively-puts-blackrock_-the-largest-and-most-influential-asset-manager_-in-the-driver_s-seat-in-controlling-the-economy_-_strong_meet-blackrock_-the-new-great-vampire-squid_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-dissident-voice_span_span_strong_-_strong_a-href_https_dissidentvoice_org_2020_06_meet-blackrock-the-new-great-vampire-squid_-target_blank_-rel_noopener_https_dissidentvoice_org_2020_06_meet-blackrock-the-new-great-vampire-squid_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_mckinsey-is-one-of-the-most-powerful-consulting-companies-in-the-world-and-is-instrumental-in-getting-governments-to-privatize-infrastructure-to-corrupt-private-entities_li_-_ul_-_h2_introduction_h2_-mckinsey-is-critical-in-providing-authoritative-but-financially-biased-and-corrupt-advice_-which-is-always-about-promoting-privatization-and-to-enrich-mckinsey-and-entities-connected-to-mckinsey_-mckinsey-and-similar-law-firms-bill-enormous-sums-of-money-to-governments-for-fraudulent-advice_-this-quotation-is-a-good-example_-this-included-a-key-report-by-pricewaterhousecoopers_-which-was-unreliable-and-wildly-inaccurate_-_blockquote_as-the-partnership-_metronet_-was-being-put-together_-pwc-predicted-that-the-private-sector-could-extract-savings-of-up-to-30-per-cent_-a-figure-that-informed-the-entire-project_-but-the-consultancy-published-no-adequate-evidential-basis-for-that-figure_-mckinsey-published-a-2007-report-which-claimed-that-the-private-sector-could-provide-over-half-of-the-_30-billion-investment-needed-to-develop-healthcare-in-africa-over-the-next-10-years_-this-was-used-to-justify-ifis-and-donors-financing-private-equity-funds_-rather-than-public-sector-healthcare_-but-by-2012-it-had-resulted-in-almost-no-private-finance-at-all_-_strong_-why-ppps-don_t-not-work_strong_blockquote_-mckinsey-is-part-of-a-complex-of-corrupt-consulting-firms-that-produce-deliberately-false-forecasts-to-promote-ppp-projects_-as-is-explained-in-the-following-quotation-_blockquote_a-global-study-found-that-in-90-per-cent-of-road-and-rail-projects_-the-actual-costs-end-up-much-higher-than-forecast-in-the-original-bids_-and-actual-demand-is-lower-than-forecast_-the-error-is-always-in-the-same-direction_-so-it-cannot-be-the-result-of-chance-_-it-can-only-be-the-result-of-systematic-misrepresentation-_-i_e_-lying_-the-authors-concluded_-_the-problem-of-misinformation-is-an-issue-of-power-and-profit-and-must-be-dealt-with-as-such_-using-the-mechanisms-of-transparency-and-accountability_-road-traffic-forecasts-for-toll-road-ppps-are-systematically-exaggerated-everywhere_-in-australia_-every-toll-road-constructed-since-2005-has-had-less-traffic-and-less-toll-revenue-than-the-forecasts_-in-central-and-eastern-europe-the-experience-has-been-the-same_-_-why-ppps-don_t-not-work_-the-constant-feature-of-mckinsey-is-that-they-use-consultants-that-are-both-dishonest-and-that-do-not-have-the-experience-in-public-works-or-infrastructure-projects_-outside-of-having-falsified-numbers-on-previous-advisory-projects_-a-good-example-of-how-everything-mckinsey-touches-turns-to-waste-is-found-in-the-following-quote_-_fdr_-however_-actually-built-things_-whereas-obama_s-stimulus-money-for_-say_-california_s-high-speed-rail_-evaporated-into-a-cloud-of-consultants_-_a-particularly-mean-joke-was-that-fdr-won-wwii-in-less-time-than-it-took-obama-to-build-obamacare-web-sites-that-didn_t-work_-when-i-was-a-senate-staffer_-one-of-the-worst-pieces-of-legislation-i-worked-on-was-called-promesa_-it-was-june-of-2016_-and-puerto-rico-was-having-trouble-paying-back-_70b_-of-its-state-debt_-there-are-no-bankruptcy-provisions-for-u_s_-territories_-so-congress-stepped-in-and-appointed-a-control-board-of-bankers-and-technocrats-to-govern-the-island_-the-idea-being-that-the-democratically-elected-government-had-been-fiscally-reckless_-and-the-federal-government-should-step-in_-the-control-board-hired-mckinsey_-the-management-consulting-firm_-as-the-island_s-_strategic-consultant_-with-the-goal-of-getting-puerto-rico-back-to-fiscal-solvency_-a-little-over-a-year-after-congress-passed-promesa_-hurricane-maria-hit_-puerto-rico_s-water_-health-and-electric-systems-were-weak_-which-the-hurricane-exposed-by-ripping-through-the-island_s-physical-plant_-for-the-last-five-years_-mckinsey-has-detailed-highly-paid-consultants-to-help-the-control-board-both-renegotiate-debt-and-oversee-infrastructure-spending_-has-the-rebuild-gone-well_-in-short_-no_-the-unelected-control-board-has-allowed-the-awarding-of-electric-grid-contracts-to-corrupt-insiders_-so-power-outages-are-still-common_-mass-protests-forced-the-governor_s-resignation-in-2019_-and-schools-are-closing-even-as-the-government-continues-to-pay-government-salaries-to-people-who-don_t-work-for-the-government_-so-what-has-mckinsey-been-doing_-if-it-hasn_t-been-running-puerto-rico_-the-answer-is_-mckinsey-has-been-looking-out-for-mckinsey_-it-has-ensured-that-puerto-rico-will-spend-the-mind-bogglingly-large-sum-of-_1_5-billion-on-professional-services_-meaning-lawyers_-bankers_-and-consultants-_including-mckinsey_-which-is-five-times-what-detroit-paid-in-services-for-its-bankruptcy_-mckinsey-structured-france_s-terrible-coronavirus-response_-and-that-of-new-york-state_-mckinsey-is-so-brazen-that-it-was-caught-by-the-gsa-inspector-general-for-cheating-the-government-out-of-_65-million_-it-didn_t-seem-to-matter_-in-2019_-mckinsey-worked-for-more-than-15-federal-agencies-and-departments_-and-25-states_-this-broad-range-of-clients-gives-mckinsey-a-cartel-like-relationships-with-the-circle-of-law-firms_-investment-banks_-and-fellow-professional-services-firms-involved-in-bankruptcies_-infrastructure-spending_-and-other-specialized-institutional-work_-_strong_-matt-stoller_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-gramm-leach-bliley-act-was-designed-for-investment-banks-to-become-commercial-banks_li_-_ul_-_h2_introduction_h2_-allow-private-investment-banks-to-enter-virtually-any-type-of-business-under-a-_complementary-business-provision_-this-is-explained-in-the-following-quotation_-_blockquote_for-nearly-a-decade_-this-obscure-provision-of-gramm-leach-bliley-effectively-applied-to-nobody_-then_-in-the-third-week-of-september-2008_-while-the-economy-was-imploding-after-the-collapses-of-lehman-and-aig_-two-of-america_s-biggest-investment-banks_-goldman-sachs-and-morgan-stanley_-found-themselves-in-desperate-need-of-emergency-financing_-so-late-on-a-sunday-night_-on-september-21st_-to-be-exact_-the-two-banks-announced-they-had-applied-to-the-federal-reserve-to-become-bank-holding-companies_-which-would-give-them-lifesaving-access-to-emergency-cash-from-the-fed_s-discount-window_-the-fed-granted-the-requests-overnight_-the-move-saved-the-bacon-of-both-firms_-and-it-had-one-additional-benefit_-it-made-goldman-and-morgan-stanley_-which-both-had-significant-commodity-trading-operations-prior-to-1997_-the-first-and-last-two-companies-to-qualify-for-the-grandfather-exemption-of-the-gramm-leach-bliley-act_-_kind-of-convenient_-isn_t-it_-says-one-congressional-aide_-_it_s-almost-like-the-law-was-written-specifically-for-them_-_strong_-matt-taibbi_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_matt-stoller_span_span_strong_-_strong_a-href_https_mattstoller_substack_com_p_is-biden-accidentally-giving-the_-target_blank_-rel_noopener_https_mattstoller_substack_com_p_is-biden-accidentally-giving-the_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-placed-a-separation-between-investment-banking-and-commercial-banking_li_-_ul_-_h2_introduction_h2_-often-referred-to-as-the-glass-steagall-act_-in-fact_-glass-steagall-is-four-provisions-of-the-act-that-deal-with-the-separation-of-commercial-banks-from-investment-banks_-the-1933-banking-act-was-much-more-far-ranging-than-just-this-issue_-this-was-a-act-that-was-designed-to-regulate-the-banking-industry_-and-was-passed-with-support-by-the-rockefellers-to-bring-the-bank-of-morgan-to-heel2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-was-a-law-that-tried-but-failed-to-make-a-meaningful-change-to-banking_li_-_ul_-_h2_introduction_h2_-this-act-was-designed-to-overhaul-financial-regulation-after-the-great-recession2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-law-extended-the-charter-of-the-federal-reserve_li_-_ul_-_h2_introduction_h2_-this-act-extended-the-charter-of-the-federal-reserve-into-perpetuity_-it-also-allowed-national-banks-to-open-branches-in-many-states_-which-allowed-larger-banks-to-compete-against-smaller-banks_-it-loosened-regulations-on-banks-and-gave-the-federal-reserve-more-power-than-it-had-before2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-banking-act-favored-the-banks-over-the-public_li_-_ul_-_h2_introduction_h2_-this-act-was-promoted-by-the-rothschilds_-secretary-of-the-treasury-chase-was-coerced-by-rothschilds-agents-into-supporting-the-act2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-banking-act-favored-the-banks-over-the-public_li_-_ul_-_h2_introduction_h2_-under-bill-clinton_-the-glass-steagall-provisions-were-removed_-these-provisions-had-already-been-greatly-diluted-since-being-passed-under-fdr_-this-lead-to-both-massive-consolidation-in-banking_-but-also-banks-becoming-riskier-as-the-investment-banking-culture-influenced-the-commercial-banking-side-of-these-banks-that-no-longer-had-a-division-between-them_-this-was-a-monumental-blunder-and-in-part-led-to-the-2008-mortgage-backed-security-crisis_-elizabeth-warren-has-proposed-bringing-back-the-glass-steagall-restrictions-as-the-following-quote-explains_-_blockquote_the-story-of-the-2008-crisis-is-that-you-had-these-firms-outside-of-the-public-safety-net-and-regulatory-perimeter_-but-hooked-into-banks-inside-the-safety-net_-says-stanley-of-americans-for-financial-reform_-_they-all-passed-the-hot-potato-of-risk-until-nobody-knew-where-it-was_-the-financial-crisis-showed_-as-federal-reserve-governor-daniel-tarullo-noted-in-a-speech-last-month_-that-you-cannot-wall-off-shadow-banking-from-traditional-banking_-and-this-allows-unregulated-firms-like-shadow-banks-to-take-greater-risks_-secure-in-the-knowledge-that-they-would-get-bailed-out-if-they-found-themselves-in-trouble_-one-solution-is-to-go-back-to-the-new-deal-era_-with-traditional-banking-on-one-side-and-trading-on-the-other_-and-a-solid-wall-between-them_-reinstating-the-glass-stegall-act_-as-senators-like-elizabeth-warren-have-endorsed_-would-serve-this-purpose_-providing-clarity-to-regulators-who-would-not-need-to-understand-multiple-complex-intricacies-when-monitoring-a-bank_-_banking-should-be-boring_-warren-has-said_-_strong_-psmag_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_ps-mag_span_span_strong_-_strong_a-href_https_psmag_com_economics_banks-dont-much-banking-anymore-thats-serious-problem-72654_-target_blank_-rel_noopener_https_psmag_com_economics_banks-dont-much-banking-anymore-thats-serious-problem-72654_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-banking-act-brought-into-existence-the-federal-reserve-bank-of-the-us_-which-is-the-us-central-bank_li_-_ul_-_h2_introduction_h2_-the-us-federal-reserve-act-was-passed-before-christmas-and-written-in-a-way-such-that-those-that-voted-on-it-could-barely-tell-what-it-meant_-the-promoters-of-the-act-granted-fake-concessions-to-put-the-mind-at-of-east-of-those-that-opposed-a-private-central-bank_-if-the-politicians-knew-what-they-were-voting-for_-it-is-unlikely-this-act-of-1913-would-have-been-passed_-this-quote-from-us-congressman-charles-limburgh-described-what-he-saw-as-the-reason-for-this-act_-_blockquote_the-aldrich-plan-_the-first-name-for-the-us-federal-reserve-act_-is-the-wall-street-plan_-it-means-another-panic_-if-necessary_-to-intimidate-the-people_-aldrich_-paid-by-the-government-to-represent-the-people_-proposes-a-plan-for-the-trusts-instead_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-was-passed-by-the-bis-to-punish-smaller-banks-and-favor-larger-banks_li_-_ul_-_h2_introduction_h2_-basel-iii-was-_passed_-by-the-bank-of-international-settlements_-the-objective-of-basel-iii-is-described-in-the-following-quotation_-_blockquote_the-proposed-basel-iii-regulatory-capital-requirements-are-an-immense-and-unnecessary-burden-that-will-actually-threaten-the-existence-of-banks-with-under-_1billion-in-assets_-these-new-regulations-will-further-drive-consolidation-into-a-few-bigger-banks_-some-on-wall-street_-like-mergers-and-acquisitions-expert-john-slater_-predict-that-basel-iii_s-compliance-costs-will-lead-to-a-merger-boom_-and-that-in-the-next-3-5-years-20-30-percent-of-all-banks-will-merge_-further-consolidating-wealth-in-fewer-and-fewer-hands_-that-is-the-object-_-world-bank_economic-and-hence-political-control-by-a-handful-of-un-elected_-unaccountable_-international-bankers-beholden-to-no-one_-many-of-whom-have-ethics-only-machiavelli-could-admire-and-worldviews-that-most-people-on-earth-would-consider-abhorrent_strong_-the-money-masters_strong_-_the-aldrich-plan-_the-first-name-for-the-us-federal-reserve-act_-is-the-wall-street-plan_-it-means-another-panic_-if-necessary_-to-intimidate-the-people_-aldrich_-paid-by-the-government-to-represent-the-people_-proposes-a-plan-for-the-trusts-instead_-_strong_-az-quotes_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-program-was-designed-to-push-bad-assets-off-of-the-balance-sheet-o-the-banks-and-onto-the-government_li_-_ul_-_h2_introduction_h2_-tarp-stands-for-troubled-asset-relief-program_-what-it-did-was-move-toxic-assets-off-of-the-balance-sheets-of-the-private-banks-and-put-them-onto-the-government_s-balance-sheet_-it-was-a-bank-bailout_-the-point-of-this-program-was-to-_save-the-banks_-but-also-to-hand-out-government-money-in-return-for-nothing-to-private-banking-interests_-and-to-hide-bank-fraud_-it-is-explained-in-the-following-quotation_-_blockquote_the-challenge-for-ben-bernanke-and-the-fed-governors-since-the-2008-bailout-has-been-how-to-deal-with-the-backlog-of-fraud_-not-just-fraudulent-mortgages-and-fraudulent-mortgage-securities_-but-the-derivatives-piled-on-top-and-the-politics-of-who-owns-them_-such-as-sovereign-nations-with-nuclear-arsenals-and-how-they-feel-about-taking-massive-losses-on-triple-a-paper-purchased-in-good-faith_-on-one-hand_-they-could-let-them-all-default_-the-problem-is-that-the-criminal-liabilities-would-drive-the-global-and-national-leadership-into-factionalism-and-controlled-violence_-not-to-mention-that-such-defaults-would-due-to-liquidity-in-the-financial-system_-then-there-is-the-fact-that-a-great-deal-of-the-fraudulent-paper-has-been-purchased-by-pension-funds_-so-the-markdown-would-hit-the-retirement-savings-of-people-who-have-now-also-lost-their-homes-or-equity-in-their-homes_-qe-was-politically-expedient-and-it-prevented-the-sort-of-great-depression-seen-in-the-1930s-when-the-banks-completely-collapsed_-_strong_-tbd_strong_blockquote_-the-fed-knew-how-much-fraud-had-occurred_-but-becuase-the-fed-only-represents-the-interests-of-private-banks-over-the-citizens-of-the-country_-it-was-instrumental-in-hiding-this-fraud_-this-is-yet-another-problem-with-allowing-a-central-bank-to-be-in-private-hands2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_these-were-designed-to-stabilize-the-banking-industry-in-light-of-the-great-depression_li_-_ul_-_h2_introduction_h2_-the-new-deal-reforms-were-a-group-of-laws-and-new-regulations-that-had-a-very-impressive-impact-on-the-economy-of-the-united-states-and-were-of-course-vociferously-opposed-by-private-banking-interests_-this-is-covered-in-the-following-quotation_-_blockquote_overall_-the-banking-reforms-of-the-new-deal-era-substantially-reduced-financial-exclusion_-for-example_-the-homeownership-rate-increased-from-roughly-40-percent-prior-to-the-new-deal_-to-over-65-percent-in-1970-_fhlbb-1983_-levitin-and-wachter-2013_-_strong_-the-public-banking-option_strong_-this-is-a-reason-listed-for-the-reforms-of-the-new-deal_-_we-chose-to-emphasize-the-public-character-of-financial-infrastructure-because-it-was-a-hardwon-lesson-from-the-great-depression_that-has-largely-been-forgotten_-for-example_-a-description-of-the-reasons-for-financial-regulation-in-the-1940s-stated-that_-_the-primary-reasons-for-bank-supervision-lie-in-the-fact-that_-by-the-very-nature-of-their-business_-banks-are-quasi-public-institutions_-and-in-the-further-fact-that_-at-times_-some-banks-have-failed-to-meet-their-obligations-and-responsibilities_-with-serious-consequences-to-the-public_-_d_arista-1994_-_strong_-the-public-banking-option_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-public-banking-solution_span_span_strong_-_strong_a-href_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_-target_blank_-rel_noopener_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-little-discussed-that-there-was-a-planned-coup-against-fdr_li_-_li_this-is-what-has-to-be-expected-when-leaders-opposed-private-banking-interests_li_-_ul_-_h2_introduction_h2_-fdr_s-new-deal_-glass-steagall-act_-and-many-more-actions-so-enraged-the-private-banking-interests-that-they-conspired-to-remove-fdr_-this-is-explained-by-the-following-quotation_-_blockquote_major-generally-general-smedley-butler-testified-before-congress-that-he-had-been-solicited-by-morgan-banking-interests-to-lead-the-plot_-against-roosevelt_-he-said-he-was-told-by-a-morgan-bank-agent-that-wall-street-was-about-to-cut-off-credit-to-the-new-deal_-and-then-the-roosevelt-has-either-got-to-get-more-money-out-of-us_-or-he-asked-to-change-the-method-of-financing-the-government-and-we_re-going-to-see-that-he-does-not-change-that-method_blockquote_-_h3_span-style_color_-_99cc00_source_span_-the-web-of-debt_h3_-_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_-target_blank_-rel_noopener_strong_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_bail-outs-are-gifts-to-banks-from-governments-that-prevent-them-from-ever-having-to-adjust-their-behavior_li_-_ul_-_h2_introduction_h2_-bail-outs-are-necessary-because-private-banks-and-related-institutions-lower-standards-for-short-term-profits_-this-leads-to-asset-bubbles_-when-the-bubbles-pop_-private-banks-can-end-up-with-losses_-a-bailout-is-how-a-private-bank-receives-a-subsidy-from-the-taxpayers_-when-the-bubble-is-high_-private-banks-take-the-profits_-when-the-bubble-pops_-they-dump-losses-on-the-taxpayers_-bailouts-would-be-unnecessary-if-there-was-both-no-private-central-bank-and-no-private-banking_-private-banking-places-the-emphasis-on-the-health-of-the-banks_-not-on-the-borrowers_-however_-if-there-is-no-private-banking_-there-are-not-private-banks-to-bail-out-and-no-health-to-be-concerned-with_-under-a-public-banking-system_-the-emphasis-can-be-placed-on-the-health-of-the-borrowers_-again_-it-is-the-government_s-money_-not-the-money-of-private-banks_-_h2_the-lies-told-to-gain-popular-support-for-bail-outs_h2_-one-of-the-lies-told-to-bail-out-elite-banking-interests-is-that-_we-are-all-in-this-together_-this-sentiment-is-only-used-when-there-is-a-necessity-for-a-transfer-of-value-from-the-public-to-private-entities_-this-is-explained-in-the-following-quotation_-_blockquote_two-weeks-later_-then-presidential-candidate-barack-obama-sounded-the-same-theme_-_all-of-us_all-of-us_have-a-responsibility-to-solve-this-crisis-because-it-affects-the-financial-well-being-of-every-single-american_-in-other-words_-this-is-not-just-a-wall-street-crisis_-it-is-an-american-crisis_-i-understand-completely-why-people-would-be-skeptical-when-this-president-asked-for-a-blank-check-to-solve-this-problem_-we-are-all-in-this-together_-we-will-rise-or-fall-on-that-journey-as-one-nation-and-as-one-people_-in-other-words_-the-banks-and-the-people-were-one_if-the-banks-fell_-so-too_-would-we_-we-must-lend-to-banks-so-that-they-can-lend-to-us_-this-codependency-of-the-government-banking-system-is-not-always-clear_-but-the-justifications-given-for-the-bailouts-brought-this-crucial-relationship-into-sharp-focus_-we-need-them-and-they-need-us_-many-describe-modern-banks-as-private-enterprises_-but-this-is-illusory_half-revealing-and-half-concealing-their-true-nature_-to-be-sure_-individual-banks-are-private-companies_-but-each-of-these-private-banks-sits-atop-a-foundation-of-state-support_-in-discussing-the-bailout-of-2008_-bank-of-america-ceo-ken-lewis-made-this-key-point-well_-_we-are-so-intertwined-with-the-u_s_-that-it_s-hard-to-separate-what_s-good-for-the-united-states-and-what_s-good-for-bank-of-america-_-they_re-almost-one-and-the-same_-yet-this-depiction-of-unity-between-the-banks-and-the-people-could-not-be-further-from-the-truth_-if-_we_re-all-in-this-together_-why-must-such-a-large-segment-of-the-public-be-left-to-modern-day-loan-sharks_-the-wall-street-crisis-cannot-be-_an-american-crisis_-if-its-remedy-means-that-unprecedented-federal-support-goes-to-a-banking-system-that-has-effectively-shut-out-much-of-the-population_-we-do-not-_rise-and-fall-as-one-people_-if-two-banking-systems-exist-in-america_-government-supported-banks-that-serve-the-well-off_-and-a-wild-west-of-fringe-lenders-and-check-cashing-joints-that-answer-the-needs-of-everyone-else_at-a-hefty-price_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-scam-of-the-bailout-being-for-the-people_span_h1_-another-example-is-found-in-this-quotation-for-the-bailout-in-2008_-_blockquote_-_p-class_md-end-block-md-heading-md-focus_secretary-geithner-asserts-that-_there-would-have-been-shantytowns-again_-or-_another-great-depression_30-if-the-largest-firms-at-the-center-of-the-financial-system-had-been-allowed-to-fail-as-spectacularly-as-predicted_-it-is-possible-that-it-would-have-taken-years_-perhaps-decades_-for-investors-to-trust-the-financial-markets-again_-it-certainly-could-have-been-a-blow-to-the-entire-economy_and-not-just-the-largest-banks_the-purpose-of-restoring-confidence_-of-course_-is-to-assure-the-availability-of-credit_-if-the-system-works-properly_-banks-can-lend_31-therefore_-saving-them-from-collapse-became-necessary-so-that-we-as-a-society-may-benefit-from-the-increased-credit-flow-that-they-would-enable_allowing-individuals-and-businesses-to-put-the-economy-back-in-motion_-consider-how-the-two-presidents-and-their-officials-explained-the-purpose-of-the-bailout_-george-w_-bush_-_this-rescue-effort-is-not-aimed-at-preserving-any-individual-company-or-industry_-it-is-aimed-at-preserving-america_s-overall-economy_-it-will-help-american-consumers-and-businesses-get-credit-to-meet-their-daily-needs-and-create-jobs_-henry-paulson-_secretary-of-the-treasury-for-the-bush-administration_-_i-determined-that-the-most-timely_-effective-step-to-improve-credit-market-conditions-was-to-strengthen-bank-balance-sheets-quickly-through-direct-purchases-of-equity-in-banks-_-ensuring-the-financial-system-has-sufficient-capital-is-essential-to-get-credit-flowing-to-consumers-and-businesses-and-that-is-where-the-bulk-of-the-remaining-tarp-funds-should-be-deployed_-barack-obama_-_we-are-in-a-very-dangerous-situation-where-financial-institutions-across-this-country-are-afraid-to-lend-money_-if-all-that-meant-was-the-failure-of-a-few-banks-in-new-york_-that-would-be-one-thing_-but-that-is-not-what-it-means_-what-it-means-is-if-we-don_t-act_-it-will-be-harder-for-americans-to-get-a-mortgage-for-their-home-or-the-loans-they-need-to-buy-a-car-or-send-their-children-to-college_-timothy-geithner-_secretary-of-the-treasury-for-the-obama-administration_-_the-credit-markets-that-are-essential-for-small-businesses-and-consumers-are-not-working_p_-_blockquote_-after-geithner-and-paulson-got-their-bailouts_-they-went-about-using-them-in-a-way-that-maximally-benefitted-elite-banking-interests-and-against-the-overall-us-population_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_no-verification-on-the-lending-outcome-of-bailout-_span_h1_-this-is-explained-in-the-following-quotation_-_blockquote_-_p-class_md-end-block-md-heading-md-focus_in-the-end_-the-government-relied-on-the-banks-to-disseminate-the-bailout-funds-to-the-public-without-actually-making-sure-they-would-do-so_-the-very-banks-that-had-caused-the-crisis-through-their-recklessness-were-entrusted-with-taxpayer-funds-and-just-a-mere-hope-that-they-would-act-in-the-public-interest_p_-_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_paulson_s-lie_-the-bait-and-switch_span_h1_-paulson-was-able-to-easily-trick-congress-by-lying-to-them_-_blockquote_paulson-promised-congress-that-he-would-find-ways-to-stem-the-tide-of-impending-mortgage-foreclosures_-but-after-examining-direct-relief-plans_-including-a-mortgage-modification-protocol-developed-by-fdic-chairman-sheila-bair_-paulson-concluded-that-these-programs-would-_require-substantial-government-subsidies_-and-_direct-spending_-that-he-ultimately-felt-were-unjustified_-this-led-one-congressman-to-call-the-tarp-_the-second-largest-bait-and-switch-scheme-that-history-has-ever-seen_-second-only-to-the-reasons-given-to-us-to-vote-for-the-invasion-of-iraq_-barney-frank-also-angrily-cut-off-henry-paulson-during-congressional-testimony_-saying-that-_the-bill-couldn_t-have-been-clearer_-in-being-aimed-at-reducing-foreclosures_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h2_the-promises-versus-the-reality-of-tarp_h2_-_blockquote_after-many-promises-that-bailouts-were-meant-to-help-the-struggling-public-and-rhetoric-linking-bailouts-to-lending_-only-one-program-was-geared-at-direct-relief_-in-march-2009_-the-treasury-proposed-and-congress-passed-the-home-affordable-modification-program-_hamp_-a-_50-million-tarp-carve-out-_out-of-the-almost-trillion-dollars-in-total-funds_-intended-to-create-guidelines-for-banks-to-modify-mortgages-and_-in-turn_-decrease-foreclosures_-the-funds-were-intended-to-go-through-the-banks-to-provide-direct-relief-to-struggling-homeowners_-thereby-fulfilling-the-tarp_s-original-purpose_-incredibly_-these-funds-also-ended-up-going-directly-to-banks_-in-fact_-the-hamp_s-faulty-design-caused-many-problems-for-mortgage-borrowers-across-the-country_-when-treasury-secretary-timothy-geithner-was-asked-about-the-hamp_s-failure-to-help-mortgage-borrowers_-his-response_-as-reported-by-elizabeth-warren-and-tarp-inspector-general-neil-barofsky_-provided-one-of-the-most-telling-exchanges-of-the-financial-crisis_-_we-estimate-that-_the-banks_-can-handle-ten-million-foreclosures_-over-time_-this-program-will-help-foam-the-runway-for-them_-in-other-words_-when-asked-about-the-one-program-specifically-targeted-to-help-the-public_-the-treasury-secretary-responded-that-it-would-return-banks-to-profitability-quickly_-this-comment-reveals-the-nature-of-the-modern-relationship-between-banks-and-the-state_-the-treasury-secretary-assumed-that-the-government_s-paramount-objective-in-a-crisis-is-to-assure-bank-profitability_50-and-to-be-fair_-if-banks-are-the-central-engine-of-the-economy_-their-profitability-is-necessary-for-a-thriving-economy_-foaming-the-runway-makes-sense-when-we-are-talking-about-an-engine-that-we-want-to-move-fast-and-often_-but-the-engine-analogy-only-works-if-the-engine-actually-moves-the-machine_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-the-only-concern-of-banking-representatives-like-paulson-and-geithner-was-to-the-banks_-naturally_-after-they-left-office_-paulson-and-geithner-returned-to-banking_-_h2_bail-out-money-used-to-pay-bonuses_h2_-right-after-the-banks-and-their-representatives-talked-about-how-_we-were-all-in-this-together_-the-banks-turned-around-and-used-some-of-the-government_s-bail-out-money-to-pay-bonuses_-as-is-explained-in-the-following-quotation_-_blockquote_span-class_md-plain-md-expand_even-after-the-bailouts_-the-financial-sector-returned-to-its-precrisis-disregard-for-serving-the-public-interest_-taxpayer-bailouts-in-hand_-tone-deaf-wall-street-firms-turned-around-and-paid-hefty-bonuses-to-the-very-same-employees-who-had-led-the-country-off-a-cliff-and-spent-decades-abusing-their-clients_-the-taxpayers_-the-public-outcry-over-bonuses-was-met-with-policymakers-claiming-that-their-hands-were-tied-and-bankers-unable-to-comprehend-the-public-reaction_-defending-the-huge-bonuses-while-at-st_-paul_s-cathedral-in-london-in-october-2009_-a-goldman-sachs-executive-said_-_the-injunction-of-jesus-to-love-others-as-ourselves-is-a-recognition-of-self-interest-_-we-have-to-tolerate-the-inequality-as-a-way-of-achieving-greater-prosperity-and-opportunity-for-all_-the-statement-accurately-summed-up-the-state-of-public-mindedness-on-wall-street_-_if-it_s-good-for-us_-it-must-be-good-for-everyone_fears-of-concentrated-bank-power-evaporated_-regulators-encouraged-bank-mergers-and-nationwide-branching-to-make-banks-more-efficient-and-competitive_-_between-1980-and-2000_-the-assets-held-by-commercial-banks_-securities-firms_-and-the-securitization-they-created-grew-from-55-percent-of-gdp-to-95-percent_113-the-result-of-a-series-of-mergers-and-expansions-was-predictable_today_-a-handful-of-behemoth-banks-control-most-of-the-country_s-assets_-for-example_-bank-of-america-makes-one-third-of-all-business-loans_-wells-fargo-provides-one-fourth-of-all-mortgages_-and-chase-holds-12-percent-of-all-of-our-collective-cash_-the-six-largest-banks-hold-67-percent-of-all-the-assets-in-the-financial-system_-up-from-37-percent-just-five-years-ago_-just-four-of-the-largest-banks-_bank-of-america_-citigroup_-jpmorgan-chase_-and-wells-fargo_-control-almost-50-percent-of-all-bank-assets_-jpmorgan-holds-_2_4-trillion-in-assets_the-size-of-england_s-economy_-and-they-are-just-getting-bigger_-five-years-after-the-crisis_-the-top-banks-were-bigger-and-more-profitable-by-every-measure_-this-expansion-and-growth-changed-not-only-the-size-but-the-nature-of-the-industry_-these-megabanks-became-more-profitable_-took-on-more-risks_-and-expanded-into-more-markets_wall-street_s-economic-dominance-quickly-spilled-over-into-the-political-realm_-the-deregulatory-ideology-of-the-new-financial-oligarchy-infiltrated-the-_wall-street-washington-corridor_-by-means-of-campaign-money-and-ideological-capture_-in-the-last-two-decades_-no-industry-has-contributed-more-to-campaigns-than-the-financial-industry_-its-campaign-contributions-went-from-73-million-in-1990-to-332-million-in-2006_-this-money-flowed-into-the-campaign-coffers-of-those-who-would-be-influential-in-deregulating-the-industry_-phil-gramm_-for-example_-of-the-gramm-leach-bliley-act_-raised-more-than-twice-his-entire-campaign-budget-from-the-securities-industry_-banks-were-arguing-on-the-one-hand-that-they-were-too-big-to-fail-while-simultaneously-leveraging-their-size-and-political-power-to-fight-off-any-government-regulations-aimed-at-lowering-their-chances-of-failure_-as-barney-frank-put-it_-_all-these-years-of-deregulation-_-as-these-new-financial-instruments-have-grown-have-allowed-them-to-take-a-large-chunk-of-the-economy-hostage_-and-we-have-to-pay-ransom_-like-it-or-not_119-the-government-paid-ransom_-and-wall-street-was-up-and-running-in-no-time_-returning-to-precrisis-profits_span_-_span-class_md-plain-md-expand_this-is-not-a-new-or-surprising-development_-this-is-exactly-the-scenario-that-most-worried-the-early-leaders-of-the-republic-and-the-framers-of-the-constitution_-specifically_-james-madison-and-thomas-jefferson_a-powerful-political-oligarchy-with-outsized-influence-in-politics_-to-the-detriment-of-the-population_-in-2009_-senator-richard-durbin-said_-_the-banks_hard-to-believe-in-a-time-when-we_re-facing-a-banking-crisis-that-many-of-the-banks-created_are-still-the-most-powerful-lobby-on-capitol-hill_-and-they-frankly-own-the-place_-senator-elizabeth-warren-has-also-repeatedly-voiced-outrage-at-the-coziness-between-washington-and-wall-street_-repeating-the-phrase_-_the-game-is-rigged_-demands-are-rising-across-the-political-spectrum_-including-from-joseph-stiglitz_-simon-johnson_-paul-krugman_-richard-fisher_-and-even-the-king-of-deregulation_-alan-greenspan_-for-breaking-up-the-banks_123-we-cannot-have-a-banking-system-that-is-so-large-and-powerful-that-it-relies-on-government-bailouts_-their-size-leads-to-bailouts_-and-the-promise-of-bailouts-in-turn-leads-to-more-risk-taking_-a-cycle-some-have-called-a-_doom-loop_-if-the-deep-seated-fears-of-concentrated-bank-power-had-not-been-pacified-over-the-last-several-decades_-they-would-surely-have-intensified-during-the-recent-government-bailout-of-the-banking-industry_-as-it-turned-out_-the-banks-and-bankers-had-become-so-powerful-that-many-efforts-to-regulate-the-industry-after-the-bailouts-were-thwarted_span_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-logic-for-why-are-banks-to-be-saved-in-the-first-place_-_span_h1_-_blockquote_but-we-must-not-lose-sight-of-the-reason-we-support-and-even-save-banks_-the-purpose-of-bank-bailouts-is-not-to-enhance-bank-profits_-it-is-to-enhance-credit-markets-to-the-people_-government-support-enables-bank-customers-to-benefit-from-this-socially-useful-credit_-but-banks-can-choose-their-customers_-and-those-they-reject-do-not-get-to-take-part-in-this-abundance_-when-banks-categorically-exclude-half-the-population-from-the-credit-they-are-entrusted-to-provide_-leaving-that-unprotected-group-to-the-wolves_-it-creates-a-glaring-disparity-and-a-grotesque-irony_it-is-important_-at-this-point_-to-revisit-the-reason-the-government-is-so-invested-in-the-banking-system_-as-the-history-of-u_s_-banking-makes-clear_-and-as-both-the-bush-and-obama-administrations_-bailouts-have-underscored_-the-state-relies-on-the-banking-system-to-efficiently-allocate-credit-and-capital-in-the-economy_-the-banking-system-is-supported_-protected_-and-even-saved-from-its-own-malfeasance-because-the-state-needs-it_both-to-effect-the-state_s-own-monetary-policy-as-well-as-to-lend-to-the-people_-if-banks-fail_-it-is-reasoned_-so-will-the-american-people_but-many-people-are-failing_-they-are-failing-even-as-the-banks-are-succeeding_-and-they-are-failing-because-the-banks-are-no-longer-involved-in-providing-them-credit_-the-government-has-outsourced-the-provision-of-credit-to-the-banking-system_-and-it-provides-this-system-with-state-support-and-cheap-credit_cheap-credit-that-is-not-flowing-out-to-reach-those-who-need-it-most_-in-fact_-while-the-government-has-provided-interest-rates-to-banks-at-0-percent_-it-has-allowed-interest-rates-to-the-poor-to-skyrocket-to-triple-digits_-if-the-intended-result-is-to-help-the-public-with-credit_-why-continue-to-use-banks-as-a-medium-when-they-are-clearly-leaving-out-a-significant-portion-of-the-population_-why-not-provide-credit-directly-to-those-who-need-it-in-order-to-be-certain-they-get-it_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_who-gets-saved-the-banks-or-the-poor_-_span_h1_-_blockquote_when-banks-are-drowning_-the-government-throws-them-a-lifesaver_-through-cheap-credit_-so-that-they-can-live-another-day_-when-the-poor-are-drowning_-payday-loans-are-like-millstones-of-crushing-debt-around-their-necks_-postal-banking-could-offer-to-struggling-americans-the-same-type-of-government-credit-already-given-to-banks_at-a-much-lower-cost-and-with-a-much-more-direct-public-benefit_-the-united-states-has-just-begun-an-era-in-the-ongoing-evolution-of-the-bank-state-relationship-in-which-the-government_s-stake-in-the-banks-is-at-its-historical-apex-and-the-banks_-stake-in-the-public_s-well-being-is-at-an-all-time-low_-banks-and-their-wealthy-customers-reap-the-benefits-of-unprecedented-public-support-even-as-the-banks-no-longer-service-a-significant-portion-of-the-population_-cheap-credit-flows-from-the-government-to-these-banks-with-a-vague-but-unexpressed-hope-that-it-will-reach-the-public_-after-all_-this-is-the-function-of-banks_-to-serve-as-credit-intermediaries_-or-middlemen_-between-the-source-of-credit-and-the-eventual-borrower_-but-the-banks-feel-no-compulsion-to-democratize-credit_-and-our-elected-leaders-make-no-such-demands_-this-is_-of-course_-the-result-of-a-pervasive-ideology-of-the-last-several-decades-that-has-convinced-banks-and-the-public-alike-that-nothing-could-or-should-be-required-of-the-industry-besides-assuring-shareholder-profits_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fdic-was-brought-into-existence-to-stabilize-the-us-banking-system_li_-_ul_-_h2_introduction_h2_-the-fdic-was-part-of-the-us-banking-crisis-reforms-of-the-1930s-to-insure-deposits-in-private-banks_-however_-the-fdic-is-only-necessary-because-the-us-government-lost-control-over-its-money-creation-function_-if-the-us-government-regained-this-function_-there-would-be-no-need-to-fund-an-fdic_-under-a-system-of-public-banking_-there-are-no-private-banking-accounts-to-insure_-the-government-stands-behind-all-loans_-and-not-for-a-specific-limit-_as-per-the-fdic_-but-for-whatever-is-the-loan-amount_-_h2_a-government-agency-or-controlled-by-the-fed_h2_-the-problem-with-the-fdic-is-that-while-they-are-a-government-agency_-they-are-to-a-great-deal-remotely-controlled-by-the-fed_-which-is-not-a-government-agency_-this-is-explained-in-the-following-quotation_-_blockquote_the-directors-of-the-fdic-did-not-want-to-cross-swords-with-the-federal-reserve-system_-and-they-most-assuredly-did-not-want-to-be-blamed-for-tumbling-the-entire-world-economic-system-by-allowing-the-first-domino-to-fall_-_the-theory-had-never-been-tested_-said-sprague_-_i-was-not-sure-i-wanted-it-to-be-just-then_2-so_-in-due-course_-a-bailout-package-was-put-together-which-featured-a-_325-million-loan-from-fdic_-interest-free-for-the-first-year-and-at-a-subsidized-rate-thereafter_-about-half-the-market-rate_-several-other-banks-which-were-financially-tied-to-first-penn_-and-which-would-have-suffered-great-losses-if-it-had-folded_-loaned-an-additional-_175-million-and-offered-a-_1-billion-line-of-credit_-fdic-insisted-on-this-move-to-demonstrate-that-the-banking-industry-itself-was-helping-and-that-it-had-faith-in-the-venture_-to-bolster-that-faith_-the-federal-reserve-opened-its-discount-window-offering-low-interest-funds-for-that-purpose_-the-outcome-of-this-particular-bailout-was-somewhat-happier-than-with-the-others_-at-least-as-far-as-the-bank-is-concerned_-at-the-end-of-the-five-year-taxpayer-subsidy_-the-fdic-loan-was-fully-repaid_-the-bank-has-remained-on-shaky-ground_-however_-and-the-final-page-of-this-episode-has-not-yet-been-written_-continental-illinois-everything-up-to-this-point-was-but-mere-practice-for-the-big-event-which-was-yet-to-come_-in-the-early-1980s_-chicago_s-continental-illinois-was-the-nation_s-seventh-largest-bank_-with-assets-of-_42-billion-and-with-12_000-employees-working-in-offices-1_-sprague_-pp_-88-89_-2_-ibid_-p_-89_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h2_why-did-and-does-the-fdic-care-what-the-fed-wants_h2_-_h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fdic-was-brought-into-existence-to-stabilize-the-us-banking-system_li_-_ul_-_h2_introduction_h2_-the-fdic-was-part-of-the-us-banking-crisis-reforms-of-the-1930s-to-insure-deposits-in-private-banks_-however_-the-fdic-is-only-necessary-because-the-us-government-lost-control-over-its-money-creation-function_-if-the-us-government-regained-this-function_-there-would-be-no-need-to-fund-an-fdic_-under-a-system-of-public-banking_-there-are-no-private-banking-accounts-to-insure_-the-government-stands-behind-all-loans_-and-not-for-a-specific-limit-_as-per-the-fdic_-but-for-whatever-is-the-loan-amount_-_h2_the-benefits-and-problems-with-fdic-insurance_h2_-_blockquote_as-thomas-piketty-explains-in-capital-in-the-twenty-first-century_-the-time-between-the-great-depression-and-the-1970s-marked-a-unique-period-in-world-history-of-relative-equalities-of-wealth-and-remarkable-economic-growth_-surely_-sustained-economic-growth-contributed-to-a-stable-and-successful-banking-system_-and-so-did-the-federal-deposit-insurance-fund_-which-succeeded-in-finally-ending-the-confidence-destroying-runs-that-had-historically-wreaked-havoc-on-banks_-ironically_-deposit-insurance-and-some-of-the-other-banking-reforms_-which-were-meant-to-control-and-limit-bank-power_-actually-sowed-the-seeds-that-would-lead-to-increased-government-support-of-a-large-banking-sector-and-a-lopsided-bank-government-contract_blockquote_-while-good-for-the-overall-banking-system_-private-profit-maximizing-banks-increasingly-began-to-take-advantage-of-the-government-insurance-program_-_h2_a-government-agency-or-controlled-by-the-fed_h2_-the-problem-with-the-fdic-is-that-while-they-are-a-government-agency_-they-are-to-a-great-deal-remotely-controlled-by-the-fed_-which-is-not-a-government-agency_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-is-explained-in-the-following-quotation_-_blockquote_the-directors-of-the-fdic-did-not-want-to-cross-swords-with-the-federal-reserve-system_-and-they-most-assuredly-did-not-want-to-be-blamed-for-tumbling-the-entire-world-economic-system-by-allowing-the-first-domino-to-fall_-_the-theory-had-never-been-tested_-said-sprague_-_i-was-not-sure-i-wanted-it-to-be-just-then_2-so_-in-due-course_-a-bailout-package-was-put-together-which-featured-a-_325-million-loan-from-fdic_-interest-free-for-the-first-year-and-at-a-subsidized-rate-thereafter_-about-half-the-market-rate_-several-other-banks-which-were-financially-tied-to-first-penn_-and-which-would-have-suffered-great-losses-if-it-had-folded_-loaned-an-additional-_175-million-and-offered-a-_1-billion-line-of-credit_-fdic-insisted-on-this-move-to-demonstrate-that-the-banking-industry-itself-was-helping-and-that-it-had-faith-in-the-venture_-to-bolster-that-faith_-the-federal-reserve-opened-its-discount-window-offering-low-interest-funds-for-that-purpose_-the-outcome-of-this-particular-bailout-was-somewhat-happier-than-with-the-others_-at-least-as-far-as-the-bank-is-concerned_-at-the-end-of-the-five-year-taxpayer-subsidy_-the-fdic-loan-was-fully-repaid_-the-bank-has-remained-on-shaky-ground_-however_-and-the-final-page-of-this-episode-has-not-yet-been-written_-continental-illinois-everything-up-to-this-point-was-but-mere-practice-for-the-big-event-which-was-yet-to-come_-in-the-early-1980s_-chicago_s-continental-illinois-was-the-nation_s-seventh-largest-bank_-with-assets-of-_42-billion-and-with-12_000-employees-working-in-offices-1_-sprague_-pp_-88-89_-2_-ibid_-p_-89_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h2_why-did-and-does-the-fdic-care-what-the-fed-wants_h2_-this-brings-up-an-interesting-question_-why-is-a-government-agency-being-remotely-controlled-by-the-fed_-which-is-a-cabal-of-private-banking-interests_-this-brings-up-an-extra-problem-with-the-central-bank-being-entirely-private_-it-means-due-to-their-centrality-in-the-financial-system_-that-they-have-great-influence-over-any-financial-regulation-that-the-government-seeks-to-impose_-this-same-issue-came-up-with-the-commodities-futures-trading-commission_-which-was-pressured-not-to-regulate-derivatives-by-then-chairman-allan-greenspan_-by-not-regulating-these-derivatives_-eventually-led-to-the-subprime-mortgage-crisis-of-2007-20082024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-cypress-banking-crisis-made-account-holders-more-responsible-than-banks-for-funding-the-bail-out-or-bail-in_li_-_ul_-_h2_introduction_h2_-cypress-prevented-its-citizens-from-withdrawing-their-money_-many-depositors-had-their-accounts-converted-to-bank-stock_-which-subsequently-devalued_-under-pressure-from-private-banks_-countries-around-the-world-have-changed-the-laws-that-would-allow-them-to-copy-what-was-done-in-cypress_-this-is-also-called-a-_bail-in_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-have-the-ability-to-cause-depressions-to-achieve-their-political-objectives_li_-_li_the-1890-us-depression-is-one-example-of-this_li_-_ul_-_h2_introduction_h2_-this-was-initiated-by-private-banking-interests-to-kill-greenbacks_-this-is-a-quote-from-the-president-of-the-american-banking-association-in-1877_-_blockquote_it-is-advisable-to-do-all-in-your-power-to-sustain-such-prominent-daily-and-weekly-newspapers_-especially-the-agricultural-and-religious-press-as-will-oppose-the-greenback-issue-of-paper-money_-and-that-you-will-also-withhold-patronage-from-all-applicants-who-are-not-willing-to-oppose-the-government-issue-of-money-to-repeal-the-act-creating-banknotes-or-to-restore-it-to-circulation_-the-government-issue-of-money-will-be-to-provide-the-people-with-money_-and-will-therefore-seriously-affect-our-individual-profits-as-bankers-and-lenders_-see-your-congressman-at-once-and-engage-him-to-support-our-interest-that-we-may-control-legislation_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h3_the-standard-approach-of-fighting-against-debt-free-money_h3_-yes_-the-greenback_-which-means-the-us-issuing-its-own-debt-free-money_-will-_seriously-affect-our-individual-profits-as-bankers-and-lenders_-the-question-should-be-asked_-by-what-right-do-private-bankers-claim-the-money-creation-function-from-the-government_-the-claim-is-illogical-and-can-only-be-made-to-seem-reasonable-by-using-fallacious-arguments-about-how-banking-works-_the-role-of-mainstream-economists_-and-cloaking-the-topic-in-mystery-_the-role-of-private-central-banks_-private-bankers-will-pay-off-any-media-source_-bribe-any-politician_-and-fund-any-think-tank_-and-drop-countries-into-recession-or-depression-to-interfere-with-governments-issuing-their-own-debt-free-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-was-a-panic-created-by-private-banking-interests-to-promote-a-private-central-bank_li_-_ul_-_h2_introduction_h2_-the-banker_s-manifesto-was-published-in-1897-and-1934_-one-quote-from-it-is-the-following_-_blockquote_capital-must-protect-itself-in-every-way-through-combination-monopoly-and-through-legislation_-debts-must-be-collected-and-loans-and-mortgages-are-closed-as-soon-as-possible_-when-through-a-process-of-law_-the-common-people-have-lost-their-homes-they-will-be-more-tractable_-and-more-easily-governed-by-the-strong-arm-of-the-law-applied-by-the-central-power-of-wealth_-under-control-of-leading-finance-ears_-people-without-homes-will-not-quarrel-with-their-leaders_-this-is-well-known-among-our-principal-men_-now-engaged-in-farming-and-imperialism-have-capital-to-govern-the-world_blockquote_-there-are-ample-quotations-that-blamed-this-panic-on-bankers-who-desired-to-create-a-pretext-for-another-private-central-bank-after-the-first-two-failed-to-have-their-charters-renewed_-here-is-one-quotation-on-this-very-topic_-_blockquote_all-problems_-depressions_-wars_-disasters_-assassinations_-all-of-them-were-planned_-caused_-instigated_-and-implemented-by-the-international-bankers-and-their-attempt-to-establish-a-central-bank-in-every-country-in-the-world_-which-they-have-now-done_-thanks-to-corrupt-politicians-who-have-been-bought-and-paid-for_-this-is-all-you-need-to-know-about-the-history-of-the-world_strong_-_-mary-elizabeth-croft-_-az-quotes_-_strong_blockquote_-this-echos-a-quote-from-abraham-lincoln_-_blockquote_the-money-power-preys-on-the-nation-in-times-of-peace_-and-conspires-against-it-in-times-of-adversity_-it-is-more-despotic-than-monarchy_-more-insolent-than-autocracy_-more-selfish-than-bureaucracy_-it-denounces_-as-public-enemies_-all-who-question-its-methods-or-throw-light-upon-its-crimes_-_strong_-abraham-lincoln-_-az-quotes_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_bankers-manifesto_span_span_strong_-_strong_a-href_https_www_scribd_com_document_124098159_bankers-manifesto_-target_blank_-rel_noopener_https_www_scribd_com_document_124098159_bankers-manifesto_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-have-the-ability-to-cause-depressions-to-achieve-their-political-objectives_li_-_li_the-1929-us-depression-is-one-example-of-this_li_-_ul_-_h2_introduction_h2_-there-is-strong-evidence-the-great-depression-was-initiated-by-private-banking-interests_-all-of-the-major-private-banking-interests-were-_somehow_-able-to-get-out-of-the-market-before-the-crash_-many-bought-gold_-the-ensuring-depression-further-concentrated-private-banking-power_-this-is-explained-in-the-following-quotation_-_h2_milton-friedman-blames-the-federal-reserve-for-the-great-depression_h2_-_blockquote_who-was-to-blame-for-this-decade-long-cyclone-of-debt-and-devastation_-milton-friedman_-professor-of-economics-at-the-university-of-chicago-and-winner-of-the-nobel-prize-in-economics-stated-categorically_-_the-federal-reserve-definitely-caused-the-great-depression-by-contracting-the-amount-of-currency-in-circulation-by-1_3_-from-1929-to-1933_-and-_the-federal-reserve-system-has-been-established-to-prevent-what-actually-happened_-it-was-set-up-to-avoid-a-situation-in-which-you-would-have-to-close-banks-down_-in-which-you-would-have-a-banking-crisis_-and-yet-under-the-federal-reserve-system_-you-had-the-worst-banking-crisis-in-the-history-of-the-united-states_-there_s-no-other-example-i-can-think-of_-of-a-government-measure-which-produced-so-clearly-the-opposite-of-the-result_strong_-milton-friedman_strong_blockquote_-the-fed-did-dramatically-drop-the-money-supply-from-1929-to-1933-as-observed-by-friedman_-it-appears-that-the-fed-_span-style_color_-_1d79cf_strong_did-exactly-what-the-private-banking-interests-wanted-the-fed-to-do_strong_span_-this-is-explained-in-the-following-quotation_-_blockquote_the-honorable-louis-t_-mcfadden_-chairman-of-the-house-banking-and-currency-committee-went-further-he-charged-quote_-the-depression-was-not-accidental_-it-was-a-carefully-contrived-occurrence_blockquote_-_blockquote_the-international-bankers-thought-sought-to-bring-about-a-condition-of-despair-here-so-that-they-might-emerge-as-rulers-of-us-all_blockquote_-_blockquote_he-went-on-to-say_-_recently-in-one-of-our-states_-60_000-dwelling-houses-and-farms-were-bought-under-the-hammer-in-a-single-day_-71_000-houses-and-farms-in-oakland-county_-michigan-were-sold-in-their-erstwhile-owners-dispossessed-the-people-who-have-thus-been-driven-out_-or-the-wastage-of-the-fed_-they-are-the-victims-of-the-fed_-their-children-are-the-new-slaves-of-the-auction-blocks-in-the-revival-of-the-institution-of-human-slavery_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_how-private-banks-deepened-and-lengthened-the-great-depression-creating-an-opening-for-credit-unions-and-post-office-banking_h2_-private-banks-not-only-triggered-the-great-depression_-but-they-also-extended-it_-which-is-covered-in-the-following-quotation_-_blockquote_paralyzed-by-the-risks-of-failure_-the-banks-that-survived-the-great-depression-had-stopped-lending_-thereby-halting-the-engines-of-the-economy_-credit-unions_-their-advocates-claimed_-could-provide-more-credit-faster_-credit-unions-also-lowered-the-risks-inherent-in-lending-because-they-knew-their-borrowers_-by-providing-an-infusion-of-consumer-credit_-advocates-claimed_-credit-unions-would-lead-to-a-speedy-economic-recovery_-filene-and-bergengren-knew-that-for-the-movement-to-have-any-chance-at-spreading_-it-needed-to-be-seen-as-legitimate-and-trustworthy_-and-they-agreed-that-federal-government-support-was-the-best-way-for-any-financial-institution-to-achieve-trust_-filene-and-bergengren-sought-and-eventually-achieved-that-support_-enabling-the-movement-to-survive-and-proliferate_-the-first-federal-government-boost-occurred-when-the-u_s_-postal-service-asked-bergengren-to-organize-a-credit-union-for-its-employees-in-1923_-also-proposed_-but-ultimately-rejected_-was-linking-the-postal-savings-system-with-the-credit-union-movement_as-many-post-office-branches-already-operated-credit-unions_-_the-relationship-did-solidify-over-time_-leading-to-legislation-that-allowed-federal-post-office-buildings-to-house-credit-unions_-the-second-round-of-federal-support-came-in-1932-when-president-hoover-signed-a-house-bill_-referred-to-as-_the-poor-man_s-bill_-to-authorize-credit-unions-in-the-district-of-columbia_-filene-and-bergengren-sold-the-bill-to-president-hoover-as-a-remedy-to-the-problem-of-loan-sharks_-the-suffering-endured-during-the-great-depression-had-contributed-to-a-populist-fervor-that-made-cooperative-banking-a-preferred-alternative-to-profit-motivated-commercial-banks_-but-the-major-animating-force-legitimizing-the-credit-union-came-when-president-franklin-d_-roosevelt_-already-familiar-with-the-movement_-included-credit-unions-in-his-expansive-new-deal-reforms_-roosevelt-said-of-the-credit-union_-_i-have-sort-of-a-hunch-that-we-owe-a-duty-to-our-fellow-citizens-not-to-violate-the-biblical-injunction-against-usury_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-illustrates-that-the-private-banks-don_t-have-the-interests-of-the-public-at-heart-and-cannot-be-trusted-to-act-appropriately-in-a-financial-crisis_-which-they-tend-to-cause_-this-is-why-fdr_-who-himself-came-from-a-private-banking-family-emphasized-credit-unions_-as-they-could-be-trusted-to-loan-to-the-normal-person_-_h2_when-a-private-banking-controlled-central-bank-causes-inflation-or-a-depression_-mainstream-economists-still-blame-the-government_h2_-the-federal-reserve-was-presented-as-a-central-bank-that-would-increase-prosperity-and-reduce-bank-runs-and-banking-instability_-the-federal-reserve-became-_span-style_color_-_1d79cf_strong_increasingly-privately_strong_span_-controlled-in-the-year-after-the-great-depression_-however_-it-was-still-strongly-a-private-bank-in-1929_-what-is-inconsistent-is-that-private-banking-interests-always-blame-governments-for-central-bank-errors_-this-is-true-even-when-private-bankers-and-_span-style_color_-_ff6600_strong_not_strong_span_-the-government-are-controlling-this-central-bank_-milton-friedman_-as-with-nearly-all-economists_-was-a-cat_s-paw-of-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-was-a-panic-caused-by-the-irresponsible-creation-and-insuring-of-mortgage-backed-securities_li_-_ul_-_h2_introduction_h2_-this-crash-was-entirely-due-to-improper-regulation-in-the-form-of-out-of-control-lending-standards_-a-lack-of-regulation-of-mortgage-backed-securities-_mbss_-or-the-insurance-_cdos_-that-allowed-mbss_-the-long-term-erosion-of-already-lenient-banking-and-wall-street-regulations-lead-to-a-crash_-a-tab-which-was-paid-in-the-form-of-bailouts-by-taxpayers-and-lose-homes-by-homeowners_-the-us-financial-system-was-made-even-more-unstable-after-the-crisis-as-banks-were-consolidated-and-no-significant-legislation-was-imposed-on-bad-actors_-nor-was-regulatory-authority-enhanced2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_international-private-banking-interests-punished-germany-for-creating-its-own-debt-free-money-through-the-denial-of-international-credit_li_-_ul_-_h2_introduction_h2_-because-the-nazi-government-created-its-own-debt-free-money_-it-was-denied-international-credit_-therefore_-its-innovation-was-to-trade-or-barter-with-countries-without-the-use-of-currencies_-if-nazi-germany-had-used-a-freely-floating-currency_-it-is-more-likely-that-private-banking-interests-would-have-speculated-against-the-currency_-it-is-of-critical-importance-that-private-banking-interests-be-able-to-retaliate-against-any-country-that-does-not-hand-its-money-creation-function-over-to-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_understanding-the-_rat_s-maze_-created-by-private-banking-interests-is-critical-to-understanding-increased-greed_li_-_ul_-_h2_introduction_h2_-this-is-explained-in-the-following-quotation_-_blockquote_whipple-explains-the-interest-problem-like-this-from-the-problem-with-usury_-when-a-bank-provides-you-with-a-_100_000-mortgage-creates-only-the-principal-would-you-spend_-and-which-then-circulates-in-the-economy_-the-bank-expects-you-to-pay-back-_200_000-over-the-next-20-years_-but-it-doesn_t-create-the-second-_100_000-the-interest_-instead_-the-bank-sends-you-out-into-the-tough-world_-to-battle-against-everyone-else-to-bring-back-the-second-_100_000_-he-concludes-greed-competition-is-not-a-result-of-the-immutable-human-temperament_-greed-and-fear-of-scarcity-are-in-fact-being-continuously-created-and-amplified-as-a-direct-result-of-the-kind-of-money-we-are-using_-we-can-produce-more-than-enough-food-to-feed-everybody_-and-there_s-definitely-enough-work-for-everybody-in-the-world_-well_-there_s-clearly-not-enough-money-to-pay-for-it-all_-scarcity-is-in-our-national-currencies_-in-fact_-the-job-of-central-banks-is-to-create-and-maintain-the-currency-scarcity_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_private-banking-and-interest_h2_-the-first-objective-of-private-banking-interests-is-to-capture-the-money-creation-function-of-governments_-from-here_-they-can-then-charge-interest-for-the-use-of-money_-which-is-not-in-fact-theirs_-once-the-first-objective-has-been-met_-private-bankers_-push-for-ever-increasing-levels-of-interest_-this-financialized-the-economy-and-makes-taking-on-debt-and-debt-repayment-the-predominant-factors-over-actual-production_-as-the-us-has-financialized-and-been-taken-over-by-private-banking-interests_-and-as-a-higher-and-higher-percentage-of-the-gdp-is-now-allocated-to-paying-for-interest_-manufacturing-has-relocated-to-other-countries_-the-traditional-explanation-is-that-manufacturing-is-migrating-to-lower-cost-countries_-and-this-is-inevitable_-however_-this-same-thing-has-not-happened-to-germany_-which-remains-a-powerful-manufacturing-goods-exporter_-germany-is_-like-the-us_-a-high-cost-country_-however_-germany-does-not-see-such-large-manufacturing-migration-from-the-country_-germany-follows-a-banking-strategy-that-puts-banking-secondary-to-industry_-this-distinction-between-us-and-german-banking-systems-is-very-neatly-hidden-from-the-public-courtesy-of-the-establishment-media-that-is-greatly-dependent-upon-the-revenues-of-private-banking-interests_-and-that-rely-on-mainstream-economics-for-information_-who-are-cat_s-paws-of-the-same-private-banking-interests_-_h2_the-international-private-banking-interest_s-focus-on-making-germany-change-its-banks_h2_-the-imf-is-very-unhappy-with-germany_s-banking-system-as-it-has-a-public-service-function-which-the-imf-has-been-pressuring-germany-to-change2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banking-and-money-creation-are-normally-explained-with-the-fractional-reserve-theory_li_-_li_this-theory-is-proposed-by-mainstream-economists-but-is-incorrect_li_-_ul_-_h2_introduction_h2_-this-theory-describes-a-scenario-where-a-bank-must-keep-some-reserves-and-then-loan-out-the-rest-of-the-deposits_-this-is-normally-the-2nd-stage-of-understanding-how-banking-works_-with-the-general-understanding-being-that-the-bank-loans-out-money-that-is-deposited-in-the-bank_-the-fractional-reserve-model-is-false-because-banks-create-money-through-creating-loans_-this-is-explained-in-the-following-quotation-from-the-chicago-fed_-_blockquote_the-purpose-of-this-booklet-is-to-describe-the-basic-process-of-money-creation-in-a-fractional-reserve-banking-system_-the-actual-process-of-money-creation-takes-place-primarily-in-banks_-banks-do-not-really-pay-out-loans-from-the-money-they-receive-as-deposits_-if-they-did_-there_s-no-additional-money-would-be-created_-what-they-do-when-they-make-loans-is-to-accept-promissory-notes-in-exchange-for-credits-to-the-borrower_s-transaction-accounts_-contrary-to-popular-belief_-then-loans-become-deposits-rather-than-the-reverse_-it-started-with-goldsmith_s-this-unique-attribute-the-goldsmiths-discovered-was-what-was-that-they-could-issue-paper-receipts-for-the-same-gold-many-times-over-so-long-as-they-kept-enough-gold-in-reserve-for-any-depositors-who-might-come-for-their-money_-this-sleight-of-hand-came-to-be-known-as-fractional-reserve-banking_-if-the-goldsmiths-were-careful-not-to-overextend-this-credit_-the-goldsmiths-could-thus-become-quite-wealthy-without-producing-anything-of-value-themselves_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_modern-money-mechanics_span_span_strong_-_strong_a-href_https_www_scribd_com_document_7581471_modern-money-mechanics_-target_blank_-rel_noopener_https_www_scribd_com_document_7581471_modern-money-mechanics_a_strong_-however_-modern-private-bankers-have-it-far-better-than-the-old-town-goldsmith_-this-is-because-a-goldsmith-had-to-_span-style_color_-_1d79cf_strong_manage-gold-deposits_strong_span_-while-a-modern-private-banker-only-has-to-make-accounting-entries_-and-runs-on-their-bank-are-nearly-eliminated-as-the-government-has-instituted-protections-that-the-banks-do-not-pay-for_-banks-do-have-reserves_-but-they-are-for-transferring-between-banks-and-for-the-very-small-amount-of-money-used-to-give-to-bank-customers-who-withdraw-paper-money_-this-theory-is-far-less-known-than-the-evidence-for-it-would-indicate_-_h3_academic-research-into-whether-the-fractional-reserve-theory-of-banking-is-true-or-false_h3_-it-is-curious-that-there-is-academic-reseach-into-this-question_-as-it-is-already-determinable-by-simply-reading-the-documentation-of-central-banks_-however-an-article-titled-_can-banks-individually-create-money-out-of-nothing_-_-the-theories-and-the-empirical-evidence_-was-published-in-2014_-important-quotes-from-this-article-include-the-following_-_blockquote_according-to-the-financial-intermediation-theory-of-banking_-banks-are-merely-intermediaries-like-other-non-bank-financial-institutions_-collecting-deposits-that-are-then-lent-out_-according-to-the-fractional-reserve-theory-of-banking_-individual-banks-are-mere-financial-intermediaries-that-cannot-create-money_-but-collectively-they-end-up-creating-money-through-systemic-interaction_-a-third-theory-maintains-that-each-individual-bank-has-the-power-to-create-money-_out-of-nothing_-and-does-so-when-it-ex-tends-credit-_the-credit-creation-theory-of-banking_-the-question-which-of-the-theories-is-correct-has-far-reaching-implications-for-research-and-policy_-surprisingly_-despite-the-longstanding-controversy_-until-now-_span-style_color_-_1d79cf_strong_no-empirical-study-has-tested-the-theories_strong_span_blockquote_-the-article-admits-that-there-no-empirical-study-to-prove-which-of-these-theories-are-correct_-_h2_fractional-reserve-banking_-private-banking_s-effective-attempt-to-create-an-alternative-theory-that-hid-their-enormous-free-riding-on-the-government_h2_-the-fractional-reserve-theory-is-presented-as-if-it-an-explanatory-theory-of-how-banking-works_-however_-there-is-very-good-evidence-that-it-was-created-only-to-hide-the-benefits-receive-by-private-banking-interests-from-the-credit-theory-of-banking_-which-is-how-banking-actually-works_-this-is-found-in-the-following-quotation_-_blockquote_however_-since-the-1920s-serious-doubts-had-spread-about-the-veracity-of-the-credit-creation-theory-of-banking_-these-doubts-were-initially-uttered-by-economists-who-in-principle-supported-the-theory_-but-downplayed-its-significance_-it-is-this-group-of-writers-that-served-as-a-stepping-stone-to-the-formulation-of-the-modern-fractional-reserve-theory_-which-in-its-most-widespread-_and-later_-version-however-argues-that-individual-banks-cannot-create-credit_-but-only-the-banking-system-in-aggregate_blockquote_-this-is-curious-and-telling_-this-theory-means-that-banks-create-money_-however_-why-is-this-being-_downplayed_-by-economists-at-this-point-in-time_-it-is-hugely-significant-and-means-that-banks-have-the-power-of-the-federal-government-and-receive-a-perpetual-financial-benefit-from-charging-interest-on-what-is-the-government_s-money-creation-function_-this-brings-up-the-question-is-these-economists_-were-pressed-to-fighting-against-the-credit-theory-of-money-by-private-banking-interests-that-wanted-the-significance-of-the-immense-subsidy-given-to-banks-downplayed_-secondly_-the-statement-by-these-economists-that-_only-the-banking-system-in-aggregate_-can-create-money-is-false-and-nonsensical_-when-a-bank-approves-a-loan_-that-money-did-not-exist-before_-so-each-specific-bank-creates-money_-_h2_paul-samuelson-on-fractional-reserve_h2_-a-highly-influential-and-proponent-of-the-fractional-reserve-theory-was-paul-samuelson_-as-the-following-quotation-explains_-_blockquote_statements-like-this-became-the-mainstream-view-in-the-1950s-and-1960s_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_fn0125_-name_bfn0125_sup_25_sup_a_-the-view-of-the-_em_fractional-reserve-theory_em_-in-time-also-came-to-dominate-textbook-descriptions-of-the-functioning-of-the-monetary-and-banking-system_-there-is-no-post-war-textbook-more-representative-and-influential-than-that-of-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0425_-name_bbb0425_samuelson-_1948_a_-the-original-first-edition-is-clear-in-its-description-of-the-_em_fractional-reserve-theory_em_-under-the-heading-_can-banks-really-create-money_-samuelson-first-dismisses-_false-explanations-still-in-wide-circulation_-_p_-324_-_according-to-these-false-explanations_-the-managers-of-an-ordinary-bank-are-able_-by-some-use-of-their-fountain-pens_-to-lend-several-dollars-for-each-dollar-left-on-deposit-with-them_-no-wonder-practical-bankers-see-red-when-such-behavior-is-attributed-to-them_-they-only-wish-they-could-do-so_-as-every-banker-well-knows_-he-cannot-invest-money-that-he-does-not-have_-and-any-money-that-he-does-invest-in-buying-a-security-or-making-a-loan-will-soon-leave-his-bank_-_p_-324_blockquote_-samuelson-here-is-proposing-a-100_-reserve-requirement-banking-system_-this-is-not-the-banking-system-in-effect-in-countries_-even-under-the-fractional-reserve-concept-_where-banks-can_t-go-and-get-reserves-after-making-a-loan-which-is-how-the-system-in-most-countries-actually-works_-samuelson_s-statement-here-is-false_-_h2_how-private-banking-interests-got-banking-and-money-removed-from-economics_h2_-however_-after-private-banking-supported-economists-went-to-work-creating-the-fractional-reserve-theory_-they-then-moved-to-have-money-and-banking-removed-from-economic-study_-this-is-shown-in-the-following-quotations_-_blockquote_a-recent-paper-by-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0010_-name_bbb0010_allen_-carletti_-and-gale-_2014_a_-introduces-money-_-albeit-only-cash-created-by-the-central-bank_-while-banks-are-mere-financial-intermediaries-that-cannot-create-money-or-credit_blockquote_-_blockquote_as-a-result_-the-leading-forecasting-models-used-by-policy-makers-also-do-not-include-banks-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0050_-name_bbb0050_bank-of-england_-2014a_a_-even-the-original-meaning-of-credit-creation-seems-forgotten-by-the-modern-literature_-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0100_-name_bbb0100_bernanke-_1993_a_-uses-the-expression-_credit-creation_-much-in-his-article_-but-explains-that-this-concept-is-defined-as-_the-process-by-which-saving-is-channeled-to-alternative-uses_-i_e_-financial-intermediation-of-savers_-deposits-into-loans_blockquote_-_blockquote_as-bernanke-points-out_-those-works-that-assume-such-a-financial-intermediation-role-for-banks-will-therefore-often-ignore-banks-entirely_-they-cannot-be-particularly-important-or-relevant-in-the-economy_-many-went-as-far-as-to-leave-out-any-kind-of-money-_there-are-no-monetary-aggregates-in-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0290_-name_bbb0290_kiyotaki-and-moore_-1997_a_-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0685_-name_bbb0685_woodford_-2003_a_-the-most-widely-used-textbook-in-advanced-master-level-economics-at-leading-british-universities-in-2010-was-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0430_-name_bbb0430_romer-_2006_a_-on-page-3_-romer-tells-us_-_incorporating-money-in-models-of-_economic_-growth-would-only-obscure-the-analysis_-_p_-3_blockquote_-isn_t-that-interesting_-could-there-be-some-other-reason-private-banking-interests-don_t-want-either-banking-or-money-modeled-by-economists_-yes_-the-quote-from-the-article-continues_-_blockquote_banks-have-thus-been-dropped-from-economics-models_-and-finance-models-have-not-suggested-that-bank-action-has-significant-macroeconomic-effects_-the-questions-of-where-money-comes-from-and-how-the-money-supply-is-created-and-allocated-have-remained-unaddressed_-keynes_-as-an-influential-economist_-did-little-to-enhance-clarity-in-this-debate_-as-it-is-possible-to-cite-him-in-support-of-each-of-the-three-hypotheses_-through-which-he-seems-to-have-moved-sequentially_-some-institutions_-such-as-the-bank-of-england_-manage-to-issue-statements-in-support-of-all-three-theories_blockquote_-that-by-itself-is-absurd_-and-it-should-be-a-clue-that-something-is-wrong-when-there-is-this-lack-of-agreement-on-a-fundamental-topic_-the-article-continues-with-the-test-that-it-setup_-_h2_the-test-of-the-three-theories-using-a-real-bank-account_h2_-_blockquote_thus-an-introduction-to-raiffeisenbank-wildenberg-e_g_-located-in-a-small-town-in-the-district-of-lower-bavaria-was-made_-the-bank-is-a-cooperative-bank-within-the-raiffeisen-and-cooperative-banking-association-of-banks_-with-eight-full-time-staff_-the-two-joint-directors_-mr_-michael-betzenbichler-and-mr_-marco-rebl-both-agreed-to-the-empirical-examination-and-also-to-share-all-available-internal-accounting-records-and-documentation-on-their-procedures_-a-written-agreement-was-signed-that-confirmed-that-the-planned-transactions-would-be-part-of-a-scientific-empirical-test_-and-the-researcher-would-not-abscond-with-the-funds-when-they-would-be-transferred-to-his-personal-account_-and-undertakes-to-immediately-repay-the-loan-upon-completion-of-the-test-_supplementary-material-1-in-online-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_s3000_-name_bs3000_appendix-3_a_-one-limitation-on-the-accounting-records-which-is-common-to-most-banks-is-that-they-are-outsourcing-the-it-to-a-specialised-bank-it-company_-which-maintains-its-own-rules-concerning-data-protection-and-confidentiality_-it-was-agreed-that-the-researcher-would-personally-borrow-_200_000-from-the-bank_-the-transaction-was-undertaken-on-7-august-2013-in-the-offices-of-the-bank-in-wildenberg-in-bavaria_-apart-from-the-two-_sole_-directors_-also-the-head-_and-sole-staff_-of-the-credit-department_-mr_-ludwig-keil-was-present_-the-directors-were-bystanders-not-engaging-in-any-action_-mr_-keil-was-the-only-bank-representative-involved-in-processing-the-loan-from-the-start-of-the-customer-documentation_-to-the-signing-of-the-loan-contract-and-finally-paying-out-the-loan-into-the-borrower_s-account_-the-entire-transaction_-including-the-manual-entries-made-by-mr_-keil_-was-filmed_-the-screens-of-the-bank_s-internal-it-terminal-were-also-photographed_-moreover_-a-team-from-the-bbc-was-present-and-filmed-the-central-part-of-the-empirical-bank-credit-experiment-_reporter-alistair-fee-and-a-cameraman_blockquote_-_h2_the-test-result_h2_-_blockquote_the-critical-question-is_-where-did-raiffeisenbank-wildenberg-e_g_-obtain-the-funds-from-that-the-borrower-_researcher_-was-credited-with-_and-duly-used-and-transferred-out-of-the-bank-the-following-day_-when-the-researcher-inquired-about-the-bank_s-reserve-holdings_-in-line-with-the-_em_fractional-reserve-theory-of-banking_em_-director-marco-rebl-explained-that-the-bank-maintained-its-reserves-with-the-central-organisation-of-cooperative-banks_-which-in-turn-maintained-an-account-with-the-central-bank_-these-reserves-amounted-to-a-fixed-amount-of-_350_000-that-did-not-change-during-the-observation-period_-concerning-the-bank-credit-procedure_-the-researcher-attempted-to-verify-the-source-of-the-funds-that-were-about-to-be-lent_-it-was-noted-and-confirmed-that-none-of-the-bank-staff-present-engaged-in-any-additional-activity_-such-as-ascertaining-the-available-deposits-or-funds-within-the-bank_-or-giving-instructions-to-transfer-funds-from-various-sources-to-the-borrower_s-account-_for-instance-by-contacting-the-bank-internal-treasury-desk-and-contacting-bank-external-interbank-funding-sources_-neither-were-instructions-given-to-increase_-draw-down-or-borrow-reserves-from-the-central-bank_-the-central-cooperative-bank-or-indeed-any-other-bank-or-entity_-in-other-words_-it-was-apparent-that-upon-the-signing-of-the-loan-contract-by-both-parties_-the-funds-were-credited-to-the-borrower_s-account-immediately_-without-any-other-activity-of-checking-or-giving-instructions-to-transfer-funds_-the-overall-credit-transaction_-from-start-to-finish_-until-funds-were-available-in-the-borrower_s-account_-took-about-35-min-_and-was-clearly-slowed-down-by-the-filming-and-frequent-questions-by-the-researcher_blockquote_-_blockquote_starting-by-analysing-the-liability-side-information-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_t0035_-name_bt0035_table-7_a_-we-find-that-customer-deposits-are-considered-part-of-the-financial-institution_s-balance-sheet_-this-contradicts-the-financial-intermediation-theory_-which-assumes-that-banks-are-not-special-and-are-virtually-indistinguishable-from-non-bank-financial-institutions-that-have-to-keep-customer-deposits-off-balance-sheet_-in-actual-fact_-a-bank-considers-a-customers_-deposits-starkly-differently-from-non-bank-financial-institutions_-who-record-customer-deposits-off-their-balance-sheet_-instead-we-find-that-the-bank-treats-customer-deposits-as-a-loan-to-the-bank_-recorded-under-rubric-_claims-by-customers_-who-in-turn-receive-as-record-of-their-loans-to-the-bank-_called-_deposits_-what-is-known-as-their-_account-statement_-this-can-only-be-reconciled-with-the-_em_credit-creation_em_-or-_em_fractional-reserve-theories_em_-of-banking_blockquote_-_blockquote_we-observe-that-an-amount-not-far-below-the-loan-balance-_about-_190_000_-has-been-deposited-with-the-bank_-this-is-itself-not-far-from-the-increase-in-total-liabilities-_and-assets_-since-the-_em_fractional-reserve-hypothesis_em_-requires-such-an-increase-in-deposits-as-a-precondition-for-being-able-to-grant-the-bank-loan_-i_e_-it-must-precede-the-bank-loan_-it-is-difficult-to-reconcile-this-observation-with-the-fractional-reserve-theory_blockquote_-_blockquote_turning-to-an-analysis-of-the-asset-side_-we-note-that-the-category-where-we-find-our-loan-is-item-4_-claims-on-customers-_-fortunately-the-only-one-that-day-with-a-maturity-below-4-years-and-hence-clearly-identifiable-on-the-bank-balance-sheet_-apparently_-customers-also-took-out-short-term-loans-_most-likely-overdrafts_-amounting-to-_35_071_88_-producing-a-total-new-loan-balance-of-_235_071_88_-in-order-to-keep-the-analysis-as-simple-as-possible_-let-us-proceed-from-here-assuming-that-our-test-loan-amounted-to-this-total-loan-figure-_235_071_88_-so-the-balance-sheet-item-of-interest-on-the-asset-side-is-_a4_-the-increase-in-loans-_claims-on-customers_-amounting-to-_235_071_88_blockquote_-_h2_the-fractional-reserve-theory-of-banking-is-proven-false-through-the-test_h2_-_blockquote_thus-it-can-now-be-said-with-confidence-for-the-first-time-_-possibly-in-the-5000-years_-history-of-banking-that-it-has-been-empirically-demonstrated-that-each-individual-bank-creates-credit-and-money-out-of-nothing-when-it-extends-what-is-called-a-_bank-loan_-the-bank-does-not-loan-any-existing-money_-but-instead-creates-new-money_-the-money-supply-is-created-as-_fairy-dust_-produced-by-the-banks-out-of-thin-air_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_fn0160_-name_bfn0160_sup_32_sup_a_-the-implications-are-far-reaching_blockquote_-the-other-theories-like-paul-samuelson_s-100_-reserve-banking-or-fractional-reserve-never-made-much-sense_-the-correct-theory-is-the-credit-theory-of-banking_-this-is-the-understanding-of-the-banking-system-that-the-private-banking-interests-do-not-want-the-public-to-understand_-in-this-way-each-bank-functions-as-a-_mini-fed_-or-mini-central-bank_-the-article_s-comment-regarding-the-regress-on-the-understanding-of-banking-is-highly-insightful_-_blockquote_it-is-sobering-to-realise-that-since-the-1930s_-economists-have-moved-further-and-further-away-from-the-truth_-instead-of-coming-closer-to-it_-this-happened-first-via-the-half-truth-of-the-_em_fractional-reserve-theory_em_-and-then-reached-the-completely-false-and-misleading-financial-intermediation-theory-that-today-is-so-dominant_-thus-this-paper-has-found-evidence-that-there-has-been-no-progress-in-scientific-knowledge-in-economics_-finance-and-banking-in-the-20th-century-concerning-one-of-the-most-important-and-fundamental-facts-for-these-disciplines_-instead_-there-has-been-a-regressive-development_-the-known-facts-were-unlearned-and-have-become-unknown_blockquote_-however_-this-did-not-happen-by-mistake_-the-article-does-not-address-that-private-banking-interests-have-turned-the-economics-profession-into-their-puppet_-which-is-why_-for-example_-milton-friedman-is-such-a-well-known-economist-even-though-his-theory-of-monetarism-was-a-complete-dead-end_-he-made-statements-private-banking-interests-liked-and-wanted-to-be-promulgated-to-the-general-public-and-to-policymakers_-including-that-companies-should-not-be-regulated-and-one-requires-deep-income-inequality-in-order-to-attain-societal-progress_-even-though-this-paper-was-published-in-2014_-the-fractional-reserve-theory-and-banks-as-intermediaries-theory-of-banking-are-still-the-dominant-theory_-this-is-because-economics-is-about-writing-things-that-private-banking-and-other-elite-interests-like_-not-in-publishing-anything-that-is-true_-what-is-curious-in-all-of-this-is-the-role-of-john-maynard-keynes_-who-normally-had-very-high-accuracy-in-his-ideas_-as-is-explained-in-the-following-quotation_-_blockquote_the-most-influential-and-famous-of-all-20th-century-economists_-as-we-saw_-was-a-sequential-adherent-of-all-three-theories_-which-is-a-surprising-phenomenon_-moreover_-keynes-used-his-considerable-clout-to-slow-scientific-analysis-of-the-question-whether-banks-could-create-money_-as-he-instead-engaged-in-ad-hominem-attacks-on-followers-of-the-_em_credit-creation-theory_em_-despite-his-enthusiastic-early-support-for-the-_em_credit-creation-theory_em_-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0275_-name_bbb0275_keynes_-1924_a_-only-six-years-later-he-was-condescending_-if-not-dismissive_-of-this-theory_-referring-to-credit-creation-only-in-inverted-commas_-he-was-perhaps-even-more-dismissive-of-supporters-of-the-_em_credit-creation-theory_em_-who-he-referred-to-as-being-part-of-the-_army-of-heretics-and-cranks_-whose-numbers-and-enthusiasm-are-extraordinary_-and-who-seem-to-believe-in-_magic_-and-some-kind-of-_utopia_-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0280_-name_bbb0280_keynes_-1930_-vol_-2_-p_-215_a_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_fn0165_-name_bfn0165_sup_33_sup_a_-yet-the-_em_financial-intermediation-theory_em_-is-dominant_-with-a-minor-representation-of-the-_em_fractional-reserve-theory_em_-the-_em_credit-creation-theory_em_-is-not-presented-at-all_-even-as-a-possibility_-but-the-book-does-include-a-chapter-entitled-_monetary-cranks_-in-this-brief-chapter_-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0280_-name_bbb0280_keynes_-_1930_a_-derogatory-treatment-of-supporters-of-the-_em_credit-creation-theory_em_-is-updated-for-use-in-the-1990s_-with-sharpened-claws_-ridicule-and-insult-is-heaped-on-several-fateful-authors-that-have-produced-thoughtful-analyses-of-the-economy_-the-monetary-system-and-the-role-of-banks_-such-as-nobel-laureate-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0490_-name_bbb0490_sir-frederick-soddy-_1934_a_-and-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0180_-name_bbb0180_c_h_-douglas-_1924_a_-even-the-seminal-and-influential-work-by-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0300_-name_bbb0300_georg-friedrich-knapp-_1905_a_-still-favourably-cited-by-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0285_-name_bbb0285_keynes-_1936_a_-is-identified-as-being-created-by-a-_crank_-what-these-apparently-wretched-authors-have-in-common_-and-what-seems-to-be-their-main-fault_-punishable-by-being-listed-in-this-inauspicious-chapter_-is-that-they-are-adherents-of-the-_em_credit-creation-theory_em_-but_-revealingly_-their-contributions-are-belittled-without-it-anywhere-being-stated-what-their-key-tenets-are-and-that-their-analyses-centre-on-the-_em_credit-creation-theory_em_-which-itself-remains-unnamed-and-is-never-spelled-out_-this-is-not-a-small-feat_-and-leaves-one-pondering-the-possibility-that-the-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0185_-name_bbb0185_eatwell-et-al_-_1989_a_-tome-was-purposely-designed-to-ignore-and-distract-from-the-rich-literature-supporting-the-_em_credit-creation-theory_em_blockquote_-_h3_on-georg-friedrick-knapp_h3_-georg-friedrich-knapp-_see-entry-in-this-website_-is-the-proponent-of-the-state-theory-of-money_-that-is-money-is-whatever-the-state-says-that-it-is_-it-is-therefore-natural-to-see-that-he-was-also-a-credit-theory-of-banking-proponents_-knapp-was-active-in-the-late-1800s-and-early-1900s_-however_-he-learned-of-the-money-as-credit-_he-states_-in-1861_-at-this-point_-it-was-not-a-fully-fleshed-out-explanation_-however-this-shows-the-knowledge-existed_-this-also-means-that-most-of-the-world_s-knowledge-of-money-and-banking-has-gone-backwards-_span-style_color_-_1d79cf_strong_for-over-160-years_-_strong_span_-this-brings-up-the-question-of-whether-keynes-himself-fell-under-the-influence-of-private-banking-interests-later-in-his-career_-how-else-does-one-explain-moving-from-knowledge-on-a-topic-to-a-false-private-banking-created-hypothesis_-and-the-last-quote-is-telling-of-the-mainstream-economists-meeting-their-objectives_-_blockquote_nothing-lost_-according-to-the-authors_-who-applaud-the-development-that-due-to-_span-style_font-size_-1rem_the-increased-emphasis-given-to-monetary-theory-by-academic-economists-in-recent-decades_-_span_span-style_color_-_1d79cf_strong_the-monetary-cranks-have-largely-disappeared-from-public-debate-_strong_span_span-style_font-size_-1rem_-_p_-214_span_blockquote_-_h3_credit-theory-of-banking-proponents-were-_conspiracy-theorists_h3_-notice-as-well_-those-that-adhered-to-the-credit-theory-of-banking-were-called-labelled-as-_conspiracy-theorists_-as-is-illustrated-in-the-following-quotation_-_blockquote_and-so-has-the-_em_credit-creation-theory_em_-since-the-tenets-of-this-theory-are-never-stated-in-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0185_-name_bbb0185_eatwell-et-al_-_1989_a_-the-chapter-on-_cranks_-ends-up-being-a-litany-of-ad-hominem-denigration_-defamation-and-character-assassination_-liberally-distributing-labels-such-as-_cranks_-_phrase-mongers_-_agitators_-_populists_-and-even-_conspiracy-theorists_-that-believe-in-_miracles_-and-engage-in-wishful-thinking_-ultimately-deceiving-their-readers-by-trying-to-_impress-their-peers-with-their-apparent-understanding-of-economics_-even-though-they-had-no-formal-training-in-the-discipline_-_p_-214_-all-that-we-learn-about-their-actual-theories-is-that_-somehow_-these-ill-fated-authors-are-_opposed-to-private-banks-and-the-_money-power_-without-their-opposition-leading-to-more-sophisticated-political-analysis_-_p_-215_-any-reading-of-the-highly-sophisticated-_a-class_workspace-trigger_-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_bb0490_-name_bbb0490_soddy-_1934_a_-quickly-reveals-such-labels-as-unfounded-defamation_blockquote_-_h2_the-reality_-fractional-reserve-banking-proponents-as-_flat-earthers_h2_-_blockquote_to-the-contrary_-the-empirical-evidence-presented-in-this-paper-has-revealed-that-the-many-supporters-of-the-_em_financial-intermediation-theory_em_-and-also-the-adherents-of-the-_em_fractional-reserve-theory_em_-are-flat-earthers-that-believe-in-what-is-empirically-proven-to-be-wrong-and-which-should-have-been-recognisable-as-being-impossible-upon-deeper-consideration-of-the-accounting-requirements_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_science-direct_span_span_strong_-_strong_a-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_-target_blank_-rel_noopener_https_www_sciencedirect_com_science_article_pii_s1057521914001070_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-create-money-out-of-thin-air_li_-_li_this-has-been-conclusively-proven_-but-private-banking-interests-do-not-want-this-to-know_li_-_ul_-_h2_introduction_h2_-private-banks-create-funds-for-loans-with-an-accounting-entry_-how-the-funding-for-a-loan-is-created-is-explained-in-the-following-quotation_-_blockquote_banks-do-not-really-pay-out-loans-from-the-money-they-receive-as-deposits_-if-they-did_-there_s-no-additional-money-would-be-created_-what-they-do-when-they-make-loans-is-to-accept-promissory-notes-in-exchange-for-credits-to-the-borrower_s-transaction-accounts_-contrary-to-popular-belief_-then-loans-become-deposits-rather-than-the-reverse_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-this-is-explained-by-the-fed-also-as-follows-_blockquote_the-actual-process-of-money-creation-takes-place-in-the-commercial-banks_-as-noted-earlier_-the-demand-liabilities-of-commercial-banks-are-money-they-are-book-entries-that-result-from-the-crediting-of-deposits-of-currency-and-checks_-and-the-proceeds-of-loans-and-investments-to-the-customer_s-accounts_-banks-can-build-up-deposits-by-increasing-loans-and-investments_-so-long-as-they-keep-enough-currency-on-hand-to-redeem-whatever-amounts-the-holders-of-the-deposits-want-to-convert-into-currency_-if-the-business-is-active_-these-banks-will-probably-have-opportunities-to-loan_-the-_850_000-of-course-they-do-not-really-make-loans-out-of-the-money-they-receive-as-deposits-if-they-did_-they-would-be-acting-just-like-financial-intermediaries-and-no-additional-money-would-be-created_-what-they-do_-then_-when-they-make-loans_-is-to-accept-promissory-notes-in-exchange-for-credits_-they-make-to-the-borrower_s-deposit-accounts_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_modern-money-mechanics_span_span_strong_-_a-href_https_www_scribd_com_document_7581471_modern-money-mechanics_-target_blank_-rel_noopener_strong_https_www_scribd_com_document_7581471_modern-money-mechanics_strong_a_-_h2_how-economists-stay-away-from-the-topic-of-money_h2_-mainstream-economists-have-so-many-simplified-assumptions-about-money-that-they-try-to-take-money-out-of-their-equations_-this-is-a-point-brought-up-by-steve-keen-in-the-following-video_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_steve-keen_span_span_strong_-https_youtu_be_jeplrmadw3e-_h2_a-deliberate-blind-spot_h2_-it-is-possible-that-this-blind-spot-was-promoted-by-private-banking-interests_-private-banking-interests-do-not-want-economists-to-focus-on-money-creation-as-this-exposes-the-scam-that-private-banks-use-and-how-they-_strong_span-style_color_-_1d79cf_free-ride-on-the-rest-of-society_-_span_strong_and-as-soon-as-one-understands-how-money-creation-works-and-the-function-of-private-banks-and-private-central-banks_-it-becomes-virtually-impossible-to-have-a-conversation-with-mainstream-economists2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-quote-explains-how-private-banks-seek-to-keep-money-creation-from-the-government_li_-_ul_-_h2_introduction_h2_-_blockquote_that_s-because-the-condition-of-being-appointed-to-a-central-bank-in-the-government-is-that-you_re-working-for-the-financial-interest-of-the-banks_-not-for-the-government_-the-banks-would-love-governments-to-borrow-from-the-banks-in-the-financial-sector-and-pay-them-interest-because-then-they-get-to-tell-the-government-what-to-do_-if-the-government-can-just-print-its-own-money-then-it-can-decide-what-voters-wanted-to-do-and-of-course_-that-would-be-democracy-and-that-it_s-not-exactly-what-the-vested-interests-are-for_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/but-it_s-also-the-accounting-and-i_ve-got-to-take-my-hat-off-to-stephanie-kelton-for-making-a-best-seller-out-of-an-argument-over-what-is-fundamentally-issues-of-accounting_-because-when-you-take-a-look-at-how-the-government-actually-creates-money-right-now_-it-creates-it-by-simply-running-a-deficit_-when-it-creates-a-deficit-it-spends-into-the-private-sector-and-increases-the-amount-of-money-in-peoples-bank-accounts_-when-you-tax-you-do-the-opposite_-you-take-money-out-of-their-bank-accounts_-so-the-increase-in-money-is-created-by-the-deficit_-which-is-what-we-get-in-our-bank-accounts_-but-the-increase-in-reserves-is-also-created-in-exactly-the-same-act-and-that-gives-banks-reserves_-which-either-don_t-earn-interest-or-in-some-crazy-countries-like-switzerland-actually-give-you-a-negative-rate-of-interest-so-that_s-where-the-money-is-created-by-running-a-deficit_-https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_antisemitism-is-often-driven-by-jewish-control-and-concentration-in-banking_li_-_ul_-_h2_introduction_h2_-jews-are-highly-involved-in-banking_-and-they-have-been-for-thousands-of-years_-_goldsmith_-for-example_-is-a-common-jewish-name_-as-is-_goldstein_-and-similar-names_-one-reason-for-this-is-that-the-catholic-church-outlawed-charging-interest-or-usury_-this-is-something-that-the-jewish-faith-allows_-with-so-many-jews-in-banking-and-with-predatory-behavior-so-common-in-banking_-particularly-private-banking_-it-has-been-relatively-common-through-history-for-jews-to-be-blamed-for-banking-greed_-a-primary-reason-for-antisemitic-sentiments-is-jews-take-more-from-societies-than-they-give-back_-one-of-the-arguments-that-were-developed-in-response-was-to-use-the-charge-of-antisemitism_-antisemitism-is-a-virtual-automatic-response-to-any-statement-that-is-not-a-full-throated-endorsement-of-jews_-for-example_-any-statement-that-supports-the-rights-of-a-group-in-contest-with-jews_-for-example_-the-palestinians_-is-normally-immediately-declared-as-antisemitic_-which-is-curious-because-it-is-not-an-argument_-furthermore_-it-places-jews-beyond-criticism_-any-criticism-of-any-jew-or-any-jewish-institution-can-now-be-called-antisemitic_-however_-no-person-or-group-can-be-logically-placed-beyond-criticism-for-any-reason_-normally-the-attempt-is-made-that-since-the-person-is-now-antisemitic_-they-are-therefore-a-nazi_-by-this-logic_-any-critic-of-any-individual-jew-is-only-engaged-in-by-nazis-for-virtually-any-offense_-antisemitism-is-frequently-flung-at-those-who-observe-that-jews-not-only-dominate-private-banking-but-demonstrate-a-strong-tendency-to-support-predatory-banking-practices_-it-is-part-of-the-jewish-religion-that-cheating-_the-goy_-or-non-jew-is-a-virtue_-the-support-for-predatory-lending-practices-is-found-in-that-jews-normally-live-as-minorities-in-non-jewish-countries_-israel-is-the-obvious-exception_-but-historically_-isreal-is-a-very-recent-country_-under-the-religious-support-for-cheating-the-non-jew-and-being-surrounded-by-non-jews_-it-is-a-simple-matter-to-see-the-reasoning-why-jews-so-often-favor-predatory-lending_-if-it-can-be-shown-that-the-jewish-faith-supports-cheating-non-jews-and-promotes-it-as-virtuous_-and-if-jews-can-be-shown-to-engage-in-this-behavior_-that-in-following-the-scientific-approach-to-point-this-out_-there-are-other-examples-of-something-very-similar-to-other-religions_-for-example_-it-is-a-primary-teaching-of-mormonism-that-one_s-material-attainment-in-the-current-life-is-an-indicator-of-one_s-virtue-and-status-in-the-afterlife_-this-is-one-thing-that-has-been-blamed-for-why-there-are-so-many-mlm-schemes-out-of-salt-lake-city_-curiously_-no-one-has-ever-called-this-claim-_antimormonism_-if-a-claim-of-antisemitism-is-made_-then-it-is-also-correct-to-observe-that-this-is-not-an-argument-for-why-this-observation-is-incorrect-but-is-ad-hominem_-which-like-all-ad-homeniums_-are-intended-to-end-the-argument-without-having-to-provide-evidence-that-the-claim-is-not-true_-however_-while-jews-are-very-concentrated-in-private-banking_-there-are-many-other-groups-that-also-support-usury-and-predatory-lending_-it-is-just-that-given-the-very-small-world-population-of-jews_-which-is-estimated-to-be-around-16-billion_-they-are-extraordinarily-overrepresented-in-private-banking_-the-following-are-quotations-from-the-jewish-problem_-published-in-germany-in-1949_-_blockquote_when-taking-all-this-into-account_-the-official-_statistics-of-the-german-reich_-_new-edition_-vol_-146_-reveal-the-fact-that-a-number-of-certain-crimes-were-committed-more-frequently-by-jews-than-by-christians_-taking-an-average-valuation-for-the-period-1892-to-1901_-we-obtain-the-following_-_ul_-_li_crime_-jews-versus-christians_li_-_li_fraud-and-trickery_-14x-greater_li_-_li_usury_-13x-greater_li_-_li_copyright-infringement_-11x-greater_li_-_li_fraudulent-bankruptcy_-9x-greater_li_-_li_fraudulent-insolvency_-6x-greater_li_-_li_receiving-stolen-property_-5x-greater_li_-_ul_-it-will-be-seen-from-this-that-jews-have-a-strong-liking-for-commercial-crime_-that-this-fact-has-in-no-way-been-sufficiently-explained-by-the-large-percentage-of-jews-in-business-is-revealed-by-the-investigations-conducted-by-the-jew-ruppin_-in-his-book_-die-juden-der-gegenwart-_-contemporary-jews-_-_berlin-1904_-with-the-aid-of-comparative-statistics-ruppin-arrives-at-considerably-greater-figures-for-commercial-crime-than-jewish-participation-in-commerce-would-seem-to-indicate_-the-jew-wassermann-arrives-at-the-same-conclusion-in-his-book-beruf_-konfession-und-verbrechen_-_-profession_-confession-and-crime-_-_munich-1907_-_strong_-germany_-the-jewish-problem_strong_blockquote_-antisemitism-is-often-driven-by-jewish-control-and-concentration-in-banking2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_capitalist-banking-uses-the-credit-of-the-government-and-privatizes-the-gains_-while-not-being-responsible-for-losses_li_-_ul_-_h2_introduction_h2_-capitalist-banking-is-where-the-government-is-very-limited-in-its-oversight-of-the-banking-sector_-and-the-regulations-are-very-much-rigged-in-favor-of-the-private-banks_-capitalist-banking-uses-the-credit-and-money-creation-that-is-housed-with-the-government_-to-make-profits-and-then-dump-losses-on-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-is-a-primary-driver-of-income-inequality_li_-_li_as-banking-has-become-increasingly-privatized_-the-us-income-inequality-has-soared_li_-_ul_-_h2_introduction_h2_-a-major-problem-with-the-existence-of-private-banks-is-that-they-are-constantly-_span-style_color_-_1d79cf_strong_ratcheting-up-their-interest-rates_strong_span_-and-other-schemes-which-financialize-the-economy_-private-banks-politically-lobby-for-less-regulation_-and-countries-with-the-most-private-banking-influence-have-the-highest-bank-bailouts_-a-great-deal-of-intellectual-effort-goes-into-the-financial-sector-when-in-reality_-very-little-should_-_h2_how-societies-are-under-government-controlled-banking_h2_-under-the-scenario-where-the-government-creates-its-own-money_-private-banking-does-not-exist_-and-the-government-creates-money-for-loans_-the-government-then-performs-the-verification-for-making-loans_-private-banking-is-a-primary-driving-force-for-income-inequality-which-undermines-the-overall-republic_-this-was-known-and-is-explained-in-this-quote-by-lincoln_-_blockquote_i-see-in-the-near-future-or-crisis-approaching-that-unnerves-me-and-causes-me-to-tremble-for-the-safety-of-my-country_-corporations-have-been-enthroned-an-era-of-corruption-in-high-places-will-follow_-and-the-money-power-of-the-country-will-endeavor-to-prolong-its-reign-by-working-upon-the-prejudices-of-the-people-until-the-wealth-is-aggregated-in-the-hands-of-a-few-and-the-republic-is-destroyed_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_lincoln_s-accuracy_h2_-what-lincoln-feared-has-come-to-pass_-and-there-is-a-good-reason-that-this-quotation-is-not-readily-found-or-repeated2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banks-are-a-type-of-parasite-on-the-government_s-money-creation-function_li_-_ul_-_h2_introduction_h2_-private-banks-only-exist-because-the-government-granted-a-concession-of-being-able-to-create-money_-as-such_-they-are-completely-unnatural-and-do-something-that-is-by-right-the-government_s-domain_-banks-do-not-loan-out-money-they-obtain-from-someplace-else_-they-create-money_-the-government-grants-them-this-capability_-a-mechanism-by-which-the-private-banks-lie-to-their-borrowers-and-the-general-population_-many-people-that-work-in-banks-have-no-idea-banks-create-money-from-nothing_-most-money-is-created-by-private-banks_-not-the-private-central-bank_-throughout-history_-private-bankers-have-told-a-wide-variety-of-lies-about-why-private-banks-are-necessary_-and-none-of-their-arguments-turned-out-to-be-true_-private-bankers-have-a-simple-ruse_-convince-the-politicians-and-public-to-turn-over-the-government_s-ability-to-create-money-for-them-and-allow-them-to-charge-any-interest-rate-they-want_-private-bankers-make-their-own-false-claims_-but-in-great-part_-rely-upon-economists-who-are-indoctrinated-and-promoted-through-career-incentives-to-repeat-false-claims-made-by-private-bankers2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-rothschilds-are-one-of-the-most-powerful-banking-families-in-history_li_-_ul_-_h2_introduction_h2_-the-rothschilds-are-a-german-banking-family_-they-came-to-dominate-banking-in-many-countries-and-were-behind-the-lobbying-for-the-creation-of-many-private-central-banks_-the-rothschilds-normally-hide-their-ownership-of-entities2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_mark-to-model-accounting-means-that-the-entity-that-price-the-asset-at-any-value-that-they-wish_li_-_ul_-_h2_introduction_h2_-private-banks-always-want-to-apply-mark-to-model-accounting_-rather-than-mark-to-market_-this-is-for-the-same-reason-that-enron-lobbied-aggressively-for-mark-to-model-accounting_-under-mark-to-model_-banks-can-say-their-assets-are-whatever-they-want-them-to-be-worth_-alan-grayson-here-discussed-mark-to-model-accounting_-https_www_youtube_com_watch_v_m5vacxzo4m02024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-always-sets-up-a-rigged-system-where-elites-benefit-from-free-government-money_li_-_li_private-banking-allows-these-special-interests-to-charge-the-public-for-the-sovereign-right-of-governments_li_-_ul_-_h2_introduction_h2_-this-lack-of-fairness-in-a-system-run-by-private-banking-interests-is-explained-in-the-following-quotation_-_blockquote_what-hides-behind-the-banner-of-free-enterprise-today-is-a-system-in-which-giant-corporate-monopolies-have-used-their-affiliated-banking-trusts-to-generate-unlimited-funds-to-buy-up-competitors_-the-media_-and-the-government-itself_-forcing-truly-independent-private-enterprise-out_-big-private-banks-are-allowed-to-create-money-out-of-nothing-lended-an-interest-in-foreclose-on-the-collateral-and-determine-who-gets-credit-who-doesn_t_-they-can_t-advance-massive-loans-to-their-affiliated-cartels-and-hedge-funds-would-use-the-money-to-raid-competitors-and-manipulate-markets_-if-some-players-have-the-power-to-create-money-and-others-don_t-the-playing-field-is-not-level-but-allow-some-favorite-players-to-dominate-and-coerce-others_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h2_private-banking-insurance-and-bail-outs_h2_-private-banking-not-only-demands-the-right-to-charge-insurance-on-the-government_s-money-creation-capability_-but-they-demand-and-receive-insurance-and-bailouts-from-the-government_-banks-both-fight-against-regulations-to-provide-a-stable-banking-system-and-receive-bailouts-after-they-drive-bubbles-that-pop2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_capitalist-banking-uses-the-credit-of-the-government-and-privatizes-the-gains_-while-not-being-responsible-for-losses_li_-_ul_-_h2_introduction_h2_-to-this-site_-a-_mini-fed_-is-sometimes-what-we-call-a-private-bank_-the-reason-is-that-as-the-fed-a-bank-can-create-as-much-money-as-it-likes_-the-reason-why-the-faux-reserve-requirement-is-not-required-to-be-observed-is-explained-in-the-entry-on-this-website-called-reserves_-we-think-this-helps-draw-the-parallel-appropriately-of-money-creation-in-banks_-as-being-essentially-what-the-fed-can-do_-however_-after-coining-this-term_-we-ran-into-the-same-term-used-in-the-book-banking-on-the-people-by-ellen-brown_-however_-ellen-brown-calls-any-state-bank-a-mini-fed_-both-are-good-uses-of-such-a-term_-however_-in-the-case-of-the-bnd_-this-_mini-fed_-or-state-bank-has-the-interests-of-the-state-as-a-primary-concern_-so-in-this-way_-it-is-not-at-all-like-the-fed-as-the-fed-is-virtually-consumed-with-private-banking-interests_-_h2_our-logic-for-the-term_h2_-in-our-use-of-the-term_-a-private-bank-or-mini-fed_-is-very-similar-to-the-fed-in-that-it-both-creates-as-much-money-as-it-wants-from-nothing-and-like-the-fed_-has-zero-and-in-fact_-in-many-cases-negative-concern-for-the-public-interest2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_economists-often-talk-about-the-importance-of-banking-reserves_li_-_li_how-much-do-regulators-and-central-banks-actually-enforce-rules-around-reserves_li_-_ul_-_h2_introduction_h2_-reserves-at-banks-are-often-referred-to-in-order-to-try-to-make-it-sound-like-banks-are-not-creating-money-with-an-accounting-entry-when-in-reality-they-are-highly-flexible-requirements-that-the-banks-can-meet-with-very-little-effort_-they-are-also-conjured-from-nothing-by-the-federal-reserve_-this-is-explained-in-the-following-quotation_-_blockquote_the-federal-reserve-operates-in-a-way-that-permits-banks-to-acquire-the-reserves_-they-need-to-meet-their-requirements-from-the-bank-the-money-markets-along-as-they_re-willing-to-pay-the-prevailing-price_-the-federal-funds-rate-for-borrowed-reserves_-consequentially_-reserve-requirements-currently-play-a-relatively-limited-role-in-money-creation-in-the-united-states_-as-the-fed-will-provide-the-necessary-reserves-by-making-them-available-at-the-federal-funds-rate_-the-banks-borrow-from-the-fed-at-a-low-interest-rate-and-extend-credit-to-their-customers-at-a-higher-rate_-where-the-sleight-of-hand-comes-in-is-that-the-fed-itself-creates-the-reserves-out-of-thin-air_-these-reserves-are-not-real-money-kept-in-the-commercial-bank-for-paying-depositors_-they-exist-only-as-liabilities-on-the-federal-reserve-bank_s-books_-pierre-maintains-that-the-rules-accounts-kept-at-the-federal-reserve-bank-are-just-a-system-for-keeping-track-of-how-much-money-commercial-banks-create_-pierre-goes-on-to-say_-number-banks-do-not-physically-transfer-a-percentage-of-their-demand-deposit-account-balances-to-their-reserve-accounts-at-their-federal-reserve-branch_-_i-believe-these-accounts-were-designed-to-further-the-parents-by-a-gigantic-system-of-reserves-mandated-by-the-federal-reserve-system-to-force-prudent-banking_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-this-is-also-explained-in-the-following-quotation_-_blockquote_the-truth-is-the-opposite-of-the-textbook-model_-in-the-real-world-banks-make-loans-independent-of-reserve-then-during-the-next-accounting-period-borrow-any-needed-reserves_-the-imperatives-of-the-accounting-system_-as-previously-discussed_-require-the-fed-to-lend-the-banks-whatever-they-need_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_soft-currency-economics_strong_-_a-href_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_-target_blank_-rel_noopener_strong_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_strong_a_-_h2_reserve-requirements-as-a-distraction-from-money-created-from-think-air_h2_-reserve-requirements_-as-they-are-very-small-and-little-enforced-muddy-the-water-on-how-money-is-created-by-banks_-this-is-purposeful-on-the-part-of-the-banking-industry_-this-yet-another-magic-trick-performed-by-private-banking_-repeatedly-when-one-looks-at-items-held-up-by-the-private-banking-industry-to-be-some-type-of-limit-or-control_-the-item-turns-out-to-be-nothing_-furthermore_-banks-have-driven-towards-even-lower-levels-of-reserves-to-be-kept2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_old-fashioned-banking-is-banking-that-covers-the-basics-for-customers-rather-than-esoteric-scams_-which-is-what-modern-banking-is-all-about_li_-_ul_-_h2_introduction_h2_-old-fashioned-banking-is-explained-in-the-following-quotation_-_blockquote_old-fashioned-banking-is-the-deragatory-term-used-by-private-banking-interests-to-describe-low-margin-banking-services-like-check-cashing-and-making-business-loans_-_new-banking_-only-does-these-things-to-get-access-to-customers-to-entangle-in-complex-financial-products_-as-major-banks-move-away-from-_old-fashioned-banking_-they-are-leaving-larger-percentages-of-the-population-with-lower-banking-services_-while-at-the-same-time-the-private-banking-interests-oppose-government-entrants-that-will-provide-_old-fashioned-banking_-services_-like-the-us-post-office-did-in-the-past-_from-1911-to-1967_-and-as-has-been-proposed-again-to-help-the-us-post-office-make-up-for-the-revenues-it-lost-from-the-rise-of-email_-this-is-yet-another-problem-with-allowing-banking-to-be-private-and-profit-based_-this-is-covered-in-the-following-quotation_-_infrastructure-regulation-has-widely-acknowledged-that-we-should-not-expect-market-pricing-based-on-marginal-cost-to-provide-universal-access-to-necessary-services_-because-it-is-not-as-profitable-to-serve-low-income-and-low-wealth-groups_-to-overcome-this_-universal-service-requirements-have-long-been-a-classic-component-of-infrastructure-regulation_-since-its-inception_-for-example_-the-usps-has-served-routes-that-it-knew-would-never-be-profitable-because-providing-universal-access-to-communications-infrastructure-was-seen-as-a-public-priority_-additionally_-many-transportation-and-utility-providers-have-also-had-universal-service-requirements-where-they-were-required-to-provide-transportation-and-utility-services-to-unprofitable-areas_-with-universal-access-as-the-primary-motivation-_lewis-and-severnini-2017_-ricks-2018_-universal-service-requirements-were-a-key-component-of-new-deal-era-banking-reform_-which-envisioned-the-role-of-banks-as-similar-to-a-quasi-public-utility-_d_arista-1994_-however_-following-the-financial-deregulation-of-the-1980s-that-removed-the-regulations-that-functioned-in-a-similar-manner-to-universal-service-requirements_-commercial-banks-and-other-depository-institutions-transitioned-away-from-offering-basic_-low-cost-financial-services-in-favor-of-pursuing-higher-profit-activities_2-the-recent-trend-of-bank-branch-closings-also-provides-an-example-of-how-marginal-cost-pricing-contributes-to-financial-exclusion-by-reducing-access-to-traditional-financial-services-in-low-income-communities_-bank-branch-closings-have-accelerated-since-the-financial-crisis_-with-roughly-5000-branch-closings-from-2009-2014-_morgan-et-al_-2016_-however_-these-closings-have-not-been-distributed-equally_-fully-93-percent-of-these-closings-have-occurred-in-zip-codes-with-income-levels-that-are-below-the-u_s_-median-_usps-2014_-baradaran-2013_-at-the-most-extreme_-this-resulted-in-_bank-deserts_-defined-as-a-census-tract-in-which-there-is-no-bank-within-10-miles_-this-financial-exclusion-comes-at-a-sizable-cost-to-households_-as-the-institutions-that-traditionally-provided-service-to-the-poor-have-stopped-offering-these-services_-these-households-have-no-other-choice-than-to-utilize-high-cost-alternative-financial-services_-old-fashioned-banking-is-the-deragatory-term-used-by-private-banking-interests-to-describe-low-margin-banking-services-like-check-cashing-and-making-business-loans_-_new-banking_-only-does-these-things-to-get-access-to-customers-to-entangle-in-complex-financial-products_-as-major-banks-move-away-from-_old-fashioned-banking_-they-are-leaving-larger-percentages-of-the-population-with-lower-banking-services_-while-at-the-same-time-the-private-banking-interests-oppose-government-entrants-that-will-provide-_old-fashioned-banking_-services_-like-the-us-post-office-did-in-the-past-_from-1911-to-1967_-and-as-has-been-proposed-again-to-help-the-us-post-office-make-up-for-the-revenues-it-lost-from-the-rise-of-email_-this-is-yet-another-problem-with-allowing-banking-to-be-private-and-profit-based_-this-is-covered-in-the-following-quotation_-_infrastructure-regulation-has-widely-acknowledged-that-we-should-not-expect-market-pricing-based-on-marginal-cost-to-provide-universal-access-to-necessary-services_-because-it-is-not-as-profitable-to-serve-low-income-and-low-wealth-groups_-to-overcome-this_-universal-service-requirements-have-long-been-a-classic-component-of-infrastructure-regulation_-since-its-inception_-for-example_-the-usps-has-served-routes-that-it-knew-would-never-be-profitable-because-providing-universal-access-to-communications-infrastructure-was-seen-as-a-public-priority_-additionally_-many-transportation-and-utility-providers-have-also-had-universal-service-requirements-where-they-were-required-to-provide-transportation-and-utility-services-to-unprofitable-areas_-with-universal-access-as-the-primary-motivation-_lewis-and-severnini-2017_-ricks-2018_-universal-service-requirements-were-a-key-component-of-new-deal-era-banking-reform_-which-envisioned-the-role-of-banks-as-similar-to-a-quasi-public-utility-_d_arista-1994_-however_-following-the-financial-deregulation-of-the-1980s-that-removed-the-regulations-that-functioned-in-a-similar-manner-to-universal-service-requirements_-commercial-banks-and-other-depository-institutions-transitioned-away-from-offering-basic_-low-cost-financial-services-in-favor-of-pursuing-higher-profit-activities_2-the-recent-trend-of-bank-branch-closings-also-provides-an-example-of-how-marginal-cost-pricing-contributes-to-financial-exclusion-by-reducing-access-to-traditional-financial-services-in-low-income-communities_-bank-branch-closings-have-accelerated-since-the-financial-crisis_-with-roughly-5000-branch-closings-from-2009-2014-_morgan-et-al_-2016_-however_-these-closings-have-not-been-distributed-equally_-fully-93-percent-of-these-closings-have-occurred-in-zip-codes-with-income-levels-that-are-below-the-u_s_-median-_usps-2014_-baradaran-2013_-at-the-most-extreme_-this-resulted-in-_bank-deserts_-defined-as-a-census-tract-in-which-there-is-no-bank-within-10-miles_-this-financial-exclusion-comes-at-a-sizable-cost-to-households_-as-the-institutions-that-traditionally-provided-service-to-the-poor-have-stopped-offering-these-services_-these-households-have-no-other-choice-than-to-utilize-high-cost-alternative-financial-services_strong_-the-public-banking-solution_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-public-banking-solution_span_span_strong_-_strong_a-href_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_-target_blank_-rel_noopener_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_a_strong_-more-details-on-old-fashioned-banking-are-explained-in-the-following-quotation_-_blockquote_the-major-banks-use-taking-deposits-as-just-an-entry-point-to-offer-complex-financial-products_-where-they-make-most-of-their-money_-this-is-covered-in-the-following-quotation-_the-_big-six_-wall-street-mega-banks_bank-of-america_-jpmorgan-chase_-wells-fargo_-and-citi_-along-with-investment-banks-like-goldman-sachs-and-morgan-stanley_take-deposits-these-days-almost-as-an-afterthought_-it-gets-them-into-communities-_you-can-view-bank-branches-as-little-more-than-building-sized-billboards-for-more-profitable-financial-services_-and_-more-important_-it-unlocks-federal-safety-net-programs-like-federal-deposit-insurance-corporation-_fdic_-insurance-and-the-_discount-window_-the-federal-reserve_s-program-of-low-interest-loans_-mega-banks-assert-that-they-actually-lose-money-on-small-deposits_-and-while-we-shouldn_t-take-this-claim-too-seriously_-it_s-clear-that-deposits-are-not-their-primary-concern_-the-other-mainstay-of-traditional-banking-is-lending_handing-out-money-to-be-paid-back-at-a-set-interest-rate_-and-while-mega-banks-still-make-a-lot-of-loans_-they-have-basically-determined-that-they-can_t-turn-enough-of-a-profit-simply-by-sitting-back-and-collecting-interest_-loans-to-businesses-represent-just-11_5-percent-of-bank-balance-sheets_-according-to-the-st_-louis-federal-reserve_-the-bigger-banks-make-fewer-and-fewer-residential-mortgage-loans_-and-they-hold-even-less-of-them-in-their-portfolios_-government-owned-fannie-mae-and-freddie-mac-own-or-guarantee-90-percent-of-all-new-mortgages_-and-mega-banks-have-sold-off-hundreds-of-billions-in-mortgage-servicing-rights_-so-a-dwindling-number-of-people-write-their-mortgage-check-out-to-a-bank_-bank-of-america_-the-second-largest-bank-by-assets-in-the-united-states_-has-quietly-exited-the-mortgage-business-altogether-on-a-number-of-fronts_-with-other-big-banks-joining-them_-trading-revenue-at-investment-banks-like-morgan-stanley-and-goldman-sachs-account-for-a-far-higher-proportion-of-revenues-than-traditional-investment-bank-activities-like-raising-money-for-new-businesses_-and-the-biggest-five-mega-banks-hold-over-90-percent-of-all-contracts-in-the-_700-trillion-market-for-derivatives_-the-second-order-bets-that-accelerated-and-magnified-the-financial-crisis_-in-effect_-the-_arbitrage_-opportunities-to-capture-risk-free-money-funds-the-speculative-trading_-where-the-real-money-lies_-this-runaway-search-for-profit-has-contributed-to-the-financial-sector-tripling-in-size-since-the-1940s_-with-six-banks-controlling-two-thirds-of-total-financial-assets_-the-question-becomes_-who-is-doing-the-rest-of-the-lending_-the-answer-is-hedge-funds_-private-equity-firms_-and-other-asset-managers_-which-raise-money-from-high-net-worth-individuals-and-institutions-like-pension-funds_-and-make-investments-on-their-behalf_-they-collectively-control-over-_53-trillion-in-assets_-according-to-the-treasury-department_s-office-of-financial-research_-up-60-percent-over-the-past-five-years_-and-lately-they_ve-poured-a-lot-of-that-money-into-lending_-the-ofr-report-found-that-these-asset-managers-effectively-perform-many-of-the-same-services-as-traditional-banks_-with-the-difference-being-that-the-risks-they-take_-and-the-borrowed-money-they-use-to-take-them_-are-largely-shielded-from-view_-this-raises-several-concerns_-first-of-all_-contrary-to-the-idea-that-more-competition-drives-down-prices_-shadow-lenders-charge-more-for-their-services_-essentially-extorting-from-businesses-that-cannot-secure-loans-from-regular-banks_-this-exploitation-and-rent-seeking-is-depressingly-normal-in-modern-finance_-research-from-new-york-university-shows-that-financial-services-cost-more-than-they-did-100-years-ago_-borrowers-also-must-put-up-extensive-collateral_-including-patents_-to-backstop-liabilities_-making-it-a-riskier-practice_-further_-while-the-lack-of-oversight-of-shadow-lending-reduces-compliance-costs-for-financial-institutions_-it-leaves-regulators-in-the-dark-over-what-types-of-lending-are-happening-in-the-system_-and-what-risks-exist_-this-renders-irrelevant-what-was-a-very-intelligently-designed-system-for-financial-safety-and-soundness_-and-of-course_-shadow-lenders-aren_t-interested-in-playing-a-supplementary-role-in-the-economy_-but-will-place-money-wherever-it-can-generate-the-highest-profit_-threatening-a-rush-of-capital-from-one-speculative-bubble-to-the-next_-no-limits-on-the-borrowing-activities-of-shadow-banks-mean-that-they-could-ramp-up-their-leverage_-magnifying-the-impact-of-small-losses_-moreover_-shadow-lenders-don_t-have-the-kinds-of-built-in-safeguards-that-protect-the-entire-financial-system_-a-report-from-the-federal-reserve-bank-of-new-york-notes_-_the-lack-of-access-to-sources-of-government-liquidity-and-credit-backstops-makes-shadow-banks-inherently-fragile_-if-a-shadow-bank-makes-a-disastrously-bad-loan_-without-the-need-to-carry-capital-to-absorb-the-losses_-they-would-basically-suffer-with-bankruptcy-and-collapse_-_strong_-psmag_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_ps-mag_span_span_strong_-_strong_a-href_https_psmag_com_economics_banks-dont-much-banking-anymore-thats-serious-problem-72654_-target_blank_-rel_noopener_https_psmag_com_economics_banks-dont-much-banking-anymore-thats-serious-problem-72654_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-point-of-payday-loans-is-for-the-borrower-to-never-pay-off-the-loan_-but-to-roll-the-loan_li_-_ul_-_h2_introduction_h2_-rolling-over-a-loan-is-when-the-loan-cannot-be-repaid-and-is-_rolled_-in-a-larger-loan-and-the-payment-deferred_-rolling-over-loans-can-be-a-legitimate-way-of-dealing-with-a-setback-and-an-inability-to-pay_-however_-some-rolling-of-loans-is-premeditated-by-the-private-banker_-that-means-that-the-loan-is-structured-to-have-the-principle-paid-back_-this-is-explained-in-the-following-quotation_-_blockquote_a-payday-loan-is-a-small-dollar_-short-term-loan-that-must-be-repaid-in-full-on-the-borrower_s-next-payday_-the-single-large-repayment-in-this-loan_-rather-than-an-installment-structure_-ensures-that-the-borrower-will-not-be-able-to-repay-the-loan-and-still-pay-their-other-bills_-in-order-to-meet-their-obligations-after-repayment_-borrowers-require-the-extension-of-a-new-payday-loan_-or-rolling-over-the-initial-loan-with-additional-high-fees_-80-percent-of-the-time-_cfpb-2014_-for-example_-one-payday-lender-said_-_the-cycle-of-debt-is-what-makes-these-stores-so-profitable_-he-described-the-typical-successful-store-as-having-400-to-500-customers_-each-trapped-in-the-debt-cycle-with-loans-that-they-could-not-pay-_rivlin-2016_-research-has-estimated-that-approximately-75-percent-of-payday-loan-volume-is-due-to-this-churning-_parrish-and-king-2011_-parrish-and-king-2009_-_-_strong_-the-public-banking-solution_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-big-six-banks-are-in-total-control-over-the-regulatory-apparatus-and-the-federal-reserve-and-us-government-bailouts_li_-_ul_-_h2_introduction_h2_-the-six-largest-banks-_jp-morgan-chase_-citigroup_-goldman-sachs_-wells-fargo_-bank-of-america-and-morgan-stanley_-controlled-70_-of-the-financial-assets-in-the-us-in-20172024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_blockchain-has-been-leveraged-by-financial-entities-to-record-banking-transactions_li_-_ul_-_h2_introduction_h2_-how-blockchain-is-integrated-into-finance-is-covered-in-the-following-quotation_-_blockquote_banking-has-become-so-ridiculously-opaque-that-blockchain_-a-public-and-uncontrolled-online-register-has-been-proposed-as-a-way-to-provide-better-accounting_-this-is-covered-in-the-following-quotation_-_much-of-the-credit-created-by-the-financial-system-these-days-is-created-outside-of-traditional-banks_-in-what_s-colloquially-called-the-_shadow-banking-system_-the-shadow-banking-industry-is-highly-fragmented_-global_-interconnected_-and-regulated-by-multiple-regulators-that-can-see-only-pieces-of-the-total-puzzle_-no-mechanism-exists-for-rolling-its-pieces-up-into-an-accurate_-real-time-whole_-long-gone-are-the-days-when-the-corner-bank-simply-made-loans-and-_regulators-could-track-systemic-leverage-by-adding-up-those-loans_-what-is-it-about-the-shadow-banking-system-that-makes-systemic-leverage-so-hard-to-track_-answer_-the-shadow-banking-system_s-lifeblood-is-collateral_-and-the-issue-is-that-market-players-re-use-that-same-collateral-over_-and-over_-and-over-again_-multiple-times-a-day_-to-create-credit_-the-process-is-called-_rehypothecation_-multiple-parties_-financial-statements_-therefore_-report-that-they-own-the-very-same-asset-at-the-same-time_-they-have-ious-from-each-other-to-pay-back-that-asset-_-hence_-a-chain-of-counterparty-exposure-that_s-hard-to-track_-although-improving_-there_s-still-little-visibility-into-how-long-these-_collateral-chains_-are_-manmohan-singh-at-the-imf-is-the-foremost-expert-on-collateral-chains-in-the-shadow-banking-system_-he-has-combed-through-the-footnotes-of-banks_-financial-statements-around-the-world_-and-he-estimates-_collateral-velocity_-is-about-two_-this-means-only-one-of-the-3-people-who-think-they-own-a-u_s_-treasury-bond_-for-example_-actually-does-own-it-_by-my-translation_-singh_s-data-show-this-situation-has-improved-since-the-financial-crisis_-when-4-parties-reported-that-they-owned-the-same-asset_-wall-street-critics-may-jump-to-criticize_-but-the-industry-is-working-to-fix-this-problem-too_-no-one-has-had-perfect-visibility-into-the-industry_s-leverage-because-it-was-technologically-impossible-_-until-blockchains-came-along-_-to-aggregate-multiple-trading-portfolios-on-a-real-time-basis_-and-no-one-has-more-incentive-to-understand-their-counterparties_-true-financial-pictures-than-the-big-banks_-insurers_-pensions-and-hedge-funds-themselves_-industry-players-have-the-same-information-regulators-have_-for-the-most-part-_-but-it_s-sparse_-disclosed-in-footnotes-of-the-banks_-financial-statements-and-inconsistent-around-the-world_-some-banks-disclose-it-only-once-a-year_-it_s-no-accident-that-industry-players-are-focused-on-the-multi-trillion-dollar-repo-market-as-a-use-case-for-blockchains_-because-the-repo-market-is-where-much-of-the-leverage-in-the-shadow-banking-system-originates_-in-fact_-industry-players-have-shown-interest-in-blockchain-technology-that-will-help-them-restrict-which-counterparties-along-the-collateral-chain-can-borrow-their-securities-_-a-desirable-feature-that-simply-wasn_t-possible-until-blockchains-came-along_-rehypothecation-is-just-one-of-many-flavors-of-systemic-leverage-that-don_t-show-up-on-the-financial-statements-of-individual-financial-institutions_-but-exist-in-the-financial-system-as-a-whole-_-and-into-which-no-one-has-good-visibility-into-the-overall-picture_-other-flavors-are-fractional-reserve-banking-within-traditional-banks-and-naked-short-selling-within-securities-lending-markets_-blockchain-companies-are-working-on-all-of-these-use-cases_-and-regulators-should-view-these-start-ups-as-sources-of-tools-that-can-finally-give-them-true-visibility-into-the-safety-and-soundness-of-the-financial-system_-_strong_-alt-m_org_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_alt-m_span_span_strong_-_strong_a-href_https_www_alt-m_org_2016_04_26_why-financial-regulators-are-warming-to-blockchains-and-rightfully-so_-target_blank_-rel_noopener_https_www_alt-m_org_2016_04_26_why-financial-regulators-are-warming-to-blockchains-and-rightfully-so_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-continually-increase-their-size-through-acquisitions_li_-_ul_-_h2_introduction_h2_-large-private-banks-are-perpetually-either-buying-smaller-banks-or-supporting-legislation-that-will-make-it-more-difficult-for-smaller-banks-to-stay-independent_-one-example-of-this-is-basel-iii_-which-is-promoted-by-the-bis_-and-its-primary-intent-is-to-increase-costs-for-smaller-banks2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_shadow-banking-is-even-more-corrupt-than-normal-megabank-banking-and-it-is-a-major-risk-to-the-banking-system_li_-_ul_-_h2_introduction_h2_-the-lack-of-coverage-of-shadow-banking-is-a-serious-issue-with-understanding-private-banking_-more-and-more-banking-is-moving-away-from-transparent-companies-and-into-the-opaque-world-of-shadow-banking_-this-is-explained-in-the-following-quotation_-_blockquote_today_-the-commercial-lending-business-has-largely-migrated-to-unregulated-intermediaries-belonging-to-the-shadow-banking-system_-a-sector-that-includes-mutual-funds_-private-equity-funds_-hedge-funds_-and-the-asset-management-division-of-insurance-companies-and-banks_-by-2013-in-the-shadow-banking-sector-controlled-about-_53-trillion-in-assets_-up-60_-since-2008_-and-nine-financial-crisis_-time-firms-each-individually-control-over-1-trillion_-with-blackrock-the-largest-managing-_4_1-trillion-in-assets_-by-2018_-blackrock-was-up-to-_6-trillion-under-management-making-it-larger-than-the-world_s-largest-conventional-bank_-which-is-in-china_-yet-blackrock-escaped-the-regulations-imposed-on-traditional-banks-under-the-dodd-frank-wall-street-reform-and-consumer-protection-act-of-2010_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong_-_h2_the-federal-reserve-supports-shadow-banking_h2_-what-is-interesting-is-to-see-the-fed-write-articles-in-support-of-shadow-banking_-the-following-quote-is-one-example-of-this_-_blockquote_the-first-of-these-arrangements-uses-repo_-or-repurchase_-transactions_-whereby-firms-with-surplus-cash-buy-securities-for-cash-only-and-then-resell-them-back-after-a-short-term_-effectively_-this-repo-transaction-is-a-short-term-cash-loan-to-the-seller-of-the-security_-with-the-security-acting-as-collateral-on-the-loan_-repo-transactions-can-be-open-ended-and-rolled-over-on-a-daily-basis_-making-them-analogous-to-deposits-at-a-traditional-bank-that-are-withdrawable-on-demand_-however_-unlike-demand-deposits_-which-derive-their-safety-from-deposit-insurance_-repo-transactions-derive-their-safety-from-the-underlying-security-that-is-the-collateral-on-the-loan_-in-the-event-of-default-on-the-loan_-the-lender-retains-the-right-to-sell-the-security-in-the-open-market-and-collect-the-proceeds_-_strong_-st_-louis-fed_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_st-louis-fed_span_span_strong_-_strong_a-href_https_www_stlouisfed_org_publications_regional-economist_october-2011_is-shadow-banking-really-banking_-target_blank_-rel_noopener_https_www_stlouisfed_org_publications_regional-economist_october-2011_is-shadow-banking-really-banking_a_strong_-_h2_what-the-st_-louis-fed-leaves-out-about-repos_h2_-_note-on-definition_-a-repo-is-an-overnight-repurchase-agreement_-what-is-curious-about-this-quotation_-is-that-this-explanation-leaves-out-entirely-that-the-repo-market-is-unregulated_-this-fits-into-a-pattern-of-the-fed-supporting-unregulated-area_-which-should-not-be-surprising_-the-fed-is-nothing-but-private-bankers-who-masquerade-and-being-a-government-agency-with-a-public-service-function_-naturally_-the-fed-supports-less-and-less-regulate-banking_-because-the-repo-market-is-unregulated-_much-like-alan-greenspan-fought-brookley-bourne-on-regulating-the-over-the-counter-derivatives_-the-fed-supports-repos_-and-all-the-while-the-fed-is-arguing-for-regulation-to-be-reduced_-it-is-increasing-the-number-of-different-items-that-it-insures_-as-a-private-entity_-it-does-not-need-the-approval-of-congress-to-increase-its-mandate_-the-private-banks-want-every-derivative-they-create-insured-by-the-government-to-prevent-_systemic-risk_-this-allows-private-banking-entities-to-book-_span-style_color_-_ff6600_strong_all-profits-from-derivatives_strong_span_-and-then-to-have-the-fed-come-by-to-_span-style_color_-_008080_strong_gobble-up_strong_span_-their-bad-derivatives_-this-would-be-like-having-an-entity-with-the-government_s-checkbook_-managed-by-professional-gamblers_-that-insured-any-losses-of-these-same-gamblers_-everytime-the-gambler-would-win_-the-gambler-would-take-home-the-profits_-and-every-time-the-gambler-loses_-they-would-simply-drop-the-losses-off-on-the-government_-_h2_from-originate-and-hold-to-originate-to-distribute-_i_e_-get-rid-of_h2_-the-st-louis-fed-continues_-_blockquote_financial-intermediation-has-moved-from-an-originate-to-hold-model-of-traditional-banking-to-an-originate-to-distribute-model-of-modern-securitized-banking_blockquote_-the-first-part-of-the-quote-means-that-the-banks-or-banking-entity-does-not-hold-loans_-it-gets-rid-of-the-loans_-one-common-mechanism-is-securitization_-this-was-the-exact-problem-with-the-subprime-mortgage-crisis_-when-the-banks-did-not-hold-the-loans_-they-did-not-care-much-about-loan-quality_-_h2_traditional-banking-not-profitable_h2_-the-st-louis-fed-continues_-_blockquote_economist-gary-gorton-argued-in-a-book-last-year-that-deregulation-and-increased-competition-in-banking-rendered-the-traditional-model-of-banking-unprofitable_blockquote_-how-the-traditional-model-of-banking-could-be-unprofitable-is-difficult-to-fathom_-banks-create-money-out-of-nothing-which-is-an-obligation-to-the-borrower_-and-they-then-collect-interest_-there-is-no-other-business-where-you-can-create-the-product-from-nothing_-one-example-might-be-digital-media_-but-digital-media-requires-an-initial-investment-for-production-costs_-the-item-is-only-created-from-nothing-through-copying-after-the-item-has-been-produced_-loans-aren_t-like-that_-they-require-no-investment-and-are-created-from-a-ledger-entry_-what-is-more-accurate-is-to-say-that-traditional-banking-is-_span-style_color_-_ff6600_strong_less-profitable-_strong_span-style_color_-_000000_than-shadow-banking_-_span_span_-and-this-extends-into-another-area-that-increasingly-banks-are-not-interested-in-providing-basic-banking-services-to-the-population-when-they-can-lend-larger-amounts-to-say-a-hedge-fund_-this-is-the-banks-stripping-away-their-public-service-function_-which-is-something-they-have-in-return-for-the-government-granted-a-concession-of-the-ability-to-create-credit_-however_-whenever-banks-want-a-bailout_-they-begin-anew-their-talk-of-how-they-are-critical-for-the-public_-however_-if-banks-are-increasingly-providing-fewer-and-fewer-services-to-the-people_-shunning-small-business-loans-and-increase-lending-to-hedge-funds_-why-should-banks-continue-to-keep-their-charters_-_h2_securitization_h2_-the-st-louis-fed-continues_-_blockquote_in-modern-banking_-origination-of-loans-is-done-mostly-with-a-view-to-convert-the-loan-into-securities_a-practice-called-_em_securitization_em_-whereby-the-transaction_-processing-and-servicing-fees-are-the-intermediaries_-principal-source-of-revenue_-to-enhance-the-safety-of-the-transactions_-repos-are-overcollateralized_that-is_-the-loan-amount-is-typically-less-than-the-face-value-of-the-securities-used-as-collateral_-the-safety-of-investments-in-mmmfs-comes-from-the-fact-that-the-securities-they-invest-in-are-regulated-to-be-of-high-quality-and-short-maturity_-such-as-treasury-bills-and-highest-grade-commercial-paper_blockquote_-this-ignores-the-fact-that-as-with-the-subprime-mortgage-crisis_-these-entities-do-not-know-what-is-in-the-security_-in-the-case-of-the-2008-crisis_-rating-agencies-were-paid-to-upgrade-the-security-into-a-rating-it-did-not-deserve_-as-this-is-not-a-regulated-market_-what-is-there-to-stop-this-from-happening-again_-secondly_-the-fed-leaves-out-that-some-securities-have-been-used-to-obtain-multiple-loans-on-the-same-security_-none-of-the-problems-with-securitization-are-mentioned-at-all-by-the-st_-louis-fed_-_h2_major-benefits-to-the-shadow-banking-system_h2_-the-st_-louis-fed-continues_-_blockquote_while-some-analysts-have-asserted-that-the-shadow-banking-system-is-redundant-and-inefficient_-it-is-not-difficult-to-see-the-benefits-of-securitized-banking_blockquote_-benefits-to-who_-to-private-banking-interests-or-to-the-public_-this-is-an-unregulated-market_-an-which-the-fed-has-decided-to-insure-against-loses_-and-now-normal-banks-have-been-sucked-into-the-shadow-banking-sector_-and-banks-are-providing-large-loans-to-shadow-banks_-which-means-the-banks-now-have-to-do-much-less-work_-because-they-can-minimize-their-loaning-to-individuals-and-small-businessses-and-focus-it-on-shadow-banks_hedge-funds_private-equity_-etc_-how-does-this-not-overpower-the-hedge-funds-and-private-capital-firms_-it-allows-them-to-acquire-small-businesses_-and-puts-the-public-within-the-control-of-the-hedge-funds-and-private-equity-firms_-this-is-a-problem-in-housing-where-shadow-banking-is-purchasing-houses_-and-becoming-absentee-landlords_-the-common-feature-is-that-hedge-funds-and-equity-firms-have-a-rentier_s-perspective-on-managing-business-and-takes-very-short-timeline-perspectives-on-their-businesses_-_h2_shadow-banking-for-exploiting-scale-and-scope_h2_-the-st_-louis-fed-continues_-_blockquote_in-addition_-it-exploits-benefits-of-both-scale-and-scope-in-segmenting-the-different-activities-of-credit-intermediation_-thereby-reducing-costs_blockquote_-yes-it-is-concentrating-private-banking-power_-and-it-may-lower-costs-but-does-it-decrease-the-price_-because-the-cost-of-borrowing-outside-of-the-30-year-mortgage-has-increased_-there-has-been-a-rich-history-in-the-us-of-people-like-thomas-jefferson_-john-adams_-louis-mcfadden-and-countless-others-declaring-their-concern-for-concentration-of-private-banking-interests_-_scale-and-scope_-is-not-a-good-thing-in-finance_-as-it-is-then-translated-into-oligarchic-control_-the-six-major-us-banks-have-scale-and-scope_-and-they-also-control-the-us-political-system-and-cannot-be-regulated_-_h2_getting-out-of-the-st-louis-fed_s-propaganda-on-shadow-banking_h2_-lets-use-a-more-reliable-source-on-repos-and-shadow-banking-to-verify-the-claims-by-the-fed_-let-us-first-address-the-issues-with-unregulated-banking_-_h2_experiences-with-wildcat-banking_h2_-_blockquote_in-the-19th-century_-unregulated-banks-were-called-wildcat-banks-in-the-21st-century-they-are-called-shadow-banks_-shadow-banks-or-financial-companies-are-borrow-short-term-and-lend-long-term-outside-the-safety-nets-of-the-fdic-insurance-and-the-federal-reserve-discount-window_-they-include-money-market-funds_-securities-broker-deals_-investment_-and-commercial-banks_-and-their-holding-companies_-finance-companies_-and-mortgage-brokers-issue-wares-of-asset-backed-securities-and-asset-backed-commercial-paper-derivative-product-companies_-hedge-funds-are-off-the-books-business-is-variously-known-as-trusts_-special-purpose-entities_-variable-interest-entities_-conduits_-and-structured-investment-vehicles_-commercial-banks-also-conduct-much-of-their-business-in-the-shadow-banking-system_-although-most-are-not-classed-as-shadow-banks-themselves_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong_-why-does-the-fed-not-point-to-the-history-of-unregulated-banking-such-as-wildcat-banks_-it-is-as-if-the-st-louis-fed-is-proposing-there-is-no-history-of-unregulated-banking-to-look-at_-let-us-now-see-how-differently-ellen-brown-descibes-repos-than-what-the-st-louis-fed-did-in-the-previous-quotes_-_h2_rehypothecation-or-repo_h2_-_blockquote_the-shadow-banking-system-is-a-black-hole-of-invisible-landmines-largely-due-to-a-practice-called-rehypothecation_-the-real-lending-of-collateral-for-multiple-loans_-the-problem-is-that-the-shadow-banking-system-actually-needs-to-counterfeit-collateral_-just-as-the-conventional-banking-system-needs-to-counterfeit-banknotes-in-the-fractional-reserve-system-collateral-is-the-gold-of-the-shadow-banks-and-there-was-not-enough-of-it-to-go-around_blockquote_-let-us-stop-the-quote-there-for-a-moment_-banks-are-allowed-to-create-money-from-nothing_-that-is-what-a-banking-charter-allows_-however_-shadow-banking-does-not-have-this-power_-therefore_-they-have-to-create-a-loan-based-upon-a-security_-however_-how-many-securities-are-there-to-serve-as-collateral-versus-the-demand_-the-st_-louis-fed-is-silent-on-this-issue_-but-it-is-a-hugely-important-issue_-now-as-discussed-earlier-banks-are-providing-loans-to-shadow-banking_-so-it-is-not-the-case-that-repos-are-the-only-source-of-funds_-if-repos-had-the-_liquidity_-that-shadow-banks-needed_-they-would-not-have-to-go-to-normal-banks-to-borrow-money_-let-pickup-the-quote_-_blockquote_when-the-rehypothecation-of-collateral-is-curtailed-by-regulation-market-liquidity-dries-up_-shadow-banking-comes-in-many-forms-where-repos-and-derivatives-are-where-the-big-money-is-today_-although-the-repo-market-is-little-known-to-most-people_-that-is-considered-the-main-financing-tool-of-the-shadow-banking-system-and-a-key-player-in-the-modern-financial-scheme_-repo-in-this-case-is-short-for-repurchase-in-repo-borrowing-the-bar-or-sells-collateral-to-the-lenders-and-promises-to-repurchase-it-the-next-day_-repo-operates-on-the-pawnshop-model_-the-borrower-will-get-some-money-and-the-investor-gets-the-collateral_blockquote_-this-is-just-a-very-odd-description-of-something-that-is-so-popular-and-widely-used_-why-are-repurchases-performed-with-such-rapidity_-this-describes-a-repurchase-that-happens-on-a-day-to-day-basis_-this-is-expressed-in-the-following-quotation_-let-us-now-look-at-another-quote-that-supports-the-idea-that-repos-are-overscubscribed-or-have-been-committed-and-used-as-collateral-on-multiple-repos_-_blockquote_for-every-us-treasury-security-outstanding_-roughly-three-parties-believe-they-own-it_-that_s-right_-multiple-parties-report-that-they-own-the-very-same-asset_-when-only-one-of-them-truly-does_-to-wit_-the-imf-has-estimated-that-the-same-collateral-was-reused-2_2-times-in-2018_-which-means-both-the-original-owner-plus-2_2-subsequent-re-users-believe-they-own-the-same-collateral-_often-a-us-treasury-security_-this-is-why-us-treasuries-aren_t-risk-free_they_re-the-most-rehypothecated-asset-in-financial-markets_-and-the-big-banks-know-this_-auditors-can_t-catch-this-because-gaap-accounting-standards-obfuscate-it_-as-i_ll-explain-later_-what-it-all-means-is-that_-while-each-bank_s-financial-statements-show-the-bank-is-solvent_-the-financial-system-as-a-whole-isn_t_-and-no-one-really-knows-how-much-double-_-triple-_-quadruple-_-etc_-counting-of-us-treasuries-takes-place_-us-treasuries-are-the-core-asset-used-by-every-financial-institution-to-satisfy-its-capital-and-liquidity-requirements_which-means-that-no-one-really-knows-how-big-the-hole-is-at-a-system-wide-level_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_forbes_span_span_strong_-_strong_a-href_https_www_forbes_com_sites_caitlinlong_2019_09_25_the-real-story-of-the-repo-market-meltdown-and-what-it-means-for-bitcoin_sh_3142d2917caa_-target_blank_-rel_noopener_https_www_forbes_com_sites_caitlinlong_2019_09_25_the-real-story-of-the-repo-market-meltdown-and-what-it-means-for-bitcoin_sh_3142d2917caa_a_strong_-what-this-means-is-that-the-individual-banks-are-not-solvent_-each-are-showing-collateral_-but-tha-collateral-has-been-committed-to-other-banks-also_-if-that-loans-or-repo-goes-south_-the-collateral-won_t-be-there-for-the-other-banks_-notice-how-different-this-is-from-how-repos-were-described-in-the-st_-louis-fed-in-the-earlier-quotations_-the-quote-from-forbes-continues_-_blockquote_this-is-the-real-reason-why-the-repo-market-periodically-seizes-up_-it_s-akin-to-musical-chairs_no-one-knows-how-many-players-will-be-without-a-chair-until-the-music-stops_-every-player-knows-there-aren_t-enough-chairs_-everyone-knows-someone-will-eventually-lose_blockquote_-and-why-aren_t-there-enough-musical-chairs_-because-the-market-is-_span-style_color_-_ff6600_strong_unregulated_-_strong_span_-this-is-addressed-in-the-following-quotation_-_blockquote_financial-regulators-can_t-publicly-admit-to-this_-but-big-banks-know-it_s-true_and-that_s-why-they-hunker-down-_and-stop-lending_-when-they-sense-one-of-their-kin-is-in-trouble_-they-recognize-that-what-appears-to-be-an-8_-risk-free-arbitrage-is-anything-but-risk-free_blockquote_-why-won_t-financial-regulators-publicy-admit-this_-are-they-captured-by-the-private-banking-industry_-see-this-quote-from-forbes_-_blockquote_the-closest-i_ve-heard-a-financial-regulator-speak-publicly-of-this-is-former-cftc-chairman-chris-giancarlo_-to-his-credit_-when-he-answered-a-question-after-a-2016_a-href_https_cdn_cato_org_archive-2016_cc-04-12-16-03_mp4_-target_blank_-rel_nofollow-noopener_-data-ga-track_externallink_https_cdn_cato_org_archive-2016_cc-04-12-16-03_mp4_-aria-label_speech_-speech_a_-_span-style_font-family_-var_-global-body-font-family_at-the-heart-of-the-financial-crisis_-perhaps-the-most-critical-element-was-the-lack-of-visibility-into-the-counterparty-credit-exposure-of-one-major-financial-institution-to-another_-probably-the-most-glaring-omission-that-needed-to-be-addressed-was-that-lack-of-visibility_-and-here-we-are-in-2016-and-we-still-don_t-have-it_span_-this-is-why-the-ft_s-interview-with-williams-was-so-extraordinary_-it_s-as-close-as-a-regulator-will-come-to-admitting-the-reality-that-the-system-doesn_t-work-the-way-most-of-us-think-it-does-and-that-the-fed-may-not-even-understand-critical-things-about-it_blockquote_-so-this-means-that-nothing-has-changed-since-the-2008-financial-crisis_-the-forbes-article-goes-on-to-make-another-enormous-claim_-_blockquote_specifically_-the-fed_s-focus-on-the-fed-funds-market-is-misplaced-because-the-real-action-is-in-the-much-bigger_-much-more-global-repo-market_-the-fed-shouldn_t-have-allowed-america_s-big-banks-to-pay-dividends-or-buy-back-stock-when-they_re-so-capital-constrained-that-they-can_t-even-pick-up-an-8_-_risk-free_-arbitrage_-the-fed_s-proclamation-that-_the-financial-system-remains-resilient_-when-it-released-the-results-of-the-most-recent-bank-stress-tests-in-june-2019_-strains-credulity_-a-staggering-amount-of-us-dollar-liabilities-have-been-issued-offshore-in-recent-decades-and-the-fed-not-only-doesn_t-control-them-but-can_t-measure-them-with-any-degree-of-accuracy_-and-banks_-financial-statements-don_t-accurately-reflect-their-financial-health_-no-one-really-knows-how-solvent-_insolvent_-the-financial-system-is_blockquote_-this-means-the-system-is-now-out-of-control_-and-banking-has-been-even-more-privatized_-with-repos_-the-shadow-banking-industry-can-circumvent-the-banking-credit-lines_-and-it-can-oversubscribe-securities-that-are-collateral_-_h2_how-is-the-repo-market-secured_h2_-_blockquote_the-repo-market-is-secured-so-the-overnight-purchase-rate-is-often-lower-than-the-federal-funds-rate-charged-by-other-banks_-a-repo-loan-is-typically-rolled-over-when-it-comes-due-so-a-one-day-loan-can-last-for-months_-and-the-lender-can-reuse-securities-as-collateral-for-its-own-repo-loan_-getting-its-cash-back-in-the-meantime_-through-this-lending-of-rehypothecation-allocation-of-collateral-for-multiple-loans_-the-shadow-banking-system-can-manufacture-credit-out-of-thin-air_-just-as-the-traditional-banking-system-does_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-that-is-a-curious-quote_-because-banks-have-a-charter-and-face-regulation_-this-is-a-government-granted-right-that-comes-with-money-creation_-this-makes-it-sound-like-shadow-banks-can-create-credit-out-of-nothing_-but-they-are-not-regulated2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_unit-banking-is-a-single-branch-bank_li_-_ul_-_h2_introduction_h2_-unit-banking-is-where-a-bank-only-has-one-branch_-the-concept-of-unit-banking-is-to-restrict-banking-power_-and-a-unit-bank-may-be-viewed-as-the-opposite-of-branch-banking_-the-downside-of-unit-banking-is-that-a-bank-that-is-concentrated-in-one-area-can-run-into-problems-as-they-are-not-diversified-out-of-that-area_-of-course_-if-the-government-performs-all-banking_-there-is-not-unit-or-branch-banking-issue2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-bail-in-is-when-the-depositors-themselves-cover-the-bail-out_li_-_ul_-_h2_introduction_h2_-a-bail-in-is-when-the-depositors-themselves-are-fund-the-bank-bail-out2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_ppps-are-how-private-companies-rob-the-public-domain_li_-_ul_-_h2_introduction_h2_-ppp-is-a-technique-to-steal-benefits-from-the-public-domain-by-proposing-a-_partnership_-the-private-banking-interests-promote-ppp-and-privatization_-they-are-a-major-focus-of-the-corrupt-representatives-of-private-banking-interests-like-the-imf_-the-world-bank_-the-inter-american-development-bank_-the-african-development-bank_-this-quote-explained-the-deception-of-ppps_-_blockquote_the-report-concludes-that-ppps-are-an-expensive-and-inefficient-way-of-financing-infrastructure-and-services_-these-privatisation-policies-are-also-linked-to-the-new-wave-of-trade-negotiations-_tisa_-tpp_-ttip_-also-secretive_-without-public-consultation_-agreed-behind-closed-doors-and-heavily-influenced-by-business-interests_-these-trade-deals-not-only-facilitate-ppps-but-will-also-lock-them-in_-making-it-next-to-impossible-to-reverse-them_-regardless-of-outcomes_-to-access-these-funds_-governments-are-advised-to-do-a-whole-lot-of-ppps-at-the-same-time-in-order-to-create-a-pool-of-assets-that-can-then-be-bundled-and-sold-on-to-long-term-investors_-this-is-exactly-what-the-financial-services-companies-did-with-home-mortgages-at-the-turn-of-the-century_-which-brought-us-the-global-financial-crisis-of-2008_-ppps-originated-as-an-accounting-trick_-a-way-round-the-government_s-own-constraints-on-public-borrowing_-this-remains-the-overwhelming-attraction-for-governments-and-international-institutions_-just-as-companies-like-enron-had-tried-to-conceal-their-true-liabilities-by-moving-them-_off-balance-sheet_-so-governments-started-using-ppps-as-_tricks_-whereby-public-accounts-imitate-the-creative-accounting-of-some-companies-in-the-past_-_strong_-why-ppp-don_t-work_strong_-as-an-example-of-how-poorly-ppps-outcomes-the-following-explains-the-eu-countries-that-have-made-the-greatest-use-of-them_-_although-ppps-are-often-promoted-as-a-solution-for-countries-under-fiscal-constraints_-the-evidence-suggests-rather-that-they-worsen-fiscal-problems_-according-to-the-eib_-the-six-countries-which-have-made-the-greatest-use-of-ppps-in-recent-years-are-cyprus_-greece_-ireland_-portugal_-spain-and-the-uk_-four-of-these-are-subject-to-_troika_-rescue-packages_-and-the-other-two-_-spain-and-the-uk-_-both-face-large-fiscal-problems_-in-both-portugal-and-cyprus_-the-imf_eu-_troika_-packages-have-identified-ppps-as-a-contributory-cause-of-the-countries_-fiscal-problems_-and-required-an-audit-and-renegotiation-of-existing-ppps-and-a-freeze-on-new-ppps_-why-ppps-don_t-work_-corrupt-private-interests-lobby-for-ppp-investments-that-may-not-be-the-highest-social-good-projects_-but-which-are-the-most-profitable-for-the-private-interests-as-is-explained-in-the-following-quotation_-_ppps-do-not-add-to-this-_-rather_-they-select-a-small-number-of-the-most-profitable-projects_-and-persuade-governments-to-prioritise-spending-on-these-projects_-even-if-this-distorts-the-development-of-public-services_-in-africa_-for-example_-they-finance-high-tech-hospitals-in-a-few-urban-centres-where-there-are-enough-wealthy-people-to-support-private-medicine_-but-not-the-universal-networks-of-clinics-or-the-salaries-of-staff-needed-to-provide-healthcare-for-the-poor_-in-europe_-they-finance-some-lucrative-toll-roads-on-existing-busy-routes_-but-not-the-extension-of-toll-free-roads-to-improve-rural-or-peri-urban-areas_strong_-why-ppp-don_t-work_strong_-ppps-also-are-filled-with-corruption-and-cost-overruns-as-is-expressed-in-this-quotation_-_-ppps-have-shown-the-usual-problems_-a-ppp-for-the-new-berlin-airport-was-abandoned_-a-new-concert-hall-in-hamburg-was-originally-estimated-to-cost-_114-million-and-be-finished-in-2010_-but-the-private-construction-company-hochtief-now-expects-it-to-be-completed-in-2017-at-a-cost-of-_780-million_-the-total-rents-of-a-15-year-ppp-project-for-90-schools-in-offenbach-increased-from-an-initial-forecast-of-_780-million-to-_1_3-billion_-_-why-ppps-don_t-work_-highly-corrupt-consulting-firms-like-mckinsey-promote-ppps_-pretending-they-do-not-have-enormous-conflicts-of-interest_-as-do-private-banking-interest-organization-like-the-word-economic-forum-_wef_-which-hides-that-it-is-a-cat_s-paw-of-international-banking_-_these-public-bodies-sponsor-a-stream-of-publications-and-advice-from-international-consultancy_-accountancy-and-legal-firms_-such-as-mckinsey-and-pwc_-these-consultancies-themselves-make-further-profits-from-legal-and-consultancy-work-arising-from-the-complex-contractual-processes-involved-in-ppps_-why-pps-don_t-work_-this-is-an-example-of-the-finding-of-a-paper-by-the-wef_-_the-bleak-outlook-for-traditional-financing-means-that-governments-must-consider-alternative-financing-models-to-leverage-private-capital-into-infrastructure_-ppps-turns-over-a-natural-monopoly-to-a-private-entity-with-zero-concern-for-the-public-interest_-a-perfect-example-of-this-is-a-toll-road_-the-private-entity-then-uses-that-monopoly-against-the-public_-naturally_-without-a-private-central-bank_-there-would-be-no-need-for-ppps_-this-is-the-problem-with-having-to-go-to-private-entities-for-finance_-they-not-only-rob-the-public-of-the-right-to-create-money_-but-they-impost-more-private-and-corrupt-outcomes_-the-point-of-the-term-ppp-is-a-type-of-orwellian-doublethink_-it-makes-it-sound-like-there-is-a-partnership_-when-in-fact_-the-private-banking-interests-are-preying-on-the-government_-what-is-just-as-ludicrous-is-that-ppps-are-justified-in-part-on-the-ability-to-transfer-risk-to-away-from-the-government-to-private-companies_-this-makes-no-sense_-and-this-is-explained-in-the-following-quotation_-_governments-can-nearly-always-borrow-money-more-cheaply-than-private-companies-or-private-individuals_-this-is-because-there-is-very-little-risk-of-defaults_-governments-are-always-there_-with-large-tax-revenues-whereas-no-private-company-is-immune-from-the-risk-of-going-bankrupt_-lending-to-private-companies-is-therefore-more-risky_-and-so-the-interest-rate-is-higher_-in-2011-a-representative-of-the-uk-private-companies-involved-in-ppps-estimated-that-the-average-extra-cost-of-private-sector-capital-over-conventional-borrowing-had-been-2_2-per-cent-a-year_-a-new-report-on-ppps-in-water-in-the-usa-compares-the-total-cost-of-financing-the-same-amount-of-infrastructure-through-public-borrowing-and-private-finance_-private-finance-costs-between-50-percent-and-150-percent-more_-in-rialto_-california_-the-annual-cost-of-private-finance-in-a-new-water-concession-ppp-is-_16-million_-more-than-double-the-cost-of-financing-the-same-debt-and-investment-by-the-public-authority_strong_-why-ppps-do-not-work_strong_-and-it-would-make-even-less-sense-if-local-goverments-_that-is-who-approves-the-ppp_-raised-their-own-money-from-a-public-central-bank-and-paid-zero-percent-interest-on-that-money_-the-other-problem-with-private-central-banks-is-that-it-puts-the-necessity-to-borrow-money-on-all-levels-of-government_-and-then-schemes-like-ppps-are-implemented-to-_help-reduce_-this-burden_-what-should-be-apparent-is-that-ppps-sound-very-similar-to-the-war-and-reconstruction-profiteering-that-followed-the-gulf-wars_-the-basic-approach-is-the-same_-corrupt-political-officials-with-connections-to-companies-that-will-receive-contracts-_i_e_-dick-cheney_-promote-a-war_-or-a-massive-public-expense_-they-then-make-the-benefits-seem-much-better-than-they-will-be-_the-fighting-will-be-over-in-a-few-weeks_-all-costs-will-be-covered-by-iraqi-oil-reserves_-and-then-once-the-project-_in-this-case-the-war_-is-begin_-the-fleecing-of-the-public-purse-begins_-in-each-case-_the-gulf-war-and-ppps_-the-corrupt-promoters-support-the-idea-of-privatizing-or-outsourcing-work-and-contracts-to-connected-individuals-as-it-is-_more-efficient_-after-the-2nd-gulf-war_-dick-cheney-became-ceo-of-halliburton_-which-was-a-major-recipient-of-government-contracts-in-iraq_-as-with-halliburton_-as-soon-as-the-prime-contractor-is-selected_-a-cascade-of-corrupt-practices-follows-as-is-explained-in-the-following-quotation_-_after-a-ppp-is-awarded_-there-is-further-lack-of-competition_-instead-of-the-sub-contracts-being-put-out-for-competitive-tender_-as-they-would-be-if-the-public-sector-was-running-the-project_-the-private-companies-involved-in-the-ppp-are-able-to-award-contracts-to-their-own-subsidiaries-without-competition-_-so-they-can-charge-much-higher-fees_-_strong_-why-ppps-do-not-work_strong_-as-with-the-cost-of-private-contractors-in-iraq_-ppps-are-careful-to-ensure-that-no-cost-or-benefit-comparison-occurs-after-the-project-is-over_-this-is-explained-in-the-following-quotation-_governments-often-try-to-avoid-these-comparisons_-they-want-to-use-ppps_-regardless-of-their-cost_-to-reduce-the-apparent-level-of-government-borrowing-and-debt-_-they-are-not-interested-in-the-comparative-value-for-money_-so-it-is-often-claimed-that-_there-is-no-alternative_-to-a-ppp_-because-of-the-constraints-on-government-borrowing_-and-a-reluctance-to-increase-taxes-or-charges_-_strong_-why-ppps-do-not-work_strong_-after-the-costs-balloon-and-the-fake-forecasts-created-by-mckinsey-or-pwc-are-not-met_-now-there-are-successive-rounds-of-negotiation-between-the-private-entities-and-the-government_-the-point-of-all-of-the-work-of-attorneys-and-mckinsey-is-to-trick-the-public-entity-into-initiating-the-ppp_-at-that-point-the-public-entity-is-locked-in_-the-outcome-of-ppps-in-roads-is-covered-in-the-following-quotation_-_the-case-is-no-different-when-it-comes-to-public-roads_-a-2007-paper-by-us-pirg-found-that-privatizing-roads-never-benefits-citizens_-financial-firms-were-typically-able-to-buy-the-assets-on-the-cheap-and-then-raise-toll-rates-while-usually-sneaking-language-into-the-agreements-that-prevented-governments-from-building-competing-infrastructure_-the-paper-presented-evidence-that-the-indiana-toll-road-lease-will-cost-taxpayers-at-least-_7_5b_-there-is-absolutely-no-reason-for-any-government-project-to-ever-require-paying-_rent_-to-the-financial-sector-in-the-form-of-financing_-the-united-states-federal-government-is-the-monopoly-supplier-of-us-dollars_-it-can-add-them-to-the-economy-at-will-through-deficit-spending-or-remove-them-via-taxation_-there-is-no-earthly-reason-for-a-public-entity-to-be-forced-to-depend-on-the-private-sector-to-provide-any-type-of-financing_-_-_strong_-new-economic-perspectives_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_new-economic-perspectives_span_span_strong_-_strong_a-href_http_neweconomicperspectives_org_money-banking_-target_blank_-rel_noopener_http_neweconomicperspectives_org_money-banking_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-china-banking-system-issued-debt-free-money_li_-_ul_-_h2_introduction_h2_-china-issues-its-own-debt-free-currency_-this-is-a-superior-model-to-the-us-or-europe_-however_-it-is-frequently-critiqued-even-by-those-with-a-great-deal-of-experience-in-money-and-banking_-the-following-is-an-example-of-this-which-is-a-quote-from-a-very-savvy-investor-who-does-not-understand-how-the-chinese-banking-system-differs-from-the-west_-_blockquote_the-chinese-banking-system-is-built-on-quicksand-and-that_s-the-one-thing-a-lot-of-people-don_t-realize_-_-everybody-seems-to-think-it-is-a-free-and-clear-open-checkbook_-it_s-not_-_-the-banking-system-in-china-is-extremely-fragile_-_strong_-james-chanos-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_quantitative-easing-is-a-deliberately-obscure-term-that-means-taking-bad-assets-from-banks-and-placing-them-on-the-government_s-balance-sheet_li_-_ul_-_h2_introduction_h2_-private-central-banks-create-a-fiction-about-qe_-which-is-then-repeated-dutifully-by-mainstream-economists_-this-explanation-is-that-it-is-a-stimulus_-but_-while-it-is-a-stimulus_-what-it-is-specifically-is-another-subsidy-for-private-banks_-the-private-central-bank-_let_s-say-the-fed_-takes-assets-that-are-worth-less-than-what-private-banks-say-they-are_-and-the-fed-places-these-overpriced-financial-assets-on-the-government_s-books_-this-is-said-to-_make-the-banks-healthy_-this-is-an-agreement-between-the-private-banks-_many-of-which-own-the-fed_-and-the-fed_-there-is-no-transparency-to-this-process_-and-the-private-banks-can-say-the-assets-they-are-selling-to-the-government-are-worth-whatever-they-like_-how-this-works-is-explained-by-then-congressman-alan-grayson-in-the-following-video_-https_www_youtube_com_watch_v_pe3oikuu8ui-_em_furthermore_-there-are-no-rules-about-how-the-private-bank-sets-the-price-on-financial-instruments-that-it-sells-to-the-fed_-the-private-bank-sets-the-price-to-a-_model_-_i_e_-whatever-they-want-it-to-be_-this-is-called-_mark-to-model_-accounting_-and-it-is-how-enron-was-able-to-fake-its-accounting-so-effectively_-this-is-covered-in-the-following-quotation_em_-_h2_mark-to-model_h2_-_blockquote_mark-to-model-accounting-means-an-asset-is-being-valued-based-on-a-_model_-in-this-case_-the-bank_s-own-internal-_model_-of-risk-and-value_-after-all_-asking-a-bank-to-accurately-value-an-illiquid-asset-that-is-selling-_and-that-no-one-else-can-accurately-price_-is-like-asking-a-raging-alcoholic-to-determine-his-blood-alcohol-level-using-his-own-judgement-instead-of-a-breathalyzer_-to-stop-the-derivatives-market-from-imploding-and-taking-down-the-financial-system_-bernake-had-to-reinstall-investor-confidence-in-the-otc-derivatives-market-and-its-methods-for-valuing-these-securities_-the-problem-was-that-in-the-depths-of-the-2008-crisis_-no-one-wanted-to-own-this-garbage_-let-alone-buy-it-as-an-investment_-so-bernake-had-the-fed-print-money-and-then-use-this-money-to-buy-these-assets-via-a-process-called-quantitative-easing_-or-qe_-and-he-didn_t-just-buy-a-few-other-otc-derivatives_he-bought-_1_35-trillion-worth-of-them_-starting-in-late-2008_-the-bernake-fed-and-other-financial-regulators-lobbied-hard-for-the-fasb-to-suspend-mark-to-market-accounting-standards-for-the-big-banks-regarding-their-mortgage-backed-securities-and-other-otc-derivatives_-this-policy-change_-the-result-of-pressure-from-the-bernake-fed_-gave-the-banks-the-ability-to-value-their-assets-at-whatever-level-they-wanted_-indeed_-according-to-the-new-rules_-banks-could-even-tell-their-clients-_the-market-value-for-this-asset-is-wrong_-the-true-value-is-what-we-say-it-is_-_strong_-the-everything-bubble_strong_blockquote_-qe-would-be-completely-unnecessary-if-the-government-kept-its-money-creation-capability-and-outlawed-private-banks_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-everything-bubble_span_span_strong_-_strong_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-ridiculous-private-banking-controlled-system-most-countries-have-mean-governments-borrows-their-own-money-from-the-private-banks_li_-_ul_-_h2_introduction_h2_-the-private-central-bank-design-is-that-the-bank-has-to-borrow-its-own-money_-this-is-because-it-entirely-hands-over-the-right-to-create-money-to-an-unregulated-cabal-of-private-banking-interests_-the-government-then-creates-a-debt-instrument-_in-the-case-of-the-fed_-the-dept-of-the-treasury-creates-a-treasury-bond_-and-then-the-government-exchanges-this-bond-for-money-that-the-fed-_not-the-government_-creates_-without-a-private-bank_-there-is-no-debt-involved-in-creating-money_-but-as-soon-as-a-government-central-bank-is-replaced-by-a-private-central-bank-_as-in-the-case-of-the-1913-federal-reserve-act_-all-money-is-directly-connected-to-debt_-a-new-dollar-being-created-means-a-dollar-in-debt-is-correspondingly-created_-in-this-way_-the-government_s-capability-is-far-below-that-of-a-chartered-private-bank_-this-is-because-while-the-private-bank-can-create-money-with-an-accounting-entry_-a-government-operating-under-the-private-central-bank-design-cannot-do-this_-however_-the-money-itself-is-backed-by-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-federal-reserve-always-denies-asset-bubbles-because-they-are-controlled-by-private-banks-and-private-banks-make-their-money-from-asset-bubbles_li_-_ul_-_h2_introduction_h2_-the-fact-that-the-fed-denies-asset-bubbles-when-they-are-occurring-is-well-known-among-those-that-study-the-fed_-this-is-explained-in-the-following-quotation_-_blockquote_for-this-reason_-fed-leadership-cannot-accept-either-of-my-two-definitions-of-a-bubble-because-doing-so-would-either-reveal-that-the-fed-is-actually-clueless-about-some-of-the-most-important-economic-developments-or-is-directly-responsible-for-creating-asset-bubbles_-put-simply_-if-your-job-is-to-maintain-confidence-in-the-financial-systems_-the-last-thing-you_re-going-to-do-is-proclaim-your-ignorance-or-culpability-in-financial-disasters_-_strong_-the-everything-bubble_strong_blockquote_-_h2_how-the-ownership-structure-of-the-fed-means-they-primarily-look-out-for-the-interests-of-private-banks_h2_-this-is-answered-very-easily_-the-fed-is-owned-by-private-banks_-and-private-banks-make-a-great-deal-of-money-during-asset-bubbles_-if-the-fed-were-to-declare-an-asset-bubble-or-to-mitigate-an-asset-bubble_-it-would-be-working-against-the-financial-interests-of-its-member-banks_-this-is-yet-another-problem-in-having-the-central-bank-be-in-private-hands_-the-fed_s-behavior-leading-up-to-the-subprime-mortgage-crisis-is-explained-in-the-following-quotation_-_blockquote_even-more-astounding-is-the-fact-that-greenspan-was-cutting-rates-during-a-period-in-which-he-acknowledged-that-the-stock-market-was-exhibiting-_irrational-exuberance_-he-literally-knew-things-were-beginning-to-get-out-of-control_-this-again-helps-explain-why-greenspan-chose-to-address-the-tech-crash-by-creating-a-housing-bubble_-by-turning-a-blind-eye-to-wall-street_s-otc-derivatives-bonanza-and-refusing-to-let-bad-debts-clear-through-the-system-via-the-tech-crash_-greenspan-was-setting-the-stage-for-an-ever-bigger-crash_-by-the-time-the-housing-bubble-burst-in-2008_-the-us-mortgage-market-was-_14-trillion-in-size_-but_-thanks-to-otc-derivatives_-the-actual-risk-relates-to-the-us-housing-market-was-well-worth-_175-trillion-in-size_-that-was-more-than-ten-times-the-size-of-the-us-gdp-at-the-time_-_strong_-the-everything-bubble_strong_blockquote_-_p_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-everything-bubble_span_span_strong_p_-_p_strong_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_a_strong_p2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fed-tries-to-keep-us-citizens-from-holding-cash-by-pushing-down-the-rate-of-return-and-promoting-financial-speculation_li_-_ul_-_h2_introduction_h2_-the-interest-paid-on-saving-accounts-has-nothing-to-do-with-how-much-interest-private-banks-charge-on-loans_-any-connection-is-purely-a-function-of-falsely-thinking-banks-use-deposits-to-create-loans_-see-the-entry-on-this-website-called-money-creation-for-why-this-is-not-true_-so-the-question-is_-why-have-interest-rates-on-savings-accounts-been-set-so-low-for-so-long_-as-covered-in-this-article_-why-is-the-_a-href_https_www_brightworkresearch_com_why-is-the-interest-rate-on-savings-accounts-close-to-zero_-target_blank_-rel_noopener_strong_interest-rate-on-savings-accounts-close-to-zero_strong_a_-the-reason-is-to-push-individuals-out-of-cash-and-to-push-up-asset-prices_-this-is-covered-in-the-following-quotation_-_blockquote_the-fed-will-present-this-situation-as-a-case-of-it-employing-extraordinary-measures-to-stop-the-us-financial-system-from-collapsing_-however_-the-reality-is-that-nirp-_negative-interest-rate-policy_-is-part-of-a-larger-campaign-by-the-fed-and-financial-regulators-to-force-you-and-me-to-move-our-capital-out-of-cash-and-into-risk-assets-like-stock-and-bonds_-thereby-helping-to-reflate-the-financial-system_-the-answers-to-those-questions-depend-on-whom-you-ask_-to-you-or-me_-cash-is-money-or-wealth_-to-the-fed_-cash-is-a-major-problem_-however_-there_s-one-key-difference-between-cash-and-every-other-asset-class_-when-an-investor-buys-the-stock_-bonds_-real-estate_-commodities_-etc_-he-or-she-is-helping-to-inflate-the-financial-system_-as-we_ve-covered-extensively_-the-fed-loves-this-becuase-it-means-your-capital-is-helping-to-push-these-asset-prices-higher_-which-helps-avert-the-dreaded-debt-deflation-the-fed-wants-to-avoid-at-all-costs_-truth-be-told_-this-policy-isn_t-even-that-crazy_-technically-speaking_-the-fed-has-been-engaging-in-a-war-on-cash-via-the-_stealth_-tax-of-currency-devaluation-since-it-was-first-created-in-1913_-again-the-goal-here-is-to-make-sitting-on-cash-so-painful-that-it-will-force-americans-to-move-their-capital-into-risk-assets-where-the-capital-will-help-reflate-the-collapsing-financial-system_-_strong_-the-everything-bubble_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-everything-bubble_span_span_strong_-_strong_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_a_strong_-_h2_the-fed_s-zero-interest-policy_h2_-this-policy-is-covered-in-the-following-quotation_-_blockquote_the-fed-implemented-this-policy-in-order-to-save-the-banking-system_-this-is-explained-in-the-followig-quotation_-_the-nominal-interest-rate-was-set_-for-the-fed-funds-rate-at-zero-lowered-the-cost-of-borrowing-helped-to-recapitalize-the-insolvent-banking-system-and-allowed-the-government-to-refinance-his-burgeoning-debt-at-very-low-interest_-but-the-policy-also-had-unwanted-side-effects_-one-was-people-of-retirement-age-normally-would-have-kept-their-retirement-savings-in-fixed-income-high-grade-bonds-protect-your-savings-move-their-money-into-higher-risk-high-return-stocks-are-kept-in-cash_-lacking-bond-income_-they-spent-more-of-their-capital-to-live_-leaving-a-smaller-amount-available-in-credit-markets-for-productive-investment_-seeing-no-increase-in-demand_-companies-use-their-earnings-to-pay-down-debt-rather-than-reinvesting-in-their-business-and-they-use-a-low-interest-rates-to-buy-back-their-stock_-the-result-was-to-inflate-a-stock-market-bubble-while-productivity-employment-and-wages-stagnated_-stagnant-wages-meant-less-spending-further-reducing-demand-and-economic-activity-while-low-interest-rates-encourage-borrowing-to-buy-real-estate-reinflating_-a-real-estate-bubble_-_strong_-banking-on-the-people_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_all-banking-sins-extend-from-the-original-sin-of-the-government-giving-up-its-right-to-create-money-over-to-private-interests-that-do-not-have-the-public-interest-at-heart_li_-_ul_-_h2_introduction_h2_-the-orginal-sin-of-central-banking_-and-from-which-other-sins-later-follow_-is-to-make-the-central-bank-controlled-by-private-banking-interest-rates_-in-the-garden-of-eden_-the-real-error-by-eve-was-not-accepting-knowledge_-but-by-allowing-a-private-central-bank-which-was-a-thought-put-into-her-head-by-the-snake2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-treasury-bond-purchasing-process-is-shrowded-in-secrecy-and-is-entirely-unnecessary-if-the-us-created-its-own-money-with-a-public-central-bank_li_-_ul_-_h2_introduction_h2_-like-everything-else-with-the-fed_-the-bond-buying-process-is-designed-to-enrich-connected-individuals-at-a-massive-cost-to-the-taxpayers_-this-is-explained-in-the-following-quotation_-_blockquote_the-prohibition-against-allowing-the-government-to-borrow-from-its-own-central-bank-was-written-into-the-banking-act-of-1935-at-the-behest-of-the-securities-dealers-historical-review-on-the-website-of-the-new-york-federal-reserve-quotes_-eccels-is-saying_-_i-think-the-real-reason-for-writing-a-prohibition-into-the-banking-act-can-be-traced-to-certain-government-bond-dealers_-who-quite-naturally-had-their-eyes-on-business-that-might-be-lost-if-direct-purchasing-were-permitted_-the-government-was-required-to-sell-bonds-for-wall-street-middlemen-which-the-fed-could-buy-only-through-open-market-operations-conducted-by-the-open-market-committee_-_strong_-banking-on-the-people_strong_-congressman-wight-patman-had-this-system-explained-to-him-and-strenuously-objected-to-it_-as-is-covered-in-the-following-quotation_-_i_m-opposed-to-the-united-states-government-which-possesses-the-sovereign-and-an-exclusive-privilege-of-creating-money-paying-private-bankers-for-the-use-of-its-own-money_-these-private-bankers-do-not-hire-their-own-money-to-the-government_-they-hire-only-the-government_s-money-to-the-government-and-collect-an-interest-charge-annually_-i-insisted-is-absolutely-wrong-for-this-committee-to-permit-this-condition-to-continue-and-saddled-the-taxpayers-of-this-nation-with-a-burden-of-debt-they-will-not-be-able-to-liquidate-in-100-years-or-200-years_-do-you-know-that-we-are-still-carrying-a-million-dollars-worth-of-bonds-that-were-issued-during-the-war-between-the-states-and-that-we_ve-paid-_4-and-interest-for-every-_1-that-was-borrowed_-we-are-still-paying-on-them-and-still-owe-them-do-you-know-that-on-the-panama-canal-is-convertible-three_s_-we-have-already-paid-more-than-_50-million-in-interest-and-that-we-will-soon-have-paid-_75-million-in-first-and-still-owe-the-_50-million-principle-those-bonds-if-you-judge-the-future-by-the-past_-the-people-will-be-compelled-to-pay-_2-dollars-and-_5-interest-for-every-_1-they-borrow_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-federal-funds-rates-is-one-of-the-primary-levers-the-federal-reserve-uses-to-manipulate-interest-rates_li_-_ul_-_h3_introduction_h3_-this-is-explained-by-the-following-quotation-_blockquote_whatever-the-intermediate-targets-of-monetary-policy-may-be_-the-fed_s-primary-instrument-for-implementing-policy-is-the-federal-funds-rate_-the-fed-funds-rate-is-influenced-by-_a-href_https_www_nonstatusquo_com_what-are-federal-reserve-open-market-operations_-target_blank_-rel_noopener_strong_open-market-operations_strong_a_-it-is-maintained-or-adjusted-in-order-to-guide-the-intermediate-target-variable_-if-the-fed-is-using-a-quantity-rule-_i_e_-trying-to-determine-the-quantity-of-money_-the-intermediate-target-is-a-monetary-aggregate-such-as-m1-or-m2_-for-instance_-if-m2-grows-faster-than-its-target-rate-the-fed-may-raise-the-fed-funds-rate-in-an-effort-to-slow-the-growth-rate-of-m2_-if-m2-grows-too-slowly-the-fed-may-lower-the-fed-funds-rate_-if-the-fed-chooses-to-use-the-value-of-money-as-its-intermediate-target-then-the-fed-funds-target-will-be-set-based-on-a-price-level-indicator-such-as-the-price-of-gold-or-the-spot-commodities-index_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_soft-currency-economics_span_span_strong_-_strong_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_protecting-against-derivative-losses-is-now-a-major-motivator-for-central-banks_-which-brings-up-the-question-of-how-much-derivatives-mitigate-risk_li_-_ul_-_h2_introduction_h2_-this-topic-is-covered-in-the-following-quotation_-_blockquote_governments-cannot-be-allowed-to-default-for-the-same-reason-aig-could-not-be-allowed-to-default_-the-financial-institutions-ostensibly-insuring-their-bonds-with-derivatives-do-not-have-the-funds-to-cover-the-bets_-this-was-dramatically-illustrated-in-the-case-of-greece-in-2010_-when-the-hedge-funds-colluded-to-short-foreign-greek-debt-at-its-height_-the-interest-rate-on-the-debt-reached-30_-coerced-by-the-european-central-bank-the-greek-government-wound-up-forcing-brutal-austerity-measures-on-the-greek-people-to-try-to-pay-the-bill-despite-a-decisive-vote-in-a-national-referendum-against-repayment_-yet-greece-represents-less-than-2_-of-eu-gdp_-why-was-it-not-allowed-to-default-or-renegotiate-its-debt_-according-to-graham-summers_-chief-marketing-strategist-for-phoenix-capital-research_-every-move-the-central-bank_-has-made-post-2009-has-been-aimed-at-avoiding-debt-structures-or-defaults-on-the-bond-markets_-this-is-what-the-ecb-and-other-central-banks-fear_-the-threat-posed-by-_500-trillion-in-derivative-bets-on-_100-trillion-in-government-bonds_-if-the-banks-are-allowed-to-collapse-the-entire-intermesh-financial-system-could-go-down-with-them_-the-giant-derivative-banks-thus-have-a-gun-to-the-heads-of-the-government-and-the-taxpayers_-public-assets-must-be-privatized-public-services-cut-workers-laid-off-and-taxes-raised-all-to-prevent-the-collapse-of-a-derivative-house-of-cards_-ostensibly-created-to-protect-investors-against-risk_-the-risk-is-obviously-still-there-it-has-just-been-offloaded-by-wealthy-private-players-on-the-go_-_strong_-banking-on-the-people_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-open-market-committee-is-run-by-a-private-group-of-interests-that-purchase-treasuries-in-secret_li_-_ul_-_h2_introduction_h2_-wight-patman-describes-the-open-market-committee-as-follows-_blockquote_the-open-market-committee_-as-presently-established_-is-plainly-not-in-the-public-interest_-this-committee-must-be-operated-by-purely-public-servants_-representatives-of-the-people-as-a-whole_-and-not-any-single-interest-group_-the-open-market-committee-should-be-abolished_-and-its-powers-transferred-to-the-federal-reserve-board-the-present-public-members-of-the-committee_-with-reasonably-short-terms-of-office_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-have-virtually-no-cost-of-capital_-and-the-principle-is-entirely-conjured-from-nothing_-thinks-makes-recording-bank-profits-an-exercise-worth-analyzing_li_-_ul_-_h2_introduction_h2_-how-the-system-works-is-explained-in-the-following-quotation_-_blockquote_the-principle-or-loan-amount-as-created-from-nothing_-a-power-granted-to-the-bank-by-the-government_-the-bank-has-no-cost-of-capital_-if-a-loan-payment-of-_2500-per-month-is-made_-that-amount-subtracted-from-expenses-is-the-bank_s-profit_-the-bank-must-allocate-some-portion-of-the-payment-to-decrement-the-principle_-but-that-is-just-a-book-keeping-entry-so-that-the-principle-goes-down-each-month-_or-the-term-would-be-infinite_-the-bank-gets-virtually-all-of-its-capital-for-free-because-it-can-create-money-with-accounting-entries_-although_-according-to-michael-hudson_-banks-are-creating-loans-that-are-designed-to-never-be-repaid_-this-is-covered-in-the-following-quote-_the-government-federal-housing-authority-guarantees-mortgages-_-government-guarantee-the-mortgages-_-up-to-43_-of-your-income_-and-the-banks-can-fiddle-by-saying_-_ok-we-won_t-have-to-pay-any-amortization-so-you-won_t-own-your-house-in-30-years_-you-won_t-have-repaid-any-of-your-debt-at-all_-you_ll-just-be-paying-the-_-it_s-an-interest-only-loan-and-you-don_t-have-to-make-any-down-payment_-after-world-war-2-you-had-to-make-20-or-30-percent-of-the-price-of-the-down-payment-so-the-banks-have-added_-they_ve-leveraged-the-whole-market-because-banks-don_t-ever-want-the-loans-to-be-repaid_-they-want-the-loans-to-grow-and-grow-and-that_s-what-makes_-ultimately_-the-debts-impossible-to-be-repaid_-so-the-banks-and-financial-system-have-lobbied-for-a-system-that-must-mathematically-collapse_-that_s-what-steve-and-i-are-talking-about_-it_s-the-way-it_s-set-up_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong_-_h2_where-do-loans-_come-from_h2_-the-principal-or-loan-amount-is-created-from-nothing_-a-power-granted-to-the-bank-by-the-government_-the-bank-has-_span-style_color_-_13a6c4_strong_no-cost-of-capital_strong_span_-if-a-loan-payment-of-_2500-per-month-is-made_-that-amount-subtracted-from-expenses-is-the-bank_s-profit_-this-is-the-key-point_-the-bank-is-being-compensated-for-doing-nothing-more-than-checking-the-ability-to-pay_-this-would-be-like-a-company-selling-an-item-that-it-did-not-have-to-make-and-did-not-have-to-pay-for_-owning-a-chartered-bank-is-a-license-to-print-money_-the-bank-must-allocate-some-portion-of-the-payment-to-decrement-the-principle_-but-that-is-just-a-bookkeeping-entry-so-that-the-principle-goes-down-each-month-_or-the-term-would-be-infinite_-the-bank-gets-virtually-all-of-its-capital-for-free-because-it-can-create-money-with-accounting-entries_-banks-then-pretend-that-this-money-is-something-that-they-did-not-simply-create_-_h2_banks-as-the-ultimate-welfare-queens_h2_-banks-use-capitalist-phraseology-when-in-reality_-_strong_span-style_color_-_13a6c4_they-live-off-of-the-nipple-of-the-government_span_strong_-and-off-of-the-taxpayers-and-have-no-idea-this-is-how-private-banking-works2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-debt-as-a-virus-theory-is-centered-on-the-fact-that-as-banks-create-money_-banks-only-create-the-principle_-and-there-is-not-enough-money-created-to-pay-back-the-interest-on-the-principle_li_-_ul_-_h2_introduction_h2_-this-is-explained-in-the-following-quotation_-_blockquote_money-is-created-when-banks-lend-it-into-existence_-when-a-bank-provides-you-with-_100_000-mortgage_-it-creates-only-the-principal-which-you-spend_-and-which-then-circulates-in-the-economy_-the-bank-expects-you-to-pay-back-_200_000-but-over-the-next-20-years_-but-it-doesn_t-create-the-second-_100_000-interest_-instead_-the-bank-sends-you-out-into-the-tough-world-to-battle-against-everyone-else_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong_-this-point-is-critical-not-to-skip-over_-let-us-review-this-section-of-the-quote_-_span-style_color_-_13a6c4_strong_the-bank-expects-you-to-pay-back-_200_000-but-over-the-next-20-years_-but-it-doesn_t-create-the-second-_100_000-interest_strong_span_-this-is-important-because-banks-create-money-within-countries_-however_-if-banks-do-not-create-interest_-how-is-there-enough-money-to-pay-back-the-interest-on-a-broad-scale_-and-naturally_-the-higher-the-interest-rate_-the-greater-the-problem_-this-is-the-exact-reason-why-michael-hudson-has-explained-that-historically-there-were-things-called-debt-jubilees-where-some-of-the-debts-were-canceled_-without-periodic-debt-jubilees_-the-debt-becomes-unsustainable_-now-let-us-move-on-with-the-rest-of-the-quote_-_blockquote_to-bring-back-the-second-_100_000_-i-have-come-to-the-conclusion-that-greed-and-fear-of-scarcity-are-in-fact-being-continuously-created-and-amplified-as-a-direct-result-of-the-kind-of-money-we-are-using_-we-can-produce-more-than-enough-food-to-feed-everyone-and-there-was-definitely-enough-work-for-everybody-in-the-world_-but-there-was-clearly-not-enough-money-to-pay-for-it-all_-the-scarcity-is-in-our-national-currencies_-in-fact_-the-job-of-central-banks-is-to-create-and-maintain-that-currency-scarcity_-the-direct-consequences-that-we-have-to-fight-each-other-in-order-to-survive_-_strong_-banking-on-the-people_strong_blockquote_-think-about-the-statement_-_span-style_color_-_13a6c4_strong_the-job-of-the-central-bank-is-to-create-and-maintain-currency-scarcity_strong_span_-this-would-seem-to-be-more-consistent-with-when-countries-used-gold-and-silver-as-money_-as-there-is-a-true-restriction-on-the-amount-of-precious-metals-that-can-be-brought-into-existence-as-this-is-a-physical-process_-and-precious-metals-are-chosen-because-of-their-scarcity_-however_-with-double-entry-bookkeeping_-which-is-what-loan-entries-_that-become-money_-are_-this-is-a-curious-statement-that-the-job-of-the-central-banks-is-to-ensure-currency-scarcity_-this-is-the-exact-reason-why-michael-hudson-has-explained-that-historically-there-were-things-called-debt-jubilees-where-some-of-the-debts-were-canceled_-without-periodic-debt-jubilees_-the-debt-becomes-unsustainable_-the-following-quotation-explains-the-creation-of-unsustainable-debt-levels_-_blockquote_in-the-2018-book-called-the-road-to-debt-bondage_-how-banks-create-unpayable-debt_-political-economists-darrell-delamaide-estimates-at-only-20_-of-the-money-supply-is-actually-available-for-loan-payment_-this-is-the-money-held-and-deposit-accounts-the-money-we-expect-to-spend-on-our-everyday-purchases-and-expenses_-including-paying-down-loans_-the-money-that-we-don_t-need-for-expenditures_-we-save-or-invest-in-some-way_-for-the-system-to-be-maintainable_-the-gap-between-the-debt-and-money-available-to-repay-needs-to-be-closed-in-some-way_-ancient-rulers-did-it-with-periodic-debt-jubilees-debt-forgiveness_-_strong_-banking-on-the-people_strong_blockquote_-_h2_scarcity-for-the-many_-but-not-for-the-elite-few_h2_-and-there-is-another-overlay-on-top-of-this-because-there-is-not-universal-scarcity-applied-in-a-private-banking-system_-the-scarcity-is-only-directed-at-the-broader-citizenry_-for-connected-individuals_-there-is-an-open-line-of-credit_-_h2_how-private-banking-interests-places-hidden-elites-at-the-front-of-the-line-to-receive-government-money-creation-or-social-credit_h2_-private-central-banks-and-banking_-in-general_-place-some-people-at-the-top-of-the-hierarchy_-with-no-real-scarcity_-while-perpetuating-scarcity-upon-the-majority_-in-this-way_-a-banking-system-designed-for-elite-ends-allocates-credit-and-money-to-select-individuals_-and-the-most-select-individuals-are-those-with-the-strongest-connections-to-the-elites-that-control-the-banking-system_-this-is-why-then-treasury-secretary-hank-paulson-did-not-want-any-oversight-into-how-the-tarp-money-was-spent-and-why-the-same-secrecy-was-applied-during-the-coronavirus-bailout-that-was-administered-without-oversight-by-then-treasury-secretary-steve-munichen_-it-is-also-why-the-fed-has-never-been-audited-and-loans-money-to-any-bank-_domestic-or-foreign_-without-oversight-from-the-us-government_-in-fact_-the-fed-states-that-it-must-have-not-oversight-to-perform-its-duties2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-don_t-want-anyone-to-know-that-charging-interest-under-a-government-run-banking-system-is-optional_li_-_ul_-_h2_introduction_h2_-if-the-government-issues-its-own-money_-it-becomes-_the-bank_-_and-any-government-has-the-ability-to-recapture-its-money-creation-function-from-private-banking-interests_-the-costs-of-administering-a-government-bank-are-meager_-a-government-could-cover-those-costs-of-operation-as-a-service-to-the-citizens-and-not-charge-interest_-or-it-could-charge-interest-and-collect-less-in-taxes_-the-real-need-for-taxes-is-not-to-pay-for-items-the-government-needs-_recall_-the-government-can-create-the-money-it-needs_-and-reduce-the-system_s-purchasing-power_-interest-can-reduce-purchasing-power_-or-taxes-can-lower-purchasing-power_-all-of-the-options-are-on-the-table-when-the-bank-_in-this-case-the-government_-is-free-to-look-out-for-the-public-interest-rather-than-profit-maximizing_-for-example_-there-would-be-no-payday-lending-stores-or-400-to-800_-interest-under-a-government-run-banking-system_-_h2_the-unending-problem-with-private-banking_h2_-private-banking-greatly-increases-the-costs-and-inefficiency-of-any-banking-system_-and-the-banking-system-is-constantly-seeking-to-extract-the-maximum-amount-of-money-out-of-a-borrower2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-don_t-want-anyone-to-know-that-charging-interest-under-a-government-run-banking-system-is-optional_li_-_ul_-_h2_introduction_h2_-if-the-government-issues-its-own-money_-it-becomes-_the-bank_-_and-any-government-has-the-ability-to-recapture-its-money-creation-function-from-private-banking-interests_-the-costs-of-administering-a-government-bank-are-meager_-a-government-could-cover-those-costs-of-operation-as-a-service-to-the-citizens-and-not-charge-interest_-or-it-could-charge-interest-and-collect-less-in-taxes_-the-real-need-for-taxes-is-not-to-pay-for-items-the-government-needs-_recall_-the-government-can-create-the-money-it-needs_-and-reduce-the-system_s-purchasing-power_-interest-can-reduce-purchasing-power_-or-taxes-can-lower-purchasing-power_-all-of-the-options-are-on-the-table-when-the-bank-_in-this-case-the-government_-is-free-to-look-out-for-the-public-interest-rather-than-profit-maximizing_-for-example_-there-would-be-no-payday-lending-stores-or-400-to-800_-interest-under-a-government-run-banking-system_-_h2_the-problem-with-interest_h2_-interest-is-a-problem-because-of-its-compounding-nature-and-the-fact-that-it-is-being-charged-for-something-that-is-_span-style_color_-_13a6c4_strong_free-for-any-government_strong_span_-that-can-issue-its-own-money-to-create_-this-interest-makes-those-that-receive-loans-have-to-go-out-and-strip-mine-their-opportunities-to-pay-back-that-interest_-the-very-creation-of-charging-interest-often-quickly-gets-out-of-hand_-the-private-banking-interests-lobby-for-increasingly-compensating-interest-levels_-changes-to-bankruptcy-laws_-interest-creates-an-incentive-to-use-banking-as-a-profit-maximizing-area-rather-than-as-a-public-service_-this-was-the-argument-against-usury-by-the-_early_-catholic-church-and-other-religions_-_h2_the-unending-problem-with-private-banking_h2_-private-banking-greatly-increases-the-costs-and-inefficiency-of-any-banking-system_-and-the-banking-system-is-constantly-seeking-to-extract-the-maximum-amount-of-money-out-of-a-borrower2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-don_t-want-anyone-to-know-that-charging-interest-under-a-government-run-banking-system-is-optional_li_-_ul_-_h2_introduction_h2_-one-does-not-normally-think-of-how-high-merchant-fees-are_-but-this-quotation-explains-it-well_-_blockquote_issuing-credit-cards-has-become-a-highly-concentrated-business-with-the-top-four-card-issuers_-citigroup_-bank-of-america_-jp-morgan-chase_-and-capital-one_-accounting-for-more-than-70_-of-all-cards-in-circulation_-note-that-this-merchant-fee-is-not-just-2_7_-annually_-it_s-2_7_-on-every-transaction-on-a-loan-that-is-for-only-around-30-days_-loans-to-credit-card-borrowers-who-pay-on-time-range-from-one-to-60-days-depending-upon-when-in-the-billing-cycle_-the-bill-is-issued-and-paid_-but-assuming-30-days-on-average_-that-is-a-33_-annual-rate-of-return-just-for-merchant-fees_-prices-go-up-for-all-customers-whether-or-not-they-use-credit-cards_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-banking-industry-is-filled-with-deceptive-practices-that-make-loans-unsustainable_li_-_ul_-_h2_introduction_h2_-private-banks-have-a-long-history-of-creating-deceptive-loans-that-are-designed-to-turn-borrowers-into-debt-peons_-one-method-is-to-push-borrowers-into-permanent-loans_-one-such-tactic-was-the-bullet-loan_-which-is-described-in-the-following-quotation_-the-following-quote-describes-the-similarity-of-the-payday-loan-to-the-bullet-loan_-_blockquote_we-review-this-history-to-show-that-the-consumer-financial-protection-problems-with-financial-exclusion-and-predatory-lending-in-afs-are-actually-quite-similar-to-problems-that-the-federal-government-has-successfully-regulated-in-the-past-through-the-use-of-public-options_-indeed_-in-concentrating-liquidity-risk-on-the-borrower_-the-structure-of-a-payday-loan-is-functionally-similar-to-that-of-the-depression-era-bullet-loan_-this-history-also-suggests-a-final-note-of-caution_-absent-regulation_-financially-fragile-loan-structures-tend-to-reemerge-rapidly_-immediately-following-the-deregulation-of-the-financial-industry-in-the-1980s_-adjustable-rate-mortgages-_arms_-reemerged_-which-redistributed-interest-rate-risk-back-towards-borrowers_-many-of-these-mortgages-also-redistributed-liquidity-risk-back-towards-borrowers_-these-loans-came-with-low-initial-interest-rates-that-would-eventually-reset-at-a-higher-rate-after-an-initial-_teaser_-period_-thus-requiring-borrowers-to-refinance-the-loan-in-order-to-remain-solvent_-_strong_-the-public-banking-solution_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-public-banking-solution_span_span_strong_-_strong_a-href_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_-target_blank_-rel_noopener_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_a_strong_-a-major-part-of-this-is-to-place-the-risks-on-the-borrower-and-away-from-the-financial-institution_-this-is-covered-in-the-following-quotation_-_blockquote_the-creation-of-a-stable-mortgage-structure-during-the-new-deal-provides-an-excellent-case-study-of-how-public-options-can-be-used-to-regulate-in-the-public-interest-by-shielding-households-from-risk_-stable-mortgages-in-the-u_s_-only-emerged-due-to-direct-government-intervention-to-address-the-foreclosure-crisis_-which-contributed-to-the-great-depression_-prior-to-new-deal-reforms_-the-structure-of-mortgages-concentrated-risk-on-households_-these-loans-typically-had-terms-of-3-5-years-but-were-not-fully-amortizing_-and-so-they-required-a-large-payment-at-the-end-to-fully-pay-off-the-loan_-this-structure-earned-these-mortgages-the-nickname-_bullet-mortgages_-because-of-the-large-_bullet_-payment-at-the-end-the-loan-term_-borrowers-typically-depended-on-the-extension-of-a-new-mortgage-at-the-end-of-the-loan-to-prevent-foreclosure-_levitin-and-wachter-2013_-the-financial-fragility-of-this-structure-was-revealed-during-the-great-depression_-at-the-height-of-the-great-depression-in-1933_-roughly-one-half-of-the-mortgages-in-the-country-were-in-default_-and-10-percent-were-in-foreclosure_-_strong_-the-public-banking-solution_strong_blockquote_-however_-this-allowed-the-banks-to-reap-the-benefits-of-foreclosure_-private-banks-like-fragile-systems-that-allow-them-to-strip-assets-from-their-borrowers_-the-government-should-have-the-opposite-incentive_-to-reduced-financial-instability_-this-was-the-point-of-creating-the-secondary-mortgage-market-purchasing-entities-of-fanny-mae-and-feddie-mac_-there-is-a-clear-pattern-at-work-here-and-it-is-duplicated-by-the-removal-of-glass-steagall-provisions_-the-us_-under-extreme-pressure-from-corrupt-profit-seeking-private-banking-interests_-has-increasingly-removed-the-financial-reforms-of-the-great-depression-and-is-now-much-closer-to-pre-depression-levels-of-regulation-than-at-any-time-since-the-great-depression_-even-the-fdic_-which-was-passed-in-response-to-the-bank-failures-of-the-great-depression-is-now-inadequate-for-the-job_-given-the-size-and-concentration-of-the-major-banks_-the-fdic-would-be-unable-to-bailout-a-single-bank-failure-among-the-largest_-however_-even-though-concentrated-banks-concentrate-risks_-and-make-these-megabanks-virtually-impossible-to-regulate_-they-have-been-allowed-to-consolidate-in-any-case2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_fanny-mae-and-freddie-mac-were-created-to-purchase-home-loans-to-_increase-liquidity_-these-institutions-would-be-completely-unnecessary-under-a-government-controlled-banking-system_li_-_ul_-_span-style_font-family_-_ibm-plex-mono_-var_-global-fallback-font_-font-size_-32px_introduction_span_-the-federal-national-mortgage-association-or-_fanny-mae_-and-federal-home-loan-mortgage-corporation-or-_freddie-mac_-are-two-now-nationalized-loan-buying-entities-that-purchase-loans-from-loan-originating-banks_-what-led-to-the-creation-of-these-institutions-was-to-increase-the-ability-of-americans-to-buy-homes_-these-entities-purchase-mortgages_-however_-both-of-these-institutions-are-only-necessary-because-the-us-government-has-handed-over-its-ability-to-create-money_-with-a-public-central-bank-and-no-private-banks_-there-would-be-no-need-to-buy-mortgages_-instead_-americans-would-simply-apply-for-a-loan-with-the-us-government-bank_-and-they-would-have-to-meet-whatever-are-the-prevailing-lending-standards_-the-us-government-can-have-more-sustainable-lending-standards-as-it-does-not-have-the-profit-motive-of-private-banks_-the-subprime-mortgage-crisis-occurred-because-many-banks_-like-countrywide-and-washington-mutual_-did-not-care-about-applying-any-lending-standards-but-could-flip-mortgages-_which-ended-up-defaulting_-to-wall-street_-in-the-following-video_-alan-grayson-asks-the-head-of-fanny-mae-why-they-purchased-_250-b-in-derivatives_-one-should-stop-and-consider-how-ridiculous-fanny-mae-has-to-buy-derivatives-to-manage-risk-_the-ostensible-reason-for-which-they-were-purchased_-fanny-mae-should-be-part-of-the-us-government-and-should-make-loans_-loaning-out-the-us-government_s-own-debt-free-money_-not-buying-up-loans-from-private-banks_-the-private-central-bank-model-means-that-ridiculous-entities-like-fanny-mae-can-be-justified-to-be-created-that-buy-mortgages-from-private-banks_-this-is-a-quasi-us-government-entity-that-is-buying-mortgages-that-only-exist-because-private-banks-have-been-inappropriately-given-the-ability-to-create-money_-so-fanny-mae-and-freddie-mac-buy-what-is-_span-style_color_-_13a6c4_strong_the-government_s-money-creation-function-in-the-first-place_strong_span_-_h2_the-problem-with-being-a-_quasi-public_private_-entity_h2_-after-the-2008-financial-crisis_-fanny-mae-and-freddie-mac-needed-to-be-bailed-out-by-us-taxpayers_-which-is-another-unnecessary-cost_-being-a-public_private-entity-means-less-government-control-over-the-entity_-which-leads-to-greed-and-then-to-financial-panics_-which-are-then-paid-for-by-the-government_-the-list-of-ludicrous-and-unnecessary-endeavors-and-institutions-is-unending-once-one-gives-up-central-banking-to-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_foreclosure-fraud-was-legitimized-when-steve-munichen-was-made-treasury-secretary_li_-_ul_-_span-style_font-family_-_ibm-plex-mono_-var_-global-fallback-font_-font-size_-32px_introduction_span_-during-the-2008-subprime-mortgage-crisis_-private-banks-took-advantage-of-foreclosures-and-many-banks-produced-fraudulent-documentation-that-would-allow-them-to-foreclosure-on-houses-that-were-not-delinquent_-private-banks-have-created-foreclosure-mills-that-specialize-in-foreclosing-and-creating-false-assertions-about-the-right-to-foreclose_-this-is-explained-by-alan-grayson-in-the-following-video_-https_www_youtube_com_watch_v_aqnhldeedvgandamp_t_215s_-companies-that-engage-in-foreclosure-fraud-are-not-prosecuted_-and-one-of-the-people-involved-in-foreclosure-fraud-was-steve-munichen_-who-after-engaging-in-foreclosure-fraud-became-the-secretary-of-the-department-of-the-treasury2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_repos-are-a-way-of-obtaining-credit-on-the-basis-of-a-security-as-collateral_li_-_ul_-_h2_introduction_h2_-repo-ing-is-explained-in-the-following-quotation_-_blockquote_rehypothecation-means-that-the-repo-lender-can-reuse-the-securities-it-gets-as-collateral-from-a-repo-borrower_-for-example_-if-a-hedge-fund-borrowed-money-from-lehman-brothers-and-put-up-securities-as-collateral_-lehman_s-traders-could-then-turn-around-and-use-those-securities-as-collateral-for-their-own-repo-loan-from-bear-stearns_-which-could-then-repo-out-the-same-securities-to-merrill-lynch_-and-so-on_-_-_strong_-repowatch_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_outrageous-levels-of-interest-are-now-the-norm-in-payday-lending_li_-_ul_-_h2_introduction_h2_-the-interest-rates-charged-by-payday-loans-are-beyond-belief_-this-is-covered-in-the-following-quotation_-_blockquote_worse-yet-are-these-payday-loans-resorted-to-by-the-unbanked-and-underbanked_-which-average-400_-interest-annually-or-more_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong_-the-cost-of-this-money-is-close-to-zero-for-the-lenders_-_h2_the-interest-rates-on-payday-loans_h2_-_blockquote_a-payday-loan-is-so-called-because-the-borrower-must-have-a-regular-paycheck-against-which-she-borrows_-usually-up-to-_500_-with-a-typical-term-of-anywhere-from-a-week-to-a-month_-the-borrower-gives-the-lender-access-to-her-bank-account-in-the-form-of-either-a-postdated-check-or-permission-for-direct-withdrawal_-the-lender-then-deducts-the-outstanding-payment-when-it-becomes-due_-typically_-the-next-payday_-consider-these-staggering-statistics-about-the-payday-lending-sector_the-average-payday-lending-customer-is-indebted-for-199-days_-_or-roughly-55_-of-the-year_-a-quarter-of-consumers-were-indebted-for-92-days-or-less-over-the-12-month-study-period_-while-another-quarter-was-indebted-for-more-than-300-days_-over-80-percent-of-payday-loans-are-rolled-over-or-followed-by-another-loan-within-fourteen-days-_i_e_-renewed_-of-the-loans-that-are-rolled-over_-half-are-made-in-a-sequence-of-at-least-ten-loans_-and-the-majority_-62-percent_-are-in-sequences-of-seven-or-more-loans_-the-payday-industry-relies-on-the-constant-renewal-of-these-loans_-one-large-payday-lender-even-instructs-its-employees-on-how-to-perpetuate-the-loans-with-a-circle-diagram-that-reflects-the-need-for-constant-renewal_a-staggering-90-percent-of-payday-lending-business-is-generated-by-borrowers-with-five-or-more-loans-per-year_-and-over-60-percent-of-business-is-generated-by-borrowers-with-twelve-or-more-loans-per-year_-fees-on-these-loans-quickly-add-up_-if-a-typical-payday-loan-of-_325-is-flipped-eight-times_this-usually-takes-just-four-months_the-borrower-will-have-paid-_468-in-interest_-in-order-to-fully-repay-the-loan-and-principal_-the-borrower-will-need-to-pay-_793-for-the-original-_325_-most-borrowers-pay-even-more-than-that_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_four-oaks-bank_s-customers-_span_h1_-_blockquote_almost-100-percent-of-four-oaks-bank_s-customers-were-internet-payday-lenders_-and-the-company-was-granting-them-access-to-the-payment-system-only-to-be-used-by-banks_-not-only-were-these-lenders-charging-between-400-percent-and-1800-percent-interest_-in-excess-of-state-usury-laws_-but-they-were-gaining-unauthorized-access-to-their-borrower_s-accounts_-according-to-the-consent-order_-the-lenders-offered-borrowers-loans-with-an-agreement-that-customers-would-pay-their-loan-via-a-debit-on-a-particular-date_-at-which-point-their-obligation-would-be-discharged_-however_-the-lenders-did-not-deduct-the-amount-on-that-date-and-instead-manipulated-customers-into-extending-the-loans-and-racking-up-multiple-finance-charges_-in-some-cases_-the-lenders-manipulated-the-amount-and-frequency-of-debits-to-obtain-greater-profits-by-keeping-consumers-constantly-in-debt_-no-other-banks-have-been-prosecuted-under-operation-choke-point-and-no-others-likely-will_the-reason-is-that-the-payday-lending-industry-immediately-sued-the-doj-over-unfairly-targeting-them_-and-congress-stepped-in-to-stop-the-project_-the-initiative-faced-significant-political-blowback-right-away_-with-many-arguing-that-payday-lending-is-a-legitimate-business-being-unjustly-accused_-chairman-darrell-issa-of-the-house-committee-on-oversight-and-government-reform-found_-_contrary-to-the-department_s-political-statements_-operation-choke-point-was-primarily-focused-on-the-payday-lending-industry_-which-is-made-up-of-_entirely-lawful-and-legitimate-merchants_-there-was-nothing-_fraudulent_-about-the-industry_-issa-argued_-chairman-issa-also-released-a-staff-report-in-2014-highlighting-key-failures-of-the-initiative_-including-_1_-the-operation-was-_choking-out_-companies-the-administration-considered-a-_high-risk_-or-otherwise-objectionable_-despite-the-fact-that-they-were-legal-businesses_-_2_-the-operation-forced-banks-to-terminate-relationships-with-a-wide-variety-of-entirely-lawful-and-legitimate-merchants_-and-_3_-the-project-primarily-focused-on-the-payday-lending-industry_-indeed_-according-to-some-state-laws_-it-is-legal-for-payday-lenders-to-operate-and-charge-the-rates-they-do_-however_-roughly-40-percent-of-the-industry_s-volume-consists-of-organizations-that-do-not-have-the-legal-right-to-originate-loans_-nearly-all-of-the-online-only-payday-lenders-are-lending-in-states-that-prohibit-lending-outright-or-that-prohibit-loans-by-lenders-without-a-state-issued-license_-even-though-these-loans-are-void-or-voidable-as-a-matter-of-law_-these-companies-collect-on-their-loans-while-failing-to-disclose-this-crucial-legal-fact_an-omission-that-is-likely-actionable-under-mail-and-wire-fraud-statutes_-the-argument-is-that-banks-can-lend-to-any-legitimate-business-that-they-deem-creditworthy_-and-payday-lending-is-not-illegal_-lissa_s-report-was-factually-incorrect_-as-up-to-40-percent-of-payday-lenders_-rates-and-activities-are-illegal_-however_-even-if-all-payday-lending-operations-were-perfectly-legal_-one-would-have-to-be-willfully-deaf-to-the-imbalance-of-services-in-the-financial-industry-to-bless-the-relationship-between-payday-lenders-and-banks_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_costs-more-to-lend-to-the-poor_span_h1_-how-the-costs-to-lend-to-the-poor-do-not-explain-the-extraordinary-interest-rates_-_blockquote_although-it-is-certainly-true-that-it-costs-more-to-lend-to-the-poor_-it-is-by-no-means-the-case-that-payday-lenders-price-their-loans-based-on-the-borrower-or-even-the-_market_-in-fact_-across-the-board_-these-lenders-are-charging-the-maximum-interest-rates-allowable-by-law_the-first-comprehensive-study-of-payday-lending-pricing_-released-in-2009_-revealed-a-_strong-relationship-between-actual-payday-loan-prices-and-the-payday-loan-price-ceiling-imposed-by-_the-state-legislature_-even-if-some-price-competition-existed-between-lenders-when-they-first-opened_-_with-the-passage-of-time_-the-average-finance-charge-on-payday-loans-_-gravitated-upwards-toward-this-ceiling_-this-pattern_-suggest-the-researchers_-is-consistent-with-nobel-prize-winner-thomas-schelling_s-theory-of-implicit-collusion-around-pricing-focal-points_-although-there-is-no-smoking-gun_-the-study-reveals-that-there-is-not-only-little-market-competition-among-lenders_-but-possible-price-controls_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_percent-of-payday-borrowers-that-are-not-price-sensitive-_span_h1_-_blockquote_almost-40-percent-of-borrowers-admit-that-when-they-need-these-loans_-they-are-not-_price-sensitive_-they-would-agree-to-the-loan-under-any-terms-offered_-as-a-result_-there-is-no-competition-between-lenders-to-lower-prices_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-profitability-of-payday-loans-_span_h1_-_blockquote_alternatively_-a-presentation-prepared-by-potential-investors-in-a-payday-lending-company-found-that-_a-store-set-up-for-_30_000-will-generate-more-than-_258_000-in-operating-cash-flow-over-its-first-five-years-of-operation_-which-implies-an-extraordinary-average-annual-pretax-rate-of-return_around-170-percent_on-the-initial-investment_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h2_why-it-is-_span-class_md-plain-md-expand_not-worthwhile-for-payday-lenders-to-spend-resources-to-differentiate-borrowers_span_h2_-_blockquote_and-yet_-the-banking-industry-has-determined-that-because-it-can-make-much-higher-margins-on-larger-loans_-it-is-not-worthwhile-for-it-to-spend-resources-to-differentiate-borrowers-for-small-loans_-the-result-is-that-the-poor-are-generally-determined-to-be-_bad-borrowers_-however_-there-is-a-difference-between-the-poor-who-are-creditworthy-and-those-who-are-not_-this-is-one-of-the-reasons-that-credit-unions_-savings-and-loans_-and-morris-banks-were-able-to-lend-to-the-poor_-by-differentiating-a-good-credit-risk-from-a-bad-one_-a-lender-can-effectively-lend-to-the-poor-at-low-costs_-an-important-distinction-that-must-be-understood-first-is-the-difference-between-illiquidity-and-insolvency_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_sorting-illiquid-versus-insolvent-buyers-_span_h1_-_blockquote_if-the-two-types-of-borrowers-could-be-adequately-sorted_-those-who-are-illiquid-could-get-lower-cost-loans-that-would-help-them-stay-solvent_-but-here_s-the-irony_-the-only-loans-available-to-the-merely-illiquid-are-high-cost-loans-that-make-it-much-more-likely-they-will-become-insolvent_this-is-where-the-contrast-between-the-credit-markets-for-the-average-people-as-borrowers-and-the-credit-markets-for-the-banks-as-borrowers-becomes-stark_-the-government-provides-banks-low-cost-loans-when-they-are-illiquid-and-also-when-they-are-insolvent_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banks-lend-out-what-is-the-government_s-money-creation-function-and-receive-interest-for-something-they-cannot-create-on-their-own_li_-_ul_-_h2_introduction_h2_-banks_-like-the-federal-reserve_-are-granted-their-powers-by-the-us-government-_as-are-other-banks-in-other-countries-granted-their-powers-by-those-governments_-_span-style_color_-_13a6c4_strong_there-is-no-reason-for-private-banks-to-exist_strong_span_-as-with-issuing-its-own-currency_-any-government-can-provide-all-banking-to-its-citizens_-again_-the-government-would-have-an-interest-in-not-having-too-much-money-in-circulation-versus-demand_-however_-that-would-be-the-only-limitation-to-issuing-currency2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_quarterly-earnings-are-a-feature-of-a-financialized-economy_-they-place-companies-under-the-yoke-of-the-quarterly-cycle_li_-_ul_-_h2_introduction_h2_-public-companies-are-required-to-publish-their-earnings-quarterly_-and-in-the-us_-all-companies-are-required-to-estimate-and-pay-taxes-quarterly_-this-places-great-_span-style_color_-_13a6c4_strong_inefficiency-into-the-system_strong_span_-as-companies-often-race-to-put-their-books-in-order-and-to-maximize-their-booked-revenue-for-the-quarter_-however_-this-is-based-upon-the-need-to-collect-taxes-_which-goes-away-under-a-public-private-bank_-and-the-stock-market-_which-could-be-eliminated-with-a-public-central-bank-and-national-banking_-that-loans-money-at-no-interest2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-stock-market-is-presented-as-one-thing_-but-in-reality-something-very-different-in-terms-of-its-effect-and-who-benefits-from-its-existence_li_-_ul_-_h2_introduction_h2_-stock-allows-companies-to-raise-money-from-investors_-but-the-stock-market-is-also-about-enriching-the-senior-members-of-these-companies-by-offering-them-stock-options_-which-do-not-show-as-compensation_-which-has-driven-extraordinarily-high-levels-of-executive-compensation_-in-order-to-drive-stock-prices-up_-and-to-allow-these-options-to-be-exercised_-companies-have-the-incentive-to-make-false-claims-to-the-market-and-to-customers-and-to-make-decisions-that-push-up-the-stock-price-in-the-short-term_-under-a-public-banking-system_-companies-could-simply-go-to-the-government-for-interest-free-loans_-this-would-vastly-reduce-employment-in-the-financial-sector_-which-is-far-too-high2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-cdo-is-unregulated-insurance-for-mortgage-backed-securities_li_-_ul_-_h2_introduction_h2_-cdos-are-a-type-of-unregulated-insurance-on-mortgage-backed-securities_-they-were-deliberately-not-called-_insurance_-so-that-they-could-bypass-regulation_-aig-kept-no-reserves-to-cover-losses-and-hence-when-the-mortgage-backed-securities-that-were-not-what-they-were-rated-by-moodys-and-standard-and-poor_s-went-bad-in-2007-to-2008_-aig-had-to-be-bailed-out-as-it-could-not-pay-on-the-insurance-it-had-written2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-cdo-is-unregulated-insurance-for-mortgage-backed-securities_li_-_ul_-_h2_introduction_h2_-credit-is-the-change-in-what-becomes-debt-in-a-year_-when-you-receive-a-loan-or-a-credit-line_-once-you-use-it_-that-_span-style_color_-_13a6c4_strong_becomes-your-debt_strong_span_-according-to-steve-keen_-mainstream-economists-do-not-understand-credit_-this-is-covered-in-the-following-video_-https_www_youtube_com_watch_v_yttrpz71u7m2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-interest-rates-on-credit-cards-are-a-major-factor-in-personal-debt-interest-overhead_li_-_ul_-_h2_introduction_h2_-_blockquote_credit-cards-have-a-high-average-interest-rate_-this-is-covered-in-the-following-quotation_-_by-2016_-us-credit-card-debt-had-reached-_1-trillion-and-add-an-average-annual-rate-of-18_76_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_in-the-us-there-used-to-be-limits-of-income-that-a-bank-could-loan_li_-_li_this-helped-keep-the-debt-load-or-overhead-to-a-manageable-level_li_-_ul_-_h2_introduction_h2_-the-previous-lending-limits-that-were-common-and-mandated-are-described-in-the-following-quotation_-_blockquote_what-he_s-suggesting_-of-rules-for-bank-lending-against-real-estate_-is-exactly-what-existed-in-the-united-states-from-1945-for-the-next-20-years_-anyone-could-go-into-a-bank-and-ask-for-a-mortgage_-the-banks-were-limited-_-and-the-amount-of-money-they-could-lend-for-real-estate-_-it-was-limited_-debt-service-could-not-absorb-more-than-25_-of-your-income_-and-that-25_-of-income-would-be-in-the-form-of-a-self-amortizing-30-year-mortgage_-so-what-that-did-was-limit-the-amount-of-real-estate-lending-throughout-the-country-to-the-amount-that-anybody-could-afford_-and-housing-prices-were-low_-well_-the-banks-fought-against-this_-they-lobbied-against-it-and-now-instead-of-being-the-limit-of-25_-of-your-income_-the-government-federal-housing-authority-guarantees-mortgages-_-government-guarantee-the-mortgages-_-up-to-43_-of-your-income_-and-the-banks-can-fiddle-by-saying_-_ok-we-won_t-have-to-pay-any-amortization-so-you-won_t-own-your-house-in-30-years_-you-won_t-have-repaid-any-of-your-debt-at-all_-you_ll-just-be-paying-the-_-it_s-an-interest-only-loan-and-you-don_t-have-to-make-any-down-payment_-after-world-war-2-you-had-to-make-20-or-30-percent-of-the-price-of-the-down-payment-so-the-banks-have-added_-they_ve-leveraged-the-whole-market-because-banks-don_t-ever-want-the-loans-to-be-repaid_-they-want-the-loans-to-grow-and-grow-and-that_s-what-makes_-ultimately_-the-debts-impossible-to-be-repaid_-so-the-banks-and-financial-system-have-lobbied-for-a-system-that-must-mathematically-collapse_-that_s-what-steve-and-i-are-talking-about_-it_s-the-way-it_s-set-up_-_strong_-michael-hudson_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong_-this-is-further-elaborated-upon-in-this-quotation_-_blockquote_my-idea-was-to-say_-let_s-limit-the-amount-that-banks-can-lend-to-some-multiple-of-the-income-earning-capacity-of-the-property-being-purchased-and-we-have-imputed-rented-series-throughout-the-world_-people-actually-calculate-what-rent-would-be-earned-by-an-owner-occupied-property-if-it-was-on-the-rental-market-rather-than-owner-occupied_-so-we-already-have-the-stats-to-say-what-this-could-be-and-my-rule-of-thumb-is-to-say_-let_s-limit-the-amount-of-lending-to-10-times-the-annual-income-of-the-property-being-purchased_-so-in-that-case-like-if-you-look-at-a-property_-which-is-like-where-i-used-to-live-in-london_-the-income-earning-potential-of-that-place-was-12-times-my-rent_-which-is-_180_000-total_-_15_000-times-12_-i-would-limit-it-to-10-times-that-rental-income-with-_15_000-that-would-be-_180_-000_-that_s-all-you-could-borrow-to-buy-the-place_-now-at-the-moment-if-you-and-i-were-competing-over-that-property-to-buy-it_-the-one-of-us-that-got-the-bigger-loan-would-win_-but-if-you-said-_-neither-of-us-could-borrow-more-than-_180_000_-and-that-would-be-stated-on-the-contract-of-sale-and-on-all-the-advertisements_-then-the-one-of-us-_that_-would-win-the-contest-_-would-be-the-one-that-had-saved-more-money_-so-rather-than-having-a-_negative_-positive-amplifying-feedback-between-house-prices-and-leverage_-you_d-have-a-dampening-effect_-and-that_s-to-tame-the-property-market_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-term-bad-debt-is-used-and-the-term-bad-loan-avoided-to-shift-the-blame-to-the-borrower-versus-the-creditor_li_-_ul_-_h2_introduction_h2_-_blockquote_the-amount-is-going-to-be-much-greater-next-year-and-much-greater-the-year-after-that-because-accruals-of-interest-and-it_s-going-to_-you-know_-you-talk-about-bad-debt_-that_s-the-propaganda-word_-why-don_t-you-say-bad-savings_-bad-loans_-when-you-say-bad-debt_-you-put-all-the-blame-on-the-debtors_-the-fact-is-the-banking-system-has-become-dysfunctional_-the-debts-cannot-be-paid_-no-economy-can-ever-pay-off-all-the-debts-because-of-the-exponential-growth-of-debt-being-faster-than-the-s-shaped-curve-in-the-economy_-so_-no-matter-what_-we_re-going-to-have-rising-and-rising-and-soaring-exponentially-soaring-volume-of-debts-that-can_t-be-paid_-if-you-say-they-are-bad-loans-what-should-be-done-to-the-banks-is-what-you-did_-in-germany-in-1948_-_the-economic-miracle_-you-start-all-over-again_-it_s-natural-for-people-to-run-into-debt_-the-idea-is-to-have-a-good-financial-system-would-be-about-productive-credit_-credit-to-actually-enable-people-at-the-economy-that-produce-more-to-earn-enough-to-carry-the-debt_-but-the-financial-system-is-not-focused-on-productive-loans_-it_s-focused-on-loans-to-increase-the-asset-prices_-yeah_-banks-lend-against-the-real-estate-and-stocks-and-bonds-already-in-place_-not-to-really-help-the-economy-grow_-so-all-you-have-is-a-financial-overgrowth-of-overhead_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_mortgage-backed-securities-are-a-way-of-making-money-off-of-the-government_s-money-creation-function-and-avoiding-the-social-responsibility-of-being-a-chartered-bank_li_-_ul_-_h2_introduction_h2_-mortgage-backed-securities-are-a-perfect-example-of-the-ludicrous-behavior-which-private-banking-moves-towards-when-the-government-loses-its-control-to-create-money_-first_-a-mortgage-is-created-at-a-private-bank_-the-bank-brings-money-into-existence-through-the-power-granted-to-it-by-the-government_-the-bank-then-sells-the-loan_-which-is-selling-the-government-granted-accounting-entry-to-wall-street_-here-the-bank-collects-a-fee_-wall-street-then-_packages_-many-mortgages-into-security-hence-a-mortgage-_backed_-security_-the-wall-street-bank-will-normally-pressure-a-rating-agency-to-provide-a-higher-rating-than-the-security-deserves-_using-moody_s-or-standard-and-poor_s_-they-then-resell-this-security-often-to-a-pension-fund_-proponents-made-the-argument-that-mbss-_increased-liquidity_-which-is-a-false-and-ridiculous-claim-as-through-the-ability-of-banks-to-bring-money-into-existence-without-concern-for-reserves_-banks-already-have-unlimited-liquidity_-mbss-created-a-tidal-wave-of-terrible-loans-that-were-only-created-because-of-the-fees-they-could-generate-for-commercial-banks-and-investment-banks_-mbss-would-be-nonexistent-if-the-government-created-its-own-money_-under-this-scenario_-the-borrower-would-approach-a-state-run-or-federal-bank_-it-would-borrow-the-money_-and-that-would-be-the-end-of-it_-there-would-be-nothing-to-sell_-the-mbs-illustrates-that-the-money-extracted-from-the-economy-by-stealing-the-government_s-natural-money-creation-function-is-only-the-beginning_-private-banking-interests-have-a-virtually-unlimited-number-of-scams-added-onto-this-original-sin-and-allow-them-to-siphon-off-value-from-the-economy2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-corona-shut-downs-have-had-the-effect-of-further-concentrating-wealth_li_-_ul_-_h2_introduction_h2_-the-feature-of-the-corona-shutdowns-is-covered-in-the-following-quotation_-_blockquote_keen_-to-give-you-an-idea_-at-the-beginning-of-2020_-the-level-of-corporate-debt-was-74_9-percent-of-gdp_-it-was-75_5-in-february_-76_6-in-march_-and-78_-in-april_-so-we_ve-had-this-enormous-increase-in-debt-of-the-corporate-sector-and-what_s-really-going-on-there-i-think-is-people-are-simply-dipping-into-their-lines-of-credit_-their-overdrafts_-to-avoid-shutting-their-doors_-so-i-think-when-this-when-we-get-through-this_-yes-there_s-going-to-be-lots-of-people-evicted-from-their-houses-_-the-rent-holiday-that-were-given_-the-mortgage-holidays-are-gonna-come-back-and-bite-them-because-it-was-only-a-delay_-it-wasn_t-writing-off-as-it-should-have-been-during-the-crisis_-we_re-also-going-to-have-a-large-level-of-corporate-failures_-hudson_-you_re-going-to-have-the-very-large-companies-benefiting-as-the-small-mom-and-pop-stores-go-out-of-business_-so-you_re-going-to-have-restaurant-chains-surviving-but-not-small-restaurants_-you_re-going-to-have-amazon-have-an-enormous-game_-that_s-why-amazon-stock-has-been-rising-so-much-because-_span-style_color_-_13a6c4_strong_you-have-the-small-stories-going-out-of-business-as-people-are-not-going-shopping_strong_span_-so-you_re-going-to-have-a-huge-concentration-of-wealth-and-we_re-turning-into-an-oligarchy_-_strong_-steve-keen_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-always-sets-up-a-rigged-system-where-elites-benefit-from-free-government-money_li_-_li_private-banking-ultimately-desires-to-set-up-most-of-the-society-under-debt-peonage_li_-_ul_-_h2_introduction_h2_-this-lack-of-fairness-in-a-system-run-by-private-banking-interests-is-explained-in-the-following-quotation_-_blockquote_what-hides-behind-the-banner-of-free-enterprise-today-is-a-system-in-which-giant-corporate-monopolies-have-used-their-affiliated-banking-trusts-to-generate-unlimited-funds-to-buy-up-competitors_-the-media_-and-the-government-itself_-forcing-truly-independent-private-enterprise-out_-big-private-banks-are-allowed-to-create-money-out-of-nothing-lended-an-interest-in-foreclose-on-the-collateral-and-determine-who-gets-credit-who-doesn_t_-they-can_t-advance-massive-loans-to-their-affiliated-cartels-and-hedge-funds-would-use-the-money-to-raid-competitors-and-manipulate-markets_-if-some-players-have-the-power-to-create-money-and-others-don_t-the-playing-field-is-not-level-but-allow-some-favorite-players-to-dominate-and-coerce-others_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-debt-is-differentiated-from-public-debt_li_-_ul_-_h2_introduction_h2_-debt-is-the-accumulated-level-of-credit_-private-debt-is-the-combination-of-business-plus-household-debt_-mainstream-economists_-as-directed-by-private-banking-interests_-do-not-spend-much-time-discussing-private-debt-levels_-this-is-repeatedly-observed-by-richard-vague-and-steve-keen_-according-to-both-richard-vague-and-steve-keen_-economic-declines-are-predicted-by-a-combination-of-a-high-private-debt-level-_often-considered-around-150_-of-gdp_-and-a-five-year-growth-in-debt-which-averages-over-18_-this-is-the-indicator-of-a-speculative-bubble2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_predatory-lending-has-been-on-the-rise-as-laws-against-usury-have-been-removed-and-circumvented_li_-_ul_-_h2_introduction_h2_-private-banks-open-predatory-lending-outlets-in-lower-income-neighborhoods_-they-don_t-have-the-name-of-_banks_-but-names-like-_fast-title-loans_-however_-they-are-backed-by-private-banks_-they-charge-extremely-high-interest-and-oppressive-terms-for-money-that-can-lend-only-because-the-government-allows-private-banks-to-create-money_-the-fdic-defines-predatory-lending-in-the-following-quotation_-_blockquote_the-fdic-defines-predatory-lending-as-1_-making-unaffordable-loans-based-on-the-assets-of-the-borrower-rather-than-on-the-borrower_s-ability-to-repay-an-obligation_-2_-inducing-a-borrower-to-refinance-a-loan-repeatedly-in-order-to-charge-high-points-and-fees-each-time-the-loan-is-refinanced-_loan-flipping_-or-3_-engaging-in-fraud-or-deception-to-conceal-the-true-nature-of-the-loan-obligation_-or-ancillary-products_-from-an-unsuspecting-or-unsophisticated-borrower-_fdic-2007_strong_-the-public-banking-solution_strong_-predatory-lenders-are-continuously-pushing-for-more-leeway-in-mistreating-and-deceiving-customers_-predatory-lending-is-an-enormous-drag-on-lower-income-areas_-exacerbating-problems_-private-banking-interests-fund-large-lobbying-and-pr-efforts-to-put-a-pretty-face-on-ugly-practices_-how-payday-lending-deceives-its-customers-is-explained-in-the-following-quotation_-_existing-data-show-that_-in-at-least-two-significant-respects_-the-payday-lending-market-does-not-function-as-advertised_-first_-payday-loans-are-sold-as-two-week-credit-products-that-provide-fast-cash_-but-borrowers-actually-are-indebted-for-an-average-of-five-months-per-year_-second_-despite-its-promise-of-_short-term_-credit_-the-conventional-payday-loan-business-model-requires-heavy-usage-to-be-profitable_often_-renewals-by-borrowers-who-are-unable-to-repay-upon-their-next-payday_-_strong_-payday-lending-report_strong_blockquote_-_h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_predatory-lending-has-been-on-the-rise-as-laws-against-usury-have-been-removed-and-circumvented_li_-_ul_-_h2_introduction_h2_-private-banks-open-predatory-lending-outlets-in-lower-income-neighborhoods_-they-don_t-have-the-name-of-_banks_-but-names-like-_fast-title-loans_-however_-they-are-backed-by-private-banks_-they-charge-extremely-high-interest-and-oppressive-terms-for-money-that-can-lend-only-because-the-government-allows-private-banks-to-create-money_-the-fdic-defines-predatory-lending-in-the-following-quotation_-_blockquote_the-fdic-defines-predatory-lending-as-1_-making-unaffordable-loans-based-on-the-assets-of-the-borrower-rather-than-on-the-borrower_s-ability-to-repay-an-obligation_-2_-inducing-a-borrower-to-refinance-a-loan-repeatedly-in-order-to-charge-high-points-and-fees-each-time-the-loan-is-refinanced-_loan-flipping_-or-3_-engaging-in-fraud-or-deception-to-conceal-the-true-nature-of-the-loan-obligation_-or-ancillary-products_-from-an-unsuspecting-or-unsophisticated-borrower-_fdic-2007_strong_-the-public-banking-solution_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-public-banking-solution_span_span_strong_-_strong_a-href_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_-target_blank_-rel_noopener_https_www_amazon_com_public-bank-solution-austerity-prosperity_dp_0983330867_a_strong_-_blockquote_predatory-lenders-are-continuously-pushing-for-more-leeway-in-mistreating-and-deceiving-customers_-predatory-lending-is-an-enormous-drag-on-lower-income-areas_-exacerbating-problems_-private-banking-interests-fund-large-lobbying-and-pr-efforts-to-put-a-pretty-face-on-ugly-practices_-how-payday-lending-deceives-its-customers-is-explained-in-the-following-quotation_-_existing-data-show-that_-in-at-least-two-significant-respects_-the-payday-lending-market-does-not-function-as-advertised_-first_-payday-loans-are-sold-as-two-week-credit-products-that-provide-fast-cash_-but-borrowers-actually-are-indebted-for-an-average-of-five-months-per-year_-second_-despite-its-promise-of-_short-term_-credit_-the-conventional-payday-loan-business-model-requires-heavy-usage-to-be-profitable_often_-renewals-by-borrowers-who-are-unable-to-repay-upon-their-next-payday_-_strong_-payday-lending-report_strong_blockquote_-this-fits-into-a-pattern-displayed-by-private-bankers-whose-intent-is-never-to-have-loans-paid-off_-what-can_t-go-without-mention-is-that-the-minimum-wage-in-the-us-is-not-a-livable-wage_-there-is-a-clear-connection-between-predatory-lending-and-the-minimum-wage-level_-monied-interests-argue-against-the-minimum-wage-increase-to-a-living-wage-and-lobby-for-expansion-of-the-predatory-lending-sector_-which-then-preys-on-minimum-wage-earners_-if-the-government-created-its-own-money_-the-predatory-lending-sector-could-be-put-out-of-business_-loans-would-be-available-from-the-government-without-interest2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_payday-or-title-loans-are-high-interest-and-highly-deceptive-loans-that-are-a-form-of-banking-exploitation_li_-_ul_-_h2_introduction_h2_-a-form-of-predatory-lending_-the-objective-is-to-obtain-such-usurious-interest-from-borrowers-that-they-are-forced-into-debt-peonage2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banks-specialize-in-privatizing-profits-while-placing-their-losses-onto-the-government-or-the-public_li_-_ul_-_h2_introduction_h2_-private-banks-excel-at-putting-their-risks-onto-the-public_-this-is-explained-in-the-following-quotation_-_blockquote_bank-of-america-corporation-moved-its-trillions-in-derivatives-_mostly-credit-default-swaps_-from-its-merrill-lynch-unit-to-its-banking-subsidiary-in-2011_-it-did-not-get-regulatory-approval-but-just-acted-at-the-request-of-frightened-counterparties_-following-a-downgrade-by-moody_s_-the-fdic-opposed-the-move_-reportedly-protesting-that-the-fdic-would-be-subjected-to-the-risk-of-becoming-insolvent-if-bofa-were-to-file-for-bankruptcy_-but-the-federal-reserve-favored-the-move_-in-order-to-give-relief-to-the-bank-holding-company_-_proof-positive_-says-former-regulator-bill-black_-that-the-fed-is-working-for-the-banks-and-not-for-us_-_any-competent-regulator-would-have-said_-_no_-hell-no_-the-reason-this-risky-move-would-subject-the-fdic-to-insolvency_-as-explained-in-my-earlier-article-here_-is-that-under-the-bankruptcy-reform-act-of-2005_-derivatives-counter-parties-are-given-preference-over-all-other-creditors-and-customers-of-the-bankrupt-financial-institution_-including-fdic-insured-depositors_-bofa-is-not-the-only-bank-threatening-to-wipe-out-the-federal-deposit-insurance-funds-that-most-countries-have_-according-to-willem-buiter_-chief-economist-at-citigroup_-most-eu-banks-are-zombies_-_strong_-the-bail-out-is-out_-the-bail-in-is-in_-time-for-some-publicly-owned-banks-_-ellen-brown_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_ellen-brown_span_span_strong_-_strong_a-href_https_ellenbrown_com_2013_04_29_bail-out-is-out-bail-in-is-in-another-argument-for-publicly-owned-banks_-target_blank_-rel_noopener_https_ellenbrown_com_2013_04_29_bail-out-is-out-bail-in-is-in-another-argument-for-publicly-owned-banks_a_strong_-_blockquote_worse-yet-are-these-payday-loans-resorted-to-by-the-unbanked-and-underbanked_-which-average-400_-interest-annually-or-more_-_strong_-banking-on-the-people_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-phrase-is-often-stated-that-all-money-is-debt_-the-answer-is-that-it-depends-upon-whether-the-central-bank-is-public-or-private_li_-_ul_-_h2_introduction_h2_-this-is-explained-in-the-following-quotation_-_blockquote_if-all-the-bank-loans-were-paid_-no-one-could-have-a-bank-deposit_-and-there-would-not-be-a-dollar-of-coin-or-currency-in-circulation_-this-is-a-staggering-thought_-we-are-completely-dependent-on-the-commercial-banks_-someone-has-to-borrow-every-dollar-we-have-in-circulation_-cash_-or-credit_-if-the-banks-create-ample-synthetic-money-we-are-prosperous_-if-not_-we-starve_-we-are-absolutely-without-a-permanent-money-system_-when-one-gets-a-complete-grasp-of-the-picture_-the-tragic-absurdity-of-our-hopeless-situation-is-almost-incredible-but-there-it-is_strong_-_-robert-w_-hemphill_az-quotes_-_strong_blockquote_-it-is-unclear-then-how-the-federal-debt-is-far-less-than-what-is-expended-by-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-considered-common-knowledge-that-one-wants-a-balanced-federal-budget-and-that-deficits-are-bad_li_-_li_balanced-budgets-are-not-a-good-thing-for-federal-governments_li_-_ul_-_h3_introduction_h3_-private-banking-interests-propose-that-governments-should-run-balanced-budgets_-and-if-they-need-money-they-should-_span-style_color_-_0e8acc_strong_borrow-that-money_strong_span_-from-the-private-central-bank-_in-the-case-of-the-federal_-or-private-banks-or-even-hedge-funds-_in-the-case-of-state-and-local-governments_-_h2_extended-ridiculousness_h2_-one-has-to-really-wonder-in-amazement-at-this-assertion_-what-is-even-more-curious-is-that-state-and-local-governments-do-not-even-get-as-good-of-terms-as-the-federal-government_-this-is-because-they-do-not-have-access-even-to-the-federal-reserve-bank_-however_-why-is-this_-states-and-local-governments-are-part-of-the-overall-us-government_-naturally_-they-should-have-access-to-us-government-credit_-after-all_-the-overall-us-is-only-comprised-of-states_-_h2_the-question-to-ask_h2_-why-would-a-government-need-to-borrow-something-from-private-bankers-that-the-government-itself-creates-and-that-a-private-bank-cannot_-a-private-bank-_span-style_color_-_ff6600_strong_cannot_strong_-_span_make-any-currency-the-legal-tender-of-the-land_-only-a-government-can-do-that_-when-a-government-can-create-its-own-money_-there-is-no-such-thing-as-a-budget-deficit-or-a-debt_-these-things-_span-style_color_-_ff0000_strong_only-exist_strong_span_-where-there-is-a-private-central-bank_-balanced-budgets-are-both-not-desirable_-but-it-is-based-upon-the-assumptions-of-the-private-banking-system_-under-conditions-where-the-government-creates-its-own-money_-there-are-no-state-or-municipal-bonds_-there-are-no-federal-bonds-or-debt-because-debt-is-not-possible_-the-statements-by-conservatives-around-public-debt-being-a-burden-on-future-generations-assume-that-government-_span-style_color_-_0e8acc_strong_debt-is-like-private-debt_strong_span_-this-is-explained-in-the-following-quotation_-_blockquote_nor-is-the-public-debt-a-burden-on-the-future_-how-could-it-be_-everything-produced-in-the-future-will-be-consumed-in-the-future_-how-much-will-be-produced-depends-on-how-productive-the-economy-is-at-that-time_-this-has-nothing-to-do-with-the-public-debt-today_-a-higher-public-debt-today-does-not-reduce-future-production_and-if-it-motivates-wise-use-of-resources-today_-it-may-increase-the-productivity-of-the-economy-in-the-future_-_strong_-james-k-galbraith-_strong_blockquote_-furthermore_-the-following-quote-explained-what-happens-to-economics-after-surpluses_-this-is-explained-in-the-following-quotation_-_blockquote_i-pointed-out-to-candidate-gore-that-the-last-six-periods-of-surplus-in-our-more-than-two-hundred-year-history-had-been-followed-by-the-only-six-depressions-in-our-history_-also_-i-mentioned-that-the-coming-bust-would-be-due-to-allowing-the-budget-to-go-into-surplus-and-drain-our-savings_-resulting-in-a-recession-that-would-not-end-until-the-deficit-got-high-enough-to-add-back-our-lost-income-and-savings-and-deliver-the-aggregate-demand-needed-to-restore-output-and-employment_-anyway_-al-was-a-good-student_-went-over-all-the-details_-agreeing-that-it-made-sense-and-was-indeed-what-might-happen_-however_-he-said-he-couldn_t-_go-there_-i-told-him-that-i-understood-the-political-realities_-as-he-got-up-and-gave-his-talk-about-how-he-was-going-to-spend-the-coming-surpluses_blockquote_-on-this-point_-it-has-been-repeatedly-claimed-that-surpluses-are-a-good-thing_-this-is-covered-in-the-following-quotation_-_blockquote_the-clinton-surplus-has-been-spun-as-the-driver-of-the-prosperity-of-the-late-90_s_-rather-than-the-cause-of-the-subsequent-collapse-that-we-have-yet-to-overcome_-deficits-of-the-early-90_s-drove-the-economic-growth-that-followed_-deficit-spending-to-build-the-panama-canal-reduced-costs-and-was-net-deflationary_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_pdfs_the_20financial_20crisis_20-_20views_20and_20remedies_20-_20oct_202008_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_pdfs_the_20financial_20crisis_20-_20views_20and_20remedies_20-_20oct_202008_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_debt-jubilees-are-ways-of-mitigating-the-feature-of-the-debt-overhang-and-undermining-society_li_-_ul_-_h2_introduction_h2_-a-debt-jubilee-is-an-ancient-practice-that-goes-back-to-sumeria-where-some-debts-debts-to-the-palace-or-government-were-canceled_-normally-upon-the-death-of-a-king-or-upon-losing-a-war_-debt-jubilees-were-performed-to-keep-the-civilians-from-being-enslaved-to-their-debtors_-which-would-mean-the-state-would-lose-those-individuals-from-fighting-in-the-military_-this-is-explained-by-michael-hudson-as-follows_-_blockquote_there-are-numerous-ways-of-handling-it_-the-germans-handled-it-by-paying-about-80_-of-people_s-income-to-them-when-they_re-not-at-work-or-when-they-can_t-go-to-work_-the-way-that-ancient-society-handled-it-was-very-simple_-you_d-have-a-moratorium-on-all-ends-of-the-financial-process_-a-moratorium-on-rent_-a-moratorium-on-debt-service_-and-a-moratorium-on-what-the-banks-_-right-down-the-line-_-what-the-banks-had-to-do_-this-is-what-was-literally-written-into-the-original-document_-called-the-act-of-god-clause_-and-that-was-in-hammurabi_s-laws-in-1750-bc_-hammurabi-said-that-if-there-is-a-flood_-or-a-drought_-or-a-disease_-the-rents-didn_t-have-to-be-paid_-the-taxes-didn_t-have-to-be-paid_-there-was-a-tax-holiday-and-they-were-canceled-out_-otherwise_-you_d-have-people-losing-their-land_-and-all-the-land-and-homesteads-would-have-been-concentrated-in-the-hands-of-a-few-wealthy-creditors_-_strong_-michael-hudson_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_public-debt-is-a-feature-of-countries-that-have-a-private-central-bank_li_-_ul_-_h2_introduction_h2_-public-debt-exists-because-of-a-private-central-bank_-the-government-goes-into-debt-every-time-it-issues-a-bond_-from-here_-debt-is-created_-however_-when-the-government-creates-its-own-money_-there-is-no-bond_-and-no-debt-is-created_-a-government-can-then-spend-money-but-simply-creating-money-_or-making-loans_-there-is-no-debt-and-no-necessity-for-interest_-a-government-could-charge-interest_-but-it-would-not-need-to-charge-its-citizen_s-interest-if-it-could-create-its-own-money_-public-debt-is-created-when-a-government-allows-private-banking-interests-to-take-over-the-ability-to-issue-money_-in-each-case_-the-government-becomes-indebted-to-the-_span-style_color_-_13a6c4_strong_privately-owned-central-bank_strong_-_span_without-this-feature_-governments-would-not-have-any-debt_-all-public-debt-can-be-eliminated-by-simply-eliminating-all-private-central-banks-and-with-each-government-maintaining-its-sovereign-right-to-issue-its-own-money_-any-interest-due-would-be-paid-off-with-the-county_s-own-money_-as-the-privately-run-central-bank-never-had-any-logical-right-to-create-money-in-the-first-place_-there-is-nothing-to-_payback_-to-the-central-bank_-private-bankers-have-already-made-enormous-sums-acting-as-a-parasite-on-governments_-this-is-generally-known-as-central-bank-nationalization2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-the-fed-and-the-us-treasury-relationship-is-extremely-bizarre_-and-few-people-understand-its-implications_-the-treasury-cannot-issue-money_-instead_-it-has-to-issue-a-bond_-which-the-fed-purchases_-however_-the-fed-creates-this-money_-it-is-extraordinary-that-the-us-dollar_-which-is-actually-a-federal-reserve-note-_and-issued-by-a-private-bank_-purchases-treasury-bonds-from-the-us-government-with-money-that-it-creates-from-nothing_-the-situation-is-made-entirely-strange-when-one-considers-that-issues-go-onto-the-government-debt_-however_-if-the-government-could-issue-its-own-currency_-there-would-not-be-any-debt_-the-us-government-would-only-have-to-restrict-money-creation-so-that-it-maintained-relatively-stable-price-levels2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-make-an-enormous-issue-of-the-us-federal-debt_-this-debt-is-not-all-that-relevant-and-could-be-eliminated-instantly-by-the-government-insuring-its-own-credit-to-extinguish-the-debt_li_-_ul_-_h2_introduction_h2_-the-government-has-its-own-money-creation-capability_-if-the-government-wants-to-bring-forth-into-circulation-_100_000_000-to-pay-for-something_-it-can-do-that_-any-vendor-will-accept-this-currency-as-payment_-the-current-situation-of-a-government-having-debt-is-only-true-because-governments-do-not-issue-their-own-currency_-but-rather-borrow-their-currency-from-a-private-bank-that-masquerades-as-a-central-bank-of-the-country_-if-the-central-bank-were-actually-part-of-the-government_-there-would-be-debt-to-pay-back2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-common-to-assert-that-the-us-government-must-go-into-debt-to-fund-deficits_li_-_li_this-is-ludicrous-and-illustrates-a-lack-of-understanding-of-the-government_s-ability-to-create-money_li_-_ul_-_h3_introduction_h3_-the-myth-of-how-the-government-funds-itself-with-debt-provided-in-the-following-quotation_-_blockquote_you_re-not-likely-to-be-shocked-to-learn-that-the-united-states-government-doesn_t-have-enough-dough-on-hand-to-pay-its-bills_-taxes-just-can_t-cover-their-various-obligations_-and-simply-printing-the-money-would-lead-to-out-of-control-inflation_-it-has-to-borrow-the-money-to-pay-for-national-defense_-payroll_-not-to-mention-the-interest-payments-on-its-trillions-in-existing-debt_-by-buying-a-treasury-issued-bond_-you-could-become-one-of-the-scores-of-lenders-literally-keeping-the-government_s-lights-on_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wealth-simple_span_span_strong_-_strong_a-href_https_www_wealthsimple_com_en-us_learn_government-bonds_-target_blank_-rel_noopener_https_www_wealthsimple_com_en-us_learn_government-bonds_a_strong_-that-is-false_-first_-the-us-government-does-not-_span-style_color_-_0e8acc_strong_need_strong_span_-to-issue-debt_-it-issues-debt-because-that-is-the-arrangement-between-the-treasury-and-the-private-banking-controlled-federal-reserve_-obviously_-the-government-creates-money_-so-why-would-it-need-to-borrow-it_-the-us-government-also-does-not-cover-obligations-with-taxes_-the-following-quote-explained-what-really-happens-with-taxes-and-spending_-_blockquote_government-fiat-money-necessarily-means-that-federal-spending-need-not-be-based-on-revenue_-the-federal-government-has-no-more-money-at-its-disposal-when-the-federal-budget-is-in-surplus_-than-when-the-budget-is-in-deficit_-total-federal-expense-is-whatever-the-federal-government-chooses-it-to-be_-there-is-no-inherent-financial-limit_-the-amount-of-federal-spending_-taxing-and-borrowing-influence-inflation_-interest-rates_-capital-formation_-and-other-real-economic-phenomena_-but-the-amount-of-money-available-to-the-federal-government-is-independent-of-tax-revenues-and-independent-of-federal-debt_-consequently_-the-concept-of-a-federal-trust-fund-under-a-fiat-monetary-system-is-an-anachronism_-the-government-is-no-more-able-to-spend-money-when-there-is-a-trust-fund-than-when-no-such-fund-exists_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_an-unending-stream-of-false-information-on-this-topic_h2_-a-large-number-of-institutions-have-websites-and-publications-that-provide-false-information-to-the-public-and-policymakers-about-the-_strong_span-style_color_-_0e8acc_dangers_span_strong_-of-public-deficits-and-debt_-these-include-the-heritage-foundation-and-the-cato-institute_-the-following-quote-is-a-perfect-example-of-the-information-contained-in-these-types-of-articles_-_blockquote_governments-collect-revenue-and-issue-debt-to-fund-public-expenditures_-over-the-long-run_-revenues-will-need-to-be-raised_-or-currency-devalued_-to-pay-for-current-debt-issuance_-therefore_-issuing-debt-to-pay-for-current-expenditures-is-a-tax-on-either-future-taxpayers-or-those-saving-money-to-spend-in-the-future_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_heritage-foundation_span_span_strong_-_strong_a-href_https_www_heritage_org_budget-and-spending_report_causes-the-federal-governments-unsustainable-spending_-target_blank_-rel_noopener_https_www_heritage_org_budget-and-spending_report_causes-the-federal-governments-unsustainable-spending_a_strong_-this-is-also-entirely-false-and-the-heritage-either-does-not-know-or-is-pretending-not-to-know-that-the-government-issues-its-own-currency_-secondly_-the-federal-government-does-not-use-tax-receipts-to-pay-for-anything_-taxes-are-a-way-of-reducing-the-buying-power-of-the-citizens_-as-the-government-wants-o-also-spend_-if-it-did-not-remove-_excess_-buying-power-from-the-citizens_-the-currency-would-inflate_-what-heritage-leaves-out-entirely-is-that-the-only-reason-the-federal-government-has-to-issue-debt_-is-because-it-gave-up-its-right-to-create-money-to-a-private-bank-called-the-federal-reserve_-a-government-that-controls-its-own-central-bank-has-no-need-for-debt_-the-fact-that-tax-revenues-are-not-used-to-pay-for-anything-is-explained-by-warren-mosler-who-points-out-that-the-irs-and-the-treasury-barely-talk-to-each-other_-the-irs_s-job-is-to-collect-_revenue_-however_-nothing-is-done-with-the-money-after-collected_-it-is-just-a-debit-on-the-tax-payer_s-bank-account-and-a-credit-on-the-federal-government_s-bank-account2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_balanced-budgets-function-in-a-set-of-assumptions-that-the-central-bank-is-private-and-money-is-created-with-debt_li_-_ul_-_h2_introduction_h2_-why-this-is-a-myth-is-explained-in-the-following-quotation_-_blockquote_you_re-having-government-spending-on-the-economy-being-cut-almost-everywhere_-that-means-that-the-only-source-of-spending-for-growth-has-to-come-from-borrowing-from-the-banking-system_-_strong_-michael-hudson-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-quotation-in-this-article-explains-the-impossibility-of-a-government-not-being-able-to-borrow-in-its-own-currency_li_-_ul_-_h2_introduction_h2_-this-is-covered-in-the-following-quotation_-_blockquote_fear-the-government-will-be-unable-to-sell-securities-overlooks-the-mechanics-of-the-process-itself_-the-imperative-of-borrowing-is-interest-rate-support_-by-issuing-government-securities_-the-government-offers-banks-an-opportunity-to-exchange-noninterest-bearing-reserves-for-interest-bearing-securities_-if-all-banks-would-rather-earn-zero-interest-on-their-assets-than-accept-interest-payments-from-the-government_-the-refusal-to-accept-interest-becomes-a-de-facto-tax-on-the-banking-system_-from-the-treasury_s-point-of-view-the-government_s-inability-to-attract-any-lenders-would-actually-be-a-benefit_-imagine_-the-government-spends-money-and-the-banking-system_-in-a-sense_-lends-the-money-at-zero-interest-by-refusing-to-accept-interest-on-the-new-deposits-which-the-government-spending-created_-instead_-the-banking-system-is-content-to-leave-the-money-in-a-non-interest-bearing-account-at-the-fed_-the-money-is-held-at-the-fed-either-way-it-has-no-other-existence_-if-the-money-is-left-as-excess-reserves-it-sits-in-an-non-interest-bearing-account-at-the-fed_-if-the-money-is-loaned-to-the-government-by-purchasing-government-securities-it-again-is-held-at-the-government_s-account-at-the-fed_-_strong_-soft-currency-economics-_-moseler_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_soft-currency-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2018_04_soft-curency-economics-paper_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_countries-have-ceded-their-ability-to-create-their-own-money-by-agreeing-to-hand-that-function-over-to-a-private-central-bank_li_-_ul_-_h2_introduction_h2_-the-eu-was-a-way-to-take-a-major-part-of-the-sovereignty-of-smaller-eu-member-countries_-each-member-country-lost-its-central-bank-by-joining-the-eu-and-joined-a-grouped-central-bank-called-the-ecb_-the-smaller-member-countries-handed-over-their-monetary-policy-to-three-countries-_france_-germany_-and-italy_-that-have-62_-of-the-paid-up-capital-and-roughly-this-influence-on-the-ecb_-as-such_-the-smaller-eu-member-countries-have-become-more-like-us-states_-furthermore_-the-analogy-is-worse-becuase-while-in-the-us_-and-there-is-a-strong-common-bond-between-the-federal-and-state-and-local-governments_-the-larger-eu-member-countries-that-dominate_-the-smaller-eu-member-countries-and-look-at-them-as-more-like-colonies_-the-eu-is-a-neoliberal_british-school-of-economics-institution_-which-means-free-trade-and-smaller-interests-by-larger-interests_-in-an-amazing-situation_-where-the-eu-has-led-to-mass-migration-from-the-smaller-eu-countries-to-the-larger_-and-where-each-of-the-smaller-eu-countries-has-lost-a-major-part-of-their-sovereignty_-it-is-still-considered-gauche-to-critique-the-eu_-the-idea-presented-is-that-only-uneducated-blue-collar-idiots-and-racists-critique-the-eu_-this-view-is-of-course-promoted-by-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-money-masters-is-probably-the-most-important-documentary-on-central-banking_li_-_ul_-_h2_introduction_h2_-the-most-important-documentary-on-the-history-of-banking_-central-banks-and-how-the-overall-system-works_-it-is-liberally-quoted-in-the-book-the-web-of-debt_-produced-by-bill-still-and-patrick-carmack_-bill-still-is-the-presenter-throughout-the-video_-however_-after-being-uploaded-to-youtube-in-2012_-one-upload-still-has-less-than-12_000-views_-the-following-link-that-is-included-is-the-full-video-yet-has-only-a-few-thousand-views_-and-just-as-odd-it-only-had-around-60-likes-when-last-checked_-https_youtu_be_bm6oergxs0a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_one-of-the-most-important-books-in-public-banking_li_-_ul_-_h2_introduction_h2_-written-by-ellen-brown_-it-is-a-deep-dive-into-the-history-of-banking-and-makes-a-convincing-case-for-the-government-wresting-control-over-banking-from-private-control_-this-website-was-in-part-motivated-by-the-need-to-make-the-many-threads-of-information-that-makeup-the-story-of-private-versus-public-banking-easier-to-follow-and-to-synthesize-many-areas-to-make-the-area-more-understandable-and-to-serve-as-a-reference2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-wizard-of-oz-was-written-to-hide-banking-commentary_li_-_ul_-_h2_introduction_h2_-_blockquote_the-wizard-of-oz-is-a-veiled-critique-of-private-banking-interests-written-in-1900_-the-parallels-between-the-characters-and-the-story-of-the-wizard-of-oz-are-explained-in-the-following-quote_-_byran-and-many-other-greenbackers-_monetary-reformers-supporting-the-use-of-debt-free-us-notes-like-lincoln_s-greenbacks-to-increase-the-money-supply-and-thereby-end-the-depression-then_-shifted-their-tactics-to-the-promotion-of-adding-silver-to-the-lawful-coinage-of-america-_i_e_-to-promoting-a-bi-metallic-standard-rather-than-the-theoretically-purer_-fiat-greenbacks_-when-they-realized-they-could-thereby-gain-the-backing-of-the-powerful-silver-mining-interests-and-still-increase-the-money-supply-_without-debt_-to-more-than-just-gold_-silver-thus-became-a-symbol-of-overcoming-a-purely-gold-standard-with-the-limited-money-supply-and-banker-control_-hence-the-silver-slippers-were-essential-in-the-book_-as-the-silver-coin-was-in-reality_strong_-the-money-masters_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong_-this-is-another-explanation-in-a-similar-vein_-_blockquote_the-scarecrow-depicts-the-farmers-who-lack-the-brains-to-challenge-the-gold-standard_-while-the-tin-man-represents-the-industrial-workers-and-specifically_-steel-workers_-who-do-not-have-the-heart-to-stand-with-the-farmers-against-the-moneyed-centers_-the-cowardly-lion-depicts-the-political-classes-who-lack-the-courage-to-intervene_-even-the-winged-monkeys-represent-the-dangers-the-native-americans-posed-to-the-western-expansionists_-the-cyclone-itself-portends-revolution_-and-of-course-oz-symbolizes-the-standard-measurement-for-gold_-the-ounce-_oz_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-book-that-explains-the-nature-of-banking_li_-_ul_-_h2_introduction_h2_-the-banker_s-manifesto-was-published-in-1892-and-1934_-one-quote-from-it-is-the-following_-_blockquote_capital-must-protect-itself-in-every-way-through-combination-monopoly-and-through-legislation_-debts-must-be-collected-and-loans-and-mortgages-are-closed-as-soon-as-possible_-when-through-a-process-of-law_-the-common-people-have-lost-their-homes-they-will-be-more-tractable_-and-more-easily-governed-by-the-strong-arm-of-the-law-applied-by-the-central-power-of-wealth_-under-control-of-leading-finance-ears_-people-without-homes-will-not-quarrel-with-their-leaders_-this-is-well-known-among-our-principal-men_-now-engaged-in-farming-and-imperialism-have-capital-to-govern-the-world_-_strong_-banker_s-manifesto-1892_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_bankers-manifesto_span_span_strong_-_strong_a-href_https_www_scribd_com_document_124098159_bankers-manifesto_-target_blank_-rel_noopener_https_www_scribd_com_document_124098159_bankers-manifesto_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-book-that-describes-how-the-fed-is-continually-creating-asset-bubbles_li_-_ul_-_h2_introduction_h2_-this-book-contains-unreliable-information-that-fits-with-mainstream-economists-regarding-the-nature-of-money_-however_-quotes-from-it-are-used-in-this-website-for-both-its-accurate-descriptions-of-the-asset-bubble-promoting-activities-of-the-fed_-and-to-illustrate-commons-myths-in-books-on-the-money-about-gold-and-inflation_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-everything-bubble_span_span_strong_-_strong_a-href_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_-target_blank_-rel_noopener_https_www_amazon_com_everything-bubble-endgame-central-policy_dp_197463406x_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-document-explains-how-to-go-about-creating-a-public-banking-option_li_-_ul_-_h2_introduction_h2_-this-document-lays-out-very-well-the-case-for-public-banks_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-public-banking-option_span_span_strong_-_strong_a-href_https_markpaulecon_files_wordpress_com_2018_08_public-banking-option-final_pdf_-target_blank_-rel_noopener_https_markpaulecon_files_wordpress_com_2018_08_public-banking-option-final_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-book-of-major-importance-on-public-banking_li_-_ul_-_h2_introduction_h2_-this-is-the-third-book-by-ellen-brown-on-the-topic-of-public-banking_-many-quotes-from-this-book-are-used-in-entries-on-this-website_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_banking-on-the-people_span_span_strong_-_strong_a-href_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_-target_blank_-rel_noopener_https_www_amazon_com_banking-people-democratizing-money-digital-ebook_dp_b07r3f6zx7_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-the-artistic-video-production-company-kurzgesagt-has-some-of-the-best-video-explanations-on-topics_-in-this-video_-they-explain-money-and-credit_-https_www_youtube_com_watch_v_fttgalarzoc-this-video-has-received-more-than-7-m-views_-_span-style_color_-_13a6c4_strong_however_-it-repeats-the-false-claim-that-deposits-are-used-to-create-loans_strong_span_-the-entry-explains-this-on-this-website-called-money-creation_-this-false-claim-supports-private-banking-interests-_although-kurzgesagt-is-probably-just-repeating-what-they-read_-and-perhaps-one-of-the-most-prevalent-myths-that-reduce-one_s-ability-to-understand-how-banking-works_-the-video-does-a-good-job-of-explaining-in-simple-terms-what-led-to-the-2008-us-banking-crisis_-however_-it-fails-to-differentiate-what-did-happen-and-what-could-have-happened-properly_-the-banks-that-got-into-trouble-could-have-been-easily-taken-over-by-the-government-instead-of-bailed-out_-and-the-leadership-removed-from-their-positions-and-been-criminally-prosecuted_-the-video-does-an-excellent-job-of-explaining-the-difference-between-credit-unions-and-private-banks2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-private-banking-interests-and-therefore-the-fed-will-do-anything-to-keep-debt-deflation-from-occurring_li_-_ul_-_h2_introduction_h2_-deflation-is-a-nightmare-scenario-for-central-banks-because-it-restricts-their-ability-to-stimulate-the-economy_-for-example_-with-the-low-interest-rates-in-the-us-_combined-with-the-need-to-massively-subsidize-private-banks_-the-fed-has-engaged-in-quantitative-easing-_qe_-where-the-fed-buys-bad-assets-from-the-banks_-which-is-supposed-to-stimulate-the-economy_-however_-under-a-debt-free-currency_-deflation-nor-inflation-are-issues_-see-the-explanation-of-the-entry-on-this-website-of-money-as-a-tally2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_inflation-is-normally-laid-by-private-banking-interests-and-mainstream-economists-at-the-foot-of-the-government_li_-_li_it-turns-out-private-banking-interests-are-greatly-to-blame-for-inflation_li_-_ul_-_h2_introduction_h2_-a-major-point-of-deflection-by-mainstream-economists-and-their-funders-and-supporters_-the-private-banking-interests-are-the-cause-of-inflation_-they-like-to-propose-that-private-central-banks-are-the-only-thing-that-stops-inflation_-or-that-the-gold-standard-is-the-only-thing-that-stops-inflation_-this-makes-it-appear-as-if-private-banking-interests-have-the-key-to-stopping-inflation_-they-do-not_-_h2_how-private-banking-interests-continually-put-the-blame-on-governments-for-any-and-all-inflation_h2_-most-of-what-private-banking-interests-have-to-say-about-inflation-is-about-gaslighting-the-audience-as-the-real-causes-of-inflation-and-the-role-of-private-banking-interests-in-promoting-inflation_-entirely-left-out-of-their-explanations-is-the-role-of-banks-creating-money-and-dropping-their-lending-standards-for-_strong_span-style_color_-_99cc00_short-term-profits_span_strong_-this-happens-in-every-economic-bubble_-_h2_how-private-banking-drives-inflation-with-lowered-loan-standards_h2_-furthermore_-private-banking-interests-have-a-direct-financial-conflict-of-interest-in-stopping-inflation-because-they-make-so-much-money-on-fees-for-dropping-lending-standards_-as-in-the-2008-subprime-lending-crisis_-private-banking-interests-know-they-can-make-low-standard-loans-with-impunity_-as-the-government-will-bail-them-out_-all-private-banking-interests-have-to-do-is-claim-that-the-bailouts-are-_necessary-for-the-financial-stability-of-the-system_-this-is-after-they-actively-destabilized-the-system_-_h3_governments-printing-money_h3_-economists-and-private-banking-interests-continually-talk-about-_governments-printing-money_-when-governments-have-handed-over-their-central-banks-to-private-banking-interests_-nearly-all-money-in-all-countries-is-brought-into-existence-_or-_printed_-by-either_span-style_color_-_1d79cf_strong_-private-central-banks-or-private-banks_-_strong_span_discussing-the-physical-printing-of-money-is-of-so-little-consequence-it-is-a-distraction-to-spend-time-on-this-topic-as-almost-all-money-is-digital-and-kept-as-a-digital-record_-governments-don_t-have-much-to-do-with-it_-however_-when-private-central-banks-create-inflation_-mainstream-economists-again-blame-governments_-even-though-they-know-that-the-governments-do-not-control-these-central-banks_-governments-can-set-loan-standards_-but-at-this-point_-after-so-many-years-of-private-banking-lobbying_-lending-standards-have-been-greatly-eroded_-in-the-us-at-least_-to-the-point-where-they-are-generally-whatever-the-private-banks-want-to-do_-private-banking-interests-demand-100_-independent-private-central-banks-with-no-government-oversight-and-want-to-maintain-the-right-to-point-the-finger-at-governments-for-causing-inflation_-_h2_who-lobbies-against-safeguards_h2_-repeatedly_-it-is-private-banks-that-argue-against-safeguards-on-the-financial-system_-somehow-the-presentation-is-that-governments-are-irresponsible_-but-somehow-private-banking-interests-are-responsible_-the-vast-majority-of-money-is-brought-into-existence-by-banks-creating-loans_-that-is-what-sets-the-supply-of-money-in-a-system_-this-is-explained-in-the-following-quotation_-_blockquote_contrary-to-popular-belief_-creeping-inflation-is-not-caused-by-the-government-irresponsibility-in-printing-dollars_-it-is-caused-by-banks-expanding-the-money-supply-with-loans_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-the-private-banking-system_-which-combines-a-private-central-bank-with-individual-banks_-creates-a-built-in-system-to-create-inflation_-since-the-fed-has-been-at-the-wheel_-the-us-dollar-has-lost-_span-style_color_-_e03e2d_strong_97_-of-its-value-since-1913_strong_span_-if-a-private-central-bank-and-private-bank-system-is-_span-style_color_-_e67e23_strong_so-good_strong_span_-at-fighting-inflation_-and-the-fed-has-been-in-control-this-entire-time_-why-has-the-us-dollar-continued-to-devalue_-furthermore_-why-was-the-fastest-devaluation-during-this-time_-right-after-the-fed-was-created_-this-same-point-is-observed-by-paul-volker_-the-previous-chairman-of-the-fed_-in-the-following-quotation_-_blockquote_it-is-a-sobering-fact-that-the-prominence-of-central-banks-in-this-century-has-coincided-with-a-general-tendency-towards-more-inflation_-not-less_-_i_f-the-overriding-objective-is-price-stability_-we-did-better-with-the-nineteenth-century-gold-standard-and-passive-central-banks_-with-currency-boards_-or-even-with-_free-banking_-the-truly-unique-power-of-a-central-bank_-after-all_-is-the-power-to-create-money_-and-ultimately-the-power-to-create-is-the-power-to-destroy_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_paul-volcker-_-az-quotes_-_strong_-several-of-the-biggest-hyperinflation-events-in-weimar-germany-and-zimbabwe-were-in-part-due-to-greatly-reduced-productive-capacity2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-government-has-a-long-term-pattern-of-understating-the-inflation-level_li_-_ul_-_h2_introduction_h2_-the-consumer-price-index-or-cpi-was-changed_-as-is-explained-in-this-article_-_a-href_https_www_brightworkresearch_com_how-accurate-is-shadowstats-on-the-understatement-of-us-inflation-with-the-new-cpi_-target_blank_-rel_noopener_strong_how-accurate-are-shadow-stats-on-the-understatement-of-us-inflation-with-the-new-cpi_strong_a_-the-us-government-plays-these-statistical-games_-among-a-host-of-other-reasons_-in-order-to-reduce-the-payouts-to-social-security_-under-a-debt-free-currency_-understanding-inflation-would-not-be-necessary-and-it-would-not-necessary-to-chisel-seniors_-recall-that-a-high-percentage-of-social-security-is-spent-on-the-economy2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_taxes-are-only-necessary-for-creating-a-demand-for-money-and-in-reducing-excess-purchasing-power-_the-driver-of-inflation_li_-_ul_-_h2_introduction_h2_-the-reason-for-collecting-taxes-is-not-to-fund-government-expenditures-but-to-reduce-buying-power-and-control-inflation_-this-is-explained-in-the-following-quotation_-_blockquote_political-attempts-to-strangle-the-taxing-capabilities-of-the-us-government-are-one-of-the-fastest-ways-to-destabilize-the-economy_-high-inflation-and-weak-governments-go-hand-in-hand_-greece_-brazil_-argentina_-venezuela-_-all-had-or-have-weak-governments-that-cannot-efficiently-levy-and-collect-taxes_-all-are-beset-by-corruption_-and-all-cannot-offer-citizens-the-most-basic-of-public-services_-_strong_-contrahour-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_04_everything-you-know-about-money-is-wrong-the-us-wont-turn-into-the-wiemar-republic_html_-target_blank_-rel_noopener_https_contrahour_com_2019_04_everything-you-know-about-money-is-wrong-the-us-wont-turn-into-the-wiemar-republic_html_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-stimulus-is-primarily-for-the-elites-and-banking-interests_-not-to-stimulate-the-overall-economy_li_-_ul_-_h2_introduction_h2_-the-elite-nature-of-us-stimulus-is-explained-in-the-following-quotation_-_blockquote_the-government-money-helicopter-only-flies-over-wall-street_-it-creates-money-for-the-banks_-and-the-banks-basically-provide-money-to-real-estate-and-to-the-financial-sector_-not-to-the-economy-at-large_-so_-you-can-say-that-the-government-runs-a-deficit-by-putting-money-into-the-economy_-but-there-are-two-ways-of-doing-this_-one-is-to-put-money-into-the-banking-sector_-in-which-case-you-use-quantitative-easing_-you-inflate-asset-prices_-you-raise-the-price-of-real-estate-or-at-least-loans-for-real-estate_-you-raise-stock-and-bond-prices_-or-the-government-can-run-a-deficit-by-actually-doing-real-physical-spending-into-the-economy_-by-building-infrastructure_-by-doing-social-spending_-and-there_s-all-the-difference-in-the-world-between-whether-the-government-spends-the-deficit-on-the-fire-sector-_finance_-insurance-and-real-estate_-or-whether-it-does-it-on-the-real-economy_-and-for-the-last-quote-12-years_-since-2008_-the-government_s-been-spending-money-on-the-financial-sector_-not-into-the-real-economy_-_strong_-michael-hudson_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-the-outcome-is-explained-in-the-following-quotation_-_blockquote_well_-here_s-what-happened_-the-cares-act-with-president-trump-gave-everybody-1200-dollars_-the-1200-dollars-for-most-people-was-paid-into-their-bank-account-or-their-credit-card-account_-so-what-happened_-more-than-half-of-the-cares-money-was-spent-on-paying-down-the-debts-of-companies-and-the-banks_-it-wasn_t-spent-on-goods-and-services_-people-got-a-credit-in-the-bank-account_-with-the-bank-immediately-using-that-for-writing-down-the-debt_-so_-what-did-by-giving-1200-dollars-to-everybody-was-to-defer-their-falling-further-behind-in-their-credit-card-account_-further-behind-in-their-bank-account-and-overdraft_-and-you-enabled-them-to-avoid-being-even-deeper-in-debt_-but-not-that-much-was-spent-on-goods-and-services_-and-you-can-see-that-from-the-statistics-on-retail-sales-and-what-was-happening_-well_-there_s-what-a-k-shaped-curve-means_-the-1_-at-the-top-is-doing-the-savings_-what-are-these-savings-invested-in_-they_re-loans-to-the-99_-so-the-1_-gets-richer-by-lending-its-savings-out-to-the-99_-borrowing-at-0_1-percent-for-government-and-charging-credit-card-people-29_-it_s-a-win-win-game_-of-course_-there_s-a-k-shaped-curve_-of-course_-the-rich-are-getting-richer-and-their-savings-are-other-people_s-debts-on-the-opposite-side-of-the-balance-sheet_-but-the-balance-sheet-is-the-1_-on-the-one-hand-with-the-assets_-and-the-99_-with-the-liabilities_-that_s-what-the-economy-is-looking-like_-if-you-do-not-write-down-the-savings-that-they-have_-you_re-going-to-make-them-into-an-almost-feudal-type-of-landlord-or-finance-lord-aristocracy-that_s-going-to-impose-an-oligarchy-here_-so-if-you-don_t-want-it-_-oligarchy-_-you-have-to-write-down-not-only-the-debts_-but-you-have-to-write-down-the-enormous-overgrowth-of-savings-that-is-what_s-holding-the-debtors-in-bondage_-_strong_-michael-hudson_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_when-economies-are-required-by-law-to-shut-down_-it-follows-that-some-debts-should-be-canceled-as-well_li_-_ul_-_h2_introduction_h2_-this-is-explained-in-the-following-quotation_-_blockquote_you-cannot-bring-them-back-without-canceling-the-dept_-let_s-put-it-that-way_-because-if-you-leave-the-restaurants-owing-the-rent-debt_-if-you-leave-the-businesses-is-owing-the-rent-and-back-debts-when-they-don_t-have-any-and-if-you-leave-the-states-and-localities_-new-york-city-is-broke_-the-transport-system-is-broke_-the-transport-system-is-going-to-have_-it-doesn_t-have-the-money-now_-the-subways-to-fix-the-signals-that-are-dating-from-the-1940s-and-the-trains-don_t-run_-there_s-an-almost-complete-breakdown_-unless-you-write-down-the-state-and-local-debt-or-somehow-pay-it-off-or-fund-it-with-a-property-tax_-you_re-going-to-have-a-close-down-on-the-state-and-local-infrastructure-and_-without-transport_-nobody-can-get-to-work-or-out-to-get-a-job-so-we_re-in-a-systemic-crisis-that-is-very-close-to-paralysis-that-looks-like-it_s-going-to-be-peeking-around-march_-_strong_-michael-hudson_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-hudson_span_span_strong_-_strong_a-href_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_-target_blank_-rel_noopener_https_michael-hudson_com_2020_12_jubillee-perspectives-with-steve-keen_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fed-often-refers-to-its-dual-mandate_-however_-how-real-is-this-dual-mandate_li_-_ul_-_h2_introduction_h2_-the-dual-mandate-implies-a-public-interest-function_-however_-the-fed-the-facia-for-a-banking-cartel_-the-fed_s-actual-role-is-maximizing-the-banking-profits-of-its-owners_-this-is-explained-in-the-following-quotation_-_blockquote_there-is-no-doubt-that-those-who-run-it-are-motivated-to-maintain-full-employment_-high-productivity_-low-inflation_-and-a-generally-sound-economy_-they-are-not-interested-in-killing-the-goose-that-lays-such-beautiful-golden-eggs_-but_-when-there-is-a-conflict-between-the-public-interest-and-the-private-needs-of-the-cartel_a-conflict-that-arises-almost-daily-_the-public-will-be-sacrificed_-that-is-the-nature-of-the-beast_-it-is-foolish-to-expect-a-cartel-to-act-in-any-other-way_-this-view-is-not-encouraged-by-establishment-institutions-and-publishers_-it-has-become-their-apparent-mission-to-convince-the-american-people-that-the-system-is-not-intrinsically-flawed_-it-merely-has-been-in-the-hands-of-bumbling-oafs_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-and-this-quotation_-_blockquote_the-fed-has-a-dual-mandate-to-keep-inflation-and-unemployemnt-low_-however_-that-is-not-the-outcome-of-the-fed_-this-is-becuase-their-actual-goal-is-to-enrich-the-member-private-banks-that-run-the-fed_-trying-to-understand-the-fed-by-listening-to-what-they-ostensibly-say-they-do_-rather-than-observing-their-financial-bias-do-will-lead-to-not-understanding-their-activities_-the-us-government-statistics-mislead-the-public-about-the-actual-level-of-unemployment_-and-this-of-course-gives-the-fed-less-of-a-reason-to-try-to-reduce-it_-the-following-is-a-curious-quote-about-unemployment_-_-one-wants-to-explain-the-empirical-fact-that-involuntary-unemployment-is-only-associated-with-money-using-contractual-economies_-in-other-words_-real-economies-that-do-not-use-money-and-money-labor-contracts-to-organize-production-_e_g_-feudalism_-slave-economies_-south-sea-islanders-discovered-by-margaret-meed_-etc_-may-possess-important-nonlinearities-and-even-an-uncertain-future-but-there-is-never-an-important-involuntary-unemployment-problem_-slaves-are-always-fully-employed-as-well-as-are-serfs-in-feudalism_finally-it-should-be-noted-that-herds-of-animals_-schools-of-fish_-etc-organize-together-to-solve-the-economic-problems-of-what_-how_-for-whom_-without-using-money_-contracts-or-markets_-these-animals-still-face-complex-nonlinear-problems-in-their-search-for-food-and-interaction-with-other-herds_-yet-animals-never-suffer-from-involuntary-unemployment_-_strong_-dr-paul-davidson_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_there-are-significant-differences-of-taxes-by-country_-however_-the-image-changes-when-one-realizes-that-taxes-are-only-necessary-to-create-a-demand-for-the-money-of-a-country-and-to-reduce-purchasing-power_li_-_ul_-_h2_introduction_h2_-there-is-a-long-term-debate-over-the-proper-level-of-taxation_-for-example_-countries-in-scandanavia-are-known-to-have-high-income-tax-rates_-when-a-country-has-a-high-income-tax-rate_-it-is-often-called-socialist_-and-those-in-countries-with-lower-tax-rates-will-often-state-that-this-reduces-the-motivation-to-work_-however_-taxes-are-only-necessary-when-a-country-gives-up-its-right-to-create-a-private-bank_-under-a-scenario-where-every-central-bank-was-public_-there-would-be-no-necessity-for-taxes_-therefore-every-country-uses-its-own-money-to-pay-for-social-services_-the-common-defense_-infrastructure-projects_-etc_-naturally_-this-would-be-a-great-gain-for-workers-who-would-not-have-to-pay-taxes_-however_-while-conservatives-and-mainstream-economists-will-complain-about-high-taxes-and-socialism_-they-will-never-accept-public-central-banks-even-though-this-would-eliminate-the-item-they-say-they-oppose-which-in-higher-levels-of-taxation_-the-reason-for-this-inconsistency-is-straightforward-conservatives-and-mainstream-economists-_whether-they-fully-realize-it-or-not_-support-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_states_-or-countries-that-join-a-monetary-union_-normally-cannot-create-money_li_-_li_the-peculiar-thing-about-this-is-it-places-private-banks-as-more-senior-in-responsibility-and-rights-over-state-governments_li_-_ul_-_h2_introduction_h2_-as-one-example_-california-has-high-state-taxes-and-high-fees-from-living-in-the-state_-this-includes-even-high-parking-ticket-fees-that-many-residents-will-say-are-_span-style_color_-_117ebd_strong_deliberately-designed_strong_span_-to-maximize-revenue-rather-than-serve-as-a-simple-deterrent_-however_-the-only-reason-california-needs-to-charge-income-taxes-or-impose-usurious-fees-is-that-the-us-has-a-private-central-bank_-_h2_what-a-state-public-central-bank-would-do_h2_-under-a-public-central-bank_-california-as-part-of-the-us_-could-have-the-right-to-use-the-us-debt-free-new-currency-to-pay-for-the-expenses-of-the-state_-as-it-does-not_-then-the-states-are-in-the-position-of-raising-money-in-the-form-of-taxation_-this-is-explained-in-the-following-quotation_-_blockquote_just-a-quick-reminder-that-our-state-and-local-governments-are-users-of-the-u_s_-dollar_-and-not-issuers_-like-the-federal-government-is_-in-fact_-the-u_s_-states-are-in-a-similar-position-as-the-rest-of-us_-we-both-need-to-get-funds-into-our-bank-accounts-before-we-write-our-checks_-or-those-checks-will-indeed-bounce_-in-the-parent_children-analogy_-we-and-the-states-are-in-much-the-same-position-as-the-children_-who-need-to-get-first-before-they-can-give_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_why-keep-states-out-of-money-creation_h2_-a-natural-question-that-arises-is-why-doesn_t-the-federal-government-share-its-money-creation-ability-with-the-states_-for-example_-the-currency-could-be-controlled-by-a-federal-public-central-bank_-but-then-each-state-would-have-a-central-bank-that-is-an-extension-of-the-federal-central-bank_-furthermore_-the-post-office-could-provide-federal-central-bank-services-everywhere-in-the-country_-post-office-banking-has-the-potential-to-offer-government-created-money-in-all-countries-where-post-office-banking-exists_-_h2_should-states-be-subordinate-to-banks-in-their-money-creation-abilities_h2_-there-seems-to-be-little-point-to-make-states-subordinate-to-the-federal-government-as-money-is-a-public-monopoly-and-public-good_-and-all-people-eventually-reside-in-some-state_-after-all_-it-is-the-money-of-the-government_-not-of-banks_-banks-can-create-money-out-of-thin-air-by-virtue-of-being-empowered-by-the-federal-government_-this-means-that-bank-of-america-is-considered-more-senior-in-its-right-to-create-money-over-any-state_-_h2_how-countries-become-states_h2_-any-government-is-not-limited-in-creating-money-unless-it-has-become-part-of-a-confederation-like-the-eu-and-given-up-its-money-creation-to-another-entity_-greece-or-germany-no-longer-have-their-own-money-but-have-given-it-up-for-the-euro_-in-terms-of-banking_-all-member-countries-are-no-longer-countries-but-are-now-_states_-as-they-are-children-in-the-eu-central-banking-construct_-although-germany-is-so-influential-in-the-eu-due-to-their-economic-size_-they-do-not-face-the-same-loss-of-control-as-smaller-countries2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-often-stated-that-governments-must-collect-taxes-to-pay-for-their-budgets_li_-_li_for-governments-that-create-their-own-money_-this-is-false_li_-_ul_-_h2_introduction_h2_-when-the-government-issues-its-own-currency_-taxes-are-not-necessary_-taxes-are-necessary-when-a-government-_span-style_color_-_0b7fb5_strong_cannot-issue-money-_that-is-without-a-private-central-bank_-_strong_span_however_-when-it-can-do-so_-several-historical-precedents_-as-well-as-current-examples-exist-without-any-significant-taxes_-_h2_the-colonial-script-of-the-us-colonies_h2_-one-example-is-the-debt-free-colonial-script_-there-are-several-examples-of-us-colonies-that-issued-their-own-money-and-therefore-functioned-without-taxes_-before-1913-the-us-government-had-financed-itself-with-excise-taxes-_taxes-on-luxury-goods_-and-trade-taxes_-without-the-us-federal-reserve_-taxes-may-not-be-necessary_-although-warren-mosler-proposes-that-taxes-are-simply-a-way-to-reduce-spending-power_-this-is-to-allow-the-government-_space_-to-engage-in-spending-without-causing-inflation_-_h2_the-guernsey-pound_h2_-this-small-island-off-of-the-coast-of-england-did-not-need-to-collect-taxes-when-it-began-to-issue-its-own-debt-free-money_-_h2_the-fake-issue-of-interest-on-government-debt_h2_-us-republicans-constantly-talk-about-the-cost-of-paying-interest-on-the-us-debt_-_strong_without-observing_strong_-that-this-interest-is-only-necessary-to-be-paid-because-the-us-lost-its-ability-to-create-its-own-money-three-times-in-its-history_-with-1913-being-the-most-recent-and-which-continues-to-this-day_-this-is-also-explained-in-the-following-quotation_-_blockquote_the-federal-income-tax-was-instituted-specifically-to-coerce-taxpayers-to-pay-the-interest-to-the-banks-on-the-federal-debt_-if-the-money-supply-had-been-created-by-the-government-rather-than-borrowed-from-banks-that-created-it_-the-income-tax-would-have-been-unnecessary_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-the-reality-of-taxes-is-explained-in-the-following-quotation_-_blockquote_so-if-the-government-throws-away-your-cash-after-collecting-it_-how-does-that-cash-pay-for-anything_-like-social-security-and-the-rest-of-the-government_s-spending_-it-doesn_t_-can-you-now-see-why-it-makes-no-sense-at-all-to-think-that-the-government-has-to-get-money-by-taxing-in-order-to-spend_-in-no-case-does-it-actually-_get_-anything-that-it-subsequently-_uses_-so-if-the-government-doesn_t-actually-get-anything-when-it-taxes_-how-and-what-does-it-spend_-there-is-no-such-thing-as-having-to-_get_-taxes-_or-borrow_-to-make-a-spreadsheet-entry-that-we-call-_government-spending_-computer-data-doesn_t-come-from-anywhere_-where-else-do-we-see-this-happen_-your-team-kicks-a-field-goal-and-on-the-scoreboard_-the-score-changes-from_-say_-7-points-to-10-points_-does-anyone-wonder-where-the-stadium-got-those-three-points_-you-now-have-the-operational-answer-to-the-question_-_how-are-we-going-to-pay-for-it_-and-the-answer-is_-the-same-way-government-pays-for-anything_-it-changes-the-numbers-in-our-bank-accounts_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_what-this-means_h2_-the-implications-of-this-are-huge_-it-means-that-federal-governments-spend-time-collecting-money-in-taxes-to-_pay_-for-goods-and-services_-and-punish-taxpayers-for-noncompliance_-for-something-that-_span-style_color_-_0b7fb5_strong_they-bring-into-existence-on-a-computer_strong_span_-the-situation-is-clarified-if-federal-governments-create-their-own-money-rather-than-allowing-a-private-central-bank-to-create-debt_-the-point-is-made-regarding-the-lack-of-connection-between-taxes-and-spending-by-the-following-quotation_-_blockquote_in-fact_-the-people-at-the-u_s_-treasury-who-actually-spend-the-money-_by-changing-numbers-on-bank-accounts-up_-don_t-even-have-the-telephone-numbers-of_nor-are-they-in-contact-with_the-people-at-the-irs-who-collect-taxes-_they-change-the-numbers-on-bank-accounts-down_-or-the-other-people-at-the-u_s_-treasury-who-do-the-_borrowing_-_issue-the-treasury-securities_-if-it-mattered-at-all-how-much-was-taxed-or-borrowed-to-be-able-to-spend_-you_d-think-they-at-least-would-know-each-other_s-phone-numbers_-clearly_-it-doesn_t-matter-for-their-purposes_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_a-false-explanation-of-money-and-taxes-from-the-private-banking-supported-heritage-foundation_h2_-the-heritage-foundation-helps-perpetuate-the-myth-of-taxes-used-for-spending-in-the-following-quotation_-_blockquote_spending-stimulus-advocates-claim-that-government-can-_inject_-new-money-into-the-economy_-increasing-demand-and-therefore-production_-this-raises-the-obvious-question_-where-does-the-government-acquire-the-money-it-pumps-into-the-economy_-congress-does-not-have-a-vault-of-money-waiting-to-be-distributed_-therefore_-every-dollar-congress-_injects_-into-the-economy-must-first-be-taxed-or-borrowed-out-of-the-economy_-no-new-spending-power-is-created_-it-is-merely-redistributed-from-one-group-of-people-to-another_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_heritage-foundation_span_span_strong_-_strong_a-href_https_www_heritage_org_budget-and-spending_report_causes-the-federal-governments-unsustainable-spending_-target_blank_-rel_noopener_https_www_heritage_org_budget-and-spending_report_causes-the-federal-governments-unsustainable-spending_a_strong_-this-is-false_-heritage-has-the-process-backward_-the-government-_span-style_color_-_1d79cf_strong_must-bring-money-into-existence-first_strong_span_-either-itself-or-through-banks-that-have-been-deputized-by-the-federal-government-to-create-money_-not-only-can-the-government-create-money_-but-_strong_span-style_color_-_1d79cf_any-bank-can-also_span_-_span-style_color_-_1d79cf_create-money_span_strong_span-style_color_-_1d79cf_span_-observe-the-next-quotation-from-heritage_-_blockquote_government-cannot-create-new-purchasing-power-out-of-thin-air_-if-congress-funds-new-spending-with-taxes_-it-is-simply-redistributing-existing-income_blockquote_-this-is-_span-style_color_-_1d79cf_strong_exactly-_strong_span_what-the-federal-governments-and-banks-do_-they-create-money-with-an-accounting-entry_-if-you-borrow-_200_000-from-a-bank-tomorrow_-that-money-is-brought-into-existence-with-an-accounting-entry_-this-was-proven-by-a-test-conducted-by-the-economist-richard-werner-at-a-german-sparkasse-banks_-that-money-has-no-reserves-and-banks-can-create-as-much-of-this-money-as-they-see-fit_-if-the-government-did-not-impose-taxes-on-its-citizens_-the-following-quote-explains-what-would-likely-happen_-_h2_why-taxes-are-necessary-to-establish-and-maintain-the-value-of-a-money_h2_-_blockquote_if-the-tax-system-were-removed_-the-government-would-eventually-find-that-its-fiat-money-would-lose-its-ability-to-purchase-goods-and-services_-this-would-be-seen-as-inflation-in-the-real-economy_i_e_-the-loss-of-purchasing-power_-you-can-see-how-this-works-in-a-real-life-example_-during-the-us-civil-war_-the-south-experienced-inflation-of-over-2000_-while-the-north-experienced-some-inflation_-this-passage-from-_understanding-modern-money_-explains-why-this-hyper-inflation-happened-only-in-the-south_-taxes-equaled-less-than-5-percent-of-the-south_s-spending_-which-totaled-about-_2_7-billion_-with-bond-sales-equal-to-30-percent_-notes-issued-by-_the-printing-press_-equal-to-60-percent_-and-other-revenue-sources-equal-to-5-percent-of-spending-_ibid_-christopher-memminger_-secretary-of-the-confederate-treasury_-advocated-higher-tax-receipts_-however_-the-congress-argued-for-lower-taxes_-the-confederacy-did-not-_have-the-_machinery-for-collecting-large-amounts-of-taxes_-_ibid_-the-southern-states-strongly-resisted-centralized-state-power_-and_-at-least-initially_-the-south-expected-a-speedy-victory_-secretary-memminger_-_saw-two-immediate-and-indispensable-benefits-from-levying-taxes-payable-in-government-notes_-first_-taxes-created-a-demand-for-the-paper-issued-by-the-government-and-gave-it-value_-since-all-taxpayers-needed-the-paper_-they-were-willing-to-exchange-goods-for-it_-and-the-notes-circulated-as-money_-second_-to-the-extent-that-taxation-raised-revenue_-it-reduced-the-number-of-new-notes-at-had-to-be-issued_-the-tax-system-is-vital-to-create-demand-for-a-currency_-without-a-system-of-taxation_-governments-will-eventually-find-that-a-currency-becomes-worthless-as-the-south-found-out-during-the-us-civil-war_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_-target_blank_-rel_noopener_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_a_strong_-however_-this-does-not-say-what-is-the-appropriate-level-of-taxation_-only-that-some-taxation-is-necessary-for-the-following-reasons_-_ol_-_li_reduce-the-spending-power-in-the-economy-to-allow-for-the-government-to-spend-without-causing-inflation_li_-_li_to-establish-and-maintain-the-value-of-the-government_s-fiat-money_li_-_ol_-_h2_the-correct-way-to-look-at-government-taxation_h2_-how-the-government-differs-from-a-private-company-is-covered-in-the-following-quotation_-_blockquote_first_-the-government_s-interest-is-the-public-interest_-the-government-is-there-to-provide-for-the-general-welfare_-and-there-is-no-correlation-between-this-interest-and-a-position-of-surplus-or-deficit_-nor-of-indebtedness_-in-the-government_s-books_-second_-the-government-is-sovereign_-this-fact-gives-to-a-government-authority-that-households-and-firms-do-not-have_-in-particular_-the-government-has-the-power-to-tax-and-to-issue-money_-the-power-to-tax-means-that-government-does-not-need-to-sell-products_-and-the-power-to-issue-currency-means-that-it-can-make-purchases-by-emitting-ious_-unlike-private-firms_-the-federal-government-maintains-no-stock-of-cash-on-hand-and-no-credit-balance-at-the-bank_-it-doesn_t-need-to-do-so_-there-are-surely-limits-of-wisdom-and-prudence-on-federal-spending_-as-well-as-numerous-checks_-balances_-and-self-imposed-constraints_-but-there-is-no-operational-limit_-the-federal-government-can_-and-does_-spend-what-it-wants_-it-has-no-need-for-the-income-in-order-to-spend_-this-is-why-it-is-a-mistake-to-look-at-federal-tax-receipts-as-an-equivalent-concept-to-income-of-households-or-firms_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_2009_02_20_galbraithwraymosler-submission-for-february-25_-target_blank_-rel_noopener_http_moslereconomics_com_2009_02_20_galbraithwraymosler-submission-for-february-25_a_strong_-_h2_a-feature-and-benefit-of-creating-one_s-own-money_h2_-when-the-government-can-create-its-own-money_-_span-style_color_-_137ebd_strong_why-would-it-need-to-receive-money-from-its-citizens_strong_span_-how-would-your-own-perspective-on-money-change-if-you-could-make-your-own-money_-clearly-getting-money-from-others-would-lose-its-meaning_-money-only-has-value-to-an-entity-if-it-has-some-limitations-on-how-much-it-can-make-itself_-this-would-not-only-mean-the-money-itself-would-no-longer-have-to-be-collected_-but-taxes-also-consume-an-enormous-amount-of-time-on-the-part-of-individuals_-corporations_-and-the-government_-taxes-change-behavior-and-reduce-the-efficiency-of-behavior-because-the-behavior-is-being-modified-to-match-with-the-tax-policy_-all-of-this-effort-and-behavioral-modification-could-be-eliminated-by-simply-having-a-public-central-bank-and-eliminating-private-banking_-the-question-of-what-the-government-does-with-taxes-is-explained-in-the-following-quotation_-_blockquote_so-why-then-does-the-federal-government-tax-us_-if-it-doesn_t-actually-get-anything-to-spend-or-need-to-get-anything-to-spend_-_hint_-it_s-the-same-reason-that-the-parents-demand-10-coupons-a-week-from-their-children_-when-the-parents-don_t-actually-need-the-coupons-for-anything_-there-is-a-very-good-reason-it-taxes-us_-taxes-create-an-ongoing-need-in-the-economy-to-get-dollars_-and-therefore-an-ongoing-need-for-people-to-sell-their-goods-and-services-and-labor-to-get-dollars_-with-tax-liabilities-in-place_-the-government-can-buy-things-with-its-otherwise-worthless-dollars_-because-someone-needs-the-dollars-to-pay-taxes_-just-like-the-coupon-tax-on-the-children-creates-an-ongoing-need-for-the-coupons_-which-can-be-earned-by-doing-chores-for-the-parents_-think-of-a-property-tax_-_you_re-not-ready-to-think-about-income-taxes_it-comes-down-to-the-same-thing_-but-it_s-a-lot-more-indirect-and-complicated_-you-have-to-pay-the-property-tax-in-dollars-or-lose-your-house_-it_s-just-like-the-kids_-situation_-as-they-need-to-get-10-coupons-or-face-the-consequences_-so-now-you-are-motivated-to-sell-things-_goods_-services_-your-own-labor_to-get-the-dollars-you-need_-it_s-just-like-the-kids_-who-are-motivated-to-do-chores-to-get-the-coupons-they-need_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-this-is-further-explained-in-the-following-quotation_-_blockquote_the-imperative-of-taxation-is-to-create-sellers-of-real-goods-and-services-willing-to-exchange-them-for-the-unit-of-account-selected-by-the-government_-dollar-denominated-tax-liabilities-function-to-create-sellers-of-real-goods-and-services-who-must-have-dollars-to-extinguish-their-tax-liabilities_-raising-revenue_-per-se_-is-of-no-consequence-to-the-government_-as-dollars-are-not-a-limited-government-resource_-but-a-liability_-or-tax-credit_-that-can-be-issued-at-will_-the-government_s-ability-to-raise-revenue-does-not-limit-what-it-is-able-to-purchase_-the-purchasing-power-of-the-government-is-limited-only-by-what-is-offered-for-sale-in-exchange-for-dollars_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_a_strong_-and-in-this-quotation_-_blockquote_that-barnes-andamp_-noble-gift-card-aunt-betty-gave-you-for-christmas-has-value-because-barnes-andamp_-noble-will-redeem-it-for-a-book_-if-you-don_t-want-a-book_-you-can-exchange-the-gift-card-for-dollars-because-barnes-andamp_-noble-has-promised-to-honor-that-gift-card_-no-matter-who-holds-it_-gift-cards-are-a-form-of-currency_-in-a-similar-way_-the-us-dollar-has-value-because-the-government-spends-it-on-goods-and-services-and-then-demands-it-back-through-taxation_-the-government-designates-the-dollar-as-the-only-currency-to-meet-your-tax-obligation_-the-us-dollar-is-simply-a-tax-credit_-you-can-argue-this-has-no-intrinsic-value-but-it-does_-the-government-has-a-claim-on-your-property-and-income-if-you-don_t-meet-your-tax-obligation_-if-you-don_t-pay_-the-government-takes-your-stuff_-so-a-tax-is-an-important-tool-for-the-government-because-it-creates-demand-for-its-currency_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_-target_blank_-rel_noopener_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_states-and-local-entities-only-need-to-collect-taxes-if-they-do-not-have-the-money-creation-power-of-the-government_li_-_ul_-_h2_introduction_h2_-only-the-federal-government-should-have-the-power-to-issue-money_-the-us-colonies-ran-into-problems_-with-each-colony-issuing-its-own-money_-for-example_-competing-currencies-would-not-be-allowed-_that-is_-ohio-issuing-a-different-currency-than-virginia_s_-however_-that-power-can-be-in-part-delegated-to-the-states-a-well_-_h2_how-about-state-and-local-taxes_h2_-neither-state-nor-local-taxes-are-necessary-if-the-government-were-to-control-the-power-to-issue-money-from-the-federal-reserve-and-private-banks_-the-purpose-of-taxes-is-to-reduce-spending-power_-not-fund-governments_-however_-even-without-the-benefit-of-money-creation_-the-bank-of-north-dakota-has-proven-the-benefits-of-having-a-state-bank-even-if-it-uses-debt-based-currency-_as-it-does_-the-bank-of-north-dakota-would-be-even-better-off-if-it-could-use-debt-free-us-government-issued-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-the-income-tax-in-the-us-was-brought-into-existence-with-the-creation-of-the-federal-reserve_-and-_span-style_color_-_13a6c4_strong_a-major-reason-for-this-was-to-pay-the-interest-on-debt-that-would-be-incurred-whenever-the-us-sold-bonds-rather-than-creating-its-own-money_strong_span_-this-is-problematic-because-now-the-citizens-are-responsible-for-taxes_-but-the-taxes-are-never-collected-evenly_-wealthy-individuals-and-corporations-always-have-the-ability-to-invest-in-tax-expertise-that-allows-them-to-escape-more-of-their-mandated-tax-burden-than-the-less-wealthy_-_h2_how-the-income-taxes-has-exploded-in-size-since-its-original-1_h2_-since-the-passage-of-the-income-tax_-the-tax-code-has-become-enormous-and-enormously-complex_-it-places-the-tax-burden-on-the-average-person-far-more-than-the-wealthy_-if-there-were-no-private-central-bank_-there-would-be-no-technical-reason-for-taxes_-there-would-still-be-a-reason-to-reduce-purchasing-power-with-taxes_-but-not-to-pay-the-interest-on-the-debt_-untaxed-governments-have-been-demonstrated-in-us-history_-when-there-has-been-no-private-central-bank_-there-has-been-no-taxation_-guernsey_-nazi-germany_-lincoln_s-greenbacks_-and-many-other-examples-illustrate-that-countries-can-issue-increasing-amounts-of-their-own-money-without-it-becoming-inflationary2024-07-05daily0.5https://realstoryonbanking.com/item/span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-the-income-tax-in-the-us-was-brought-into-existence-with-the-creation-of-the-federal-reserve_-and-_span-style_color_-_13a6c4_strong_a-major-reason-for-this-was-to-pay-the-interest-on-debt-that-would-be-incurred-whenever-the-us-sold-bonds-rather-than-creating-its-own-money_strong_span_-this-is-problematic-because-now-the-citizens-are-responsible-for-taxes_-but-the-taxes-are-never-collected-evenly_-wealthy-individuals-and-corporations-always-have-the-ability-to-invest-in-tax-expertise-that-allows-them-to-escape-more-of-their-mandated-tax-burden-than-the-less-wealthy_-_h2_how-the-income-taxes-has-exploded-in-size-since-its-original-1_h2_-since-the-passage-of-the-income-tax_-the-tax-code-has-become-enormous-and-enormously-complex_-it-places-the-tax-burden-on-the-average-person-far-more-than-the-wealthy_-if-there-were-no-private-central-bank_-there-would-be-no-technical-reason-for-taxes_-there-would-still-be-a-reason-to-reduce-purchasing-power-with-taxes_-but-not-to-pay-the-interest-on-the-debt_-untaxed-governments-have-been-demonstrated-in-us-history_-when-there-has-been-no-private-central-bank_-there-has-been-no-taxation_-guernsey_-nazi-germany_-lincoln_s-greenbacks_-and-many-other-examples-illustrate-that-countries-can-issue-increasing-amounts-of-their-own-money-without-it-becoming-inflationary2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-continually-tell-us-that-social-security-is-at-risk_-this-is-impossible-if-the-government-creates-its-own-money_-and-even-without-this_-the-_shortfall_-is-a-myth_li_-_ul_-_h2_introduction_h2_-under-a-debt-free-currency-and-a-government-controlled-central-bank_-the-us-can-set-the-level-of-social-security-that-it-sees-fit_-thus_-the-only-reason-one-can-forecast-a-shortfall-in-ss-_which-is-often-stated-to-be-after-2035_-is-that-first_-the-current-system-is-based-upon-debt-based-money_-this-is-explained-in-the-following-quotation_-_blockquote_well_-what-happened-at-the-social-security-crisis_-were-was-resolved-by-simply-cashing-out-its-federal-bond-holdings-with-newly-issued-us-notes_-with-dangerous-inflation-results_-the-answer-is-that-it-would-not-because-the-social-security-fund-would-have-no-more-money-than-it-had-before_-the-government-would-just-be-returning-to-the-fund-with-the-taxpayer-started-had-all-along_-_strong_-debt-free-money_strong_blockquote_-andnbsp2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_wall-street-wants-to-privatize-social-security-so-they-can-extract-the-maximum-amount-of-fees-from-the-system_li_-_ul_-_h2_introduction_h2_-the-entry-on-this-website-titled-the-myth-of-the-necessity-to-pay-back-the-federal-government_s-debt-explains-why-the-government-has-to-pay-back-its-debt-is-a-myth_-however_-this-myth-is-used-to-promote-the-idea-of-what-is-covered-in-the-entry-on-this-website-titled-the-myth-of-the-us-social-security-shortfall_-these-two-myths-are-then-used-to-propose-that-social-security-benefits-must-be-cut-and-that-it-might-be-better-if-social-security-were-privatized_-even-under-the-current-design-of-the-us-having-a-private-central-bank_-social-security-is-not-in-any-danger-financially_-however_-any-issue-or-concern-for-social-security-could-be-immediately-eliminated-by-having-the-us-move-to-a-public-central-bank-and-issuing-its-own-debt-free-money_-the-government-could-then-maintain-any-benefit-level-that-it-saw-fit2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-treasury-creates-money-through-issuing-debt-or-a-government-bond_-not-through-directly-issuing-money-itself_li_-_ul_-_h2_introduction_h2_-people-normally-look-at-the-government-as-if-it-has-expenses-like-any-other-business_-following-that-model_-it-is-logical-to-assume-that-governments-_span-style_color_-_13a6c4_strong_need-income-from-their-citizens-to-pay-for-their-functioning_strong_-_span_-this-is-a-false-assumption_-if-any-entity-_the-government-included_-creates-its-own-money_-then-it-does-not-have-to-receive-money-from-its-citizens_-that-is_-under-a-public-central-bank-model_-the-government-has-a-_printing-press_-it-can-pay-for-anything-it-needs-with-the-money-that-it-creates_-banks-do-not-have-this-ability-because-while-they-can-create-as-much-money-as-they-can-find-reliable-lenders_-the-banks-must-have-the-loans-paid-back-_except_-of-course_-when-the-government-bails-them-out_-however_-a-government-never-requires-that-the-money-it-creates-be-paid-back_-because-of-this-_conjuring_-capability_-there-is-no-reason-for-a-government-also-to-tax-its-citizens_-when-a-government-controls-its-ability-to-create-money-from-private-banking-interests_-it-does-not-face-inflationary-pressures-because-the-primary-inflationary-pressure-comes-from-private-banking-interests_-who-charge-interests-on-loans-and-make-money-from-financial-speculation_-_this-is-the-double-problem-of-allowing-investment-banks-and-commercial-banks-to-be-the-same-bank_-private-banking-interests-have-deliberately-misrepresented-the-history-of-inflation-to-be-of-governments-printing-too-much-money_-however_-the-issue-of-inflation-is-due-to-the-financial-bias-inherent-in-private-banking-itself_-the-fed-_a-private-central-bank_-has-been-controlling-the-us-dollar-from-1913-until-the-present-day_-their-dual-mandate-has-been-to-keep-unemployment-and-inflation-low_-however_-since-1913_-the-us-dollar-has-declined-in-value-_due-to-inflation_-but-over-97_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_bill-still-is-a-co-producer-of-the-most-important-documentary-on-money-and-banking_li_-_ul_-_h2_introduction_h2_-still-co-produced-the-excellent-and-groundbreaking-documentary-the-money-masters_-produced-in-19962024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_stoller-is-an-investigative-journalist-specializing-in-monopolies_li_-_ul_-_h2_introduction_h2_-stoller-is-the-most-prominent-expert-on-monopolies-and-most-effective-arguer-against-monopolies-in-the-modern-time2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_g-edward-griffin-writes-on-central-banks-and-their-illusions_li_-_ul_-_h2_introduction_h2_-griffin_s-view-of-central-banks-is-expressed-in-the-following-quotation_-_blockquote_to-cover-the-fact-that-a-central-bank-is-merely-a-cartel-which-has-been-legalized_-its-proponents-had-to-lay-down-a-thick-smoke-screen-of-technical-jargon-focusing-always-on-how-it-would-supposedly-benefit-commerce_-the-public_-and-the-nation_-there-was-not-the-slightest-glimmer-that-underneath-it-all_-was-a-master-plan-which-was-designed-from-top-to-bottom-to-serve-private-interests-at-the-expense-of-the-public_-the-system-is-merely-a-cartel-with-a-government-facade_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_josai-stamp-wrote-on-banks-and-their-illusions_li_-_ul_-_h2_introduction_h2_-stamp-had-this-to-say-about-banking_-_blockquote_banking-was-conceived-in-iniquity-and-born-in-sin_-bankers-own-the-earth_-take-it-away-from-them-but-leave-them-the-power-to-create-money_-and_-with-the-flick-of-a-pen_-they-will-create-enough-money-to-buy-it-back-again_-take-this-great-power-away-from-them-and-all-the-great-fortunes-like-mine-will-disappear-and-they-ought-to-disappear_-for-then-this-would-be-a-better-and-happier-world-to-live-in_-but_-if-you-want-to-continue-to-be-a-slave-of-the-bankers-and-pay-the-cost-of-your-own-slavery_-then-let-the-bankers-continue-to-create-money-and-control-credit_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_ellen-brown-helped-start-a-movement-around-public-banking_li_-_ul_-_h2_introduction_h2_-ellen-brown-is-a-public-banking-activist-and-author-of-multiple-books-that-pull-the-curtain-back-on-the-banking-system-and-on-money-creation_-her-books_-including-web-of-debt_-are-the-most-approachable-explanations-of-the-topic-that-exists2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_patrick-carmack-is-a-co-producer-of-the-banking-documentary-the-money-masters_li_-_ul_-_h2_introduction_h2_-carmack-co-produced-the-excellent-and-groundbreaking-documentary-the-money-masters_-produced-in-19962024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_richard-vague-is-an-investor-who-has-written-several-books-exposing-how-banking-works_li_-_ul_-_h2_introduction_h2_-richard-vague-is-similar-in-his-emphasis-to-steve-keen_-richard-vague-has-not-only-published-several-books-on-this-topic-but-has-provided-for-free-large-amounts-of-data-that-allows-people-to-perform-their-own-analysis2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_an-originator-of-the-american-school-of-economics_-which-placed-the-people-of-the-country-ahead-of-elite-interests_li_-_ul_-_h2_introduction_h2_-an-advisor-to-abraham-lincoln-and-the-19th-century-leader-of-the-american-school-of-economics_-this-is-a-school-of-economics-that-most-economists-_span-style_color_-_1d79cf_strong_have-never-heard-of_strong_-_span_-_h2_carey_s-view-of-the-british-private-banking-system_h2_-carey-viewed-the-british-private-banking-system-as-the-opposite-of-the-us-system-that-should-be-_and-for-much-of-its-history_-was-based-upon-government-issued-debt-free-money_-this-is-explained-in-the-following-quotation-_blockquote_to-henry-carey_-they-were-all-victims-of-the-british-system-a-form-of-political-economy-based-on-free-trade-and-the-gold-standard_-he-wrote-in-harmony-of-interests-in-1851_-two-systems-are-before-the-world-one-looks-to-underworked-working-under-paying-or-exploiting-the-hindu-and-sinking-the-rest-of-the-world-to-his-level_-the-other-to-raising-the-standard-of-man-through-the-world-to-our-level-one-looks-to-populism-ignorance-and-depopulation-and-barbarism_blockquote_-carey-was-tutored-by-benjamin-franklin_-he-saw-the-same-things-that-franklin-did_-notably-the-success-of-the-colonial-script_-his-view-is-explained-in-the-following-quotation_-_blockquote_carey-came-to-consider-free-trade-and-the-gold-standard-to-be-twinned-financial-weapons-forged-by-england-for-its-own-economic-conquest_-his-solution-to-the-gold-drain-was-for-the-government-to-create-an-independent-national-currency-that-was-non-exportable-one-that-would-remain-at-home-to-do-the-country_s-own-work_-he-advocated-a-currency-founded-on-a-national-credit_-something-he-defined-as-a-national-system-based-entirely-on-the-credit-of-the-government_-with-the-people-not-liable-to-interference-from-abroad_-like-the-wooden-tally-his-paper-money-would-simply-be-a-unit-of-account-that-tallied-work-performed-in-goods-delivered-as-thomas-edison-reasonably-observed-in-an-interview-reported-in-the-new-york-times-in-1921_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_karl-marx-was-a-political-economy-theorist_-he-was-lesser-known-for-his-views-on-banking_li_-_ul_-_h2_introduction_h2_-marx-had-some-strongly-negative-views-of-private-banking-as-is-expressed-in-the-following-quotation_-_blockquote_by-means-of-the-banking-system-the-distribution-of-capital-as-a-special-business_-a-social-function_-is-taken-out-of-the-hands-of-the-private-capitalists-and-usurers_-but-at-the-same-time_-banking-and-credit-become-the-most-effective-means-of-driving-capitalist-production-beyond-its-own-limits-and-one-of-the-most-effective-vehicles-of-crises-and-swindle_-_strong_-karl-marx-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_roubini-is-a-well-known-economist-and-author-of-black-swan_-he-had-interesting-things-to-say-about-bank-nationalization_li_-_ul_-_h2_introduction_h2_-roubini_s-interpretation-of-the-us-banking-system-is-expressed-in-the-following-quotation_-_blockquote_you-have-to-eventually-nationalize-us-banks_-you-have-to-take-the-problem-by-the-horns_-in-my-view-actually-most-of-the-us-banking-system-is-insolvent_strong_-_-nouriel-roubini-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_adam-smith-is-the-best-known-economist-of-all-time_-however_-he-is-also-the-most-misrepresented_li_-_ul_-_h2_introduction_h2_-smith-proposed-mercantilism-and-was-part-of-the-british-school-of-economics_-when-adam-smith-is-introduced-to-readers_-it-is-rare-that-what-school-of-thought-smith-belongs-to_-smith_s-book_-the-wealth-of-nations_-is-frequently-referred-to-as-the-greatest-book-in-economics_-but-many-people-clearly-lie-about-reading-it-as-it-is-written-in-17th-century-english_-which-is-extremely-difficult-to-read_-smith_s-work-is-reduced-down-to-_survival-of-the-fittest_-where-people-disregard-the-interest-of-others-and-only-pursue-their-own-interests_-and-that-this-somehow-leads-to-a-greater-good_-smith-would-be-appalled-by-how-his-ideas-have-been-distorted_-and-mostly-by-people-that-have-never-read-his-work_-there-is-essentially-a-hidden-history-of-many-economists-that-private-banking-interests-with-the-assistance-of-mainstream-economists-and-private-banking-interests-have-done-their-best-to-censor_-as-is-explained-in-the-following-quotation_-_blockquote_the-formulas-that-they-teach-don_t-have-government-in-them_-if-you-have-a-theory-that-everything-is-just-an-exchange_-a-trade_-and-that-there-isn_t-any-government_-then-you-have-a-theory-that-has-nothing-to-do-with-the-real-world_-and-if-you-assume-that-the-environment-remains-constant-instead-of-using-economics-to-guide-public-and-national-policy_-you_re-using-economics-for-the-opposite-of-what-the-classical-economists-did_-adam-smith_-mill_-marx_-veblen-_-they-all-developed-their-economic-theory-to-reform-the-world_-the-classical-economists-were-reformers_-they-wanted-to-free-society-from-the-legacy-of-feudalism-_-to-get-rid-of-land-rent_-to-take-money-creation-and-credit-creation-into-the-public-domain_-whatever-their-views_-whether-they-were-right-wingers-or-left-wingers_-whether-they-were-christian-socialists_-ricardian-socialists-or-marxian-socialists_-all-the-capitalist-theorists-of-the-19th-century-called-themselves-socialists_-because-they-saw-capitalism-as-evolving-into-socialism_-_strong_-michael-hudson-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-british-school-of-economics-is-an-extractive-type-of-economics-that-financialized-the-economy-and-is-based-upon-economic-domination_li_-_ul_-_h2_introduction_h2_-the-british-school-of-economics-was-one-where-the-country-practiced-mercantilism-and-treated-other-countries-as-if-they-were-colonies-and-actively-tried-to-push-them-into-this-role_-as-for-domestic-policy_-the-objective-is-to-push-the-vast-majority-of-workers-_the-non-elite-workers_-into-debt-peonage_-this-can-be-considered-a-typical-discussion-between-slavers-and-those-that-opposed-slavery_-https_www_youtube_com_watch_v_pwqm8khkfsk-what-is-curious-is-that-while-america-followed-the-american-school-of-economics_-it-started-off-with-slaves2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_dean-baker-is-a-highly-visible-critic-of-mainstream-economics_li_-_ul_-_h2_introduction_h2_-dean-baker-is-one-of-the-most-important-non-mainstream-economists-and-a-co-founder-of-cerp_-he-has-been-a-long-time-skeptic-of-the-political-focus-on-high-public-debt-and-one-of-his-areas-of-specialty-is-debunking-the-mainstream-media_s-highly-biased-coverage-of-financial-topics_-his-_beat-the-press-newsletter-goes-out-to-many-readers2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_john-maynard-keynes-was-an-economist-who-often-went-against-the-established-view_li_-_ul_-_h2_introduction_h2_-keynes-was-an-early-heterodox-economist-who-argued-against-austerity-when-austerity-concepts-were-as-popular-at-this-time-as-they-are-today_-he-was-also-one-of-the-most-influential-economists-of-all-time_-keynes-promoted-fdr-to-stimulate-the-economy-during-the-great-depression_-it-was-the-experience-of-advising-fdr-and-how-the-us-economy-responded-that-keynes-began-to-believe-that-the-us-greenback-system-the-us-had-previously-used-would-be-desirable-to-instantiate-again_-and-keynes-promoted-a-similar-debt-free-currency-for-the-international-monetary-fund_-which-was-called-the-bancor_-he-helped-design-the-imf_-but-the-imf-has-strayed-so-far-from-its-original-purpose_-today-keynes-would-barely-recognize-it-and-not-approve-of-what-it-has-become2024-07-05daily0.5https://realstoryonbanking.com/item/michael-hudson-is-one-of-the-most-important-non-mainstream-economists_-he-was-one-of-the-first-to-explain-how-ancient-debt-jubilees-worked-and-is-not-invited-onto-mainstream-media-outlets_-specifically-becauase-he-can-poke-holes-in-the-mainstream-economics-narratives_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-american-school-of-economics-was-the-school-of-economics-used-earlier-in-us-history_li_-_ul_-_h2_introduction_h2_-along-with-fredrick-list_-carey-was-the-leader-of-the-american-school-of-economics_-henry-clay-named-it-the-american-school-to-distinguish-it-from-the-british-school_-which-adam-smith-proposed_-the-american-school-of-economics-is-described-as-follows_-_blockquote_the-american-school_-also-known-as-the-national-system_-represents-three-different-yet-related-constructs-in-politics_-policy_-and-philosophy_-it-was-the-american-policy-from-the-1790s-to-the-1970s_-waxing-and-waning-in-actual-degrees-and-details-of-implementation_-the-american-school_s-key-elements-were-promoted-by-john-quincy-adams-and-his-national-republican-party_-henry-clay-and-the-whig-party_-and-abraham-lincoln-through-the-early-republican-party_-which-embraced_-implemented_-and-maintained-this-economic-system_-during-its-american-system-period_-the-united-states-grew-into-the-largest-economy-in-the-world-with-the-highest-standard-of-living_-surpassing-the-british-empire-by-the-1880s_-_strong_-wikipedia_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_american_school_economics_s_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_american_school_economics_s_a_strong_-the-american-school-and-thus-the-system-that-built-the-us-into-the-world_s-largest-economy-is-the-exact-opposite-of-neoliberalism_-it-is-based-upon-just-a-few-principles_-the-american-school-included-protectionism-_the-opposite-of-free-trade_-investing-in-infrastructure_-a-government-sponsored-central-bank-and-issuing-government-debt-free-fiat-money-_i_e_-the-greenback_-rejection-of-class-struggle_-government-support-for-domestic-science-and-education_-and-use-the-central-bank-to-stop-speculation_-however_-today-while-one-hears-of-neoliberalism-frequently_-it-is-as-if-the-american-school-never-existed-to-most-public-and-most-economists_-curiously_-alexander-hamilton_-who-was-considered-a-british-cat_s-paw-by-thomas-jefferson_-supported-the-american-school_-as-is-explained-in-the-following-quotation_-_blockquote_the-goal_-most-forcefully-articulated-by-hamilton_-was-to-ensure-that-dearly-won-political-independence-was-not-lost-by-being-economically-and-financially-dependent-on-the-powers-and-princes-of-europe_-the-creation-of-a-strong-central-government-able-to-promote-science_-invention_-industry_-and-commerce_-was-seen-as-an-essential-means-of-promoting-the-general-welfare-and-making-the-economy-of-the-united-states-strong-enough-for-them-to-determine-their-own-destiny_-_strong_-wikipedia_strong_blockquote_-there-is-not-a-single-youtube-video-book-entirely-dedicated-to-the-american-school-of-economics_-one-has-to-wonder-in-amazement-that-the-dominant-school-of-economics-until-the-1880s-has-so-little-coverage-today2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_steve-keen-is-one-of-the-most-important-non-mainstream-economists-in-the-world_li_-_ul_-_h2_introduction_h2_-dr_-keen_s-research-is-into-the-impact-of-private-debt-on-asset-bubbles-and-economic-growth_-he-is-one-of-the-few-mainstream-trained-economists-to-contradict-the-status-quo-explanations-related-to-public-debt-being-what-causes-countries-to-go-into-recessions_-keen-has-many-videos-at-his-youtube-channel_-but-this-is-one-example-where-he-lays-out-the-evidence-for-private-debt-being-the-primary-culprit-in-recessions_-https_www_youtube_com_watch_v_zc2t6x-gla02024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_modern-monetary-theory-is-the-central-banking-model-that-private-bankers-do-not-want-anyone-to-know-about_li_-_ul_-_h2_introduction_h2_-mmt-is-very-close-to-what-is-proposed-on-this-website_-but-it-works-with-the-existing-private-central-bank-design_-it-points-all-the-same-benefits-of-a-public-central-bank-but-appears-to-stop-just-short-of-calling-for-one_-mmt-has-significant-overlaps-with-keynesianism_-_h2_the-focus-on-mmt_h2_-mmt_s-major-focus-is-on-puncturing-what-it-considers-a-myth-that-deficit-spending-is-a-problem_-its-tenants-are-described-in-the-following-quotation_-_blockquote_the-government_-can-pay-for-goods_-services_-and-financial-assets-without-a-need-to-first-collect-money-in-the-form-of-taxes-or-debt-issuance-in-advance-of-such-purchases_-_the-government_-cannot-be-forced-to-default-on-debt-denominated-in-its-own-currency_-_the-government_-is-limited-in-its-money-creation-and-purchases-only-by-inflation_-which-accelerates-once-the-real-resources-_labor_-capital_-and-natural-resources_-of-the-economy-are-utilized-at-full-employment_-_the-government_-can-control-demand-pull-inflation_14_-by-taxation-which-removes-excess-money-from-circulation_-_the-government_-does-not-compete-with-the-private-sector-for-scarce-savings-by-issuing-bonds_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_modern_monetary_theory_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_modern_monetary_theory_a_strong_-_h2_who-wants-mmt-to-go-away_h2_-naturally_-mmt-is-despised-by-mainstream-economists-and-private-banking-interests-for-which-mainstream-economists-produce-pr_-mmt-is-also-explained-as-follows-_blockquote_mmt-says-monetarily-sovereign-countries-like-the-u_s_-u_k_-japan_-and-canada_-which-spend_-tax_-and-borrow-in-a-fiat-currency-they-fully-control_-are-not-operationally-constrained-by-revenues-when-it-comes-to-federal-government-spending_-put-simply_-such-governments-do-not-rely-on-taxes-or-borrowing-for-spending-since-they-can-print-as-much-as-they-need-and-are-the-monopoly-issuers-of-the-currency_-the-central-idea-of-mmt-is-that-governments-with-a-fiat-currency-system-under-their-control-can-and-should-print-_or-create-with-a-few-keystrokes-in-today_s-digital-age_-as-much-money-as-they-need-to-spend-because-they-cannot-go-broke-or-be-insolvent-unless-a-political-decision-to-do-so-is-taken_-_-_what-happens-if-you-were-to-go-to-your-local-irs-office-to-pay-your-taxes-with-actual-cash_-wrote-mmt-pioneer-warren-mosler-in-his-book-the-7-deadly-frauds-of-economic-policy-first_-you-would-hand-over-your-pile-of-currency-to-the-person-on-duty-as-payment_-next_-they_d-count-it_-give-you-a-receipt-and_-hopefully_-a-thank-you-for-helping-to-pay-for-social-security_-interest-on-the-national-debt_-and-the-iraq-war_-then_-after-you_-the-taxpayer_-left-the-room_-they_d-take-that-hard-earned-cash-you-just-forked-over-and-throw-it-in-a-shredder_blockquote_-mosler-is-interviewed-in-this-video_-https_www_youtube_com_watch_v_jgunpqybkzk-_blockquote_mmt-says-that-a-government-doesn_t-need-to-sell-bonds-to-borrow-money_-since-that-is-the-money-it-can-create-on-its-own_-the-government-sells-bonds-to-drain-excess-reserves-and-hit-its-overnight-interest-rate-target_-in-the-early-1990s-when-investors-were-afraid-italy-would-default_-mosler-understood-this-wasn_t-a-possibility_-his-firm-and-his-clients-became-the-largest-holders-of-italian-lira-denominated-bonds-outside-of-italy_-italy-did-not-default-and-they-made-_100-million-in-profits_-political-leaders-like-alexandria-ocasio-cortez-and-bernie-sanders-have-espoused-mmt_-and-economist-stephanie-kelton_-who-first-came-across-mosler_s-ideas-on-the-listserv-and-is-now-arguably-the-face-of-the-theory_-served-as-chief-economic-adviser-to-sanders-during-his-2016-presidential-campaign_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_investopedia_span_span_strong_-_strong_a-href_https_www_investopedia_com_modern-monetary-theory-mmt-4588060_-target_blank_-rel_noopener_https_www_investopedia_com_modern-monetary-theory-mmt-4588060_a_strong_-stephanie-kelton_-the-author-of-the-deficit-myth_-the-most-popular-book-on-mmt_-is-interviewed-by-jimmy-dore-in-this-video_-https_www_youtube_com_watch_v_5bakgv7zl5g-_em_steve-keen-covers-mmt-in-this-video_-_em_-https_www_youtube_com_watch_v_qyzkblotzjg-_em_this-is-another-good-video-on-mmt-with-stephanie-kelton_-_em_-https_youtu_be_mmuysv17t9m2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_knapp-created-the-state-credit-theory-of-money_li_-_ul_-_h2_introduction_h2_-proposed-that-money-was-whatever-the-ruler-or-government-said-money-was_-he-considered-money-to-be-inseparable-from-the-support-of-the-state_-knapp_s-theory-of-money-is-based-upon-social-convention-not-based-upon-the-inherent-value-of-the-currency_-this-is-why-his-theory-is-money-either-identical-or-nearly-identical-to-that-of-giacinto-auriti_s-seignorage-theory-of-money_-andnbsp2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_aurtiri-performed-a-test-that-supported-the-social-credit_seignorage_state-credit-theory-of-money_li_-_ul_-_h2_introduction_h2_-aurtiri-was-a-proponent-of-public-central-banks-and-a-theory-of-money-he-called-seigniorage_-which-looks-at-money-from-the-perspective-of-law_-seignorage-is-very-similar-to-george-friedrich-knapp_s-theory-of-money-as-being-whatever-the-government-said-money-was_-he-coordinated-with-a-mayor-of-a-city-and-shopkeepers-and-performed-the-experiment-to-prove-his-point-creating-the-currency-called-the-simec_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-seignorage-theory-of-money-is-that-money-based-upon-social-credit_li_-_ul_-_h2_introduction_h2_-promoted-by-giacinto-auriti_-it-is-explained-in-the-following-quotation_-_blockquote_this-is-explained-in-the-following-quotation-_his-theory-is-that-those-who-accept-the-convention-of-a-currency_s-value_-have-the-right-to-own-it-at-its-inception-_the-people_s-ownership-of-money_-in-this-sense_-the-central-banks-are-private-corporations_-who-according-to-auriti-derive-undue-profits-from-seigniorage-on-the-issue-of-paper-money_-assuming-responsibility-for-an-important-source-of-public-debt_-auriti_s-theory-viewed-the-issued-banknotes-as-mere-promissory-notes-and-false-bills-of-exchange-issued-by-the-banks_-it-was-considered-false-because-the-bank-promise-gold-that-it-did-not-have_2_-instead-of-gold_-auriti-argued-that-the-currency-has-an-induced-value-and-prediction-value_-which-are-created-by-social-convention_-the-bank-of-italy-opposed-the-request_-consequently_-auriti-wrote_-_the-vision-of-the-currency-and-monetary-functions-which-the-petitioner-intends-to-credit-is-clearly-distorted-and-completely-unfounded_-_-_acceptance-by-the-community_-far-from-being-due-to-the-value-of-the-coin_-it-is-really-just-the-effect_-so-the-syllogism-must-be-reversed_-it-is-true-that-the-currency-is-accepted-as-true_-but-if-anything_-as-the-story-and-the-news-are-demonstrating-that-it-is-only-accepted-as-having-value_-hence-the-need-for-this-value_-responding-to-a-fundamental-public-interest_-should-be-defended-and-guaranteed-by-public-authorities_-were-assigned-to-function-in-modern-central-banks_-_strong_-wikipedia_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_giacinto_auriti_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_giacinto_auriti_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_king-george-ii-was-very-important-in-us-history_li_-_ul_-_h2_introduction_h2_-the-us-revolutionary-war-occurred-under-king-george-ii_-king-george-ii-made-it-illegal-for-the-us-colonies-to-issue-colonial-script2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_king-george-iii-was-very-important-in-us-history_li_-_ul_-_h2_introduction_h2_-king-george-iii-used-british-banking-interests-to-maintain-control-over-america-after-losing-the-war_-while-the-british-admitted-military-defeat_-they-continued-undermining-the-us-and-pushing-them-away-from-creating-their-own-money_-the-british-and-european-banking-interests-were-petrified-of-the-us-becoming-an-exemplar-of-the-common-good-from-a-public-central-bank2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_napolean-had-a-view-on-the-private-banking-and-money-issue-that-is-little-discussed_li_-_ul_-_h2_introduction_h2_-napolean-opposed-private-banking-interests-and-wanted-france-to-issue-its-own-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_hitler-had-germany-create-its-own-debt-free-money_li_-_ul_-_h2_introduction_h2_-opposed-private-banking-interests_-which-he-also-connected-to-international-domination-by-jewish-bankers_-hitler-had-the-german-government-issue-debt-free-money-based-upon-lincoln_s-greenbacks_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_neoliberalism-is-an-elite-model-of-exploitive-economics-in-line-with-the-british-school-of-economics_li_-_ul_-_h2_introduction_h2_-neoliberalism-is-a-political-philosophy-that-is-highly-connected-to-private-banking-interests_-it-is-the-dominant-philosophy-of-both-the-us-democratic-party-and-republican-party_-neoliberalism-is-marked-by-globalism-and-low-taxes-for-corporations_-using-free-markets-to-justify-elite-interests-exploiting-nonelite_-neoliberalism-is-about-constant-competition-against-workers_-competition-is-caused-by-high-degrees-of-trade_-which-causes-competition-from-import-goods_-and-supporting-mass-immigration_-this-brings-in-people-from-developing-countries-to-wealthier-countries_-bringing-down-wages-in-wealthier-countries_-this-is_-of-course_-the-policies-of-the-eu_-people-or-countries-that-do-not-agree-to-follow-neoliberalism-are-called-racists-for-not-wanting-the-drive-down-wages-with-these-policies_-for-example_-brexiters-in-england-were-not-allowed-to-vote-for-leaving-the-eu-without-being-character-assassinated-and-called-racists_-in-the-us_-if-you-oppose-not-only-immigration-but-illegal-immigration-_which-comes-from-developing-countries_-you-are-also-called-a-racist_-died-in-the-wool_-democrats-will-turn-a-blind-eye-to-the-connections-between-private-banking-interests_-and-the-democrats-will-be-quick-to-call-those-that-oppose-low-wage-immigration-_disgusting_-in-her-now-famous-speech_-hillary-clinton_-highly-connected-to-wall-street-and-also-to-the-indian-h1-b-lobby_-called-1_2-of-trump-supporters-the-_basket-of-deplorables_-https_www_youtube_com_watch_v_idrgiaek2vs-however_-it-was-not-just-trump-supporters-but-those-that-supported-bernie-sanders_-sanders-supporters-were-called-sexists-for-opposing-the-progress-that-a-woman-candidate-would-provide_-neoliberalism-is-also-marked-by-both-high-competition-among-labor-and-a-lack-of-competition-among-the-elites_-while-posing-as-progressive_-neoliberals-completely-ignore-the-treatment-of-workers_-in-fact_-in-the-book-by-thomas-frank-called-listen-liberal_-he-explains-how-the-democrats-began-to-disdain-normal-workers-in-the-1990s-under-bill-clinton_-this-was-under-the-_new-democrats_-model_-where-democrats-would-go-upmarket-and-cater-to-the-most-educated-workers_-not-blue-collar-workers_-who-had-been-the-base-of-the-democratic-party_-bill-clinton_-of-course_-pushed-forward-nafta-and-china_s-admission-into-the-most-favored-nation-status_-any-concerns-around-labor-standards-or-what-would-happen-to-us-workers-have-been-brushed-away-as-xenophobia_-when-manufacturing-moved-to-china-and-mexico_-which-have-very-poor-labor-protections-and-meager-wages_-neoliberals-never-bring-up-the-net-reduction-in-labor-standards_-it-is-literally-_off-the-books_-neoliberalism-pushes-for-more-open-borders_-through-neoliberal-institutions-like-the-eu-and-the-imf_-it-pushes-balanced-budget-fiscal-policy-onto-countries_-leading-to-economic-decline_-this-produces-a-large-number-of-economic-migrants-that-seek-to-immigrate-to-other-countries_-this-is-exactly-what-has-occurred-in-the-eu_-with-countries-like-greece-and-croatia-having-the-countrysides-emptied-of-their-young-people_-they-then-either-immigrate-to-the-capital-of-the-country-or-countries-like-germany-and-england_-neoliberals-will-normally-utter-what-amounts-to-vacuous-claims-of-benefits-using-words-like-_progress_-_free-markets_-etc_-these-are-designed-to-hypnotize-the-audience_-neoliberalism-is-central-planning-by-private-banking-interests-with-the-government-pushed-to-the-side_-this-is-explained-in-the-following-quotation_-_blockquote_but-what-you-now-have_-since-world-war-i_-is-a-reaction-against-this_-stripping-away-of-the-idea-that-governments-have-a-productive-role-to-play_-if-government-is-not-the-director-and-planner-of-the-economy_-then-who-is_-it_s-the-financial-sector_-it_s-wall-street_-so-the-essence-of-neoliberalism-that-you-were-mentioning-before_-is-indeed-a-doctrine-of-central-planning_-it-states-that-the-central-planning-should-be-done-by-wall-street_-by-the-financial-sector_-_strong_-michael-hudson_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_neoliberalism-is-an-elite-model-of-exploitive-economics-in-line-with-the-british-school-of-economics_li_-_ul_-_h2_introduction_h2_-charles-linburgh-was-very-much-opposed-to-the-creation-of-the-fed_-this-is-expressed-in-the-following-quotation-_blockquote_the-financial-system-has-been-turned-over-to-the-federal-reserve-board_-that-board-administers-the-finance-system-by-authority-of-a-purely-profiteering-group_-the-system-is-private_-conducted-for-the-sole-purpose-of-obtaining-the-greatest-possible-profits-from-the-use-of-other-people_s-money_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_alan-grayson-is-one-of-the-few-politicians-to-have-effectively-questioned-and-challenged-private-banking-interests_li_-_ul_-_h2_introduction_h2_-grayson-displayed-a-level-of-grit-and-willingness-to-confront-corrupt-banking-interests-that-make-him-a-throwback-to-the-tradition-of-earlier-us-politicians_-grayson-stood-out-for-his-ability-to-pull-back-the-veil-and-multiple-aspects-of-the-banking-industry_-the-following-videos-are-one-of-the-only-times-that-the-fed-has-challenged-the-us-federal-reserve-chairman_-the-fed-is-constantly-overstepping-its-authority-and-operates-in-near-secrecy_-it-allows-private-banks-to-move-derivatives-over-to-the-us-balance-sheet-that-it-prices-without-any-concern-for-the-value-of-the-derivative_-private-banks-receive-interest-free-money-from-the-fed_-the-entirety-of-the-fed-is-to-serve-as-a-dispenser-of-benefits-to-private-banks-and-connected-private-banks-in-particular_-local-credit-unions-do-not-receive-the-same-largess_-and-credit-unions-are-not-required-to-be-perpetually-bailed-out-by-the-us-government_-https_www_youtube_com_watch_v_jjxcm3w4ha-in-the-following-video_-grayson-again-critiques-the-uses-of-money-by-the-fed_-https_www_youtube_com_watch_v_pe3oikuu8ui-this-video-shows-how-the-fed-accepts-bad-assets-from-private-banks_-in-this-way_-the-fed-is-a-_garbage-collector_-for-the-mistakes-of-private-banks_-private-banks-create-garbage-every-year_-and-when-they-want-to-get-rid-of-these-assets_-the-fed-serves-as-their-garbage-bin_-grayson-asks-more-questions-about-transparency-into-what-the-fed-is-doing_-https_www_youtube_com_watch_v_mj0jafq4esk-here-fox-news-states-that-people-being-foreclosed-upon_-even-illegally_-_do-not-need-grayson_s-help_-the-commentator-entirely-accepts-that-due-to-_slicing-and-dicing_-mortgages_-_it_s-difficult-to-see-who-owns-the-mortgages_-this-is-a-peculiar-thing-to-say_-if-the-bank-followed-through-on-documentation-requirements_-they-would-certainly-know_-secondly_-this-begs-the-question_-if-law-firms-foreclosing-on-people-who-don_t-know-what-bank-owns-the-mortgage_-why-are-they-initiating-foreclosure-procedures_-wouldn_t-it-make-sense-to-wait-until-they-can-determine-when-the-entity-owns-the-mortgage-before-foreclosing-on-them_-the-fact-is-that-many-of-these-foreclosure-mills-were-forging-documents-to-make-up-for-the-fact-that-they-could-not-determine-ownership_-however_-according-to-the-commentator_-politicians-should-not-be-pointing-out-the-massive-fraud-being-conducted-on-the-private-banking-industry_-this-is-typical-of-the-financial-media-coverage-as-it-is-nearly-universally-supportive-of-private-banking-interests_-one-can-view-the-pushback-grayson-receives-in-asking-questions-even-among-other-members-of-congress-in-this-video_-https_www_youtube_com_watch_v_akz5zhm8kfm-it-is-impossible-to-answers-from-the-fed_-they-refuse-to-answer-as-this-video-which-has-alan-greyson-asking-the-inspector-general-of-the-fed_-demonstrates2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_bernies-sanders-is-one-of-the-few-politicians-to-have-effectively-questioned-and-challenged-private-banking-interests_li_-_ul_-_h2_introduction_h2_-opposes-the-lack-of-transparency-of-the-fed_-this-is-shown-in-this-video_-https_www_youtube_com_watch_v_dx2qvbzngkm2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-resolute-opponent-of-the-federal-reserve-and-private-banking-who-was-a-banker-himself_li_-_ul_-_h2_introduction_h2_-for-most-of-his-career_-mcfadden-aggressively-opposed-a-private-central-bank_-which-is-curious-as-he-brought-more-banking-knowledge-than-nearly-any-other-politician-who-was-a-private-banking-opponent-as-he-worked-several-decades-in-a-bank_-and-was-the-president-of-a-bank-before-being-elected-to-the-us-congress_-the-mcfadden-act-renewed-the-charter-of-the-federal-reserve-in-1927_-the-fed_s-charter-had-been-set-to-expire-in-1934_-however_-before-too-long_-mcfadden-became-one-of-the_strong_span-style_color_-_e03e2d_-most-vociferous-critics-of-the-fed_span_span-style_color_-_e03e2d_-_span_strong_-this-article-_a-href_https_www_federalreservehistory_org_essays_mcfadden-act_footnote2_-target_blank_-rel_noopener_strong_https_www_federalreservehistory_org_essays_mcfadden-act_footnote2_strong_a_-on-the-fed_s-website-discusses-mcfadden-and-this-legislation-but-for-some-reason-leaves-out-the-scathing-criticism-mcfadden-leveled-against-the-fed-just-a-few-years-late_-a-quote-from-him-is-explanatory-of-his-view-of-the-federal-reserve_-_h2_mcfadden-on-the-federal-reserve_h2_-_blockquote_some-people-think-that-the-federal-reserve-banks-are-united-states-government-institutions_-that-they-are-private-monopolies_-which-prey-upon-the-people-of-the-united-states-for-benefit-of-themselves-and-their-foreign-customers_-foreign-and-domestic-speculators-and-swindlers-and-rich-and-predatory-money-lenders_-in-that-dark-crew_-financial-pirates_-there-are-those-who-would-cut-a-man_s-throat-to-get-_1-out-of-his-pocket_-there-are-those-who-send-money-into-states-to-buy-votes-to-control-our-legislatures_-there-are-those-who-maintain-international-propaganda-for-the-purpose-of-deceiving-us-into-granting-new-concessions_-which-will-permit-them-to-cover-up-their-past-misdeeds-and-set-again-in-motion-their-gigantic-train-of-crime_-these-12-private-credit-monopolies-were-deceitfully-and-disloyalty_-foisted-upon-the-country-by-the-bankers-who-came-here-from-europe-and-repaid-our-hospitality-by-undermining-our-american-institutions_blockquote_-_h2_mcfadden-on-the-fed-draining-the-gold-of-the-us-government_h2_-mcfadden-accused-the-fed-of-draining-the-gold-of-the-us-government_-_blockquote_mcfadden-charged-in-a-1934-address-to-congress_-he-is-preparing-to-cancel-the-war-debts-by-fraud_-he-told-congress_-there-was-no-national-emergency-when-fdr-took-office-exam-in-the-bankruptcy-of-the-fed-a-bankruptcy-which-has-been-going-on-under-cover-for-several-years-and-which-has-been-concealed-from-the-people-so-that-the-people-would-continue-to-permit-their-bank-deposits-and-their-bank-reserves-and-their-gold-and-the-funds-of-the-united-states-treasury-to-be-impounded-in-the-bankrupt-institution_-undercover-the-predatory-international-bankers-have-been-stealthily-transferring-the-burden-of-the-fed-debts-to-the-people_s-treasury_-and-to-the-people-themselves_-they-took-the-farms-in-the-homes-of-the-united-states-to-pay-for-their-thievery_-that-is-the-only-national-emergency-that-there-has-ever-been-here-since-the-depression-began_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-mcfadden-went-on-a-rampage-against-the-fed-and-private-banking-interests-as-is-covered-in-the-following-quotation_-_h2_mcfadden-on-jewish-banking-interests-concentrated-at-the-federal-reserve_h2_-_blockquote_which-he-claimed-was-created-and-operated-by-jewish-banking-interests-who-conspired-to-economically-control-the-united-states_-in-a-speech-in-the-house-of-representatives-in-december-1931_-mcfadden-accused-paul-warburg_-one-of-the-leading-forces-behind-the-federal-reserve-act_-of-_having-engineered-the-great-depression_5_6_-on-june-10_-1932_-mcfadden-made-a-25-minute-speech-before-the-house-of-representatives_-in-which-he-accused-the-federal-reserve-of-deliberately-causing-the-great-depression_-mcfadden-also-claimed-that-wall-street-bankers-funded-the-bolshevik-revolution-through-the-federal-reserve-banks-and-the-european-central-banks-with-which-it-cooperated_-_this-has-been-verified_-after-the-expulsion-from-washington_-d_c_-of-the-veteran-petitioners-of-the-bonus-army_-which-he-called-_the-greatest-crime-in-modern-history_-mcfadden-moved-to-impeach-president-herbert-hoover-in-1932_-and-he-also-introduced-a-resolution-bringing-conspiracy-charges-against-the-board-of-governors-of-the-federal-reserve_-the-impeachment-resolution-was-defeated-by-a-vote-of-361-to-8_-it-was-seen-as-a-big-vote-of-confidence-to-president-hoover-from-the-house_-according-to-time-magazine_-mcfadden-was-_denounced-and-condemned-by-all-republicans-for-his-_contemptible-gesture_-the-central-press-association-reported-that-he-was-_virtually-read-out-of-his-party-_-_had_-his-committee-posts-_-taken-away-from-him_was-ostracized-by-republicans-_and_-called-crazy-_11_-sen_-david-a_-reed-_r-pa_-said-_we-intend-to-act-to-all-practical-purposes-as-though-mcfadden-had-died_blockquote_-this-is-natural_-as-mcfadden-was-a-republican-and-republicans-were-normally-in-favor-of-private-banking-interests_-_blockquote_in-1933_-he-introduced-house-resolution-no_-158_-which-included-articles-of-impeachment-for-the-secretary-of-the-treasury_-two-assistant-secretaries-of-the-treasury_-the-board-of-governors-of-the-federal-reserve_-and-the-officers-and-directors-of-its-twelve-regional-banks_-in-1934_-he-made-several-anti-semitic-comments-from-the-floor-of-the-house-and-in-newsletters-to-his-constituents-wherein-he-cited-the-protocols-of-the-elders-of-zion_-claimed-the-roosevelt-administration-was-controlled-by-jews_-and-objected-to-henry-morgenthau_-jr_-a-jew_-becoming-secretary-of-the-treasury_-drew-pearson-claimed-in-his-_washington-merry-go-round_-column-that_-in-a-publication-by-the-american-fascist-silver-shirts_-mcfadden-had-been-_extensively_-quoted-_in-support-of-adolf-hitler_-in-september-the-nazi-tabloid-der-stuermer-praised-mcfadden_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_louis_thomas_mcfadden_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_louis_thomas_mcfadden_a_strong_-_h2_mcfadden-on-the-fed_s-relationship-with-the-bank-of-international-settlements_h2_-this-was-mcfadden_s-view-of-the-fed_s-cozy-relationship-with-the-bis_-_blockquote_the-federal-reserve-bank-of-new-york-is-eager-to-enter-into-close-relationship-with-the-bank-for-international-settlements_the-conclusion-is-impossible-to-escape-that-the-state-and-treasury-departments-are-willing-to-pool-the-banking-system-of-europe-and-america_-setting-up-a-world-financial-power-independent-of-and-above-the-government-of-the-united-states_the-united-states-under-present-conditions-will-be-transformed-from-the-most-active-of-manufacturing-nations-into-a-consuming-and-importing-nation-with-a-balance-of-trade-against-it_-_-louis-thomas-mcfadden-_-az-quotes_blockquote_-what-is-curious-is-that-the-fed-later-began-loaning-money-to-european-central-banks_-for-which-it-is-difficult-to-see-where-the-fed-obtained-this-authority_-as-is-covered-in-this-interview-of-ben-bernake-by-alan-grayson_-_strong_a-href_https_www_youtube_com_watch_v_jjxcm3w4haandamp_t_22s_-target_blank_-rel_noopener_https_www_youtube_com_watch_v_jjxcm3w4haandamp_t_22s_a_strong_-_h3_was-mcfadden-poisoned-and-murdered-by-private-banking-interests_h3_-as-is-most-often-the-case-for-those-that-stand-up-to-private-banking-interests_-mcfadden-both-had-failed-attempts-on-his-life-and-was-most-likely-poisoned-as-is-explained-in-the-following-quotation_-_blockquote_it-became-known-among-his-intimates-that-he-had-suffered-two-attacks-against-his-life_-the-first-attack-came-in-the-form-of-two-revolver-shots-fired-at-him-from-ambushes_-he-was-lighting-from-a-cab-in-front-of-one-of-the-capitol-hotels_-fortunately_-both-shots-missed_-but-the-bullets-buried-themselves-in-the-structure-of-the-cab_-he-became-violently-ill-after-partaking-the-food-at-a-political-banquet-in-washington_-his-life-was-only-saved-from-what-was-subsequently-announced-as-poisoning-by-the-presence-of-a-physician-in-front-of-the-banquet_-who-at-once-procure-to-stomach-pump-subjugated-and-subjected-the-congressman-to-emergency-treatment_blockquote_-the-theory-that-mcfadden-was-poisoned-by-private-banking-interests-that-were-protecting-the-fed-is-nowhere-to-be-found-on-the-federal-reserve_s-profile-of-mcfadden_-only-his-support-of-the-fed-through-the-mcfadden-act_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_wight-patman-was-one-of-the-few-politicians-to-have-effectively-questioned-and-challenged-private-banking-interests_li_-_ul_-_h2_introduction_h2_-patman_s-view-of-the-fed-is-explained-in-this-quotation_-_blockquote_i-have-never-yet-had-anyone-who-could_-through-the-use-of-logic-and-reason_-justify-the-federal-government-borrowing-the-use-of-its-own-money_-i-believe-the-time-will-come-when-people-will-demand-that-this-be-changed_-i-believe-the-time-will-come-in-this-country-when-they-will-actually-blame-you-and-me-and-everyone-else-connected-with-the-congress-for-sitting-idly-by-and-permitting-such-an-idiotic-system-to-continue_-_strong_-az-quotes_strong_blockquote_-and-_blockquote_the-dollar-represents-a-one-dollar-debt-to-the-federal-reserve-system_-the-federal-reserve-banks-create-money-out-of-thin-air-to-buy-government-bonds-from-the-u_s_-treasury_and-has-created-out-of-nothing-a-_-debt-which-the-american-people-are-obliged-to-pay-with-interest_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_benjamin-franklin-was-an-early-promoter-of-debt-free-money-in-the-us-colonies_li_-_ul_-_h2_introduction_h2_-franklin-was-the-one-who-communicated-to-england-why-the-colonies-were-so-prosperous-and-connected-it-directly-to-the-colonies-creating-their-own-debt-free-money_-franklin-observed-the-difference-before-and-after-colonial-paper-money-was-outlawed-by-king-george-ii_-this-quote-explains-what-franklin-explained-to-the-british_-_blockquote_franklin-said-that_-_we-have-no-poor-houses-in-the-colonies-and-if-we-had-some-there-would-be-nobody-to-put-them-in_-since-there-is-in-the-colonies_-not-a-single-unemployed-person_-neither-beggar-nor-tramp_-the-english-had-listeners-had-trouble-believing-this-and-started-poor-houses-and-jails-were-had-become-to-clutter_-the-english-had-actually-shipped-their-poor-to-the-colonies_-when-the-directors-of-the-bank-of-england-asked-who-was-responsible-for-the-booming-economy-the-young-colonies-had_-franklin-reportedly-replied_-_that-is-simple_-in-the-colonies-we-issue-our-own-money_-it-is-called-the-colonial-script-we-issue-with-the-pay-the-government_s-approved-expenses-and-charities-we-make-sure-it-is-issued-in-proper-proportions-to-make-the-goods-pass-easily-from-the-producer-to-the-consumer_-in-this-manner_-grading-for-ourselves-our-own-paper-money_-we-control-its-purchasing-power_-and-we-have-no-interest-to-pay-to-know-what-you-see-a-legitimate-government-can-both-spend-and-lend-money-into-the-circulation_-while-banks-can-only-lend-significant-amounts-of-their-promissory-notes_-for-they-can-neither-give-away-nor-spam-but-a-tiny-fraction-of-the-money-that-people-need_-thus_-when-your-bankers-here-in-england-place-money-in-circulation_-there-is-always-a-debt-principle-to-be-returned-and-usually-to-be-paid_-the-result-is-that-you-always-have-too-little-credit-in-circulation-to-give-workers-full-employment_-you-do-not-have-too-many-workers-you-have-too-little-money-in-circulation_-and-that-which-circulates-all-bears-the-endless-burden-of-unpayable-debt-and-usury_-after-extolling-the-benefits-of-colonial-script-to-the-citizens-of-pennsylvania_-franklin-reportedly-told-his-listeners_-new-york-and-new-jersey-have-also-increased-greatly-during-the-same-period-with-the-use-of-paper-money_-so-that-it-does-not-appear-to-be-of-the-ruinous-nature-ascribed-to-it_-_strong_-the-web-of-debt_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-rather-than-copying-the-us-colonies_-private-banking-interests-in-england-lobbied-to-make-the-colonial-script-illegal_-this-led-to-a-depression-in-the-us-colonies_-this-led-his-mentee_-henry-clay_-to-support-the-us-government-in-creating-its-own-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-party-was-created-to-promote-the-creation-of-debt-free-money_li_-_ul_-_h2_introduction_h2_-the-greenback-party-was-formed-in-1874-by-farmers-which-proposed-that-the-us-government-pull-itself-out-of-the-depression-by-issuing-debt-free-greenbacks-just-as-lincoln-had-done2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_lincoln-created-debt-free-money-during-the-civil-war-called-the-greenback_li_-_ul_-_h2_introduction_h2_-lincoln-created-the-greenback-and-wanted-the-us-government-to-issue-its-own-money_-an-idea-by-richard-taylor_-lincoln-allowed-passage-of-the-national-bank-act_-which-allowed-private-banks-to-create_-which-lincoln-opposed-and-would-have-likely-reversed_-lincoln_s-view-of-money-creation-is-found-in-this-quote_-_blockquote_the-government-should-create-a-issue-and-circulate_-all-of-the-currency-and-credit-needed-to-satisfy-the-spending-power-of-the-government-and-the-buying-powers-of-the-consumers_-the-privilege-of-creating-and-issuing-money-is-not-only-the-supreme-prerogative-of-the-government_-but-it-is-the-government_s-greatest-creative-opportunity-by-the-adoption-of-these-principles-along-felt-once-for-the-uniform-medium-will-be-satisfied_-the-taxpayers-will-be-saved-immense-sums-of-interest-discounts-and-exchanges_-the-financing-of-all-public-enterprise-and-the-maintenance-of-stable-government_-and-ordered-progress-and-the-conduct-of-the-treasury-will-become-matters-of-practical-administration_-money-will-cease-to-be-the-master-and-become-the-servant-of-humanity-democracy-will-rise-superior-to-the-money-power-from-the-senate_-_-_strong_-az-quotes_strong_blockquote_-_h2_lincoln-viewed-debt-free-money-as-greenbacks-as-a-temporary-solution_h2_-it-is-curious-that-lincoln_-after-his-positive-experience-with-debt-free-greenbacks-would-say-the-following_-_blockquote_a-return-to-specie-payments_-however_-at-the-earliest-period-compatible-with-due-regard-to-all-interests-concerned-should-ever-be-kept-in-view_-lincoln-was-a-reluctant-adopter-of-paper-currency-and-was-eager-to-return-to-the-safer-and-more-stable-specie-currency_-which-secretary-of-state-hugh-mcculloch-eventually-did-in-1866-after-lincoln_s-assassination_-it-would-not-be-until-1971-and-president-nixon_s-need-to-fund-the-vietnam-war-that-the-united-states-would-go-back-to-fiat-currency-for-good-and-fully-abandon-specie-backed-currency_-president-lincoln-was_-however_-an-advocate-of-national-banking_-which-provided-a-more-permanent-solution-to-the-nation_s-funding-problems_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_was-lincoln-assinated-by-private-banking-interests_h2_-john-wilks-booth-was-put-up-to-assassinate-lincoln-by-private-banking-interests-as-retaliation_-this-was-to-both-re-establish-a-private-central-bank-and-put-the-us-on-the-gold-standard_-critics-of-this-hypothesis-might-say-that-this-is-a-_conspiracy-theory_-here-is-what-lincoln-thought-of-private-banking-interests_-_blockquote_i-have-two-great-enemies_-the-southern-army-in-front-of-me-and-the-bankers-in-the-rear_-of-the-two_-the-one-at-my-rear-is-my-greatest-foe_-_strong_-az-quotes_strong_blockquote_-this-quote-is-from-german-chancellor-otto-von-bismark-after-lincoln_s-assassination-_blockquote_the-death-of-lincoln-was-a-disaster-for-christendom_-there-was-no-man-in-the-united-states-great-enough-to-wear-his-boots_-i-fear-that-foreign-bankers-with-their-craftiness-and-tortuous-tricks-will-entirely-control-the-exuberant-riches-of-america_-and-use-it-systematically-to-corrupt-modern-civilization_-they-will-not-hesitate-to-plunge-the-whole-of-christendom-into-wars-and-chaos-in-order-that-the-earth-should-become-their-inheritance_-_strong_-the-money-masters_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-proponent-of-both-a-national-and-a-privately-controlled-central-bank_li_-_li_hamilton-clashed-with-jefferson-and-others-who-opposed-the-control-such-a-bank-would-have-over-society_li_-_ul_-_h2_introduction_h2_-the-first-head-of-the-treasury_-wanted-a-private-central-bank_-hamilton-had-the-natural-tendencies-of-deception-to-make-him-a-private-banker_-this-is-explained-in-the-following-quotation_-_blockquote_the-first-bank-of-the-united-states-was-modeled-on-the-bank-of-england_-and-the-same-private-bank-against-which-the-colonialist-had-rebelled_-years-later_-jefferson-would-say-that-hamilton-had-tricked-him-into-approving-the-bank_s-charter_-jefferson-stated-the-following-about-hamilton_s-bookkeeping-_i-do-not-at-all-wonder-at-the-condition-in-which-the-finances-of-the-united-states-are-found_-hamilton_s-object-from-the-beginning-was-to-throw-them-into-forms_-which-should-be-utterly-indecipherable_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_jackson-was-a-strong-opponent-of-private-banking-interests_li_-_ul_-_h2_introduction_h2_-jackson-abolished-the-second-private-banking-controlled-central-bank_-but-did-not-institute-a-public-central-bank_-this-led-to-chaos_-with-states-issuing-their-own-currencies_-he-considered-killing-the-private-central-bank-his-most-important-presidential-accomplishment_-however_-while-he-supported-a-debt-free-government-issued-currency_-he-took-the-southern-position-against-the-american-school-of-economics_-which-promoted-tariffs-and-major-infrastructure-investments_-jackson_s-view-of-banking-is-expressed-in-the-following-quotation_-_blockquote_you-are-a-den-of-vipers_-i-intend-to-rout-you-out-and-by-the-eternal-god-i-will-rout-you-out_-if-the-people-only-understood-the-rank-injustice-of-our-money-and-banking-system_-there-would-be-a-revolution-before-morning_-_strong_-andrew-jackson-_-az-quotes_strong_blockquote_-_h2_andrew-jackson_s-error_h2_-jackson-did-not-understand-that-while-a-private-central-bank-_which-was-the-design-of-the-second-bank-of-the-united-states_-was-an-enormous-liability_-the-country-did-need-a-central-bank_-and-he-could-have-created-a-public-central-bank_-this-error-of-having-no-central-bank-is-expressed-in-the-following-quotation_-_blockquote_senator-thomas-hart-benton-of-missouri-stated-in-1831_-_i-object-to-the-renewal-of-the-charter-of-the-bank-of-the-united-states-because-i-look-upon-the-bank-as-an-institution-too-great-and-powerful-to-be-tolerated-in-a-government-of-free-and-equal-laws_-its-power-is-that-of-a-purse_-a-power-more-potent-than-the-sword_-a-strong-coalition-of-small-bankers-and-farmers-and-their-strong-ally-in-the-white-house-led-the-charge_-and-in-1836_-the-second-bank_s-twenty-year-charter-was-allowed-to-expire_-jackson_s-fears-were-naive-and-misguided_-he-thought-that-by-killing-the-central-bank_-he-was-diminishing-private-bank-power-and-elevating-_the-people_-in-fact_-without-a-central-bank-to-provide-liquidity-and-stability_-the-nation-would-enter-an-era-of-repeated-banking-crises_-historian-charles-geisst-explained_-_by-curtailing-the-development-of-a-central-bank_-the-commercial-banking-institutions-of-the-day-were-given-more-de-facto-power-over-their-own-states_-banking-systems-than-otherwise-might-have-been-the-case_-investment-firms-took-advantage-of-the-federal-government_s-absence-from-the-banking-sphere-to-enter-unregulated-securities-and-bonds-markets_-creating-unstable-and-panic-ridden-financial-markets-that-otherwise-could-have-been-supervised-and-overseen-by-a-strong-central-bank-that-had-the-nation_s-financial-health-as-its-first-priority_-still_-jackson-felt-empowered-to-get-rid-of-the-bank_-based-on-his-fears_-government-policies_-no-matter-how-erroneous_-trumped-bank-profitability_-it-is-important-to-point-out-the-stakes-in-these-early-debates_-both-advocates-and-opponents-of-the-early-banks-recognized-that-national-and-centralized-banking-could-solve-formidable-financial-problems-and-increase-credit-to-both-the-government-and-the-populace_-the-debates-surrounding-these-banks-did-not-focus-on-the-profitability-or-success-of-the-bank-itself_-but-about-what-a-national-bank-meant-for-the-country_-it-was-a-debate-about-the-nature-of-the-democracy_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-in-essence_-jackson-moved-to-an-unregulated-banking-system-and-never-replaced-the-second-bank-of-the-united-states-with-another-centralized-entity2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_obama-was-hand-selected-by-and-a-tool-of-private-banking-interests_li_-_ul_-_h2_introduction_h2_-it-is-difficult-to-draw-a-distinction-between-bill-clinton-and-barack-obama_-obama-used-many-of-the-same-people-that-were-used-by-bill-clinton-when-he-was-in-office_-a-neoliberal_-obama-responded-to-the-2008-subprime-financial-crisis-by-approving-of-massive-bailouts-for-private-bankers-and-allowing-even-more-consolidation-of-banks_-obama-ran-as-a-populist_-but-once-in-office_-he-governed-as-if-he-was-both-a-tool-of-the-private-banks-and-the-military-industrial-complex_-there-is-a-humorous-hypothesis-that-obama-had-a-twin_-and-they-were-copresidents_-the-good-obama-focused-on-giving-high-minded-populist-and-speeches-and-appearing-to-be-reasonable_-meanwhile_-obama_s-evil-twin-barack-made-all-of-the-decisions2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_biden-owed-his-political-career-to-private-banking-interests_li_-_ul_-_h2_introduction_h2_-biden-was-a-longtime-senator-from-delaware-before-becoming-vice-president-under-obama-and-then-president_-deleware-is-where-most-of-the-companies-in-the-us-are-incorporated-and-is-a-credit-card-hub-of-the-us-due-to-private-banking-friendly-laws-which-are-highly-negative-for-credit-card-consumers_-delaware-is-a-type-of-_offshore-state-that-robs-from-the-other-states-by-providing-a-safe-haven-for-corporations_-that-is_-what-delaware-receives-in-return-for-lowering-standards-across-the-board_-is-far-more-than-what-is-extracted-from-other-states_-if-delaware-were-_shut-down_-as-a-state-and-simply-incorporated-into-pennsylvania_-it-would-be-a-tremendous-benefit-to-the-other-states-in-the-us2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_biden-owed-his-political-career-to-private-banking-interests_li_-_ul_-_h2_introduction_h2_-adams-has-strongly-negative-views-of-private-banking-interests-as-is-expressed-in-the-following-quotation_-_blockquote_historically_-usury-was-defined-as-any-interest-whatever-on-an-unproductive-loan_our-whole-banking-system-i-have-ever-abhorred_-i-continue-to-abhor_-and-i-shall-die-abhorring_-_-john-adams-_-az-quotes_-he-also-knew-how-debt-is-used-to-enslave-countries_-as-is-explained-in-the-following-quotation_-_there-are-two-ways-to-conquer-and-enslave-a-country_-one-is-by-the-sword_-the-other-is-by-debt_-_strong_-john-adams-_-az-quotes_-_strong_blockquote_-this-quote-would-seem-to-be-the-appropriate-moniker-for-the-imf_-world-bank_-and-the-ecb2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_clinton-was-a-tool-of-private-banking-interests-and-removed-glass-steagall-protections_li_-_ul_-_h2_introduction_h2_-clinton-was-highly-compliant-to-private-banking-interests-a-contribute-to-both-private-banking-and-neoliberal-interests_-clinton-repealed-glass-steagall_-which-put-a-barrier-between-commercial-and-investment-banking_-he-passed-nafta-and-adding-china-to-the-us-most-favored-nation-status-forcing-increased-labor-competition-on-us-workers_-he-passed-the-telecommmunications-act_-which-allowed-for-even-more-media-concentration_-clinton-was-so-beholden-to-private-banking-interests-that-his-wife_-hillary-clinton-chose-to-move-run-for-the-senate-in-new-york-after-his-presidency_-hillary-clinton-could-have-moved-to-any-state-to-become-senator_-and-had-no-background-in_-and-had-never-lived-in-new-york-prior-to-leaving-the-white-house_-why-did-hillary-clinton-pick-new-york-of-all-states-to-run-for-the-senate_-the-question-answers-itself_-how-clinton-severely-increased-corruption-in-government-procurement-is-covered-in-the-following-quotation_-_blockquote_in-the-1990s_-however_-bill-clinton_s-_reinventing-government_-initiative-killed-the-public-capacity-roosevelt-had-constructed_-clinton-encouraged-the-big-prime-defense-contractors-to-merge_-shrinking-them-from-over-100-to-just-5-firms_-clinton_s-procurement-initiative_-led-by-steve-kelman_-invented-a-whole-new-vocabulary-for-ways-to-let-contractors-steal_-the-details-get-complex_-but-the-gist-was-a-_light-touch_-approach-to-negotiating-by-the-government_-procurement-officers-stopped-making-hard-nosed-demands-for-better-prices_-and-were-stripped-of-the-ability-to-look-at-the-books-of-the-contractors-to-make-sure-there-weren_t-excess-profits_-government-began-using-a-new-set-of-contracts-to-get-rid-of-competition-and-negotiating-in-contracting_-today_-agencies-can-just-order-stuff-from-pre-approved-contractors-without-doing-much-negotiating_-procurement-officers-don_t-have-to-write-a-full-blown-solicitation-with-clear-specifications_-and-contractors-no-longer-have-to-put-together-a-real-proposal_-there_s-very-little-competition-in-any-of-it_-and-contractors-are-eager-to-make-the-system-even-worse_-with-some-asking-for-biden-to-stop-requiring-them-to-list-any-prices-at-all-when-selling-to-the-government_-if-you-half-ass-an-initial-proposal_-the-cost-will-explode-when-you_ve-built-half-of-it_-and-find-out-you_ve-built-it-wrong_-this-problem-is-pervasive-throughout-america_-new-york-city_-for-instance_-is-on-the-verge-of-collapse_-and-infrastructure-costs-in-the-u_s_-are-laughably-expensive_-_strong_-matt-stoller_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_matt-stoller_span_span_strong_-_strong_a-href_https_mattstoller_substack_com_p_keep-mckinsey-away-from-bidens-infrastructure_-target_blank_-rel_noopener_https_mattstoller_substack_com_p_keep-mckinsey-away-from-bidens-infrastructure_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_fdr-had-a-number-of-progressive-legislations_-but-he-was-also-highly-controlled-by-the-rockefeller-financial-interests_li_-_ul_-_h2_introduction_h2_-fdr-introduced-new-deal-legislation_-however_-he-was-not-instrumental_-as-is-often-thought_-in-the-banking-act-of-1933_-his-view-of-the-banking-interests-that-controlled-the-us-government-is-expressed-in-the-following-quotation_-_blockquote_if-all-the-bank-loans-were-paid_-no-one-could-have-a-bank-deposit_-and-there-would-not-be-a-dollar-of-coin-or-currency-in-circulation_-this-is-a-staggering-thought_-we-are-completely-dependent-on-the-commercial-banks_-someone-has-to-borrow-every-dollar-we-have-in-circulation_-cash_-or-credit_-if-the-banks-create-ample-synthetic-money-we-are-prosperous_-if-not_-we-starve_-we-are-absolutely-without-a-permanent-money-system_-when-one-gets-a-complete-grasp-of-the-picture_-the-tragic-absurdity-of-our-hopeless-situation-is-almost-incredible-but-there-it-is_-_strong_-robert-w_-hemphill_az-quotes_strong_blockquote_-how-fdr-fought-against-wall-street-and-banking-interests-is-covered-in-the-following-quotation_-_blockquote_roosevelt_s-first-major-infrastructure-battle-was-over-muscle-shoals-in-alabama_-the-great-hydroelectric-resource_-the-morgan-interests-and-the-electric-utility-magnates-wanted-that-resource-privatized-for-their-use_-roosevelt-said-no_-and-had-the-government-directly-build-the-tennessee-valley-authority_-a-publicly-owned-and-operated-electric-utility-for-much-of-appalachia_-tva-was-part-of-a-package-of-reforms-to-constrain-and-control-wall-street_-to-end-what-fdr-called-the-_informal-economic-government-of-the-united-states_-over-the-rest-of-the-new-deal_-fdr-transformed-the-physical-plant-of-the-country_-and-spent-a-lot-of-money-on-infrastructure_-but-roosevelt-first-made-sure-wall-street-had-little-say-over-how-public-money-or-public-resources-were-spent_-public-institutions-got-bigger-and-more-competent_-and-the-financiers-and-monopolists-lost-power_-one-key-result-is-that-the-government-could-do-big-things_-during-world-war-ii_-military-procurement-officers-had-immense-capacity-and-power_-imposing-tight-control-over-contractors_-and-ensuring-that-there-were-at-least-a-dozen-competitors-for-each-major-weapon-system_-they-could-peer-into-the-books-of-contractors_-and-even-claw-back-excessive-profits_-_strong_-matt-stoller_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_matt-stoller_span_span_strong_-_strong_a-href_https_mattstoller_substack_com_p_keep-mckinsey-away-from-bidens-infrastructure_-target_blank_-rel_noopener_https_mattstoller_substack_com_p_keep-mckinsey-away-from-bidens-infrastructure_a_strong_-andnbsp2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_gover-cleveland-was-entirely-selected-and-controlled-by-private-banking-interests_li_-_ul_-_h2_introduction_h2_-cleveland-was-highly-connected-to-jp-morgan_-and-unsurprisingly-favored-private-banking-interests-and-a-private-bank-run-central-bank2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_james-garfield-opposed-and-was-most-likely-killed-by-private-banking-interests_li_-_ul_-_h2_introduction_h2_-garfield-issued-an-aggressive-statement-against-private-banking-interests_-which-was-the-following_-_blockquote_whoever-controls-the-volume-of-money-in-any-country-is-an-absolute-master-of-all-industry-and-commerce_-and-when-you-realize-that-the-entire-system-is-very-easily-controlled_-one-way-or-another-by-a-few-powerful-men-at-the-top_-you-will-not-have-to-be-told-how-long-periods-of-inflation-and-depression-originate_strong_-the-money-masters-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong_-he-was-killed-not-too-long-after-this2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_james-madison-opposed-private-banking-interests_li_-_ul_-_h2_introduction_h2_-madison-opposed-private-banking-interests-and-wanted-the-us-to-issue-its-own-money_-he-stopped-the-charter-for-the-first-rothschild-controlled-us-private-central-bank-from-being-renewed-_the-first-bank-of-the-united-states_-his-view-is-expressed-in-the-following-quotation_-_blockquote_history-records-that-the-money-changers-have-used-every-form-of-abuse_-intrigue_-deceit_-and-violent-means-possible-to-maintain-their-control-over-governments-by-controlling-money-and-its-issuance_-_strong_-az-quotes_-_strong_blockquote_-however_-he-also-supported-the-creation-of-the-2nd-bank-of-the-united-states2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_jfk-opposed-private-banking-interests_li_-_ul_-_h2_introduction_h2_-jfk-was-the-last-president-under-which-greenbacks-were-reprinted_-he-opposed-wall-street-interests_-he-marks-a-long-history-of-presidents-and-politicians-who-opposed-private-banking-interests-and-ended-up-being-assassinated_-opposing-private-banking-interests-is-the-number-one-way-to-meet-an-early-death-if-you-are-a-politician2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_theodore-roosevelt-was-a-populist_-who-was-an-agent-for-morgan-bank_li_-_ul_-_h2_introduction_h2_-roosevelt-was-a-complex-character-who-governed-in-a-way-that-was-positive-for-much-of-the-population_-however_-he-was-controlled-by-jp-morgan-private-banking-interests_-after-retiring-from-politics_-he-was-brought-out-to-run-as-an-opposition-candidate-to-split-the-vote-against-william-howard-taft-by-the-morgan-bank-in-1912-just-one-year-before-the-federal-reserve-act-of-1913-was-passed_-and-this-allowed-private-banking-supported-candidate-woodrow-wilson-to-be-elected-president_-wilson-signed-the-1913-federal-reserve-act-into-law_-this-reconstituted-a-private-central-bank-that-had-its-charter-expire-two-times-before2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_thomas-jefferson-opposed-private-banking-interests_li_-_ul_-_h2_introduction_h2_-jefferson-despised-private-banking-which-led-to-arguments-with-alexander-hamilton_-jefferson-wanted-the-us-to-issue-its-own-money_-the-following-quote-described-jefferson_s-view-of-private-banking_-_blockquote_i-sincerely-believe-that-banking-establishments-are-more-dangerous-than-standing-armies-and-that-the-principle-of-spending-money-to-be-paid-by-posterity_-under-the-name-of-funding_-is-but-swindling-futurity-on-a-large-scale_strong_-_-thomas-jefferson-_-az-quotes_strong_blockquote_-this-quote-continues-this-theme_-_blockquote_the-issuing-power-_of-money_-should-be-taken-from-the-banks-and-restored-to-the-people_-to-whom-it-properly-belongs_-_strong_-thomas-jefferson-_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_william-howard-taft-opposed-private-banking-interests_li_-_ul_-_h2_introduction_h2_-taft-was-aggressively-opposed-to-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_william-jennings-bryant-was-one-of-the-most-vociferous-and-effective-critics-of-both-private-banking_-private-central-banks_-and-the-gold-standard_li_-_ul_-_h2_introduction_h2_-bryant-aggressively-opposed-private-banking-interests_-he-made-a-speech-at-the-democratic-party_s-convention-about-how-he-called-the-gold-standard-a-type-of-crucifix-for-the-population_-this-quote-is-taken-from-that-speech_-_blockquote_we-say-in-our-platform-that-we-believe-the-right-to-coin-money-and-issue-money-is-a-function-of-government_-those-who-are-opposed-to-this-proposition-tell-us-that-the-issue-of-paper-money-is-a-function-of-the-bank_-and-that-the-government-outright-to-go-to-borrow-to-get-out-of-the-banking-business_-i-stand-with-_thomas_-jefferson_-and-tell-them-as-he-did_-that-the-issue-of-money-is-a-function-of-the-government_-and-that-the-bank-should-go-out-of-the-government-business-governing-business_-you-shall-not-press-down-upon-the-brow-of-labor-this-crown-of-thorns_-you-shall-not-crucify-mankind-upon-a-gold-of-a-cross-of-gold_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_span-style_color_-_1d79cf_strong_such-a-speech-is-unthinkable-in-the-modern-age_strong_span_-all-us-presidents-are-expected-to_span-style_color_-_ff6600_strong_-accept_strong_span_-a-private-central-bank-and-to-accept-the-false-assertions-of-private-bankers_-however_-williams-jennings-bryant-was-incorrect-about-supporting-silver-as-money_-silver-is-better-than-gold_-as-it-cannot-be-monopolized-by-bankers_-however_-the-best-money-is-debt-free-fiat-money-in-any-form_-be-it-paper_-or-tally-sticks_-_h3_how-the-private-bankers-tricked-william-jennings-bryant_h3_-paradoxically_-william-jennings-bryant_-for-all-of-his-opposition-to-a-private-central-bank_-was-tricked-into-supporting-the-federal-reserve-banking-act-of-1913-that-created-the-federal-reserve2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_mckinley-was-a-tool-of-morgan-bank_li_-_ul_-_h2_introduction_h2_-a-morgan-bank-supported-president-and-supporter-of-the-gold-standard2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_woodrow-wilson-was-put-into-place-by-morgan-bank_li_-_ul_-_h2_introduction_h2_-wilson-was-put-into-office-by-private-banking-interests-specifically-to-defeat-william-howard-taft-who-would-have-won-a-second-term-if-theodore-roosevelt-had-not-supported-private-banking-interests-to-split-votes-from-taft_-wilson-was-tricked-into-giving-in-to-them-and-ended-up-_letting-the-camel_s-nose-into-the-tent_-the-original-fed-was-more-of-a-blend-of-private-and-public-banking-with-more-public-control_-however_-as-time-progressed_-the-fed-became-increasingly-controlled-by-private-banking-interests_-wilson-later-regretted-being-deceived-by-these-interests-to-the-country_s-detriment_-as-is-expressed-in-the-following-quotation_-_blockquote_i-am-a-most-unhappy-man_-i-have-unwittingly-ruined-my-country_-a-great-industrial-nation-is-controlled-by-its-system-of-credit_-our-system-of-credit-is-concentrated_-the-growth-of-the-nation_-therefore_-and-all-our-activities-are-in-the-hands-of-a-few-men_-we-have-come-to-be-one-of-the-worst-ruled_-one-of-the-most-completely-controlled-and-dominated-governments-in-the-civilized-world-no-longer-a-government-by-free-opinion_-no-longer-a-government-by-conviction-and-the-vote-of-the-majority_-but-a-government-by-the-opinion-and-duress-of-a-small-group-of-dominant-men_-_strong_-az-quotes_strong_blockquote_-wilson-was-controlled-by-morgan-bank_-this-video-goes-over-wilson_s-presidency_-https_www_youtube_com_watch_v_3hrd8b_vzia2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_william-harvey-was-an-advisor-to-williams-jennings-bryant-who-pressed-him-to-question-private-banking-interests_li_-_ul_-_h2_introduction_h2_-harvey-was-an-economic-advisor-to-william-jennings-bryant_-and-opposed-private-banking-interests_-harvey_s-view-on-the-dangers-of-private-banking-is-found-in-the-following-quotation-_blockquote_harvey-stressed-that-people-who-took-out-loans-at-banks-were-not-actually-borrowing-money_-they-were-borrowing-debt-and-the-commercial-oligarchy_-to-whom-it-was-owed-would-eventually-end-up-running-the-country_-the-workers-would-live-on-credit-and-buy-at-the-company-store-becoming-wage-slaves-who-own-nothing-of-their-own_-harvey-considered-money-to-be-a-direct-representation-of-a-man_s-labor-and-usually-in-debt-to-be-a-scheme-to-put-middlemen-bankers-between-a-man_s-labor-and-his-property_-even-efficient-farmers-operating-on-the-debt-money-model-would-eventually-have-some-bad-years-and-they-would-default-on-their-loans_-every-year-there-would-be-a-certain-number-of-foreclosures-and-the-banks-would-get-the-land-which-would-be-sold-to-the-larger-farm-owners_-the-country_s-property-would-gradually-become-concentrated-in-fewer-and-fewer-hands_-the-farms_-factories_-and-businesses-would-wind-up-owned-by-a-few-individuals-and-corporations-that-were-controlled-by-the-bankers-who-control-the-money-supply_-at-the-heart-of-the-problem-said-harvey-was-the-federal-reserve-system_-which-allowed-banks-to-issue-debt-and-pretend-it-was-money_-this-sleight-of-hand-was-what-ahead-allowed-the-bankers-to-slowly-foreclose-on-the-country-moving-ownership-to-the-wall-street-banks_-brokerage-houses_-and-insurance-companies_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_hillary-clinton-was-remotely-controlled-by-wall-street_li_-_ul_-_h2_introduction_h2_-like-her-husband_-hillary-is-firmly-in-the-neoliberal-camp_-hillary-used-the-wall-street-and-private-banking-connections-she-and-her-husband-made-in-his-two-terms-in-office-to-run-for-and-win-a-senate-seat-in-new-york_-hillary-has-connections-top-the-h1-b-lobby-as-we-cover-in-the-article-_a-href_https_www_brightworkresearch_com_hillary-clinton-the-big-supporter-of-indian-outsourcing-and-us-worker-displacement_-target_blank_-rel_noopener_strong_hillary-clinton-the-big-supporter-of-indian-outsourcing-and-us-worker-displacement_strong_a_-this-is-globalism-and-reduces-us-wages_-a-major-part-of-neoliberalism_-hillary_-like-her-husband_-constantly-gave-speeches-to-wall-street-banks-for-which-she-was-paid-in-many-cases-roughly-1_2-a-million-dollars_-she-famously-told-wall-street-bankers-that-they-were-the-experts-so-they-should-tell-the-government-how-to-regulate-them2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-russian-revolution-is-not-what-it-appeared-to-be_li_-_li_the-first-russian-revolution-has-been-nearly-stripped-from-history_li_-_ul_-_h2_introduction_h2_-what-is-generally-explained-about-the-russian-revolution-_rr_-is-the-second_-not-the-authentic-one_-the-first-rr-has-been-virtually-lost-to-history_-this-is-explained-in-the-following-quotation_-_h3_two-russian-revolutions_h3_-_blockquote_there-were-actually-two-russian-revolutions_-the-first-call-of-the-february-revolution-which-was-a-largely-bloodless-transfer_-transfer-of-power-from-the-tsar-to-a-regime-of-liberals-and-socialists-led-by-alexander-kerensky-who-intended-to-instigate-political-reform-along-democratic-lines_-the-far-bloodier-october-revolution-was-essentially-a-coup-in-which-kerensky-was-overthrown-by-vladimir-lenin_-with-the-support-of-leon-trotsky-and-some-300-supporters-who-came-with-him-from-new-york_-born-love-bronstein_-trotsky-was-a-bolshevik-revolutionary-who-had-gone-to-new-york-after-being-expelled-from-france_-in-1916_-he-and-his-band-of-supporters-returned-to-russia-in-1917-with-substantial-funding-from-a-mystery-wall-street-donor-widely-thought-to-be-jacob-schiff-of-kuhn-loeb_-trotsky_s-new-york-recruits-later-adopted-russian-names-and-made-up-the-bulk-of-the-communist-party_s-leadership_-griffin-argues-that-lenin_-trotsky-and-their-supporters-were-not-sent-to-russia-to-overthrown-the-tsar_-rather-he-says-their-assignment-from-wall-street-was-to-overthrow-the-revolution_-the-second-russian-revolution-overthrew-the-first-democratic-society-in-russian-history_-set-up-through-a-truly-popular-revolution-in-march-of-1917_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-this-first-rr-had-planned-to-issue-_span-style_color_-_1d79cf_strong_debt-free-money-similar-to-the-greenbacks_strong_span_-this-is-what-wall-street-did-not-want_-and-why-wall-street-funded-trotsky-and-lenin2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-have-historically-made-great-profits-from-wars_li_-_ul_-_h2_introduction_h2_-private-banking-interests-have-many-reasons-to-promote-war_-one-reason-is-that-countries-that-go-to-war-often-go-into-debt_-and-private-banks-make-money-from-these-loans_-it-was-widespread-in-european-history-of-banking-interests-to-support-both-sides-of-a-war_-requiring-the-loan-that-the-winning-side-paid-the-loans-of-the-losing-side_-therefore_-no-matter-which-side-won_-the-bank-won_-_h2_punishing-regimes-that-are_were-not-friendly-to-private-banking-interests_h2_-a-second-reason-to-support-war-is-that-a-war-could-be-used-as-punishment-against-a-political-regime-that-took-an-independent-path-from-private-banking-interests_-napoleon_-hitler_-and-lincoln-all-took-paths-independent-from-private-bankers_-hitler-copied-lincoln_s-debt-free-government-created-money_-napolean-faced-constant-funding-by-the-bank-of-england-against-wherever-he-fought-in-europe_-and-within-a-few-years-of-taking-an-independent-path_-both-lincoln-and-hitler-both-found-themselves-in-major-wars_-war-can-also-be-instigated-by-private-banking-interests-when-they-think-a-country-losing-a-war-will-not-pay-back-loans-owed-to-it_-this-is-what-occurred-with-fdr_-with-private-banking-interests-convincing-fdr-to-have-the-us-enter-ww2-because-if-the-germans-defeated-england_-hitler-would-not-honor-the-loans-us-private-banking-interests-had-made-to-england_-the-history-of-private-banking-and-its-support-for-the-war-is-explained-very-well-by-george-rr-martin-and-game-of-thrones_-martin-used-real-history-to-inspire-almost-all-of-the-plot-lines_-this-is-a-background-video-of-what-is-the-iron-bank_-https_youtu_be_rd8gkdcdfki-this-also-a-scene-from-the-movie-of-game-of-thrones-described-in-the-following-video_-https_www_youtube_com_watch_v_xqiyvtlxbw8-one-of-the-great-quotes-is_-_we-all-live-in-its-shadow_-and-most-of-us-don_t-even-know-it_-this-video-is-a-scene-where-stannis-baratheon-goes-to-ask-for-a-loan-from-the-iron-bank_-https_www_youtube_com_watch_v_fjihlgtchwa-_h2_the-banking-origin-of-many-wars_h2_-wars-often-have-private-banking-reasons-or-origins_-private-banking-interests-support-wars-because-it-drives-up-debt_-private-banking-interests-then-make-loans_-after-a-war-is-over_-private-banking-benefits-again-because-they-often-make-loans-for-reconstruction_-a-primary-reason-that-the-us-entered-ww-2_-and-on-the-side-of-the-allies_-is-that-private-banking-interests-explained-to-fdr-that-if-germany-defeated-england_-the-large-debts-owed-by-england-to-the-us-would-not-be-paid_-most-histories-tend-to-try-to-explain-wars-as-if-private-banking-interests-do-not-exist2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-civil-war-had-many-private-banking-connections_-including-a-desire-by-british-private-bankers-to-return-the-us-to-the-state-of-a-colony-through-a-war_li_-_ul_-_h2_introduction_h2_-slavery-was-a-core-issue-of-the-us-civil-war_-but-the-war-was-instigated-by-_span-style_color_-_1d79cf_strong_european-private-banking-interests_strong_span_-that-feared-a-country-that-was-not-monarchial_-where-the-normal-population-could-vote_-and-where-the-central-bank-was-not-controlled-by-private-banking-interests_-_h2_published-by-a-private-banker-the-london-times_h2_-this-is-the-quote-during-time-prior-to-the-us-civil-war-from-the-private-bankers-in-the-london-times-in-europe_-_blockquote_if-this-mischievous-financial-policy-which-has-its-origin-in-north-america_-shall-become-endurated-down-to-a-fixture_-then-the-government-will-furnish-its-own-money-without-cost_-it-will-pay-off-debts-and-be-without-debt_-it-will-have-all-the-money-necessary-to-carry-out-its-commerce_-it-will-become-prosperous-without-precedent-in-the-history-of-the-world_blockquote_-_blockquote_the-brains_-and-wealth-of-all-countries-will-got-to-north-america_-that-country-must-be-destroyed-or-it-will-destroy-every-monarchy-on-the-globe_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_the-money-masters_span_span_strong_-_strong_a-href_http_www_themoneymasters_com_-target_blank_-rel_noopener_http_www_themoneymasters_com_a_strong_-_h2_why-bankers-like-and-promote-wars_h2_-the-european-bankers-also-knew-that-a-war-would-run-up-debts-for-both-sides_-thus-increasing-the-claims-on-the-us-economy-by-european-bankers_-the-european-banking-interests-were-in-favor-of-ending-slavery_-yet-they-financially-supported-the-confederacy-in-any-case_-_h2_why-bankers-prefer-the-british-school-of-economics-over-slaver_h2_-this-is-explained-in-the-following-quotation_-_blockquote_slavery-just-meant-that-the-owners-had-to-feed-and-care-for-their-workers_-the-bankers-preferred-the-european-plan_-capital-would-exploit-labor-by-controlling-the-money-supply-while-letting-the-laborers-be-themselves-in-july-of-1862_-this-ploy-was-revealed-in-an-editorial-document-called-the-hazard-circular-which-was-circulated-by-british-banking-interests_-among-their-american-banking-counterparts_-it-said_-_slavery-is-likely-to-be-abolished-by-the-war-power-and-chattel-slavery-destroyed_-this-i-and-my-european-friends-are-glad-for-slavery-is-about-the-owning-of-labor-and-carries-with-it-the-care-of-the-laborers_-while-the-european-plan-led-by-england-is-a-capital-shall-control-labor-or-labor-by-controlling-wages_-this-can-be-done-by-controlling-the-money-the-great-debt-the-capitalists-will-see-to-it-is-made-up_-the-war-must-be-used-as-a-means-to-control-the-volume-of-money_-to-accomplish-this_-the-bonds-must-be-used-as-a-banking-basis_-it-will-not-do-to-allow-the-greenback-as-it-is-called-to-circulate-as-money-any-length-of-time-as-we-cannot-control-that_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_a-us-national-money-was-a-tension-between-state-and-federal-power_span_h1_-money-and-banking-had-been-a-frequent-area-of-tension-between-the-northern-states-and-the-southern-states_-banking-was-concentrated-in-the-north_-and-northern-private-banking-interests-routinely-discriminated-against-southern-business-interests_-this-is-explained-in-the-following-quotation_-_blockquote_the-national-bank-came-to-represent-the-tension-between-state-and-federal-power_-with-the-union-pushing-for-national-currency-and-national-banking-and-the-confederacy-vigorously-opposing-it_-arguments-against-a-national-currency-and-a-national-banking-system-paralleled-those-used-in-defense-of-secession_-for-example_-those-who-opposed-a-national-currency-viewed-it-as-a-subordination-of-state-rights_-they-believed-that-national-banking_currency-would-make-wealthy-men-wealthier-and-would-press-states-into-federal-servitude_-but-the-nationalism-brought-on-by-the-war-led-many-northerners-to-believe-that-a-national-currency-and-a-national-banking-system-would-advance-the-public-welfare_-issuing-currency-and-creating-a-national-bank-were-framed-as-being-for-the-_general-good-of-the-whole_-and-had-nothing-at-all-to-do-with-increasing-banking-efficiency-or-profitability_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-tension-continues-to-this-day-as-new-york_-extracts-far-too-much-from-the-rest-of-the-country_-the-new-york-financial-industry-is-the-concern-that-jefferson-had-about-concentrated-banking-interests-writ-large2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-british-outlawed-the-debt-free-us-colonial-script_-which-was-a-major-part-of-the-success-of-the-colonies_li_-_li_this-made-the-colonies-far-more-likely-to-seek-independence_li_-_ul_-_h2_introduction_h2_-this-is-a-massive-and_-one-might-say_-deliberate-misexplanation-of-what-led-to-the-us-revolutionary-war_-new-taxes-were-imposed_-but-they-were-minor-compared-to-the-negative-outcome-from-the-british-decision-to-outlaw-us-colonial-script_-the-primary-event-which-was-the-kindling-for-the-war-was-that-king-george-iii-had-outlawed-the-abilities-of-the-colonies-_span-style_color_-_1d79cf_strong_to-issue-their-own-debt-free-money_strong_span_-this-led-to-an-economic-depression-in-the-colonies_-this-legislation-was-pushed-through-in-england-under-pressure-from-european-banking-interests_-for-these-interests_-the-objective-of-the-us-civil-war-was-to-support-the-confederacy_-which-would-divide-and-weaken-the-young-country_-this-is-explained-in-the-following-quotation_-_blockquote_the-high-financial-powers-of-europe_-these-bankers-were-afraid-of-the-united-states-if-they-remained-in-one-block_-and-as-one-nation-would-attain-economic-and-financial-independence_-which-would-upset-their-financial-domination-over-europe-and-the-world_-of-course_-in-the-inner-circle-of-finance_-the-voice-of-the-rothschilds-prevailed_blockquote_-_blockquote-style_padding-left_-40px_they-saw-an-opportunity-for-prodigious-booty-if-they-could-substitute-two-feeble-democracies-burdened-with-debt-to-the-finance-ears-in-place-of-a-vigorous-republic-on-to-herself_-therefore_-they-sent-their-emissaries-into-the-field-to-exploit-the-question-of-slavery-and-to-drive-a-wedge-between-the-two-parts-of-the-union_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_the-web-of-debt_strong_-_strong_a-href_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_https_www_amazon_com_web-debt-shocking-truth-system_dp_0983330859_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-covers-the-fundamental-purposes-of-money_li_-_ul_-_h2_introduction_h2_-the-purposes-of-money-are-defined-in-the-following-way_-_blockquote_money-has-three-fundamental-and-complementary-roles_-it-is_-_i_-a-unit-of-account-a-yardstick-that-eases-comparison-of-prices-across-the-things-we-buy_-as-well-as-the-value-of-promises-we-make_-_ii_-a-medium-of-exchange_-a-seller-accepts-it-as-a-means-of-payment_-in-the-expectation-that-somebody-else-will-do-the-same_-and-_iii_-a-store-of-value_-enabling-users-to-transfer-purchasing-power-over-time_-to-fulfill-these-functions_-money-needs-to-have-the-same-value-in-different-places-and-to-keep-a-stable-value-over-time_-assessing-whether-to-sell-a-certain-good-or-service-is-much-easier-if-one-is-certain-that-the-received-currency-has-a-guaranteed-value-in-terms-of-both-current-and-future-purchasing-power_-one-way-to-achieve-this-is-by-pure-commodity-monies-with-intrinsic-value_-such-as-salt-or-grain_-but-commodity-money-by-itself-does-not-effectively-support-exchange_-it-may-not-always-be-available_-is-costly-to-produce-and-cumbersome-in-exchange_-and-may-be-perishable_-the-expansion-of-economic-activity-required-more-convenient-monies-that-could-respond-to-increasing-demand_-be-efficiently-used-in-trade_-and-have-a-stable-value_-sustained-episodes-of-stable-money-are-historically-much-more-of-an-exception-than-the-norm_-in-fact_-trust-has-failed-so-frequently-that-history-is-a-graveyard-of-currencies_-museums-around-the-world-devote-entire-sections-to-this-graveyard-for-example_-room-68-of-the-british-museum-displays-stones_-shells_-tobacco_-countless-coins_-and-pieces-of-paper_-along-with-many-other-objects-that-lost-their-acceptability-as-exchange-and-found-their-way-to-this-room_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_bank-of-international-settlements_span_span_strong_-_strong_a-href_https_www_bis_org_publ_arpdf_ar2018e5_htm_-target_blank_-rel_noopener_https_www_bis_org_publ_arpdf_ar2018e5_htm_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-tell-a-number-of-lies-to-capture-the-government_s-money-creation-function-for-themselves-and-their-cronies_li_-_li_the-idea-of-political-independence-of-central-banks-is-one-of-these_li_-_ul_-_h2_introduction_h2_-a-major-part-of-getting-people-to-accept-the-status-quo-of-a-private-central-bank-is-by-providing-a-false-history-of-banking-and-money_-a-perfect-example-of-this-is-provided-by-the-bank-of-international-settlements-_see-entry-in-this-website_-which-is-a-private-banking-interest_-observe-what-they-say-about-the-history-of-money-the-reason-for-the-rise-of-central-banks_-_blockquote_banks-are-meant-to-transform-risks_-and-therefore_-under-certain-extreme-scenarios_-confidence-in-privately-issued-money-can-vanish-overnight_-government-backed-arrangements_-where-assuring-trust-in-the-instrument-is-a-centralised-task_-have-not-always-worked-well-either_-far-from-it_-a-well-known-example-of-abuse-is-the-competitive-debasement-of-coins-issued-by-german-princes-in-the-early-17th-century_-known-as-the-kipper-und-wipperzeit-_clipping-and-culling-times_8-and-there-have-been-many-others_-up-to-the-present-day-cases-of-venezuela-and-zimbabwe_-avoiding-abuse-by-the-sovereign-has-thus-been-a-key-consideration-in-the-design-of-monetary-arrangements_-the-quest-for-solid-institutional-underpinning-for-trust-in-money-eventually-culminated-in-the-emergence-of-today_s-central-banks_-formal-central-banks_-as-we-know-them-today_-also-often-emerged-in-direct-response-to-poor-experiences-with-decentralised-money_-for-example_-the-failures-of-wildcat-banking-in-the-united-states-eventually-led-to-the-creation-of-the-federal-reserve-system_-_strong_-bis_strong_blockquote_-the-fact-that-the-bis-can-point-to-governments-controlling-the-central-bank-running-into-problems-should-not-be-used-as-a-pretext-to-switch-the-central-bank-to-private-interests_-notice-that-the-bis-_a-private-bank-itself_-only-points-to-issues-with-the-government-or-sovereign-running-the-central-bank_-when-the-bis-says-the-_quest-for-solid-institutional-underpinning-for-trust-eventually-culminated-in-the-emergency-of-today_s-central-banks_-evades-the-question-of-who-runs-that-central-bank_-it-is-true-that-there-were-failures-of-wildcat-banks-and-decentralized-money_-but-those-were-not-banks-controlled-by-a-government_-the-bis-continues_-_blockquote_the-tried_-trusted-and-resilient-way-to-provide-confidence-in-money-in-modern-times-is-the-independent-central-bank_-this-means-agreed-goals_-clear-monetary-policy-and-financial-stability-objectives_-operational_-instrument-and-administrative-independence_-and-democratic-accountability_-so-as-to-ensure-broad-based-political-support-and-legitimacy_-_-_strong_-bis-_strong_blockquote_-independent-from-whom_from-the-government-or-from-private-bankers_-because-there-is-no-central-bank-that-is-independent-from-both_-also-_democratic-accountability_-means-a-public-central-bank_-but-in-the-previous-quote_-the-bis-pointed-to-the-fed_-however_-the-fed-is-not-_democratically-accountable_-and-is-entirely-controlled-by-private-banking-interests_-this-is-the-type-of-fake-and-massaged-history-that-private-banking-interests-present_-wight-patman-critiqued-the-faulty-understanding-of-banking-in-the-following-quotation_-_blockquote_this-quote-is-from-wight-patman_-_there-are-many-reasons-why-the-general-public-doesn_t-really-understand-our-monetary-system_-in-the-first-place_-money-is-something-that-people-tend-to-get-emotional-about_-after-all_-money-involves_-and-always-has-involved_-something-closely-akin-to-faith-which-probably-explains-why-in-many-past-societies-the-money-system-has-been-in-the-hands-of-a-priesthood_-the-subject-of-magical-rites_-and-the-ceremonial-services-of-the-tribe_s-medicine-man_-_strong_-az-quotes_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-habitually-simplify-zimbabwe_s-hyperinflation-as-zimbabwe-printing-too-much-money_li_-_ul_-_h2_introduction_h2_-the-following-describes-the-inflation-situation-that-occurred-and-is-occurring-again-in-zimbabwe_-_blockquote_however_-zimbabwe_s-peak-month-of-inflation-is-estimated-at-79_6-billion-percent-month-on-month_-89_7-sextillion-percent-year-on-year-in-mid-november-2008_-in-april-2009_-zimbabwe-stopped-printing-its-currency_-with-currencies-from-other-countries-being-used_2_-in-mid-2015_-zimbabwe-announced-plans-to-have-completely-switched-to-the-united-states-dollar-by-the-end-of-that-year_-in-june-2019_-the-zimbabwean-government-announced-the-reintroduction-of-the-rtgs-dollar_-now-to-be-known-simply-as-the-_zimbabwe-dollar_-and-that-all-foreign-currency-was-no-longer-legal-tender_-in-2007_-the-government-declared-inflation-illegal_-anyone-who-raised-the-prices-for-goods-and-services-was-subject-to-arrest_-this-amounted-to-a-price-freeze_-which-is-usually-ineffective-in-halting-inflation_-on-three-occasions_-the-reserve-bank-of-zimbabwe-redenominated-its-currency_-_strong_-wikipedia_strong_-_the-inflation-and-subsequent-hyperinflation-in-zimbabwe-were-offshoots-of-more-specific-problems-transpiring-in-its-economy_-zimbabwean-economists-arnold-m_-chidhakwa-and-gibson-chigumira-noted-that-the-country-had-a-vibrant-and-diversified-manufacturing-industry-in-the-early-1980s-and-it-was-likely-to-become-one-of-the-newly-industrialized-economies-together-with-south-africa-in-the-late-1980s_-however_-underinvestment-and-counterproductive-interventionist-policies-negated-economic-growth-that-resulted-further-into-an-economic-crisis_-with-the-worsening-economic-condition_-zimbabwe-experienced-a-wave-of-emigration-to-neighboring-countries_-thus-resulting-in-the-decline-of-the-labor-force-beginning-in-2003_-about-6-percent-of-the-entire-population-emigrated-in-2005-and-this-increased-by-9_9-percent-emigrated-in-2010_-_strong_-wikipedia_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_hyperinflation_in_zimbabwe_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_hyperinflation_in_zimbabwe_a_strong_-most-of-the-explanations-around-inflation-in-zimbabwe-often-state-that-zimbabwe-printed-too-much-money_-this-is-not-an-adequate-explanation_-as-the-following-video-explains_-https_www_youtube_com_watch_v_k_nkxryuyjq-a-major-promoter-of-this-decline-of-productive-capacity-was-land-reform-_land-given-to-non-farmers-politically-connected-to-mugabe_-that-undermined-zimbabwe_s-primary-industry_-agriculture_-furthermore_-several-banks-collapsed_-which-meant-more-declining-demand_-declining-demand-meant-that-there-was-more-money-than-there-was-demand_-this-is-a-perfect-condition-for-inflation_-zimbabwe-essentially-collapsed-as-an-economy_-and-there-was-a-famine-in-the-country_-with-any-hyperinflation-event_-private-banking-interest-funded-media-and-economists-push-the-story-into-a-cut-and-the-dried-issue-of-the-government-printing-too-much-money_-however_-in-both-weimar-germany-and-zimbabwe_-there-was-a-great-decline-in-productive-capacity-_with-germany_-this-was-an-economy-wrecked-after-wwi_-private-banking-interests-are-not-interested-in-explaining-this-side-of-the-story2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li-style_list-style-type_-none_-_ul_-_li_specie-backed-currency-is-often-presented-in-a-favorable-light-by-mainstream-economists-and-the-establishment-media_li_-_ul_-_li_-_ul_-_h2_introduction_h2_-specie-is-a-precious-metal_-and-if-holders-of-currency-can-bring-their-currency-to-the-authorities-and-receive-species-in-return_-it-is-_backed_-instead-of-just-a-fiat-currency_-the-reality-is-that-specie-backed-money-is-inferior-to-social-credit-money_-which-is-fiat-money-that-can-take-any-form_-from-paper-to-tally-sticks_2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_capitalist-banking-uses-the-credit-of-the-government-and-privatizes-the-gains-while-not-being-responsible-for-losses_li_-_ul_-_h2_introduction_h2_-while-we-named-the-hypothesis_-there-is-literature-that-discusses-parasitism-of-the-banking-and-finance-and-insurance-sector_-the-so-called-fire-sector-on-the-normal-economy_-and-skepticism-around-banking-and-bankers-is-repeatedly-referred-to-by-many-of-the-politicians-listed-on-this-website_-the-parasite-theory-of-banking-is-that-banking-essentially-loans-out-what-is-government-trust-and-then-enriches-itself-from-something-that-is-a-government-function_-the-counter-argument-is-that-banks-have-an-important-set-of-things-that-they-do_-however_-those-things-_settlements_-clearing_-etc_-can-also-be-done-by-governments_-the-history-of-banking-is-one-of-the-governments-attempting-to-get-banks-to-function-in-the-public-interest-to-cede-the-power-of-money-creation-to-them_-and-banks-reneging-on-their-promises-to-behave-responsibly-and-in-the-public-interest-instead-focusing-on-private-profit_-michael-hudson-is-a-foremost-proponent-of-the-banking-and-fire-sector-as-parasites-on-the-real-economy_-he-notes-that-the-banking-sector-has-convinced-the-host-_the-real-economy_-that-banking-is-more-important-than-the-real-economy_-which-is-how-biological-parasites-function_-we-can-see-this-repeatedly-with-the-government-bailouts-and-the-fed-putting-the-focus-on-making-the-banks-healthy-_that-is_-providing-even-more-subsidies-even-after-fraudulent-behavior-is-discovered_-rather-than-focusing-on-the-real-economy_-this-is-explained-in-the-following-quotation-_blockquote_that_s-how-the-financial-sector-has-taken-over-the-economy_-its-lobbyists-and-academic-advocates-have-persuaded-governments-and-voters-that-they-need-to-protect-banks_-and-even-need-to-bail-them-out-when-they-become-overly-predatory-and-face-collapse_-governments-and-politicians-are-persuaded-to-save-banks-instead-of-saving-the-economy-as-if-the-economy-can_t-function-without-banks-being-left-in-private-hands-to-do-whatever-they-want_-free-of-serious-regulation-and-even-from-prosecution-when-they-commit-fraud_-this-means-saving-creditors-_-the-one-percent-_-not-the-indebted-99-percent_-_strong_-michael-hudson-_-evonomics_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_unearned-income-used-to-be-an-area-of-study-of-economics_-but-it-was-eliminated-as-economics-was-taken-over-by-elite-interest_li_-_ul_-_h2_introduction_h2_-the-chicago-school-of-economics-proposes-that-there-is-_no-free-lunch_-and-that-there-is-not-a-dollar-overpaid_-nor-a-dollar-underpaid-in-economies-because-of-the-_efficient-market-hypothesis_-michael-hudson-describes-how-the-history-of-economic-thought-and-unearned-income-has-been-removed-from-the-study-of-economics-in-the-following-quotation_-_blockquote_to-put-the-concept-of-economic-rent-in-perspective_-i-should-point-out-when-i-went-to-get-my-ph_d_-over-a-half-a-century-ago_-every-university-offering-a-graduate-economics-degree-taught-the-history-of-economic-thought_-that-has-now-been-erased-from-the-curriculum_-people-get-mathematics-instead_-so-they_re-unexposed-to-the-concept-of-economic-rent-as-unearned-income_-it_s-a-concept-that-has-been-turned-on-its-head-by-_free-market_-ideologues-who-use-_rent-seeking_-mainly-to-characterize-government-bureaucrats-taxing-the-private-sector-to-enhance-their-authority-_-not-free-lunchers-seeking-to-untax-their-unearned-income_-the-economy-ends-up-being-turned-into-a-collection-of-tollbooths-instead-of-factories_-so_-you-can-think-of-rent-as-the-_right_-or-special-legal-privilege-to-erect-a-tollbooth-and-say_-_you-can_t-get-television-over-your-cable-channel-unless-you-pay-us_-and-what-we-charge-you-is-anything-we-can-get-from-you_-_strong_-michael-hudson-_-evonomics_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong_-observe-that-in-the-present-day_-even-infrastructure-is-privatized-under-public-private-partnerships-which-are-promoted-by-major-international-private-banking-interests-ranging-from-the-eib-to-the-imf_-there-are-many-discussions-around-privatizing-the-us-post-office2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_brandeis-was-one-of-the-most-important-legal-scholars-in-us-banking-history_li_-_ul_-_h2_introduction_h2_-_blockquote_brandeis-was-a-militant-crusader-for-social-justice-whoever-his-opponent-might-be_-he-was-dangerous-not-only-because-of-his-brilliance_-his-arithmetic_-his-courage_-he-was-dangerous-because-he-was-incorruptible-_-_and_-the-fears-of-the-establishment-were-greater-because-brandeis-was-the-first-jew-to-be-named-to-the-court_4_-on-june-1_-1916_-he-was-confirmed-by-the-senate-by-a-vote-of-47-to-22_4_-to-become-one-of-the-most-famous-and-influential-figures-ever-to-serve-on-the-high-court_-his-opinions-were_-according-to-legal-scholars_-some-of-the-_greatest-defenses_-of-freedom-of-speech-and-the-right-to-privacy-ever-written-by-a-member-of-the-supreme-court_-brandeis-was-unusual-among-lawyers-since-he-always-turned-away-cases-he-considered-bad_-if-he-believed-a-client-to-be-in-the-wrong_-he-would-persuade-his-clients-to-make-amends_-otherwise-he-would-withdraw-from-the-case_strong_-wikipedia_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_wikipedia_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_louis_brandeis_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_louis_brandeis_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_rent-seeking-has-been-eliminated-as-an-area-of-study-in-economics-as-elite-interests-have-taken-over-economics_li_-_ul_-_h2_introduction_h2_-the-history-of-rent-seeking-is-explained-in-the-following-quotation_-_blockquote_this-concept-of-income-without-labor-_-but-simply-from-privileges-that-had-been-made-hereditary-_-was-extended-to-the-ideas-of-monopolies-like-the-east-india-company-and-other-trade-monopolies_-they-could-produce-or-buy-goods-for_-let_s-say_-a-dollar-a-unit_-and-sell-them-for-whatever-the-market-will-bear-_-say_-_4_00_-the-markup-is-_empty-pricing_-it_s-pure-price-gouging-by-a-natural-monopoly_-like-today_s-drug-companies_-to-prevent-such-price-gouging-and-to-keep-economies-competitive-with-low-costs-of-living-and-doing-business_-europe-kept-the-most-important-natural-monopolies-in-the-public-domain_-the-post-office_-the-bbc-and-other-state-broadcasting-companies_-roads_-and-basic-transportation_-as-well-as-early-national-airlines_-european-governments-prevented-monopoly-rent-by-providing-basic-infrastructure-services-at-cost_-or-even-at-subsidized-prices-or-freely-in-the-case-of-roads_-the-guiding-idea-is-for-public-infrastructure-_-which-you-should-think-of-as-a-factor-of-production-along-with-labor-and-capital-_-was-to-lower-the-cost-of-living-and-doing-business_-_strong_-michael-hudson-_-evonomics_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-was-part-of-the-banking-act-of-1933-that-placed-a-separation-between-investment-banking-and-commercial-banking_li_-_ul_-_h2_introduction_h2_-the-official-name-of-the-act-was-the-united-states-banking-act-of-1933_-this-made-banks-choose-whether-they-would-be-a-commercial-bank-or-an-investment-bank_-the-result-is-described-in-the-following-quotation_-_blockquote_the-long-lasting-and-comprehensive-reforms-of-the-era-included-deposit-insurance_-a-continuation-of-unit-banking_-and-federal-laws-on-activity-restrictions_-these-rules-imposed-a-separation-of-traditional-banking-activities_-such-as-lending-and-deposit-taking_-from-commercial-activities_-such-as-securities-underwriting-and-brokering_-the-glass-steagall-act_-the-pillar-of-the-new-deal-banking-reforms_-thus-entrenched-the-doctrine-of-_separation-of-banking-and-commerce_-in-u_s_-banking-regulation_82-the-act-also-contained-interest-rate-limits_the-amount-a-bank-could-offer-for-deposits_intended-to-deter-competition-among-banks_-reduced-competition_-it-was-believed_-would-lead-to-a-more-dispersed-banking-sector-and-more-credit-availability_these-reforms-were-a-response-to-the-recent-banking-crisis_-but-they-also-revealed-a-jeffersonian-and-brandeisian-disdain-for-concentrated-bank-power_-although-they-were-intended-to-make-banks-safer_-they-were-also-meant-to-limit-banks_-market-reach-and-power_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_neoliberal-repeal-of-glass-steagall_h2_-this-act-was-repealed-under-bill-clinton_-massively-increasing-the-risk-in-private-banking_-after-the-2008-crisis_-the-us-now-has-banks-that-are-both-commercial-and-investment-banks_-they-receive-depository-insurance-while-gambling-as-investment-banks_-the-reality-in-the-us-is-that-banks-now-not-only-are-unrestricted-by-the-investment-banks-_-commercial-bank-divide_-they-now-own-major-areas-of-industry-as-is-explained-in-the-following-quotation_-_blockquote_banks-in-america-were-never-meant-to-own-industries_-this-principle-has-been-part-of-our-culture-practically-from-the-beginning-of-our-history_-the-original-restrictions-on-banks-getting-involved-with-commerce-were-rooted-in-the-classically-american-fear-of-overweening-government-power-_-citizens-in-the-early-1800s-were-concerned-about-the-potential-for-monopolistic-abuses-posed-by-state-sponsored-banks_-banks_-however_-were-never-really-regulated-under-those-laws_-only-the-great-depression-and-years-of-brutal-legislative-trench-warfare-finally-brought-them-to-heel-under-the-same-kinds-of-anti-trust-concepts-that-stopped-the-robber-barons_-through-acts-like-glass-steagall-and-the-bank-holding-company-act-of-1956_-then_-with-a-few-throwaway-lines-in-a-1999-law-that-nobody-ever-heard-of-until-now_-that-whole-struggle-went-up-in-smoke_-and-here-we-are_-in-hobbes_-jungle_-waiting-for-the-next-fully-legal-catastrophe-to-unfold_-_strong_-matt-taibbi_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_rolling-stone_span_span_strong_-_strong_a-href_https_www_rollingstone_com_politics_politics-news_the-vampire-squid-strikes-again-the-mega-banks-most-devious-scam-yet-101182_-target_blank_-rel_noopener_https_www_rollingstone_com_politics_politics-news_the-vampire-squid-strikes-again-the-mega-banks-most-devious-scam-yet-101182_a_strong_-_h2_dilution-of-glass-steagall_h2_-there-was-dilution-of-glass-steagall-from-the-beginning-as-is-explained-in-the-following-quotation_-_blockquote_as-the-_thou-shalt-nots_-of-glass-steagall-were-replaced-with-a-more-fluid-system-that-depended-on-firms_-internal-models-of-risk-weighing_-risks-also-increased_-for-several-decades_-banks-became-very-profitable_-and-the-financial-world-grew-exponentially-as-barriers-disappeared_-even-so_-bank-failures-started-to-occur-much-more-often-during-the-deregulatory-era_-empirical-researchers-have-found-that-_the-probability-of-a-banking-crisis-occurring-was-similar-during-1880_1913-and-1973_97-_-and-essentially-zero-during-1945_71_-the-deregulatory-era-culminated-in-the-financial-crisis-of-2008_-proving-most-of-the-deregulatory-era_s-assumptions-wrong_-it-was-inevitable-that-in-an-era-of-deregulated-banks_-large-failures-would-occur_-what-was-surprising-was-that-the-market-rules-would-only-be-applied-when-banks-were-making-profits-and-not-when-they-ultimately-failed_-instead-of-allowing-the-market-to-enforce-its-discipline-and-allow-banks-to-fail_-as-the-repudiation-of-the-social-contract-dictated_-the-government-stepped-in-and-bailed-out-the-banking-industry_-as-the-2008-financial-crisis-deepened_-policymakers-faced-a-choice_-they-could-let-free-markets-take-their-course-and-allow-a-wide-scale-failure-of-the-financial-sector-_which-was-what-was-envisioned-by-the-preceding-era-of-deregulation_-or-they-could-intervene-in-the-private-markets_-they-chose-to-intervene-in-a-way-that-revealed-_the-lasting-influence-and-power-of-the-wall-street-ideology_that-big_-private_-lightly-regulated-financial-institutions-are-good-for-america_-in-other-words_-instead-of-using-the-crisis-to-effect-real-reform-in-banking-like-roosevelt-did_-these-policymakers-focused-myopically-on-maintaining-bank-profitability-without-requiring-anything-in-return_the-government-bent-over-backward-to-make-the-deal-attractive-for-the-banks_-charging-below-market-interest-and-eschewing-any-significant-ownership_so-shareholders_-not-taxpayers_-would-benefit-when-the-banks-recovered_-simon-johnson-and-james-kwak-articulated-the-incongruity-of-it-all_-_never-before-had-so-much-taxpayer-money-been-dedicated-to-save-an-industry-from-the-consequences-of-its-own-mistakes_-in-the-ultimate-irony_-it-went-to-an-industry-that-had-insisted-for-decades-that-it-had-no-use-for-the-government-and-would-be-better-off-regulating-itself_and-it-was-overseen-by-a-group-of-policymakers-who-agreed-that-governments-should-play-little-role-in-the-financial-sector_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_taibbi-is-an-investigative-journalist-specializing-in-finance_li_-_ul_-_h2_introduction_h2_-taibbi-is-an-investigative-journalist-who-has-exposed-wall-street-along-with-many-other-cases-of-abuse-of-power-in-the-financial-sector2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-austrian-school-of-economics-is-the-economics-of-the-private-banking-elite_li_-_ul_-_h2_introduction_h2_-the-austrian-school-of-economist-is-a-school-of-thought-that-sees-no-positive-role-for-government_-_span-style_font-family_-var_-global-body-font-family_this-is-covered-in-the-following-quotation_span_-_blockquote_the-austrian-school-is-described-in-the-following-quotes_-_just-as-margaret-thatcher-said_-_there_s-no-such-thing-as-society_-the-austrians-developed-a-picture-of-the-economy-without-any-positive-role-for-government_-it-was-as-if-money-were-created-by-producers-and-merchants-bartering-their-output_-this-is-a-travesty-of-history_-all-ancient-money-was-issued-by-temples-or-public-mints-so-as-to-guarantee-standards-of-purity-and-weight_-you-can-read-biblical-and-babylonian-denunciation-of-merchants-using-false-weights-and-measures-so-see-why-money-had-to-be-public_-the-major-trading-areas-were-agora-spaces-in-front-of-temples_-which-kept-the-official-weights-and-measures_-and-much-exchange-was-between-the-community_s-families-and-the-public-institutions_-most-important_-money-was-brought-into-being-not-for-trade-_which-was-conducted-mainly-on-credit_-but-for-paying-debts_-and-most-debts-were-owed-to-the-temples-and-palaces-for-pubic-services-or-tribute_-but-to-the-austrians_-the-idea-was-that-anything-the-government-does-to-protect-labor_-consumers-and-society-from-rentiers-and-grabbers-is-deadweight-overhead_-above-all_-they-opposed-governments-creating-their-own-money_-e_g_-as-the-united-states-did-with-its-greenbacks-in-the-civil-war_-they-wanted-to-privatize-money-creation-in-the-hands-of-commercial-banks_-so-that-they-could-receive-interest-on-their-privilege-of-credit-creation-and-also-to-determine-the-allocation-of-resources_-as-we-just-said-in-the-previous-discussion_-the-greatest-fortunes-of-our-time-have-come-from-privatizing-the-public-domain_-obviously_-the-government-isn_t-just-deadweight_-but-it-is-becoming-prey-to-the-financial-interests-and-the-smashers-and-grabbers-they-have-chosen-to-back_-centuries-of-classical-economists-backed-democratic-political-reform-of-parliaments-to-roll-back-the-landlords_-power-_and-that-of-bankers_-but-hayek-claimed-that-this-rollback-was-the-road-to-serfdom_-not-away-from-it_-he-said-democratic-regulation-and-taxation-of-rentiers-is-serfdom_-in-reality_-of-course_-it_s-the-antidote_-_strong_-michael-hudson-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_debt-is-a-primary-way-that-wealthier-nations-take-control-over-less-wealthy-nations_li_-_ul_-_h2_introduction_h2_-using-debt-as-a-type-of-warfare-is-explained-in-the-following-quotation_-_blockquote_if-you-treat-debt-as-a-weapon_-the-basic-idea-is-that-finance-is-the-new-mode-of-warfare_-that_s-one-of-my-chapters-in-the-book_-in-the-past_-in-order-to-take-over-a-country_s-land-and-its-public-domain_-its-basic-infrastructure_-and-its-mineral-resources_-you-had-to-have-a-military-invasion_-but-that_s-very-expensive_-and-politically_-almost-no-modern-democracy-can-afford-a-military-invasion-anymore_-so-the-objectives-of-the-financial-sector-_-of-wall-street_-the-city-of-london-or-frankfurt-in-germany-_-is-to-obtain-the-land_-you-can-look-at-what_s-happening-in-greece_-what-its-creditors_-the-imf-and-european-central-bank-_ecb_-want-are-the-greek-islands_-and-they-want-the-gas-rights-in-the-aegean-sea_-they-want-whatever-buildings-and-property-there-is_-including-the-museums_-you-now-have-the-imf_-european-central-bank-and-washington-consensus-taking-over-whole-countries-like-ukraine_-the-tactic-is-to-purposely-lend-them-the-money-that-clearly-cannot-be-repaid_-and-say_-_oh-you-cannot-pay_-well_-we_re-not-going-to-take-a-loss_-we-have-a-solution_-the-solution-is-to-sell-off-public-enterprises_-land-and-natural-resources_-in-greece_s-case_-50-billion-euros-of-its-property_-everything-that-it-has-in-the-public-sector_-the-country-is-to-be-sold-off-to-foreigners-_including-domestic-oligarchs-working-out-of-their-offshore-accounts_-debt-leverage-is-thus-the-way-to-achieve-what-it-took-armies-to-win-in-times-past_-_strong_-micheal-hudson-_strong_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_debt-is-a-primary-way-that-monied-interests-persecute-those-with-fewer-financial-resources_li_-_ul_-_h2_introduction_h2_-how-debt-is-often-used-is-described-in-the-following-quotation_-_blockquote_in-america_-in-colonial-times_-sharpies-_especially-from-britain_-would-lend-farmers-money-that-they-knew-the-farmer-couldn_t-pay_-then-they-would-foreclose-just-before-the-crops-came-in_-right-now-you-have-corporate-raiders_-who-are-raiding-whole-companies-by-forcing-them-into-debt_-and-then-smashing-and-grabbing_-_strong_-michael-hudson-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_david-ricardo-is-best-known-for-his-theory-on-trade_-however_-he-was-also-very-active-in-analyzing-and-critiquing-banking_li_-_ul_-_h2_introduction_h2_-_span-style_font-family_-var_-global-body-font-family_ricardo_s-theory-of-comparative-advantage-that-supposedly-underlies-trade-is-taught-to-all-people-that-take-a-course-in-economics_-however_-ricardo_s-background-and-financial-ties-are-virtually-never-discussed-to-explained-to-students_-this-is-covered-in-the-following-quotation_span_-_blockquote_that_s-correct_-and-mainstream-economics-denies-any-of-this_-it-began-with-ricardo_-whose-brothers-were-major-bankers-at-the-time_-and-he-himself-was-the-major-bank-lobbyist-in-england_-right-after-greece-won-its-independence-from-turkey_-the-ricardo-brothers-made-a-rack-renting-loan-to-greece-at-far-below-par-_that-is_-below-the-face-value-that-greece-committed-itself-to-pay_-greece-tried-to-pay-over-the-next-century_-but-the-terms-of-the-loan-ended-up-stripping-and-keeping-it-on-the-edge-of-bankruptcy-well-into-the-20th-century_-but-ricardo-testified-before-parliament-that-there-could-be-no-debt-servicing-problem_-any-country_-he-said_-could-repay-the-debts-automatically_-because-there-is-an-automatic-stabilization-mechanism-that-enables-every-country-to-be-able-to-pay_-this-is-the-theory-that-underlines-milton-friedman-and-the-chicago-school-of-monetarism_-the-misleading-idea-that-debt-cannot-be-a-problem_-that_s-what_s-taught-now-in-international-trade-and-financial-textbooks_-it_s-false-pleading_-it-draws-a-fictitious-_what-if_-picture-of-the-world_-when-criticized_-the-authors-of-these-textbooks_-like-paul-samuelson_-say-that-it-doesn_t-matter-whether-economic-theory-is-realistic-or-not_-the-judgment-of-whether-an-economic-theory-is-scientific-is-simply-whether-it-is-internally-consistent_-so-you-have-these-fictitious-economists-given-nobel-prizes-for-promoting-an-inside-out_-upside-down-version-of-how-the-global-economy-actually-works_-_strong_-micheal-hudson-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_evonomics_span_span_strong_-_strong_a-href_https_evonomics_com_how-financial-parasites-and-debt-bondage_-target_blank_-rel_noopener_https_evonomics_com_how-financial-parasites-and-debt-bondage_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-a-foundational-theory-in-economics-and-it-is-nothing-more-than-an-elite-construction-to-defend-the-status-quo_li_-_ul_-_h2_introduction_h2_-this-theory-holds-that-the-normal-or-equilibrium-state-of-the-economy-is-t-the-normal-state_-and-when-things-go-wrong-in-an-economy_-it-is-because-of-a-disequilibrium_-this-is-expressed-in-the-following-video-by-steve-keen_-https_www_youtube_com_watch_v_yttrpz71u7m2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_quebec-has-analyzed-whether-it-should-introduce-its-own-currency_li_-_li_this-is-something-private-banking-interests-oppose_-here-is-the-argument-in-favor_li_-_ul_-_h2_introduction_h2_-a-plan-to-create-debt-free-government-issued-money-has-been-proposed-by-warren-mosler-for-quebec_-how-quebec-can-create-its-own-debt-free-money-is-straightforward-and-is-explained-as-follows_-_h3_on-interest-quebec-would-ordinarily-pay_h3_-_blockquote_what-about-interest-rates_-with-this-system_-the-state-doesn_t-have-to-pay-interest_-even-when-it-spends-more-than-it-taxes_-notice-that-the-state-does-not-have-to-borrow-in-order-to-spend-more-than-it-taxes_-as-it-simply-issues-currency_-or-credits-someone_s-bank-account_-when-that-person-wishes-to-sell-something-in-exchange-for-fleurs_-_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_the-key-is-that-there-is-price-stability-as-long-as-the-state-doesn_t-spend-so-much-at-market-_span_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_prices-that-no-workers-apply-for-the-basic-job_-_span_span-style_color_-var_-global-palette4_-font-family_-var_-global-body-font-family_in-other-words_-there-is-price-stability-as-long-as-the-state-doesn_t-spend-more-fleurs-than-the-taxpayers-determine-they-want_-and_-because-the-state-always-requires-that-at-the-margin-state-service-is-necessary-to-get-needed-fleurs_-the-value-of-the-fleur-is-equal-to-the-value-of-the-labor-time-of-the-person-who-has-to-work-at-the-basic-state-job-to-get-the-fleurs_span_blockquote_-_h3_what-happens-when-quebec-spends-more-than-it-takes-in-taxes_h3_-_blockquote_when-the-state-does-spend-more-than-it-taxes_-the-extra-fleurs-will-likely-settle-as-excess-deposits-in-the-banking-system_-this-is-an-imbalance-that-any-economist-will-tell-you-will-result-in-ultra-low-short-term-interest-rates_-perhaps-even-a-bit-lower-than-seen-in-japan-during-recent-years_-the-prime-rate_-for-example_-could-be-expected-to-be-around-3-1_2_-the-bank-regulators-will-of-course-have-to-continue-to-maintain-their-strict-capital-guidelines-and-credit-requirements-to-prevent-banks-from-speculating-with-insured-depositors_-money_-as-they-do-today_-if-the-state-should-desire-higher-interest-rates-for-any-reason_-it-always-has-the-option-of-offering-to-pay-a-desired-base-rate-of-interest-on-excess-bank-deposits-held-at-the-central-bank_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2018_04_a-plan-for-quebec-monetary-independence_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2018_04_a-plan-for-quebec-monetary-independence_pdf_a_strong_-starting-up-government-money-is-much-easier-than-most-people-assume_-the-biggest-obstacle-is-the-false-information-provided-by-private-banking-interests_-for-every-country-that-creates-its-own-debt-free-money_-this-is-private-bankers-that-are-cut-out-of-the-profit-loop2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_warren-mosler-is-one-of-the-most-important-thinkers-in-the-area-of-banking_li_-_li_mosler_s-insights-come-from-hands-on-experience-in-banking-and-a-natural-ability-to-question-dogma_li_-_ul_-_h2_introduction_h2_-mosler-is-one-of-the-originators-of-modern-monetary-theory_-mosler-explains-in-very-clear-terms-how-banking-is-misunderstood-and-misexplained-to-the-public_-this-demonstrates-that-many-people-who-discuss-banking-accept-its-inaccurate-assumptions-that-they-were-taught-by-courses-or-writings-that-are-promulgated-by-private-banking-interests_-mosler-benefits-from-not-being-an-academic-mainstream-economist_-but-like-michael-hudson-developing-his-ideas-from-directly-observing-the-inner-workings-of-banking-and-the-fed-through-a-long-career-working-in-banking-and-investment-management_-_h2_why-mainstream-economists-and-private-banking-interests-hate-warren-mosler_h2_-mosler_s-deep-knowledge-of-banking-makes-it-more-difficult-for-mainstream-economists-to-contradict-his-insights-without-resorting-to-calling-mmt-_unrealistic_-this-is-a-quote-describing-mosler_s-approach_-_blockquote_the-common-thread-tying-these-themes-together-is-simplicity-itself_-it_s-that-modern-money-is-a-spreadsheet_-it-works-by-computer_-when-government-spends-or-lends_-it-does-so-by-adding-numbers-to-private-bank-accounts_-when-it-taxes_-it-marks-those-same-accounts-down_-when-it-borrows_-it-shifts-funds-from-a-demand-deposit-_called-a-reserve-account_-to-savings-_called-a-securities-account_-and-that-for-practical-purposes-is-all-there-is_-the-money-government-spends-doesn_t-come-from-anywhere_-and-it-doesn_t-cost-anything-to-produce_-the-government_-therefore_-cannot-run-out_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_mainstream-and-private-banking-associated-economists-often-talk-of-governments-defaulting_li_-_li_the-reality-is-that-for-governments-that-create-their-own-money_-there-is-no-possibility-of-default_li_-_ul_-_h3_introduction_h3_-governments-cannot-default-on-their-debt-_span-style_color_-_0e8acc_strong_unless-forced-to_strong_span_-this-is-explained-in-the-following-quotation_-_blockquote_a-government-borrowing-in-its-own-currency-need-never-default-on-its-debts_-paying-them-is-simply-a-matter-of-adding-the-interest-to-the-bank-accounts-of-the-bond-holders_-a-government-can-only-decide-to-default_an-act-of-financial-suicide_or-_in-the-case-of-a-government-borrowing-in-a-currency-it-doesn_t-control_-be-forced-to-default-by-its-bankers_-but-a-u_s_-bank-will-always-cash-a-check-issued-by-the-us-government_-whatever-happens_-_strong_-james-k-galbraith_strong_blockquote_-_h2_warren-mosler-ask-the-italian-head-of-the-treasury-a-simple-question_h2_-this-is-further-explained-in-the-following-quotation_-which-is-an-interaction-with-the-italian-treasury-asked-by-warren-mosler-in-a-meeting-held-at-the-height-of-concern-on-the-part-of-investors-over-the-potential-of-the-italian-government-defaulting-on-its-debt_-_blockquote_professor-spaventa_-this-is-a-rhetorical-question_-but-why-is-italy-issuing-treasury-securities_-is-it-to-get-lira-to-spend_-or-is-it-to-prevent-the-lira-interbank-rate-falling-to-zero-from-your-target-rate-of-12_-i-could-tell-that-professor-spaventa-was-at-first-puzzled-by-the-questions_-he-was-probably-expecting-us-to-question-when-we-would-get-our-withholding-tax-back_-professor-spaventa-took-a-minute-to-collect-his-thoughts_-when-he-answered-my-question_-he-revealed-an-understanding-of-monetary-operations-we-had-rarely-seen-from-treasury-officials-in-any-country_-_no_-he-replied_-_the-interbank-rate-would-only-fall-to-zero_-as-we-pay-interest-on-reserves_-i-said-nothing_-giving-him-more-time-to-consider-the-question_-a-few-seconds-later-he-jumped-up-out-of-his-seat-proclaiming-_yes_-and-the-international-monetary-fund-is-making-us-act-pro-cyclical_-my-question-had-led-to-the-realization-that-the-imf-was-making-the-italian-government-tighten-policy-due-to-a-default-risk-that-did-not-exist_-our-meeting_-originally-planned-to-last-for-only-twenty-minutes_-went-on-for-two-hours_-the-good-professor-began-inviting-his-associates-in-nearby-offices-to-join-us-to-hear-the-good-news_-and-instantly-the-cappuccino-was-flowing-like-water_-the-dark-cloud-of-default-had-been-lifted_-this-was-time-for-celebration_-over-the-next-few-years_-our-funds-and-happy-clients-made-well-over-_100-million-in-profits-on-these-transactions_-and-we-may-have-saved-the-italian-government-as-well_-the-awareness-of-how-currencies-function-operationally-inspired-this-book-and-hopefully-will-soon-save-the-world-from-itself_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_how-international-private-banking-interests-force-countries-to-follow-their-monetary-and-fiscal-policies_h2_-this-describes-the-problem-with-private-banking-entities-like-the-imf-forcing-countries-to-follow-monetary-policies-based-upon-the-idea-of-governments-defaulting-at-high-debt-to-gdp-ratios_-private-banking-funds-_strong_span-style_color_-_0e8acc_false-information-providing-think-tanks_span_strong_-like-cato-and-heritage-like-to-draw-comparisons-between-the-debt-of-the-us-and-the-debt-of-eu-member-nations_-the-following-is-a-perfect-example-of-this_-_h2_private-banking-propaganda-from-cato-and-heritage_h2_-_blockquote_at-some-point_-bond-investors-see-the-end-coming_-as-they-did-for-greece_-if-they-lend-at-all_-they-demand-sharply-higher-interest-rates_-but-if-rates-rise-only-to-5-percent_-our-current-_20-trillion-debt-means-an-additional-_1-trillion-deficit_-larger-debt-makes-it-worse_-higher-interest-costs-rates-feed-a-deficit-which-feeds-higher-rates-in-a-classic-_doom-loop_-the-fed-is-powerless-to-hold-rates-down_-even-if-it-is-willing-to-buy-_10-trillion-bonds_-since-people-demand-the-same-high-rates-to-hold-the-fed_s-money_-and-the-fed-cannot-end-the-crisis-by-raising-rates_-which-only-raises-interest-costs-further_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_cato-institute_span_span_strong_-_strong_a-href_https_www_cato_org_commentary_our-national-debt-denial_-target_blank_-rel_noopener_https_www_cato_org_commentary_our-national-debt-denial_a_strong_-comparing-greece-to-the-us-is-a-ridiculous-comparison-because-greece-is-an-eu-member-country_-by-joining-the-eu_-greece-_strong_span-style_color_-_0e8acc_lost-its-ability-to-create_span_strong_-or-control-its-currency_-the-eu-can-remotely-control-greece-into-doing-a-number-of-bad-things-for-greece_-however_-the-us-is-not-of-the-eu-and-did-not-hand-over-its-ability-to-create-its-own-currency_-secondly_-the-us-does-not-have-to-issue-debt_-it-only-does-this-because-it-gave-up-this-ability-to-the-federal-reserve-during-the-federal-reserve-act-of-1913_-throughout-the-history-of-the-us_-it-has-repeatedly-created-its-own-money-without-any-involvement-from-any-private-bank_-cato-never-mentioned-this-because-it-would-conflict-with-the-private-banking-interests-that-are-most-likely-funding-them_-and-which-cato-naturally-does-not-declare_-however_-comparing-the-us-to-far-smaller-countries-_greece_s-population-is-around-10-m_-with-a-completely-different-banking-situation-is-common-for-these-think-tanks_-later-in-the-article_-cato-does-admit-that-the-us-and-greece-are-different_-as-can-be-seen-from-this-fearmongering-quote_-_blockquote_yes_-the-u_s_-prints-its-own-money-and-greece-does-not_-but-that-fact-only-means-that-a-crisis-may-end-in-sharp-inflation-rather-than-chaotic-default_-and-it-is-not-obvious-that-the-u_s_-government-will-choose-inflation-over-default_blockquote_-this-says-directly-that-the-us-will-default-on-its-debt_-why-the-us-would-do-this-is-unclear_-as-cato-just-admitted_-the-us-can-create-its-own-money_-secondly_-it-is-unclear-why-the-other-option-would-be-inflation_-inflation-is-caused-when-there-is-too-much-money-in-the-system_-the-existence-of-a-large-debt-does-not-establish-whether-there-is-too-much-money-versus-the-goods-and-services-and-investments-desired-to-be-purchased_-the-cato-quote-continues_-_blockquote_will-congress-really-prioritize-paying-interest-to_-as-it-will-see-them_-wall-street-fat-cats_-foreign-central-bankers_-and-_the-rich_-who-hold-u_s_-debt_-over-the-needs-of-struggling-americans_-will-our-elected-officials-really-wipe-out-millions-of-voters_-savings-in-a-sharp-inflation-rather-than-devise-a-complex-haircut-for-government-debt_-don_t-bet-on-it_-but-if-bond-investors-smell-a-haircut-coming_-they-will-flee-all-the-faster_-when-washington-can-no-longer-borrow_-our-normal-crisis_mitigation-policies-disappear-_-the-flood-of-debt-relief_-bailout_-and-stimulus-that-everyone-expects-_-together-with-our-capacity-for-military-or-public_health-spending-to-meet-the-roots-of-the-crisis_blockquote_-this-quote-is-lunacy_-it-is-false-and-also-highly-irresponsible_-cato-is-pushing-a-threat-of-default-where-there-is-none-and-a-threat-of-inflation-which-is-not-explained_-cato-continues-_blockquote_what-can-be-done_-first_-spend-wisely_-as-if-debt-actually-has-to-be-paid-off_-it-does_-even-if-the-interest-rate-remains-below-the-growth-rate_-that-channel-for-reducing-the-debt_to_gdp-ratios-takes-decades_-when-a-fiscal-reckoning-comes_-it-will-require-a-swifter-reduction-in-debt_-that-will-mean-either-sharply-higher_-european_style-middle_class-taxes-or-lower-spending_blockquote_-the-us-government-is-not-a-household_-and-money-does-not-mean-the-same-thing-or-work-the-same-way_-there-also-is-no-_fiscal-reckoning_-and-the-us-government-does-not-need-taxes-or-use-taxes-to-pay-back-its-treasury-bonds_-every-claim-here-is-false-and-is-misinforming-readers_-cato-authors-either-know-nothing-or-they-are-deliberately-publishing-false-information-on-the-topic2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_milton-friedman-is-the-second-most-quoted-economist-after-adam-smith-and-a-tool-for-private-banking-interests_li_-_ul_-_h2_introduction_h2_-friedman-was-one-of-the-best-known-economists-of-the-20th-century_-he-won-a-nobel-prize-for-monetarism_-which-proposed-balanced-budgets-and-pegging-the-money-supply-to-the-expected-economic-growth_-this-is-explained-in-the-following-quotation_-_blockquote_milton-friedman_-led-another-school-of-thought-known-as-the-_monetarists_-the-monetarists-believe-the-federal-government-should-always-keep-the-budget-in-balance-and-use-what-they-called-_monetary-policy_-to-regulate-the-economy_-initially-that-meant-keeping-the-_money-supply_-growing-slowly-and-steadily-to-control-inflation_-and-letting-the-economy-do-what-it-may_-however-they-never-could-come-up-with-a-measure-of-money-supply-that-did-the-trick-nor-could-the-federal-reserve-ever-find-a-way-to-actually-control-the-measures-of-money-they-experimented-with_-_strong_-warren-mosler_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-after-winning-his-nobel-prize_-he-had-a-long-career-in-promoting-neoliberal-policies-that-did-not-have-anything-to-do-with-monetarism-and-dovetailed-with-work-by-ayn-rand-where-the-focus-is-on-the-individual-and-companies-profit-maximizing2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_deficit-hawks-often-propose-there-is-some-limit-to-government-spending_li_-_li_the-reality-is-for-a-country-that-creates-its-own-money_-the-government-spending-limits-are-not-what-is-generally-proposed_li_-_ul_-_h2_introduction_h2_-under-modern-monetary-theory-or-even-better-under-public-central-banking_-where-the-government-incurs-_strong_span-style_color_-_1093c7_no-debt-when-creating-money_span_strong_-a-common-concern-is-that-the-government-bringing-money-into-existence-will-cause-inflation_-this-topic-is-covered-in-the-following-quotation_-_blockquote_this-is-not-to-say-that-excess-government-spending-won_t-possibly-cause-prices-to-go-up-_which-is-inflation_-but-it-is-to-say-that-the-government-can_t-go-broke-and-can_t-be-bankrupt_-there-is-simply-no-such-thing_-so-why-does-no-one-in-government-seem-to-get-it_-why-does-the-ways-and-means-committee-in-congress-worry-about-_how-we-are-going-to-pay-for-it_-it-could-be-that-they-believe-the-popular-notion-that-the-federal-government_-just-like-any-household_-must-somehow-first-_get_-money-to-be-able-to-spend-it_-yes_-they-have-heard-that-it_s-different-for-a-government_-but-they-don_t-quite-believe-it_-and-there_s-never-a-convincing-explanation-that-makes-sense-to-them_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-any-government-is-not-limited-in-creating-money-unless-it-has-become-part-of-a-confederation-like-the-eu-and-given-up-its-money-creation-to-another-entity_-greece-or-germany-no-longer-have-their-own-money-but-have-given-it-up-for-the-euro_-in-terms-of-banking_-all-member-countries-are-no-longer-countries-but-are-now-_states_-as-they-are-children-in-the-eu-central-banking-construct_-although-germany-is-so-influential-in-the-eu-due-to-their-economic-size_-they-do-not-face-the-same-loss-of-control-as-smaller-countries_-_h2_the-general-rule-of-thumb-on-government-spending_h2_-however_-a-country-can-be-said-to-be-constrained-in-how-much-it-spends_-as-it-can-create-inflation-if-it-overspends_-but-it-is-not-limited-in-what-it-can-spend-if-it-has-and-creates-its-own-money_-similarly_-a-government-that-creates-its-own-money-cannot-go-_bankrupt-from-high-debt_-as-it-controls-its-own-money2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_debt-ceilings-are-a-scare-tactic-that-supports-private-banking-interests-attempting-to-set-arbitrary-limits-to-the-federal-debt_li_-_li_the-concept-ignores-the-ability-of-governments-to-create-money_li_-_ul_-_h2_introduction_h2_-debt-ceilings-are-hotly-debated-topics_-those-individuals-who-do-not-take-federal-debt-_seriously_-are-called-_irresponsible_-and-passing-on-our-debt-to-_our-children_-_h2_the-reality-of-the-federal-debt-and-debt-ceilings_h2_-debt-only-exists-in-countries-where-a-private-central-bank-has-assumed-the-government_s-money-creation-function_-when-the-central-bank-is-public_-there-is-no-such-thing-as-debt_-however_-even-under-conditions-of-a-private-central-bank-_as-in-the-federal-reserve-of-the-us_-debt-ceilings-still-make-no-sense-and-are-based-on-false-assumptions-on-how-central-banking-works_-the-illusion-of-the-debt-ceiling-is-explained-in-the-following-quotation_-_blockquote_these-include-debt-ceiling-rules_-treasury-overdraft-rules_-and-restrictions-of-the-fed-buying-securities-from-the-treasury_-they-are-all-imposed-by-a-congress-that-does-not-have-a-working-knowledge-of-the-monetary-system_-and_-with-our-current-monetary-arrangements_-all-of-those-self-imposed-constraints-are-counterproductive-with-regard-to-furthering-public-purpose_-all-they-do-is-put-blockages-in-the-monetary-plumbing-that-wouldn_t-otherwise-be-there_-and-from-time-to-time_-create-problems-that-wouldn_t-otherwise-arise_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_how-taxes-are-used-to-promote-economic-behavior-and-as-a-control-can-be-understood-by-reviewing-the-british_s-imposition-in-its-african-colonies_li_-_ul_-_h2_introduction_h2_-how-the-british-used-taxes-in-african-colonies-to-motivate-behavior-is-explained-in-the-following-quotation_-_blockquote_the-following-is-not-merely-a-theoretical-concept_-it_s-exactly-what-happened-in-africa-in-the-1800_s_-when-the-british-established-colonies-there-to-grow-crops_-the-british-offered-jobs-to-the-local-population_-but-none-of-them-were-interested-in-earning-british-coins_-so-the-british-placed-a-_hut-tax_-on-all-of-their-dwellings_-payable-only-in-british-coins_-suddenly_-the-area-was-_monetized_-as-everyone-now-needed-british-coins_-and-the-local-population-started-offering-things-for-sale_-as-well-as-their-labor_-to-get-the-needed-coins_-the-british-could-then-hire-them-and-pay-them-in-british-coins-to-work-the-fields-and-grow-their-crops_blockquote_-secondly_-according-to-mosler_-taxes-keep-the-economy-from-overheating-and-allow-the-government-to-spend-without-causing-inflation_-as-is-explained-in-the-following-quotation_-_blockquote_the-government-taxes-us-and-takes-away-our-money-for-one-reason_so-we-have-that-much-less-to-spend-which-makes-the-currency-that-much-more-scarce-and-valuable_-taking-away-our-money-can-also-be-thought-of-as-leaving-room-for-the-government-to-spend-without-causing-inflation_-think-of-the-economy-as-one-big-department-store-full-of-all-the-goods-and-services-we-all-produce-and-offer-for-sale-every-year_-we-all-get-paid-enough-in-wages-and-profits-to-buy-everything-in-that-store_-assuming-we-would-spend-all-the-money-we-earn-and-all-the-profits-we-make_-_and-if-we-borrow-to-spend_-we-can-buy-even-more-than-there-is-in-that-store_-but-when-some-of-our-money-goes-to-pay-taxes_-we-are-left-short-of-the-spending-power-we-need-to-buy-all-of-what_s-for-sale-in-the-store_-this-gives-the-government-the-_room_-to-buy-what-it-wants-so-that-when-it-spends-what-it-wants_-the-combined-spending-of-government-and-the-rest-of-us-isn_t-too-much-for-what_s-for-sale-in-the-store_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_blockquote_in-those-parts-of-africa-where-land-was-still-in-african-hands_-colonial-governments-forced-africans-to-produce-cash-crops-no-matter-how-low-the-prices-were_-the-favorite-technique-was-taxation_-money-taxes-were-introduced-on-numerous-items_-cattle_-land_-houses_-and-the-people-themselves_-money-to-pay-taxes-was-got-by-growing-cash-crops-or-working-on-european-farms-or-in-their-mines_-_rodney_-1972_-page-165_-original-emphasis_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_a_strong_-_h2_making-a-group-play-by-your-rules-and-use-your-money_h2_-this-means-that-taxes-are-designed-to-reduce-the-spending-power-of-taxpayers-and-_span-style_color_-_1c91c7_strong_create-demand-for-the-government_s-currency_strong_span_-ultimately_-anyone-that-could-would-like-to-create-its-own-money_-if-you-can-get-that-money-accepted_-you-receive-the-money-creation-right-or-the-right-of-the-sovereign_-if-your-money-is-accepted_-and-you-control-the-creation-of-money_-then-all-you-need-to-do-when-you-need-to-obtain-goods-and-services-is-to-create-money_-which-any-sovereign-can-as-part-of-an-accounting-entry_-however_-the-question-is-how-to-get-people-to-accept-your-money-as-a-value-of-exchange_-the-trick-is-to-make-that-money-as-the-only-payable-money-for-taxes_-once-you-have-accomplished-this_-you-will-have-a-steady-stream-of-workers-willing-to-labor-to-pay-you-your-money_-this-is-money-you-have-no-use-for_-as-you-can-create-as-much-as-you-want_-however_-it-keeps-the-public-and-the-companies-in-your-domain-motivated-to-continue-to-make-an-effort-to-obtain-this-money_-once-the-money-is-accepted-as-payment-for-taxes_-it-becomes-used-as-a-means-of-exchange2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_conservatives-and-mainstream-economists-constantly-propose-that-government-be-smaller-than-it-is_li_-_li_the-reality-is-that-the-size-of-the-government-budget-is-unrelated-to-taxation_li_-_ul_-_h2_introduction_h2_-the-following-quote-explains-the-pointlessness-of-the-discussion-around-the-debate-on-government-debt_-_blockquote_the-_right-amount-of-government-spending_-is-an-economic-and-political-decision-that_-properly-understood_-has-nothing-to-do-with-government-finances_-the-real-_costs_-of-running-the-government-are-the-real-goods-and-services-it-consumes_all-the-labor-hours_-fuel_-electricity_-steel_-carbon-fiber_-hard-drives_-etc_-that-would-otherwise-be-available-for-the-private-sector_-so-when-the-government-takes-those-real-resources-for-its-own-purposes_-there-are-that-many-fewer-real-resources-left-for-private-sector-activity_-therefore_-the-way-i-see-it_-we-first-set-the-size-of-government-at-the-_right_-level-of-public-infrastructure_-based-on-real-benefits-and-real-costs_-and-not-the-_financial_-considerations_-the-monetary-system-is-then-the-tool-we-use-to-achieve-our-real-economic-and-political-objectives_-and-not-the-source-of-information-as-to-what-those-objectives-are_-then_-after-deciding-what-we-need-to-spend-to-have-the-right-sized-government_-we-adjust-taxes-so-that-we-all-have-enough-spending-power-to-buy-what_s-still-for-sale-in-the-_store_-after-the-government-is-done-with-its-shopping_-in-general_-i_d-expect-taxes-to-be-quite-a-bit-lower-than-government-spending_-for-reasons-already-explained-and-also-expanded-on-later-in-this-book_-in-fact_-a-budget-deficit-of-perhaps-5_-of-our-gross-domestic-product-might-turn-out-to-be-the-norm_-which-in-today_s-economy-is-about-_750-billion-annually_-however_-that-number-by-itself-is-of-no-particular-economic-consequence-and-could-be-a-lot-higher-or-a-lot-lower_-depending-on-the-circumstances_-what-matters-is-that-the-purpose-of-taxes-is-to-balance-the-economy-and-make-sure-it_s-not-too-hot-nor-too-cold_-and-federal-government-spending-is-set-at-this-right-amount_-given-the-size-and-scope-of-government-we-want_-today-_april-15_-2010_-it_s-clear-that-congress-is-taking-more-spending-power-away-from-us-in-taxes-than-is-needed-to-make-room-for-their-own-spending_-even-after-we-spend-what-we-want-and-the-government-does-all-of-its-massive-spending_-there_s-still-a-lot-left-unsold-in-that-big-department-store-called-the-economy_-how-do-we-know-that_-easy_-count-the-bodies-in-the-unemployment-lines_-look-at-the-massive-amount-of-excess-capacity-in-the-economy_-look-at-what-the-fed-calls-the-_output-gap_-which-is-the-difference-between-what-we-could-produce-at-full-employment-and-what-we-are-now-producing_-it_s-enormous_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_the-objective-of-mainstream-economists-and-private-banking-interests_h2_-their-objectives-_as-economists-are-just-pr-lackeys-of-private-banking-interests_-is-to-make-the-public-and-politicians-think-that-a-government-that-creates-its-own-money-must-manage-its-finances-like-a-household_-and-a-second-major-objective-is-to-get-the-government-to-outsource-and-hand-over-the-money-creation-function-to-private-bankers_-once-in-the-hand-of-private-bankers_-these-bankers-will-hand-out-free-money-to-their-friends-and-associates_-while-preaching-how-there-is-no-money-for-social-programs_-this-is-welfare-for-the-elite_-and-austerity-for-the-masses_-once-the-central-bank-is-private_-governments-end-up-having-to-_borrow_-money_-which-they-legally-have-the-right-to-create-out-of-thin-air_-this-is-exactly-where-the-us-now-finds-itself_-and-the-longer-the-private-banking-interests-are-in-control-of-the-central-bank_-the-more-corrupt-that-central-bank-becomes_-and-the-most-it-works-against-the-public-interest-and-for-the-benefit-of-the-elite2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_us-treasuries-are-often-described-as-something-special_li_-_li_this-quote-from-warren-mosler-demystifies-us-treasuries_li_-_ul_-_h3_introduction_h3_-this-quotation-explains-how-us-treasuries-work_-_blockquote_next_-you-need-to-know-what-a-u_s_-treasury-security-actually-is_-a-u_s_-treasury-security-is-nothing-more-than-a-savings-account-at-the-fed_-when-you-buy-a-treasury-security_-you-send-your-dollars-to-the-fed-and-then-some-time-in-the-future_-they-send-the-dollars-back-plus-interest_-the-same-holds-true-for-any-savings-account-at-any-bank_-you-send-the-bank-dollars-and-you-get-them-back-plus-interest_-let_s-say-that-your-bank-decides-to-buy-_2_000-worth-of-treasury-securities_-to-pay-for-those-treasury-securities_-the-fed-reduces-the-number-of-dollars-that-your-bank-has-in-its-checking-account-at-the-fed-by-_2_000-and-adds-_2_000-to-your-bank_s-savings-account-at-the-fed_-_i_m-calling-the-treasury-securities-_savings-accounts_-which-is-all-they-are_-in-other-words_-when-the-u_s_-government-does-what_s-called-_borrowing-money_-all-it-does-is-move-funds-from-checking-accounts-at-the-fed-to-savings-accounts-_treasury-securities_-at-the-fed_-in-fact_-the-entire-_13-trillion-national-debt-is-nothing-more-than-the-economy_s-total-holdings-of-savings-accounts-at-the-fed_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-it-is-odd-that-they-are-not-simplified-into-just-being-a-federal-bank-account2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_larry-summers-was-one-of-the-most-prominent-and-influential-policy-makers_li_-_li_larry-summers-was-a-tool-for-private-banking-interests_li_-_ul_-_h2_introduction_h2_-larry-summer-is-a-neoliberal-economist-who-is-entirely-focused-on-helping-the-elite-at-the-expense-of-the-rest-of-the-population_-the-following-quote-is-interesting-for-what-it-says-about-supposed-economic-specialists_-this-is-an-exchange-between-warren-mosler-and-larry-summers_-_blockquote_i-opened-with-a-question_-_larry_-what_s-wrong-with-the-budget-deficit_-he-replied_-_it-takes-away-savings-that-could-be-used-for-investment_-i-then-objected_-_no-it-doesn_t_-all-treasury-securities-do-is-offset-operating-factors-at-the-fed_-it-has-nothing-to-do-with-savings-and-investment_-to-which-he-retorted_-_well_-i-really-don_t-understand-reserve-accounting_-so-i-can_t-discuss-it-at-that-level_-senator-daschle-was-looking-on-at-all-this-in-disbelief_-this-harvard-professor-of-economics_-assistant-treasury-secretary-lawrence-summers-didn_t-understand-reserve-accounting_-sad-but-true_-so-i-spent-the-next-twenty-minutes-explaining-the-_paradox-of-thrift_-_more-detail-on-this-innocent-fraud-_6-later_-step-by-step_-which-he-sort-of-got-right-when-he-finally-responded_-_so-we-need-more-investment-which-will-show-up-as-savings_-i-responded-with-a-friendly-_yes_-after-giving-this-first-year-economics-lesson-to-the-good-harvard-professor_-and-ended-the-meeting_-the-next-day_-i-saw-him-on-a-podium-with-the-concord-coalition_a-band-of-deficit-terrorists_talking-about-the-grave-dangers-of-the-budget-deficit_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-this-quote-brings-up-the-topic-of-whether-mainstream-economists-even-care-what-is-true_-economists-like-larry-summers_-which-is-most-economists_-conform-their-views-_span-style_color_-_2189d9_strong_around-what-the-elites-want-them-to-say_strong_span_-the-best-way-of-thinking-of-mainstream-economists-is-that-they-are-puppets-of-the-elite-and-of-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_federal-spending-is-often-decried-as-taking-money-from-the-public_li_-_li_federal-spending-increases-savings-in-private-hands_li_-_ul_-_h3_introduction_h3_-the-following-quotation-asserts-that-deficits-add-to-the-savings-of-taxpayers_-_blockquote_simply-put_-government-deficits-add-to-our-savings-_to-the-penny_-this-is-an-accounting-fact_-not-theory-or-philosophy_-there-is-no-dispute_-it-is-basic-national-income-accounting_-for-example_-if-the-government-deficit-last-year-was-_1-trillion_-it-means-that-the-net-increase-in-savings-of-financial-assets-for-everyone-else-combined-was-exactly_-to-the-penny_-_1-trillion_-_for-those-who-took-some-economics-courses_-you-might-remember-that-net-savings-of-financial-assets-is-held-as-some-combination-of-actual-cash_-treasury-securities_-and-member-bank-deposits-at-the-federal-reserve_-this-is-economics-101-and-first-year-money-banking_-it-is-beyond-dispute_-it_s-an-accounting-identity_-yet-it_s-misrepresented-continuously_-and-at-the-highest-levels-of-political-authority_-they-are-just-plain-wrong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-this-is-a-very-difficult-thing-to-accept-as-it-is-so-counterintuitive-and-made-more-so-by-the-constant-stream-of-false-information-from-private-banking-interests2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_robert-rubin-was-one-of-the-most-prominent-and-influential-policymakers-and-heavily-promoted-the-repeal-of-glass-steagall-restrictions-that-he-later-benefited-from-when-he-went-back-to-citibank-from-the-clinton-administration_li_-_ul_-_h2_introduction_h2_-rubin-was-the-head-of-the-treasury-under-bill-clinton-and-citibank_-he-was-a-major-proponent-of-eliminating-glass-steagall-under-clinton-in-1999_-the-following-explains-what-rubin-thinks-about-how-savings-functions_-it-is-an-exchange-between-robert-rubin-and-warren-mosler_-_blockquote_ten-years-ago_-around-the-year-2000-just-before-it-all-fell-apart_-i-found-myself-in-a-private-client-meeting-at-citibank-with-robert-rubin_-former-u_s_-treasury-secretary-under-president-clinton_-and-about-20-citibank-clients_-mr_-rubin-gave-his-take-on-the-economy-and-indicated-that-the-low-savings-rate-might-turn-out-to-be-a-problem_-with-just-a-few-minutes-left_-i-told-him-i-agreed-about-the-low-savings-rate-being-an-issue-and-added_-_bob_-does-anyone-in-washington-realize-that-the-budget-surplus-takes-away-savings-from-the-non-government-sectors_-he-replied_-_no_-the-surplus-adds-to-savings_-when-the-government-runs-a-surplus_-it-buys-treasury-securities-in-the-market_-and-that-adds-to-savings-and-investment_-to-that-i-responded_-_no_-when-we-run-a-surplus_-we-have-to-sell-our-securities-to-the-fed-_cash-in-our-savings-accounts-at-the-fed_-to-get-the-money-to-pay-our-taxes_-and-our-net-financial-assets-and-savings-go-down-by-the-amount-of-the-surplus_-rubin-stated_-_no_-i-think-you_re-wrong_-i-let-it-go-and-the-meeting-was-over_-my-question-was-answered_-if-he-didn_t-understand-surpluses-removed-savings_-then-no-one-in-the-clinton-administration-did_-and-the-economy-crashed-soon-afterwards_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_forecast-accuracy-is-very-important-in-determining-the-correctness-of-economic-models_li_-_li_however_-in-economics_-whether-the-economist-conforms-with-private-banking-interests-is-considered-far-more-important-than-forecast-accuracy_li_-_ul_-_h2_introduction_h2_-the-following-quote-covers-godley_-_blockquote_professor-wynne-godley_-retired-head-of-economics-at-cambridge-university-and-now-over-80-years-old_-was-widely-renowned-as-the-most-successful-forecaster-of-the-british-economy-for-multiple-decades_-and-he-did-it-all-with-his-_sector-analysis_-which-had-at-its-core-the-fact-that-the-government-deficit-equals-the-savings-of-financial-assets-of-the-other-sectors-combined_-however_-even-with-the-success-of-his-forecasting_-the-iron-clad-support-from-the-pure-accounting-facts_-and-the-weight-of-his-office-_all-of-which-continues-to-this-day_-he-has-yet-to-convince-the-mainstream-of-the-validity-of-his-teachings_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h2_how-the-economist-profession-ignores-predictive-economists_h2_-godley-uses-assumptions-that-contradict-the-mainstream-and-private-banking-controlled-economics-ideas_-therefore_-godley_s-accuracy-is-not-only-considered-irrelevant_-but-mainstream-economists-will-be-careful-not-to-mention-his-work_-mentioning-godley_s-work-places-that-economists-in-the-crosshairs-as-a-_crank_-or-someone-who-cannot-be-trusted2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_a-major-item-used-to-promote-cutting-social-security-benefits-has-been-the-dependency-issues_li_-_li_this-is-a-fake-issue-created-by-private-banking-interests-to-cut-spending-they-do-not-like_li_-_ul_-_h2_introduction_h2_-this-ploy-by-private-banking-interests-to-get-reductions-made-to-the-social-security-system-that-benefits-private-banking-is-repeated-ad-nauseam-by-mainstream-economists-and-media_-it-mistakenly-uses-the-idea-that-the-government-is-limited-in-spending-by-its-taxes-collected_-which-is-not-true_-the-falseness-of-the-claim-is-explained-in-the-following-quotation_-_blockquote_we-know-our-government-neither-has-nor-doesn_t-have-dollars_-it-spends-by-changing-numbers-up-in-our-bank-accounts-and-taxes-by-changing-numbers-down-in-our-bank-accounts_-and-raising-taxes-serves-to-lower-our-spending-power_-not-to-give-the-government-anything-to-spend_-should-our-policy-makers-ever-actually-get-a-handle-on-how-the-monetary-system-functions_-they-would-realize-that-the-issue-is-social-equity_-and-possibly-inflation_-but-never-government-solvency_-they-would-realize-that-if-they-want-seniors-to-have-more-income-at-any-time_-it_s-a-simple-matter-of-raising-benefits_-and-that-the-real-question-is_-what-level-of-real-resource-consumption-do-we-want-to-provide-for-our-seniors_-how-much-food-do-we-want-to-allocate-to-them_-how-much-housing_-clothing_-electricity_-gasoline_-medical-services_-these-are-the-real-issues_-and-yes_-giving-seniors-more-of-those-goods-and-services-means-less-for-us_-the-amount-of-goods-and-services-we-allocate-to-seniors-is-the-real-cost-to-us_-not-the-actual-payments_-which-are-nothing-more-than-numbers-in-bank-accounts_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-following-is-a-very-different-interpretation-of-trade-deficits-than-is-provided-by-mainstream-economists_li_-_li_we-evaluate-this-interpretation-and-provide-our-view_li_-_ul_-_h2_introduction_h2_-normally-countries-try-to-stay-away-from-trade-deficits_-an-entire-type-of-economics_-called-mercantilism_-of-which-adam-smith-was-a-major-proponent_-was-centered-on-running-trade-deficits-in-order-to-obtain-gold-from-trading-partners_-warren-mosler-explains-the-non-mainstream-view-of-trade-deficits-in-the-following-quotation_-_blockquote_imports-are-real-benefits-and-exports-are-real-costs_-trade-deficits-directly-improve-given-level-of-government-spending_-not-because-of-imports_-jobs-are-lost-because-taxes-are-too-high_-we-are-benefiting-immensely-from-the-trade-deficit_-the-rest-of-the-world-has-been-sending-us-hundreds-of-billions-of-dollars_-worth-of-real-goods-and-services-in-excess-of-what-we-send-to-them_-they-get-to-produce-and-export_-and-we-get-to-import-and-consume_-is-this-an-unsustainable-imbalance-that-we-need-to-fix_-why-would-we-want-to-end-it_-as-long-as-they-want-to-send-us-goods-and-services-without-demanding-any-goods-and-services-in-return_-why-should-we-not-be-able-to-take-them_-there-is-no-reason_-apart-from-a-complete-misunderstanding-of-our-monetary-system-by-our-leaders-that-have-turned-a-massive-real-benefit-into-a-nightmare-of-domestic-unemployment_-same-with-china_they-think-that-they-are-winning-because-they-keep-our-stores-full-of-their-products-and-get-nothing-in-return_-apart-from-that-bank-statement-from-the-fed_-and-our-leaders-agree-and-think-we-are-losing_-this-is-madness-on-a-grand-scale_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-_h3_the-problem-with-this-hypothesis_h3_-mosler_s-analysis-is-it-only-looks-at-short-terms-financial-benefits-and-only-focuses-on-the-monetary-system_-however_-there-are-quite-a-few-other-implications-outside-of-mosler_s-financial-analysis-which-do-not-detract-from-mosler-being-accurate-in-what-he-has-proposed-here_-these-are-just-a-few-of-the-problems-with-this-and-they-are-as-follows_-_h3_span-style_color_-_008080_problem-_1_span_-government_s-keep-roughly-the-same-level-as-taxation-and-monetary-policy-as-before-the-trade_h3_-governments-do-not-account-for-large-trade-deficits-by-providing-more-spending-power-_that-is_-by-taxing-less_-_h3_span-style_color_-_008080_problem-_2_-_span_what-happens-to-the-share-for-labor-as-the-margin-on-goods-increases_h3_-the-companies-keep-more-of-the-margin_-which-_strong_span-style_color_-_0081cc_increases-income-inequality_span_-_strong_-_h3_span-style_color_-_008080_problem-_3_span_-technology-transfer-and-ip-theft_h3_-in-the-case-of-the-us-china-trade_-there-has-been-a-massive-technology-transfer-from-the-us-to-china-in-a-very-short-period-of-time_-_h3_span-style_color_-_008080_problem-_4_span_-lower-labor-protections_h3_-workers-in-low-cost-countries-do-not-have-labor-laws-to-protect-them_-this-means-that-the-us-is-_importing_-unethical-labor-practices-as-we-consume-goods-made-with-unacceptable-labor-conditions_-labor-standards-are-pressed-for-because-society-has-an-incentive-to-make-the-effort_-as-they-are-subject-to-these-labor-standards_-however_-there-has-never-been-a-popular-movement-around-improving-the-labor-standards-for-workers-in-other-countries_-this-is-just-too-distant-of-a-benefit-that-goes-entirely-to-someone-else_-the-ultimate-way-of-eliminating-labor-laws-is-to-have-very-high-levels-of-trade-so-that-the-work-is-done-in-outside-countries-where-there-is-no-pressure-to-improve-living-conditions-from-the-population-within-the-country-consuming-the-trade_-for-this-reason_-trade-becomes-profitable_-merely-by-eliminating-or-minimizing-labor-solidarity_-_h3_span-style_color_-_008080_problem-_5_-_span_higher-pollution_h3_-environmental-concerns-decline-as-the-lower-cost-country-has-lower-environmental-standards-than-the-more-developed-country_-again_-this-means-that-pollution-is-not-only-exported-to-low-cost-countries_-but-pollution-without-appropriate-controls-is-generated_-_h3_the-hidden-topic-of-trade-driven-pollution_h3_-more-pollution-is-caused-because_-in-the-us-and-china-trade_-there-is-a-large-amount-of-transportation-fuel-used-to-move-the-goods-from-china-to-the-us_-these-container-ships-are-100_-flagged-in-flags-of-convenience-like-panama-and-conflict-zones-like-liberia-_the-ownership-of-shipping-companies-has-nothing-to-do-with-where-its-ships-are-flagged_-this-would-be-the-same-thing-as-allowing-all-us-car-drivers-to-register-their-cars-in-mexico-to-escape-all-environmental-regulations_-this-doesn_t-seem-right-when-an-individual-does-this_-however_-when-a-company-does-this_-it-is-heralded-as-a-great-and-smart-way-of-reducing-costs_-_h3_completely-unregulated-emissions-and-dumping_h3_-outside-of-the-port_s-waters-and-particularly-on-the-open-ocean_-these-ships-run-the-most-filthy-and-lowest-cost-bunker-fuel_-this-creates-enormous-and-unregulated-emissions_-as-another-example_-cruise-ships-take-advantage-of-a-similar-lack-of-regulation-on-the-open-ocean-by-storing-their-trash-and-even-used-oil-while-in-port-and-close-to-shore_-and-then-releasing-everything-when-they-get-into-the-open-ocean_-both-the-cruise-ship-industry-only-uses-cleaner-fuel-while-in-port-and-close-to-the-shore_-_h3_what-_both-cruise-shipping-lines_-and-trade-proponents-don_t-want-to-be-discussed_h3_-overall_-the-extra-pollution-caused-by-world-trade_-and-particularly-trade-in-goods-that-travel-long-distances_-are-ignored-by-trade-proponents2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-that-serve-a-public-service-function-exist-in-the-us-and-germany_li_-_li_these-are-the-us-credit-unions-and-the-german-sparkasse-banks_li_-_ul_-_h3_about-credit-unions-of-the-us_h3_-credit-unions-are-local-banks-that-were-at-one-time-set-up-as-non-profits_-they-historically-stuck-to-a-narrow-range-of-services-to-a-specific-community-and-do-not-need-to-be-perpetually-bailed-out-by-the-government_-_h3_are-credit-unions-public-or-private_h3_-while-called-_public_-we-don_t-classify-them-as-public-because-they-do-not-issue-debt-free-money-and-are-not-entirely-controlled-by-the-government_-however_-they-historically-had-a-public-interest-function-_not-profit-maximization_-making-them-far-more-preferable-over-purely-profit-seeking-private-banks_-a-good-quotation-that-explains-how-more-efficient-is-more-simple-public-service-oriented-banking-is-than-private-profit-maximizing-banking-is-found-in-the-following-quotation_-_blockquote_and-in-1972_-with-a-u_s_-population-of-just-over-200-million_-these-plain_-dumb_-boring-savings-banks-financed-2_6-million-new-housing-starts_-with-no-secondary-markets_-no-futures-markets_-and-very-modestly-paid-employees-_i-started-at-_140-per-week_-and-had-worked-my-way-up-to-_200-per-week-as-an-investment-officer_-today_-with-a-population-of-over-300-million_-a-massive-financial-sector_-untold-financial-innovations_-and-unlimited-financial-resources-and-liquidity_-if-we-manage-to-get-2-million-housing-starts-a-year_-it_s-proclaimed-an-unsustainable-bubble_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong_-however_-the-issue-is-that-more-and-more-credit-unions-_span-style_color_-_236fa1_strong_are-for-profit-and-becoming-closer-to-normal-private-banks_strong_span_-however_-they-are-still-more-stable-and-better-actors-in-banking-than-the-non-credit-unions-in-the-us_-_h3_about-the-sparkasse-banks-of-germany_h3_-in-germany_-something-similar-is-the-sparkasse-banks_-they-are-described-as-follows_-_blockquote_public-banks-in-germany-are-financial-institutions-typically-held-directly-or-indirectly-by-public-sector-entities-such-as-the-federal-government_-the-states_-administrative-districts-or-cities_-not-all-these-companies-are-fully-publicly-owned_-they-can-also-be-defined-as-public-because-they-provide-services-in-the-public-interest_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_german-public-banking_span_span_strong_-_strong_a-href_https_en_wikipedia_org_wiki_german_public_bank_-target_blank_-rel_noopener_https_en_wikipedia_org_wiki_german_public_bank_a_strong_-the-sparkasse-banks-are-also-the-motivation-or-model-for-the-us-credit-unions-and-came-far-before-credit-unions_-while-sparkasse-banks-are-considered-by-many-to-be-a-major-advantage-for-the-german-economy_-it-is-of-note-that-these-banks-are-rarely-discussed-as-part-of-germany_s-success_-instead_-most-of-the-credit-seems-to-go-to-innovation_-it-is-critical-that-the-elite-denigrate-and-or-distract-from-any-type-of-collaborative-institution-that-has-a-public-interested-function_-in-the-same-way-that-the-elite-talk-about-the-destructive-outcomes-from-labor-_unions_-the-elite-and-the-privately-controlled-media-have-little-to-say-about-credit-unions-or-the-sparkasse-banks_-_h3_the-sparkasse-banks-participation-in-a-study-on-comparative-theories-of-banking_h3_-what-is-also-noteworthy-is-that-while-larger-private-banks-refused-to-participate-in-a-study-regarding-how-banks-create-money_-a-sparkasse-bank-in-germany-was-willing-to-participate_-_blockquote_the-view-of-the-author_-based-on-more-than-twenty-three-years-of-research-on-this-topic_-is-that-it-is-the-safest-bet-to-ensure-that-the-awesome-power-to-create-money-is-returned-directly-to-those-to-whom-it-belongs_-ordinary-people_-not-technocrats_-this-can-be-ensured-by-introducing-a-network-of-small_-not-for-profit-local-banks-across-the-nation_-most-countries-do-not-currently-possess-such-a-system_-however_-it-is-at-the-heart-of-the-successful-german-economic-performance-in-the-past-200-years_-it-is-the-very-raiffeisen_-volksbank-or-sparkasse-banks-_-the-smaller_-the-better-_-that-were-helpful-in-the-implementation-of-this-empirical-study-that-should-serve-as-the-role-model-for-future-policies-concerning-our-monetary-system_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_science-direct_span_span_strong_-_strong_a-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_-target_blank_-rel_noopener_https_www_sciencedirect_com_science_article_pii_s1057521914001070_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-us-level-of-taxation-for-most-of-the-population-is-too-high-and-leads-to-unused-capacity_li_-_li_this-is-how-taxation-levels-should-be-set-to-balance-the-utilization-of-resources-versus-triggering-inflation_li_-_ul_-_h2_introduction_h2_-taxes-are-not-directly-related-to-government-spending-as-the-government-does-not-use-taxes-to-pay-for-its-budget_-this-is-true-when-governments-can-create-their-own-money-_so-this-does-not-apply-to-eu-member-countries_-instead_-taxes-are-used-to-create-value-for-the-government_s-money-and-reduce-private-purchasing-power_-however_-according-to-warren-mosler_-the-present-level-of-taxation_-particularly-on-the-non-elites-in-the-us_-is-far-too-high-versus-what-is-needed-to-moderate-inflation_-how-much-taxes-have-changed-is-explained-in-the-following-quotation_-_blockquote_today_-unfortunately_-we-are-being-grossly-overtaxed-for-the-current-level-of-government-spending_-as-evidenced-by-the-high-level-of-unemployment-and-the-high-level-of-excess-capacity-in-general_-people-working-for-a-living-are-getting-squeezed_-as-they-are-no-longer-taking-home-a-large-enough-pay-check-to-cover-their-mortgage-payments_-car-payments_-and-various-routine-expenses_-never-mind-any-extra-luxuries_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2020_11_seven-deadly-innocent-frauds-of-warren-mosler_pdf_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_in-most-countries_-interest-rates-are-regulated-by-the-central-bank-to-regulated-inflation_li_-_li_there-is-another-and-far-more-effective-way-to-control-inflation_li_-_ul_-_h2_introduction_h2_-warren-mosler-believes-that-it-is-necessary-to-tax-to-create-a-demand-for-that-currency_-however_-it-does-not-say-_how-much_-that-taxation-needs-to-be_-mosler-proposes-that-taxes-are-only-levied-at-the-amount-required-to-keep-an-economy-from-overheating-and-inflation_-under-mainstream-economic-thinking_-interest-rates-are-used-to-fight-inflation_-however_-mosler-states-that-this-is-unnecessary_-and-the-lever-can-be-taxation-percentage-instead_-this-is-explained-in-the-following-quotation_-_blockquote_in-sum_-when-the-government-wants-to-stimulate-demand-and-increase-inflation_-it-can-cut-tax-rates_-and-when-it-wants-to-dampen-demand-and-decrease-inflation_-it-can-raise-tax-rates_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_a_strong_-this-is-also-explained-in-the-following-quotation_-_blockquote_the-federal-income-tax-was-instituted-specifically-to-coerce-taxpayers-to-pay-the-interest-to-the-banks-on-the-federal-debt_-if-the-money-supply-had-been-created-by-the-government-rather-than-borrowed-from-banks-that-created-it_-the-income-tax-would-have-been-unnecessary_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_-target_blank_-rel_noopener_https_contrahour_com_2019_02_everything-you-know-about-money-is-wrong-if-the-government-can-print-money-why-do-we-pay-taxes_html_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-term-open-market-operations-are-often-discussed-by-the-fed_li_-_li_open-market-operations-are-transfers-used-by-the-fed-to-apply-its-policy_li_-_ul_-_h2_introduction_h2_-an-open-market-operations-by-the-fed-is-when-it-buys-or-sells-securities_-this-process-happens-between-the-fed-and-the-commercial-banks_-this-process-is-performed-in-secret_-this-is-explained-in-the-following-quotation_-_blockquote_the-normal-operating-procedure-is-for-the-fed-to-offset-factors-that-cause-reserve-imbalances_-called-operating-factors_-with-open-market-operations_-operating-factors-include-any-transfers-between-commercial-banks-and-the-fed_-and-other-items-that-effect-reserve-balance-including-changes-in-uncleared-checks_-known-as-_float_-and-changes-in-cash-in-circulation_-the-sale-of-newly-issued-government-securities-by-the-treasury-affects-the-private-sector-in-exactly-the-same-way-as-the-sale-of-securities-by-the-fed-from-its-portfolio-of-existing-government-securities_-in-either-case_-funds-held-by-the-private-sector-are-transferred-to-the-fed_-the-government-securities-are-credited-to-a-member-bank_s-account_-and-a-reserve-drain-equal-to-the-proceeds-of-the-securities-sale-results_blockquote_-_h3_span-style_color_-_99cc00_source_span_-warren-mosler_h3_-_a-href_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_-target_blank_-rel_noopener_strong_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_strong_a2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-often-assumed-that-politicians-understand-the-role-of-taxes-are-they-are-in-the-government_li_-_li_the-evidence-is-that-politicians-do-not-understand-that-taxes-are-not-used-for-expenditures_li_-_ul_-_h2_introduction_h2_-goverments-that-can-create-their-own-money-do-not-need-or-use-tax-receipts-for-government-funding_-governments-that-can-create-their-own-money-are-_self-funded_-this-is-explained-in-the-following-quotation_-_blockquote_in-no-case-must-the-government-fund-itself-in-dollars_-spending-is-limited-by-what-is-offered-for-sale_-not-by-revenues_-taxes-function-to-create-a-need-for-dollars_-so-the-government-can-use-dollars-to-purchase-real-goods-and-services_-borrowing-functions-to-allow-excess-dollars-created-by-deficit-spending-to-earn-a-positive-rate-of-interest_-deficits-pose-no-funding-risk-since-borrowing-need-take-place-only-after-spending_-and-only-to-support-and-maintain-a-desired-interest-rate_-interest-rates-and-prices-are-subject-to-exogenous-control-by-the-issuer-of-the-currency_-there-is-no-evidence-that-government-understands-this-paradigm_-government-budgeting-assumes-the-paradigm-that-dollars-must-be-raised-through-taxing-or-borrowing-to-fund-expenditures-at-market-prices_-the-monopolist-_the-government_-has-decided-to-let-market-forces-price-its-product-_dollars_-therefore-it-must-constrain-the-quantity-of-spending-to-maintain-sufficient-unemployment-and-excess-capacity-to-prevent-a-decline-in-the-value-of-its-product-_inflation_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_uploads_2019_02_full-employment-and-price-stability_pdf_a_strong_-this-is-something-private-banking-interests-do-not-want-to-be-known_-politicians-are-trained-to-think-in-terms-of-mainstream-economics_-which-is-designed-to-hide-the-money-creation-capability-from-the-government-itself_-_h2_private-bankers-stand-ready-to-stop-all-debt-free-money_h2_-the-island-of-guernsey-had-tremendous-success-with-their-own-government-debt-free-money_-however_-both-the-public-and-the-politicians-were-told-that-this-multi-decade-success-was-irresponsible_-this-is-explained-in-the-following-quotation_-_blockquote_as-the-new-currency-was-paid-out-into-circulation-among-the-people_-exchanges-were-being-expedited_-the-wage-earners-went-to-the-shopkeepers_-the-shopkeepers-went-to-the-producers_-the-producers-bought-enough-to-increase-their-production_-the-currency-was-accepted-everywhere_-the-government-took-measures-against-inflation-by-decreeing-that-money-would-be-withdrawn-by-taxes_-so-it-does-not-accumulate_-and_-in-fact_-the-money-was-retired-on-schedule-by-taxes_-but_-as-the-increasing-activity-required-a-corresponding-volume-of-money_-other-issues-were-brought-out-by-the-government-for-other-works_-on-october-12_-1822_-the-new-market-house-was-completed-and-opened_-not-a-penny-of-public-debt-on-this-public-enterprise_-the-bankers-intervene-at-the-time-of-the-original-issue_-there-was-no-bank-upon-the-island_-this-explain_-without-doubt_-why-there-was-no-opposition-to-the-issue-of-state-money_-but-ten-years-after-the-first-issue_-the-island-had-become-so-prosperous_-thanks-to-the-activity-allowed-by-a-sufficient-volume-of-money_-that-the-banks-of-england-had-en-eye-on-this-island_-english-bankers-set-up-branches-in-the-island-and-brought-the-population-around-to-orthodox-rules_-_it-was-unsound_-they-said_-_to-let-the-government-finance-its-enterprises-without-getting-into-debt_-the-bankers-did-everything-to-stop-further-issues-to-introduce-the-system-of-interest-bearing-loans-to-the-government-and-to-withdraw-from-the-island-the-state-money-that-had-been-paid-out-into-circulation_-there-was-some-resistance_-but-the-bankers-won-their-point_-with-their-usual-methods_-and-on-october-9_-1836_-the-states-of-guernsey-had-abdicated-their-sovereign-prerogative-over-the-control-of-the-volume-of-money_-from-then-on_-the-amount-of-the-national-currency-decreased-gradually_-and-was-replaced-by-money-issued-by-private-bankers-in-the-form-of-loans-getting-the-island-into-debt_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_michael-journal_span_span_strong_-_strong_a-href_https_www_michaeljournal_org_articles_social-credit_item_guernsey-s-monetary-experiment_-target_blank_-rel_noopener_https_www_michaeljournal_org_articles_social-credit_item_guernsey-s-monetary-experiment_a_strong_-the-story-does-not-end-there_-as-guernsey_s-debt-free-money-was-created-again-after-this_-and-the-island-still-uses-much-of-this-money_-however_-the-point-is-made-that-anyplace-debt-free-money-is-successful_-private-bankers-will-defend-upon-that-area-to-tell-the-public-and-the-politicians-that-what-they-are-doing-is-impossible-and-that-money-can-only-come-from-debt_-their-proposal-is-very-similar-to-the-groucho-marx-quote_-_blockquote_who-are-you-going-to-believe_-me-or-you-lying-eyes_blockquote2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-article-covers-a-logical-risk-free-interest-rate-under-the-scenario-where-the-government-creates-its-own-money_li_-_ul_-_h3_introduction_h3_-the-explanation-for-a-zero-percent-interest-is-found-in-the-following-quotation_-_blockquote_under-a-state-money-system-with-flexible-exchange-rates_-the-monetary-system-is-tax-driven_-the-federal-government_-as-issuer-of-the-currency_-is-not-revenue-constrained_-taxes-do-not-finance-spending_-but-taxation-serves-to-create-a-notional-demand-for-state-money_-spending-logically-precedes-tax-collection_-and-total-spending-will-normally-exceed-tax-revenues_-the-government-budget_-from-inception_-will-therefore-normally-be-in-deficit_-which-also-allows-the-nongovernment-sector-to-_net-save_-state-money-_this-in-fact-has-been-observed-in-all-state-currencies_-since-the-currency-issuer-does-not-need-to-borrow-its-own-money-to-spend_-security-sales_-like-taxes_-must-have-some-other-purpose_-that-purpose-in-a-typical-state-money-system-is-to-manage-aggregate-bank-reserves-and-control-short-term-interest-rates-_overnight-interbank-lending-rate_-or-fed-funds-rate-in-the-united-states_-the-overnight-lending-rate-is-the-most-important-benchmark-interest-rate-for-many-other-important-rates_-including-banks_-prime-rates_-mortgage-rates_-and-consumer-loan-rates_-and-therefore-the-fed-funds-rate-serves-as-the-_base-rate_-of-interest-in-the-economy_-in-a-state-money-system-with-flexible-exchange-rates-running-a-budget-deficit_in-other-words_-under-the-_normal_-conditions-or-operations-of-the-specified-institutional-context_without-government-intervention-either-to-pay-interest-on-reserves-or-to-offer-securities-to-drain-excess-reserves-to-actively-support-a-nonzero_-positive-interest-rate_-the-natural-or-normal-rate-of-interest-of-such-a-system-is-zero_-this-analysis-is-supported-by-both-recent-research-and-experience_-japan_s-experience-in-the-1990s-shows-clearly-that-large-government-budget-deficits-as-a-proportion-of-gdp-_in-the-neighborhood-of-7-percent_-and-a-debt_gdp-ratio-of-140-percent-do-not-drive-up-interest-rates_-as-conventional-wisdom-would-have-it_-in-fact_-the-overnight-rate-has-stayed-at-near-zero-for-nearly-a-decade_-under-a-state-currency-system-with-floating-exchange-rates_-the-natural_-nominal_-risk-free-rate-of-interest-is-zero_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_mosler-economics_span_span_strong_-_strong_a-href_http_moslereconomics_com_wp-content_graphs_2009_07_natural-rate-is-zero_pdf_-target_blank_-rel_noopener_http_moslereconomics_com_wp-content_graphs_2009_07_natural-rate-is-zero_pdf_a_strong_-under-the-government-created-debt-free-money-model_-the-risk-free-rate-can-be-zero-percent_-obviously_-higher-rates-would-happen-for-higher-risk-levels_-a-government-that-creates-its-own-money-has-a-question-to-answer-whether-it-charges-interest-and-how-much-and-how-much-in-taxes_-the-government-does-not-need-revenues-from-either-of-these-sources_-but-there-are-still-policy-goals-necessary-to-keep-some-charge-on-interest-in-cases-of-risk-and-create-a-demand-for-the-national-currency_-and-collecting-taxes-is-a-primary-way-to-create-demand-and-value-for-a-national-currency2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-phrase-is-often-stated-that-all-money-is-debt_-the-answer-is-that-it-depends-upon-whether-the-central-bank-is-public-or-private_li_-_ul_-_h2_introduction_h2_-federal-government-bonds-are-created-when-a-country_s-treasury-issues-what-amounts-to-a-savings-account_-but-which-is-called-a-_bond_-when-there-is-a-private-central-bank_-the-treasury-and-central-bank-engage-in-a-transaction-that-places-a-credit-on-the-account-of-the-central-bank-and-a-debit-on-account-of-the-treasury_-the-private-central-bank-then-sells-the-_bond_-or-the-savings-account-with-the-treasury_-this-creates-another-accounting-transaction-with-the-buyer_s-bank-account-being-debited_-and-the-central-bank_s-account-is-credited_-the-exercise-is-ridiculous-because-a-government-with-its-own-money-creation-ability-does-not-need-to-_borrow-money_-from-its-citizens-or-from-anyone-else-for-that-matter_-even-though-this-process-makes-little-sense_-and-the-government-could-circumvent-the-entire-process-by-just-paying-for-goods-and-services-_federal-government-spending_-by-creating-a-crediting-those-that-it-business-goods-and-services-from-and-_debiting_-_i-place-the-debit-in-quotations-as-the-government-issues-currency_-so-it-is-not-a-debit-in-the-normal-sense_-its-own-account_-this-inefficient-method-of-issuing-bonds-and-creating-debt-_where-none-is-necessary-to-be-created_-continues_-the-bizarre-outcome-is-that-the-government_-following-this-design_-pays-interest-to-issue-its-own-currency_-furthermore_-even-though-private-banks-can-only-receive-their-money-creation-ability-through-the-government_-they-can-charge-interest-for-this-money_-however_-when-the-federal-government-creates-money_-it-must-pay-interest-to-do-so_-it-also-must-compensate-bond-traders-_i_e_-federal-savings-account-traders_-to-purchase-the-bonds_-the-bonds-go-through-a-bidding-process_-which-is-again-is-entirely-unnecessary-and-is-part-of-the-rube-goldberg-machine-of-federal-debt_-this-ridiculous-system-where-concentrated-financial-interests-parasitize-the-government_s-money-creation-function-is-explained-to-the-public-as-very-good-and-logical_-particularly-by-those-who-profit-from-the-system-or-others-that-repeat-what-they-are-told_-when-people-discuss-the-interest-on-the-federal-debt_-this-is-what-they-are-referring-to_-it-may-seem-that-taxpayers-then-pay-this-interest_-but-it-isn_t_-it-is-unclear-then-how-the-federal-debt-is-far-less-than-what-is-expended-by-the-government2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-phrase-is-often-stated-that-all-money-is-debt_-the-answer-is-that-it-depends-upon-whether-the-central-bank-is-public-or-private_li_-_ul_-_h2_introduction_h2_-it-may-seem-that-the-interest-on-any-federal-debt-of-any-country-that-controls-its-own-currency-_so-not-the-eu-countries_-is-paid-by-taxpayers_-but-that-is-not-correct_-the-federal-government-does-not-use-taxpayer-money-to-pay-for-anything_-the-government-issues-money_-so-it-does-not-_need_-money_-_imagine-being-able-to-create-your-own-money_-what-you-use-the-money-that-was-given-back-to-you-for-if-you-can-create-it-at-will_-while-you-may-not-have-used-for-something-you-can-create-with-an-accounting-entry_-you-would-want-to-like-the-debeers-company-keep-the-supply-of-this-monopoly-money-restricted-to-maintain-its-value_-this-is-the-reason-for-taxation_-to-pull-money-out-of-the-economy-to-reduce-the-buying-power-of-your-citizens_-however_-that-is-not-the-same-thing-as-_needing_-the-item-in-question_-debeers-does-not-_need_-or-have-a-use-for-the-mass-quantities-of-diamonds-it-keeps-off-the-market_-it-only-needs-to-control-them-to-maintain-the-illusion-of-scarcity_-this-further-means-that-the-point-at-which-a-country-is-considered-to-borrow-is-arbitrary-and-is-a-quantity-that-matches-what-was-debited-from-cashed-checks-from-taxpayers_-if-borrowing-begins-when-the-federal-government-has-spent-more-than-it-has-received-in-taxes_-then-the-government-must-have-a-parallel-way-of-spending-up-to-this-point-that-does-not-involve-the-central-bank-issuing-debt_-that-is-creating-accounting-entries-to-make-purchases_-then-after-that-point_-it-issues-debt-through-the-central-bank_-however_-as-the-federal-government-does-not-use-the-money-it-receives-in-taxes_-it-could-set-the-point-where-it-needs-to-begin-to-issue-debt-to-any-level_-that-is_-it-would-work-even-under-a-private-central-bank-model_-it-would-not-have-to-issue-any-debt-at-all_-the-statement-contradicts-this-that-all-money-is-debt-in-a-modern-central-banking-system_-however_-how-can-that-be-true-if-the-government-does-not-add-other-lower-expenditures-than-the-taxes-collected-to-the-federal-debt_-on-the-other-hand_-the-us-dollar-is-repeatedly-referred-to-as-debt-based-money_-the-question-remains-regarding-the-parallel-mechanism-the-federal-government-uses-to-pay-for-things-without-using-debt_-_this-entry-is-in-the-process-as-there-are-several-missing-pieces-of-information_-mainstream-sources-cannot-fill-this-information-as-they-do-not-accurately-explain-how-the-design-works_-none-of-this-applies-to-state-or-local-governments-who-need-to-use-taxpayer-money-to-pay-for-things-and-need-to-issue-debt_-however_-state-and-local-governments-only-need-to-do-this-because-they-have-not-been-given-the-power-to-issue-the-government_s-money_-however_-this-means-that-a-private-bank-in-that-state-has-more-privileges-than-the-state-and-local-government_-because-the-federal-government-does-give-this-power-to-private-banks_-furthermore_-many-private-banks-work-against-the-public-interest_-this-brings-up-the-question-of-why-they-continue-to-receive-government-endorsement_-the-federal-government-is-saying_-in-effect_-that-bank-of-america-or-wells-fargo-deserves-more-public-benefits-than-does-the-state-of-wisconsin_-this-obvious-inconsistency-is-what-is-behind-the-movement-to-allow-for-state-public-banks-based-upon-the-bank-of-north-dakota-_see-entry-for-this-institution-on-this-website_-however_-even-the-bnd-design_-the-only-currently-functioning-state-bank-in-the-us_-brings-up-issues_-as-the-bnd-is-designed-not-to-compete-with-private-banks_-however_-citizens-would-be-much-better-served-by-a-state-public-bank-than-most-private-banks_-therefore_-this-concession-on-the-part-of-north-dakota-is-a-loss-for-the-state_s-citizens_-many-of-these-banks-demand-the-right-to-loan-out-money-they-create-on-a-computer-with-an-accounting-entry-but-disagree-with-servicing-the-public-good-and-insist-on-profit-maximization_-therefore_-this-restriction-of-the-bnd-to-very-specialized-tasks-and-even-to-helping-private-banks-has-been-done-to-appease-private-banking-interests_-and-it-against-the-public-interest2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_why-does-the-federal-government-keep-the-money-creation-ability-from-us-states-while-it-gives-it-freely-to-private-banks_li_-_ul_-_h2_introduction_h2_-there-is-an-oddity-at-work-with-government-funding-in-that-the-federal-government-has-the-right-to-create-money_-but-the-states-and-local-governments-do-not_-what-is-odd-about-this-is-that-there-is-no-reason-for-the-states-and-local-governments-to-be-inferior-to-the-federal-government-concerning-money-creation-and-inferior-to-all-banks_-just-think-of-any-bank-around-you_-and-that-bank-has-more-privileges-regarding-money-than-the-state-or-local-government_-when-the-state-and-local-governments-need-to-borrow-money-for-an-infrastructure-project_-they-must-go-to-the-bond-market_-this-greatly-increases-the-costs-of-all-projects_-there-is-nothing-to-stop-the-federal-government-from-allowing-state-banks-to-create-that-eliminate-the-need-for-state-and-local-governments-to-borrow-money_-however_-currently-in-the-us_-only-one-state_-north-dakota_-has-a-state-bank_-state-and-local-governments-hold-elections_-while-private-banks-do-not_-the-money-creation-function-is-entirely-a-power-that-is-part-of-the-federal-government_-however_-state-and-local-governments-are-denied-this-power_-even-though-they-are-just-a-smaller-form-of-government_-it-is-extraordinary-indeed-that-the-hierarchy-regarding-money-creation-goes_-_ol_-_li_federal-government_li_-_li_private-banks_li_-_li_state-and-local-governments_li_-_ol_-this-entire-scenario-is-virtually-unquestioned_-the-federal-government-could-provide-money-creation-powers-with-states-and-local-governments-but-does-not-and-forces-states-and-local-governments-to-pay-interest-on-what-is-the-government_s-money-is-bizarre2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-heritage-foundation-is-one-of-the-most-influential-billionaire-funded-establishment-economics-think-tanks_li_-_ul_-_h2_introduction_h2_-heritage-is-a-billionaire-funded-faux-think-tank-that-hides-its-financial-bias-and-produces-false-information-on-the-topic-of-the-government_-its-intent-in-this-area-is-to-provide-philosophical-and-pseudo-academic-support-for-whatever-private-banking-interests-and-wall-street-want-to-be-adopted-as-policy_-reading-heritage-material-requires-its-own-laugh-track2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_cato-is-another-billionaire-funded-think-tank-that-hides-its-funding-and-produces-neoliberal-material_li_-_ul_-_h2_introduction_h2_-cato-is-a-billionaire-funded-_originated-by-david-koch_-faux-think-tank-that-hides-its-financial-bias-and-produces-false-information-on-the-topic-of-the-government_-it-is-very-influential-and-produces-faux-research-that-works-backward-from-what-its-billionaire-funders-want-to-its-conclusions_-sources-like-cato-and-heritage-_which-hide-their-funding-sources_-are-obsessed-with-government-debt-levels2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-are-constantly-focusing-attention-on-the-public-debt_-which-allows-them-to-seize-the-high-ground-in-public-spending_li_-_ul_-_h2_introduction_h2_-it-is-common-to-say-that-the-us-federal-debt-is-too-high-and-will-be-negative-for-future-growth_-normally-the-person-making-this-claim-will-use-an-increased-debt-to-gdp-ratio-as-evidence-of-the-problem_-this-is-expressed-in-the-following-quotation_-_blockquote_one-person-who-understands-this-appears-to-be-joe-biden_s-treasury-secretary-pick-janet-yellen_-she-is-reported-to-have-told-a-bipartisan-policy-center-meeting-earlier-this-year-that-_the-u_s_-debt-path-is-completely-unsustainable-under-current-tax-and-spending-plans_-and-that-it-is-_something-that-most-people-don_t-understand-and-i-see-very-little-evidence-of-concern-about-it_-_strong_-cato-institute_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_cato-institute_span_span_strong_-_strong_a-href_https_www_cato_org_blog_yes-national-debt-still-problem-always-was_-target_blank_-rel_noopener_https_www_cato_org_blog_yes-national-debt-still-problem-always-was_a_strong_-yellen-is-either-lying-in-this-quote-or-does-not-know-how-federal-debt-works_-the-us-government-has-no-debt-because-it-has-a-private-central-bank-that-stops-it-from-issuing-its-own-currency-but-instead-requires-that-to-spend_-it-must-issue-a-bond_-the-fed-and-us-treasury-then-perform-accounting-entries_-cato-institute-is-a-constant-source-of-false-information-about-the-federal-debt_-as-is-covered-in-the-following-quotation_-_blockquote_we-know-what-the-democrats-would-do-about-the-debt-_-make-it-worse_-bernie-sanders-has-proposed-at-least-_18-trillion-in-new-spending-over-the-next-ten-years_-and-even-after-the-trillions-in-additional-taxes-he-seeks_-his-plans-would-add-trillions-to-the-debt_-in-comparison_-hillary-looks-like-a-model-of-fiscal-rectitude_-she-has-proposed-only-_1_1-trillion-in-new-spending_-although-more-proposals-to-expand-government-are-coming_-both-democrats-oppose-any-reform-of-entitlement-programs-like-social-security-and-medicare_-in-fact_-bernie-seeks-to-expand-both-programs_-while-hillary-suggests-she-would-consider-new-benefits_-so-the-democratic-plans-are-clear_-squeeze-some-more-passengers-onto-the-titanic_-_strong_-cato-institute_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_cato-institute_span_span_strong_-_strong_a-href_https_www_cato_org_commentary_national-debt-whats_-target_blank_-rel_noopener_https_www_cato_org_commentary_national-debt-whats_a_strong_-this-is-again-based-upon-an-incorrect-understanding-of-how-federal-spending-works_-there-is-no-_titanic_-the-government-can-spend-on-social-programs-as-it-sees-fit_-if-it-eliminated-the-private-central-bank_-it-could-issue-its-own-money-without-debt_-saving-the-government-the-interest-expense-from-issuing-debt_-the-following-quote-is-typical-of-those-that-make-false-claims-about-the-federal-debt_-_blockquote_interest-on-the-debt-was-projected-to-reach-_261-billion-this-year_-and-exceed-_500-billion-by-2020-even-before-factoring-in-the-recent-budget_busting-deals_-_strong_-cato-institute_strong_blockquote_-again_-tax-revenues-are-not-used-to-pay-for-interest-on-the-debt_-and-the-debt-could-be-eliminated-with-the-simple-act-of-eliminating-the-private-central-bank-of-the-us-called-the-federal-reserve_-cato-tries-to-wrap-itself-in-_concern_-for-future-generations_-at-the-same-time_-it-misexplains-how-the-federal-debt-works-and-uses-this-fake-construct-to-try-to-get-the-government-to-cut-programs-that-benefit-the-population-versus-benefitting-billionaires2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_britain-became-involved-in-a-monetary-union-that-connected-the-pound-to-the-deutsche-mark_li_-_li_george-soros-took-advantage-of-this-mistake-by-britain_li_-_ul_-_h2_introduction_h2_-many-people-have-heard-that-george-soros-made-a-fortune-from-betting-against-the-british-pound_-but-the-story-of-how-tends-to-get-left-out_-this-quote-explains-the-story_-_blockquote_despite-the-economic-slowdown_-inflation-remained-persistently-high_-to-reign-it-in_-prime-minister-john-major-decided-to-join-the-european-exchange-rate-mechanism-_erm_-in-october-1990_-this-seemed-like-a-reasonable-solution-to-the-prime-minister-because-of-germany_s-ironclad-post-wwii-history-of-controlling-inflation_-however_-it-turned-into-a-disaster-for-britain_-the-erm-was-a-currency-union-by-eight-countries-to-help-stabilize-trade-and-currency-fluctuations_-each-country_s-central-bank-maintained-its-currency-within-a-tight-trading-band-to-the-other-currencies-by-buying-and-selling-foreign-currencies_-and-since-the-erm-was-weighted-toward-the-deutsche-mark_-each-country-in-the-erm-basically-pegged-their-currency-to-the-mark_-in-joining-the-erm-in-1990_-britain-also-pegged-the-pound-to-the-mark_-even-though-britain-had-its-own-sovereign-currency_-its-own-ability-to-tax_-and-its-own-bond-market_-britain-adopted-the-monetary-policies-of-germany_-instead-of-simply-using-its-own-policy-tools-to-reduce-inflation-by-raising-taxes_-britain-turned-itself-into-a-colony_-the-problems-of-pegging-britain-to-a-foreign-country_s-currency-became-apparent-almost-immediately_-while-britain-was-dealing-with-a-slowing-economy_-germany-was-experiencing-record-growth_-germany-had-been-spending-to-re-integrate-east-germany-and-needed-to-keep-monetary-policy-tight-to-reign-in-inflation_-but-the-united-kingdom-was-already-in-a-recession-and-needed-expansionary-monetary-and-fiscal-policies_-this-dichotomy-turned-out-to-be-a-huge-problem-for-the-bank-of-england-and-gave-george-soros-his-opportunity_-a-free-floating-currency-is-the-_pressure-release-valve_-of-a-country_s-monetary-and-fiscal-policies_-all-things-being-equal_-when-a-country_s-economic-growth-slows_-the-currency-declines-as-well_-but-in-the-case-of-the-mark-and-the-pound_-the-two-currencies-couldn_t-unlink-because-the-uk-had-joined-the-erm-the-year-before_-and-the-erm-required-the-bank-of-england-to-maintain-the-pound-within-a-3_-_-range-with-the-mark_-in-short_-once-the-pound-started-falling-and-traders-piled-on_-the-bank-of-england-quickly-started-running-out-of-foreign-currency-reserves_-within-two-weeks_-the-prime-minister-went-from-defending-the-erm-to-leaving-it_-although-britain-had-its-own-sovereign-currency_-the-country-had-pegged-its-currency-to-the-german-mark_-that-meant-it-needed-foreign-currency-reserves-to-maintain-the-peg_-the-bank-of-england-literally-had-to-spend-billions-of-german-marks-to-defend-its-currency_-all-in-all_-it_s-estimated-the-bank-of-england-spent-6-billion-on-its-futile-defense_-that-was-real-money-england-could-have-used-to-import-goods-from-germany_-the-most-amazing-part-of-the-whole-episode-was-the-outcome_-namely_-nothing_-the-pound-settled-into-a-long-trading-range-that-lasted-the-remainder-of-the-decade_-and-the-devaluation-of-the-pound-ended-up-being-a-benefit-to-the-economy-because-it-helped-spur-exports_-gdp-growth-accelerated-and-unemployment-continued-to-decline-until-2001_blockquote_-_h3_span-style_color_-_99cc00_source_span_-contrahour_h3_-https_contrahour_com_2019_08_everything-you-know-about-economics-is-wrong-how-soros-broke-the-bank-of-england_html_-this-is-a-good-example-of-why-various-monetary-unions-don_t-work_-the-eu-is-negative-for-its-member-countries-because-it-has-created-a-monetary-union_-however_-there-are-questions-about-whether-freely-floating-currencies-allow-for-currency-speculators-to-do-what-soros-did-to-the-british-pound_-however_-it-made-more-sense-for-the-pound-to-float-in-any-case-over-the-long-term2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-habitually-oversimplify-germany_s-hyperinflation-as-the-german-government-printing-too-much-money_li_-_ul_-_h2_introduction_h2_-private-banking-funded-media-and-economists-have-a-simple-explanation-for-german-post-wwi-hyperinflation_-however_-they-leave-out-the-greatly-reduced-supply-or-productive-capacity-of-the-country_-this-is-explained-in-the-following-quotation_-_blockquote_the-country-could-not-produce-anything-until-it-was-rebuilt_-even-though-the-government-was-printing-money_-that-money-couldn_t-buy-anything-because-nothing-was-available_-therefore_-the-price-of-goods_-like-food_-kept-rising_-yes_-the-government-printed-too-much-money_-but-correlation-doesn_t-mean-causation_-the-main-problem-was-the-country-had-no-resources-to-make-bread_-in-addition-to-the-internal-supply-constraints-that-caused-famine_-the-country-had-external-draws-on-its-supply-of-commodities_-the-terms-of-the-versailles-treaty-called-for-germany-to-pay-world-war-i-reparations-with-gold_-timber_-industrial-metals_-and-other-valuable-resources_-the-country-could-not-simply-print-reichmarks-to-pay-off-france-and-england_-in-practice_-this-was-similar-to-germany-owing-debt_-denominated-in-hard-currency_-to-other-nations_-the-government-had-to-obtain-gold-or-commodities-before-it-could-make-payments_-but_-again_-much-of-the-country_s-infrastructure-was-destroyed_-the-government-had-no-real-means-to-harvest-commodities-to-pay-the-commodities-it-owed_-it-was-an-endless_-futile-circle_-in-an-environment-without-a-strong-central-government_-the-risk-for-inflation-increases_-government-infrastructure-is-important-in-maintaining-a-stable-currency-because-taxation-is-the-main-way-to-create-demand-for-said-currency_-without-the-infrastructure-to-collect_-enforce-and-levy-taxes_-a-fiat-currency-has-no-underlying-value_-and-without-receiving-core-public-services-like-water-and-protection-of-property_-citizens-are-less-likely-to-pay-their-taxes-voluntarily_-again_-a-death-spiral-for-an-economy_-so-in-reality_-it-wasn_t-money-printing-that-caused-hyperinflation-in-the-weimar-republic_-instead_-very-specific-circumstances-caused-hyperinflation_-in-one-of-the-great-tragedies-of-world-history_-a-whole-book-was-written-explaining-the-future-collapse-of-europe_-long-before-the-start-of-the-second-world-war_-in-1919_-john-mayard-keynes-wrote-the-economic-consequences-of-the-peace_-keynes-was-so-outraged-by-the-misguided-negotiations-at-the-paris-peace-conference-of-1919-he-left-in-protest-and-immediately-started-writing-the-book_-keynes-picked-apart-the-treaty-of-versailles_-destroyed-the-reputations-of-the-politicians-that-crafted-the-document_-and-offered-specific-alternatives-to-avoid-the-coming-disaster_-it-might-be-one-of-the-most-important-economic-documents-ever-written_-while-his-writing-style-was-flowery_-keynes_-message-was-clear_-_the-treaty-includes-no-provisions-for-the-economic-rehabilitation-of-europe-_-nothing-to-make-the-defeated-central-powers-into-good-neighbors_-nothing-to-stabilize-the-new-states-of-europe_-nothing-to-reclaim-russia_-nor-does-it-promote-in-any-way-a-compact-of-solidarity-amongst-the-allies-themselves_-no-arrangement-was-reached-at-paris-for-restoring-the-disordered-finances-of-france-and-italy_-or-to-adjust-the-systems-of-the-old-world-and-the-new_-keynes-had-a-keen-understanding-that-hampering-germany_s-commodity-based-economy-would-result-in-disaster_-the-treaty-was-meant-to-destroy-germany-so-the-country-could-no-longer-gather-the-resources-to-rebuild-its-economic-and-military-power_-all-of-germany_s-industrial-supply-was-damaged-and-foreign-trade-was-hindered_-the-country-was-supply-constrained_-reading-_the-economic-consequences-of-the-peace_-is-haunting_-not-just-because-the-predictions-were-so-accurate_-but-the-inevitable-outcome-could-not-be-prevented_-seeking-justice-through-vengeance-is-a-core-human-trait_-but-it-never-leads-to-peace_-_strong_-contrahour-_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_contrahour_span_span_strong_-_strong_a-href_https_contrahour_com_2019_04_everything-you-know-about-money-is-wrong-the-us-wont-turn-into-the-wiemar-republic_html_-target_blank_-rel_noopener_https_contrahour_com_2019_04_everything-you-know-about-money-is-wrong-the-us-wont-turn-into-the-wiemar-republic_html_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_paulson-was-previously-head-of-goldman-sachs_-a-competitor-to-lehman-brothers_-it-appears-that-paulson-let-lehman-brothers-fail-to-even-old-scores_li_-_ul_-_h2_introduction_h2_-the-following-are-curious-quotations-regarding-paulson_s-deceptive-behavior-during-the-negotiations-on-lehman-brothers_-_blockquote_paulson_s-language-in-the-original-draft-that-_decisions-by-the-secretary-pursuant-to-the-authority-of-this-act-are-non-reviewable-and-committed-to-agency-discretion_-and-may-not-be-reviewed-by-any-court-of-law-or-any-administrative-agency_-made-me-very-leery_-that_s-essentially-declaring-martial-law-on-the-capital-markets_-paulson-must-have-figured-that-putting-this-kind-of-language-in-a-plan-would-be-political-suicide_-_strong_-contrahour_strong_blockquote_-_h2_paying-above-market-value_h2_-_blockquote_the-idea-that-the-treasury-had-to-pay-_above-market-prices_-for-troubled-mortgages-and-cdos-never-made-sense_-neither-paulson-nor-bernanke-could-reasonably-explain-why-the-government-had-to-buy-paper-at-above-fair-market-value_-if-a-bank-were-about-to-go-bankrupt_-say-a-merrill-lynch-or-some-other-bank-with-tons-of-toxic-paper_-wouldn_t-that-bank-take-almost-any-price-to-get-said-paper-off-its-balance-sheet_-didn_t-merrill-lynch-sell-its-toxic-paper-for-_0_20-cents-on-the-dollar_-so-why-would-the-government-need-to-pay-above-market-prices-for-stuff-that-the-banks-are-literally-dying-to-get-rid-of_-it-made-no-sense-unless-paulson_s-plan-had-an-ulterior-motive_-_strong_-contrahour_strong_blockquote_-_h2_not-bailing-out-lehman-brothers_h2_-_blockquote_the-nagging-suspicion-that_-after-letting-lehman-go-bankrupt-and-subsequently-banning-short-sales_-paulson-might-not-know-what-he-was-doing_-after-all_-i-think-history-will-show-that-letting-lehman-go-under_-rather-than-having-the-government-force-a-merger_-was-a-devastating-mistake_-it_s-obvious-that-lehman-had-value_-barclay_s-has-purchased-many-of-the-company_s-assets-in-bankruptcy_-for-the-sake-of-the-financial-system_-lehman-should-not-have-been-allowed-to-go-bankrupt_-rather-the-government-should-have-negotiated-a-buyout-and-provided-guarantees-to-the-buyers-to-help-smooth-the-transition_-the-lehman-failure-created-tremendous-counter-party-risk-and-distrust-in-the-system_-two-weeks-after-the-bankruptcy_-lehman-still-has-millions-of-dollars-in-prime-broker-accounts-that-it-is-not-releasing_-this-is-money-that-essentially-belongs-to-hedge-funds_-not-lehman_strong_-contrahour_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span_paulson-and-lehman-brothers_strong_-_strong_a-href_https_contrahour_com_2008_09_dimon-throws-wrench-into-paulsons-monkey-works_html_-target_blank_-rel_noopener_https_contrahour_com_2008_09_dimon-throws-wrench-into-paulsons-monkey-works_html_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li-style_list-style-type_-none_-_ul_-_li_australian-dollars-issued-by-the-commonwealth-bank-were-debt-free-money_li_-_ul_-_li_-_ul_-_h2_introduction_h2_-this-was-a-highly-successful-currency-that-was-issued-by-the-commonwealth-bank-of-australia2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_private-banking-interests-propose-this-theory-for-how-banks-obtain-funds-to-loan_li_-_ul_-_h2_introduction_h2_-this-theory-is-widely-believed-and-is-asserted-by-private-banking-interests_-which-control-what-is-published-in-economics-textbooks-that-also-propose-this-theory_-banks-are-not-financial-intermediaries_-instead_-they_span-style_color_-_236fa1_strong_-are-money-creation-machines-or-_mini-feds_strong_span_-this-is-explained-in-the-following-quotation_-_blockquote_virtually-all-of-the-newly-developed-models-are-based-on-the-highly-misleading-_intermediation-of-loanable-funds_-theory-of-banking-_jakab-and-kumhof-2015_-we-argue-instead-that-the-correct-framework-is-_money-creation_-theory_-in-the-intermediation-of-loanable-funds-model_-bank-loans-represent-the-intermediation-of-real-savings_-or-loanable-funds_-between-non-bank-savers-and-non-bank-borrowers_-lending-starts-with-banks-collecting-deposits-of-real-resources-from-savers-and-ends-with-the-lending-of-those-resources-to-borrowers_-the-problem-with-this-view-is-that_-in-the-real-world_-there-are-no-pre-existing-loanable-funds_-and-intermediation-of-loanable-funds-type-institutions-_-which-really-amount-to-barter-intermediaries-in-this-approach-_-do-not-exist_-this-involves-the-expansion-or-contraction-of-gross-bookkeeping-positions-on-bank-balance-sheets_-rather-than-the-channeling-of-real-resources-through-banks_-replacing-intermediation-of-loanable-funds-models-with-money-creation-models-is-therefore-necessary-simply-in-order-to-correctly-represent-the-macroeconomic-function-of-banks_-but-it-also-addresses-several-of-the-empirical-problems-of-existing-banking-models_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_voxeu_span_span_strong_-_strong_a-href_https_voxeu_org_article_banks-are-not-loanable-funds-intermediaries-macroeconomic-implications_-target_blank_-rel_noopener_https_voxeu_org_article_banks-are-not-loanable-funds-intermediaries-macroeconomic-implications_a_strong_-_h3_academic-research-into-whether-the-intermediation-theory-of-banking-is-true-or-false_h3_-curiously_-there-is-academic-research-into-this-question_-as-it-is-already-determinable-by-simply-reading-the-documentation-of-central-banks_-however_-an-article-titled-_can-banks-individually-create-money-out-of-nothing_-_-the-theories-and-the-empirical-evidence_-was-published-in-2014_-important-quotes-from-this-article-include-the-following_-_blockquote_according-to-the-financial-intermediation-theory-of-banking_-banks-are-merely-intermediaries-like-other-non-bank-financial-institutions_-collecting-deposits-that-are-then-lent-out_-according-to-the-fractional-reserve-theory-of-banking_-individual-banks-are-mere-financial-intermediaries-that-cannot-create-money_-but-collectively-they-end-up-creating-money-through-systemic-interaction_-a-third-theory-maintains-that-each-individual-bank-has-the-power-to-create-money-_out-of-nothing_-and-does-so-when-it-ex-tends-credit-_the-credit-creation-theory-of-banking_-the-question-which-of-the-theories-is-correct-has-far-reaching-implications-for-research-and-policy_-surprisingly_-despite-the-longstanding-controversy_-until-now-_span-style_color_-_236fa1_strong_no-empirical-study-has-tested-the-theories_strong_span_blockquote_-the-article-admits-that-there-no-empirical-study-to-prove-which-of-these-theories-are-correct_-_h3_the-confusion-even-within-banks-regarding-the-competing-theories_h3_-_blockquote_the-three-theories-are-based-on-a-different-description-of-how-money-and-banking-work-and-they-differ-in-their-policy-implications_-intriguingly_-the-controversy-about-which-theory-is-correct-has-never-been-settled_-as-a-result_-confusion-reigns_-today-we-find-central-banks-_-sometimes-the-very-same-central-bank-_-supporting-different-theories_-in-the-case-of-the-bank-of-england_-central-bank-staff-are-on-record-supporting-each-one-of-the-three-mutually-exclusive-theories-at-the-same-time_-as-will-be-seen-below_blockquote_-one-might-presume-that-while-the-laymen-are-confused_-that-those-that-work-in-banks_-and-in-fact-within-one-bank-_the-bank-of-england_-with-staff-more-knowledgeable-on-average-than-the-staff-of-a-typical-bank-would-have-a-consistent-understanding-of-which-of-the-three-theories-is-correct_-_h3_which-theory-is-correct-versus-and-basel-i_-ii_-and-iii_h3_-the-following-quote-points-out-that-for-the-bis_s-basel-iii-rules-to-be-effective_-one-theory-has-to-be-operationally-in-effect-in-banks_-_blockquote_it-matters-which-of-the-three-theories-is-right-_-not-only-for-understanding-and-modelling-the-role-of-banks-correctly-within-the-economy_-but-also-for-the-design-of-appropriate-bank-regulation-that-aims-at-sustainable-economic-growth-without-crises_-the-modern-approach-to-bank-regulation_-as-implemented-at-least-since-basel-i-_1988_-is-predicated-on-the-understanding-that-the-financial-intermediation-theory-is-correct_-5-capital-adequacy-based-bank-regulation_-even-of-the-counter-cyclical-type_-is-less-likely-to-deliver-financial-stability_-if-one-of-the-other-two-banking-hypotheses-is-correct_-the-capital-adequacy-based-approach-to-bank-regulation-adopted-by-the-bcbs_-as-seen-in-basel-i-and-ii_-has-so-far-not-been-successful-in-preventing-major-banking-crises_-if-the-financial-intermediation-theory-is-not-an-accurate-description-of-reality_-it-would-throw-doubt-on-the-suitability-of-basel-iii-and-similar-national-approaches-to-bank-regulation_-such-as-in-the-uk_blockquote_-_blockquote_the-implications-_span-style_color_-_236fa1_strong_of-the-fractional-reserve-theory-of-banking-being-false_-_strong_span_are-far-reaching-for-bank-regulation-and-the-design-of-official-policies_-as-mentioned-in-the-introduction_-modern-national-and-international-banking-regulation-is-predicated-on-the-assumption-that-the-financial-intermediation-theory-is-correct_-since-in-fact-banks-are-able-to-create-money-out-of-nothing_-imposing-higher-capital-requirements-on-banks-will-not-necessarily-enable-the-prevention-of-boom_bust-cycles-and-banking-crises_-since-even-with-higher-capital-requirements_-banks-could-still-continue-to-expand-the-money-supply_-thereby-fueling-asset-prices_-whereby-some-of-this-newly-created-money-can-be-used-to-increase-bank-capital_-_blockquote_-this-theory-is-false_-it-is-interrelated-with-the-fractional-reserve-theory-of-banking-and-was-introduced-by-economists_-controlled-by-private-banking-interests_-to-cast-a-layer-of-obstruction-over-their-enormous-free-ride-off-of-the-government_-the-credit-theory-of-banking-is-correct_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_science-direct_span_span_strong_-_strong_a-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_-target_blank_-rel_noopener_https_www_sciencedirect_com_science_article_pii_s1057521914001070_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_this-is-the-hypothesis-that-money-is-created-as-a-form-of-social-credit_li_-_ul_-_h2_introduction_h2_-this-theory-is-far-less-known-than-the-evidence-for-it-would-indicate_-_h2_academic-research-into-whether-the-credit-theory-of-banking-is-true-or-false_h2_-it-is-curious-that-there-is-academic-research-into-this-question_-as-it-is-already-determinable-by-simply-reading-the-documentation-of-central-banks_-however_-an-article-titled-_can-banks-individually-create-money-out-of-nothing_-_-the-theories-and-the-empirical-evidence_-was-published-in-2014_-important-quotes-from-this-article-include-the-following_-_blockquote_according-to-the-financial-intermediation-theory-of-banking_-banks-are-merely-intermediaries-like-other-non-bank-financial-institutions_-collecting-deposits-that-are-then-lent-out_-according-to-the-fractional-reserve-theory-of-banking_-individual-banks-are-mere-financial-intermediaries-that-cannot-create-money_-but-collectively-they-end-up-creating-money-through-systemic-interaction_-a-third-theory-maintains-that-each-individual-bank-has-the-power-to-create-money-_out-of-nothing_-and-does-so-when-it-ex-tends-credit-_the-credit-creation-theory-of-banking_-the-question-which-of-the-theories-is-correct-has-far-reaching-implications-for-research-and-policy_-surprisingly_-despite-the-longstanding-controversy_-until-now-_span-style_color_-_236fa1_strong_no-empirical-study-has-tested-the-theories_strong_span_blockquote_-the-article-admits-that-there-no-empirical-study-to-prove-which-of-these-theories-are-correct_-_h2_the-confusion-even-within-banks-regarding-the-competing-theories_h2_-_blockquote_the-three-theories-are-based-on-a-different-description-of-how-money-and-banking-work-and-they-differ-in-their-policy-implications_-intriguingly_-the-controversy-about-which-theory-is-correct-has-never-been-settled_-as-a-result_-confusion-reigns_-today-we-find-central-banks-_-sometimes-the-very-same-central-bank-_-supporting-different-theories_-in-the-case-of-the-bank-of-england_-central-bank-staff-are-on-record-supporting-each-one-of-the-three-mutually-exclusive-theories-at-the-same-time_-as-will-be-seen-below_blockquote_-one-might-presume-that-while-laymen-are-confused_-that-those-that-work-in-banks_-and-in-fact-within-one-bank-_the-bank-of-england_-with-staff-more-knowledgeable-on-average-than-the-staff-of-a-typical-bank-would-have-a-consistent-understanding-of-which-of-the-three-theories-is-correct_-_h2_credit-theory-of-banking_h2_-the-following-quote-explains-the-credit-theory_-_blockquote_according-to-the-credit-creation-theory-then_-banks-create-credit-in-the-form-of-what-bankers-call-_deposits_-and-this-credit-is-money_-but-how-much-credit-can-they-create_-wicksell-_1907_-described-a-credit-based-economy-in-the-economic-journal_-arguing-that_blockquote_-_blockquote_the-banks-in-their-lending-business-are-not-only-not-limited-by-their-own-capital_-they-are-not_-at-least-not-immediately_-limited-by-any-capital-whatever_-by-concentrating-in-their-hands-almost-all-payments_-they-themselves-create-the-money-required_blockquote_-_blockquote_in-a-pure-system-of-credit_-where-all-payments-were-made-by-transference-in-the-bank-books_-the-banks-would-be-able-to-grant-at-any-moment-any-amount-of-loans-at-any_-however-diminutive_-rate-of-interest_-12-_wicksell-_1907_-214_blockquote_-_blockquote_withers-_1909_-from-1916-to-1921-the-editor-of-the-economist_-also-saw-few-restraints-on-the-amount-of-money-banks-could-create-out-of-nothing_blockquote_-_blockquote_-it-is-a-common-popular-mistake_-when-one-is-told-that-the-banks-of-the-united-kingdom-hold-over-900-millions-of-deposits_-to-open-one_s-eyes-in-astonishment-at-the-thought-of-this-huge-amount-of-cash-that-has-been-saved-by-the-community-as-a-whole_-and-stored-by-them-in-the-hands-of-their-bankers_-and-to-regard-it-as-a-tremendous-evidence-of-wealth_-but-this-is-not-quite-the-true-view-of-the-case_-most-of-the-money-that-is-stored-by-the-community-in-the-banks-consists-of-book-keeping-credits-lent-to-it-by-its-bankers_-_withers-_1909_-pp_-57-ff_blockquote_-_blockquote_apart-from-schumpeter_-a-number-of-other-german-language-authors-also-argued-that-banks-create-money-and-credit-individually-through-the-process-of-lending_-16-highly-influential-in-both-academic-discourse-and-public-debate-was-dr_-albert-l_-hahn-_1920_-scion-of-a-frankfurt-banking-dynasty-_similarly-to-thornton-who-had-been-a-banker_-and-since-1919-director-of-the-major-family-owned-effecten-und-wechsel-bank_-frankfurt_-like-macleod-a-trained-lawyer_-he-became-an-honorary-professor-at-goethe-university_blockquote_-_h2_when-and-where-the-credit-theory-of-banking-was-dominant_h2_-it-is-curious-to-find-that-at-one-time_-in-a-few-countries-at-least_-the-credit-theory-of-banking-was-the-dominant-view-of-how-banks-operated-as-the-following-quotation-explains_-_blockquote_overall_-hahn-probably-did-more-than-anyone-to-popularise-the-credit-creation-theory-in-germany_-his-book-becoming-a-bestseller_-and-spawning-much-controversy-and-new-research-among-economists-in-germany_-it-also-greatly-heightened-awareness-among-journalists-and-the-general-public-of-the-topic-in-the-following-decades_-the-broad-impact-of-his-book-was-likely-one-of-the-reasons-why-this-theory-remained-entrenched-in-germany_-when-it-had-long-been-discarded-in-the-uk-or-the-us_-namely-well-into-the-post-war-period_-hahn_s-book-was-however-not-just-a-popular-explanation-without-academic-credibility_-schumpeter-cited-it-positively-in-the-second-_german_-edition-of-his-theory-of-economic-development-_schumpeter_-1926_-praising-it-as-a-further-development-in-line-with_-but-beyond_-his-own-book_-the-english-translation-of-schumpeter_s-influential-book-schumpeter-_1912-_1934_-also-favourably-cites-hahn_-it-can-be-said-that-support-for-the-credit-creation-theory-appears-to-have-been-fairly-widespread-in-the-late-19th-and-early-20th-century-in-english-and-german-language-academic-publications_-_span-style_color_-_236fa1_strong_by-1920_-the-credit-creation-theory-had-become-so-widespread-that-it-was-dubbed-the-_current-view_-the-_traditional-theory_-or-the-_time-worn-theory-of-bank-credit_-by-later-critics_strong_span_blockquote_-_h2_what-theory-keynes-subscribed-to_h2_-_blockquote_the-early-keynes-seemed-to-also-have-been-a-supporter-of-this-dominant-view_-in-his-tract-on-monetary-reform-_keynes_-1924_-he-asserts_-apparently-without-feeling-the-need-to-establish-this-further_-that-banks-create-credit-and-money_-at-least-in-aggregate_-_the-internal-price-level-is-mainly-determined-by-the-amount-of-credit-created-by-the-banks_-chiefly-the-big-five-_-_p_-178_blockquote_-_blockquote_we-know-from-keynes_-contribution-to-the-macmillan-committee-_1931_-that-keynes-meant-with-this-that-each-individual-bank-was-able-to-create-credit_blockquote_-_blockquote_it-is-not-unnatural-to-think-of-the-deposits-of-a-bank-as-being-created-by-the-public-through-the-deposit-of-cash-representing-either-savings-or-amounts-which-are-not-for-the-time-being-required-to-meet-expenditure_-but-the-bulk-of-the-deposits-arise-out-of-the-action-of-the-banks-themselves_-for-by-granting-loans_-allowing-money-to-be-drawn-on-an-overdraft-or-purchasing-securities-a-bank-creates-a-credit-in-its-books_-which-is-the-equivalent-of-a-deposit_-_p_-34_blockquote_-_h2_when-did-the-credit-theory-of-banking-fall-out-of-favor_h2_-_blockquote_the-credit-creation-theory-remained-influential-_strong_span-style_color_-_236fa1_until-the-early-post-war-years_-_span_strong_the-links-of-credit-creation-to-macroeconomic-and-financial-variables-were-later-formalised-in-the-quantity-theory-of-credit-_werner_-1992_-1997_-2005_-2012_-which-argues-that-credit-for-_a_-productive-use-in-the-form-of-investments-for-the-production-of-goods-and-services-is-sustainable-and-non-inflationary_-as-well-as-less-likely-to-become-a-non-performing-loan_-_b_-unproductive-use-in-the-form-of-consumption-results-in-consumer-price-inflation-and-_c_-unproductive-use-in-the-form-of-asset-transactions-results-in-asset-inflation-and_-if-large-enough_-banking-crises_blockquote_-_blockquote_however_-since-the-1920s-serious-doubts-had-spread-about-the-veracity-of-the-credit-creation-theory-of-banking_-these-doubts-were-initially-uttered-by-economists-who-in-principle-supported-the-theory_-but-downplayed-its-significance_-it-is-this-group-of-writers-that-served-as-a-stepping-stone-to-the-formulation-of-the-modern-fractional-reserve-theory_-which-in-its-most-widespread-_and-later_-version-however-argues-that-individual-banks-cannot-create-credit_-but-only-the-banking-system-in-aggregate_blockquote_-this-is-curious-and-telling_-this-theory-means-that-banks-create-money_-however_-why-is-this-being_strong_-_downplayed_strong_-by-economists-at-this-point-in-time_-_h2_why-downplay-the-importance-of-money-creation_h2_-it-is-hugely-significant-and-means-that-banks-have-the-power-of-the-federal-government-and-receive-a-perpetual-financial-benefit-from-charging-interest-on-what-is-the-government_s-money-creation-function_-this-brings-up-the-question-is-these-economists_-were-pressed-to-fighting-against-the-credit-theory-of-money-by-private-banking-interests-that-wanted-the-significance-of-the-immense-subsidy-given-to-banks-downplayed_-secondly_-the-statement-by-these-economists-that-_only-the-banking-system-in-aggregate_-can-create-money-is-false-and-nonsensical_-when-a-bank-approves-a-loan_-that-money-did-not-exist-before_-so-each-specific-bank-creates-money_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_science-direct_span_span_strong_-_strong_a-href_https_www_sciencedirect_com_science_article_pii_s1057521914001070_-target_blank_-rel_noopener_https_www_sciencedirect_com_science_article_pii_s1057521914001070_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-federal-reserve-is-a-faux-government-entity-that-was-set-up-by-the-morgan-bank-and-rockefellers-and-other-concentrated-banking-interests_li_-_ul_-_h2_introduction_h2_-the-concentrated-financial-interests-that-were-part-of-creating-the-design-of-the-federal-reserve-is-explained-in-the-following-quotation_-_blockquote_centralization-of-control-over-financial-resources-was-far-advanced-by-1910_-in-the-united-states_-there-were-two-main-focal-points-of-this-control_-the-morgan-group-and-the-rockefeller-group_-within-each-orbit-was-a-maze-of-commercial-banks_-acceptance-banks_-and-investment-firms_-in-europe_-the-same-process-had-proceeded-even-further-and-had-coalesced-into-the-rothschild-group-and-the-warburg-group_-an-article-appeared-in-the-new-york-times-on-may-3_-1931_-commenting-on-the-death-of-george-baker_-one-of-morgan_s-closest-associates_-it-said_-_one-sixth-of-the-total-wealth-of-the-world-was-represented-by-members-of-the-jekyll-island-club_-the-reference-was-only-to-those-in-the-morgan-group_-_members-of-the-jekyll-island-club_-it-did-not-include-the-rockefeller-group-or-the-european-financiers_-when-all-of-these-are-combined_-the-previous-estimate-that-one-fourth-of-the-world_s-wealth-was-represented-by-these-groups-is-probably-conservative_-in-1913_-the-year-that-the-federal-reserve-act-became-law_-a-subcommittee-of-the-house-committee-on-currency-and-banking_-under-the-chairmanship-of-arsene-pujo-of-louisiana_-completed-its-investigation-into-the-concentration-of-financial-power-in-the-united-states_-pujo-was-considered-to-be-a-spokesman-for-the-oil-interests_-part-of-the-very-group-under-investigation_-and-did-everything-possible-to-sabotage-the-hearings_-in-spite-of-his-efforts_-however_-the-final-report-of-the-committee-at-large-was-devastating_-your-committee-is-satisfied-from-the-proofs-submitted-_-that-there-is-an-established-and-well-defined-identity-and-community-of-interest-between-a-few-leaders-of-finance-_-which-has-resulted-in-great-and-rapidly-growing-concentration-of-the-control-of-money-and-credit-in-the-hands-of-these-few-men_-under-our-system-of-issuing-and-distributing-corporate-securities-the-investing-public-does-not-buy-directly-from-the-corporation_-the-securities-travel-from-the-issuing-house-through-middlemen-to-the-investor_-it-is-only-the-great-banks-or-bankers-with-access-to-the-mainsprings-of-the-concentrated-resources-made-up-of-other-people_s-money_-in-the-banks_-trust-companies_-and-life-insurance-companies_-and-with-control-of-the-machinery-for-creating-markets-and-distributing-securities_-who-have-had-the-power-to-underwrite-or-guarantee-the-sale-of-large-scale-security-issues_-the-men-who-through-their-control-over-the-funds-of-our-railroad-and-industrial-companies-are-able-to-direct-where-such-funds-shall-be-kept_-and-thus-to-create-these-great-reservoirs-of-the-people_s-money-are-the-ones-who-are-in-a-position-to-tap-those-reservoirs-for-the-ventures-in-which-they-are-interested-and-to-prevent-their-being-tapped-for-purposes-which-they-do-not-approve_-_strong_-the-creature-from-jekyll-island_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-this-quotation-explains-how-concentrated-were-the-banking-interests-that-created-the-federal-reserve_-there-is-no-way-that-these-concentrated-banking-interests-would-design-a-central-bank-that-functioned-in-the-interests-of-the-country-or-its-citizens_-the-morgan-bank-and-rockefellers-have-had-a-hand-in-picking-numerous-compliant-us-presidents-and-other-politicians2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-federal-reserve-is-a-faux-government-entity-that-was-set-up-by-a-cartel-of-banks-to-represent-the-interests-of-those-banks_li_-_ul_-_h2_introduction_h2_-the-fed-is-presented-falsely-as-a-government-entity_-and-as-a-central-bank-that-looks-out-for-the-interests-of-the-nation_-this-is-also-false_-as-the-fed_-like-the-first-and-second-banks-of-the-united-states_-is-owned-and-controlled-by-the-largest-us-banks-for-the-sole-purpose-of-maximizing-the-interests-and-profits-of-those-banks_-this-is-explained-in-the-following-quotation_-_blockquote_most-of-warburg_s-_the-initial-designer-of-the-fed_-paul-warburg_-writing-and-lecturing-on-this-topic-was-eyewash-for-the-public_-to-cover-the-fact-that-a-central-bank-is-merely-a-cartel-which-has-been-legalized_-its-proponents-had-to-lay-down-a-thick-smoke-screen-of-technical-jargon-focusing-always-on-how-it-would-supposedly-benefit-commerce_-the-public_-and-the-nation_-how-it-would-lower-interest-rates_-provide-funding-for-needed-industrial-projects_-and-prevent-panics-in-the-economy_-there-was-not-the-slightest-glimmer-that_-underneath-it-all_-was-a-master-plan-which-was-designed-from-top-to-bottom-to-serve-private-interests-at-the-expense-of-the-public_-this-was_-nevertheless_-the-cold-reality_-and-the-more-perceptive-bankers-were-well-aware-of-it_-in-an-address-before-the-american-bankers-association-the-following-year_-aldrich-laid-it-out-for-anyone-who-was-really-listening-to-the-meaning-of-his-words_-he-said_-_the-organization-proposed-is-not-a-bank_-but-a-cooperative-union-of-all-the-banks-of-the-country-for-definite-purposes_2-precisely_-a-union-of-banks_-two-years-later_-in-a-speech-before-that-same-group-of-bankers_-a_-barton-hepburn-of-chase-national-bank-was-even-more-candid_-he-said_-_the-measure-recognizes-and-adopts-the-principles-of-a-central-bank_-indeed_-if-it-works-out-as-the-sponsors-of-the-law-hope_-it-will-make-all-incorporated-banks-together-joint-owners_-_strong_-the-creature-from-jekyll-island_strong_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-there-is-no-way-that-these-concentrated-banking-interests-would-design-a-central-bank-that-functioned-in-the-interests-of-the-country-or-its-citizens2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-want-interest-only-loans-where-the-principal-is-never-extinguished_li_-_li_this-is-to-keep-borrowers-as-customers-for-their-entire-lives_li_-_ul_-_h2_introduction_h2_-one-of-the-illusions-promoted-by-banks-is-that-they-want-all-of-their-loan-paid-back_-this-is-untrue_-banks-desire-to-create-perpetual-customers_-which-means-a-loan-where-the-principal-is-never-repaid_-this-is-explained-in-the-following-quotation_-_blockquote_it-is-important-to-remember-that-banks-do-not-really-want-to-have-their-loans-repaid_-except-as-evidence-of-the-dependability-of-the-borrower_-they-make-a-profit-from-interest-on-the-loan_-not-repayment-of-the-loan_-if-a-loan-is-paid-off_-the-bank-merely-has-to-find-another-borrower_-and-that-can-be-an-expensive-nuisance_-it-is-much-better-to-have-the-existing-borrower-pay-only-the-interest-and-never-make-payments-on-the-loan-itself_-that-process-is-called-rolling-over-the-debt_-one-of-the-reasons-banks-prefer-to-lend-to-governments-is-that-they-do-not-expect-those-loans-ever-to-be-repaid_-when-walter-wriston-was-chairman-of-the-citicorp-bank-in-1982_-he-extolled-the-virtue-of-the-action-this-way_-if-we-had-a-truth-in-government-act-comparable-to-the-truth-in-advertising-law_-every-note-issued-by-the-treasury-would-be-obliged-to-include-a-sentence-stating_-_this-note-will-be-redeemed-with-the-proceeds-from-an-identical-note-which-will-be-sold-to-the-public-when-this-one-comes-due_-to-see-why_-it-is-only-necessary-to-understand-the-basic-facts-of-government-borrowing_-the-first-is-that-there-are-few-recorded-instances-in-history-of-government_any-government_actually-getting-out-of-debt_-certainly-in-an-era-of-_100-billion-deficits_-no-one-lending-money-to-our-government-by-buying-a-treasury-bill-expects-that-it-will-be-paid-at-maturity-in-any-way-except-by-our-government_s-selling-a-new-bill-of-like-amount_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-this-same-dynamic-applies-to-the-imf-when-they-loan-to-countries_-they-don_t-want-the-money-paid-back_-they-want-the-loan-to-be-used-as-a-cudgel-to-wring-concessions-out-of-governments_-the-imf-expects-the-money-they-loan-to-be-wasted-or-end-up-in-offshore-bank-accounts_-_h2_why-do-governments-borrow-money_h2_-this-gets-to-a-fundamental-contradiction_-governments-that-create-their-own-money-through-a-public-central-bank-do-not-need-to-borrow-money_-they-do-not-need-to-borrow-it-from-foreign-entities-or-from-their-citizens_-if-money-is-created-by-a-public-central-bank-is-not-debt_-and-there-is-nothing-to-pay-back_-the-bank-of-england-was-created-when-the-british-crown-became-confused-into-thinking-it-needed-to-borrow-money-to-fight-the-french_-the-bank-of-england-was-created-out-of-social-credit_-and-was-begun-with-tally-sticks_-which-were-just-government-credit_-the-fact-that-governments-either-cannot-figure-this-out-or-are-corrupted-to-hand-over-their-money-creation-function-to-a-private-entity_-puts-them-on-the-road-of-needing-to-borrow-their-own-money_-_h2_the-perverse-incentives-to-create-unsound-loans_h2_-within-this-desire-to-keep-the-borrow-permanently-in-debt_-comes-the-incentive-to-create-unsound-loans-as-is-explained-in-the-following-quotation_-_blockquote_since-the-system-makes-it-profitable-for-banks-to-make-large_-unsound-loans_-that-is-the-kind-of-loans-which-banks-will-make_-furthermore_-it-is-predictable-that-most-unsound-loans-eventually-will-go-into-default_-when-the-borrower-finally-declares-that-he-cannot-pay_-the-bank-responds-by-rolling-over-the-loan_-this-often-is-stage-managed-to-appear-as-a-concession-on-the-part-of-the-bank-but_-in-reality_-it-is-a-significant-forward-move-toward-the-objective-of-perpetual-interest_-eventually-the-borrower-comes-to-the-point-where-he-can-no-longer-pay-even-the-interest_-now-the-play-becomes-more-complex_-the-bank-does-not-want-to-lose-the-interest_-because-that-is-its-stream-of-income_-but-it-cannot-afford-to-allow-the-borrower-to-go-into-default-either_-because-that-would-require-a-write-off-which_-in-turn_-could-wipe-out-the-owners_-equity-and-put-the-bank-out-of-business_-so-the-bank_s-next-move-is-to-create-additional-money-out-of-nothing-and-lend-that-to-the-borrower-so-he-will-have-enough-to-continue-paying-the-interest_-which-by-now-must-be-paid-on-the-original-loan-plus-the-additional-loan-as-well_-what-looked-like-certain-disaster-suddenly-is-converted-by-a-brilliant-play-into-a-major-score_-this-not-only-maintains-the-old-loan-on-the-books-as-an-asset_-it-actually-increases-the-apparent-size-of-that-asset-and-also-results-in-higher-interest-payments_-thus_-greater-profit-to-the-bank_-the-up-the-ante-play-sooner-or-later_-the-borrower-becomes-restless_-he-is-not-interested-in-making-interest-payments-with-nothing-left-for-himself_-he-comes-to-realize-that-he-is-merely-working-for-the-bank-and_-once-again_-interest-payments-stop_-the-opposing-teams-go-into-a-huddle-to-plan-the-next-move_-then-rush-to-the-scrimmage-1-_banking-against-disaster_-by-walter-b_-wriston_-the-new-york-times_-september-14_1982_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_whenever-a-bank-needs-government-protection-or-a-bailout_-they-begin-lying-about-their-public-service-function_li_-_ul_-_h2_introduction_h2_-during-the-continental-bank-bailout_-the-same-old-arguments-about-the-public-service-function-of-the-bank-were-raised-to-build-sympathy-for-the-bank_-this-is-explained-in-the-following-quotation_-_blockquote_the-bankers-argued-that-commonwealth-must-not-be-allowed-to-fold-because-it-provided-_essential_-banking-services-to-the-community_-that-was-justified-on-two-counts_-_1_-it-served-many-minority-neighborhoods-and_-_2_-there-were-not-enough-other-banks-in-the-city-to-absorb-its-operation-without-creating-an-unhealthy-concentration-of-banking-power-in-the-hands-of-a-few_-it-was-unclear-what-the-minority-issue-had-to-do-with-it-inasmuch-as-every-neighborhood-in-which-commonwealth-had-a-branch-was-served-by-other-banks-as-well_-furthermore_-if-commonwealth-were-to-be-liquidated_-many-of-those-branches-undoubtedly-would-have-been-purchased-by-competitors_-and-service-to-the-communities-would-have-continued_-judging-by-the-absence-of-attention-given-to-this-issue-during-discussions_-it-is-apparent-that-it-was-merely-thrown-in-for-good-measure_-and-no-one-took-it-very-seriously_-in-any-event_-the-fdic-did-not-want-to-be-accused-of-being-indifferent-to-the-needs-of-detroit_s-minorities-and-it-certainly-did-not-want-to-be-a-destroyer-of-free-enterprise-competition_-so_-on-january-17_1972_-commonwealth-was-bailed-out-with-a-_60-million-loan-plus-numerous-federal-guarantees_-chase-absorbed-some-losses_-primarily-as-a-result-of-commonwealth_s-weak-bond-portfolio_-but-those-were-minor-compared-to-what-would-have-been-lost-without-fdic-intervention_-since-continuation-of-the-bank-was-necessary-to-prevent-concentration-of-financial-power_-fdic-engineered-its-sale-to-the-first-arabian-corporation_-a-luxembourg-firm-funded-by-saudi-1_-sprague_-p_-68_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_banks-sloughen-off-their-low-and-moderate-income-customers-_span_h1_-_blockquote_when-banks-sloughed-off-their-low-and-moderate-income-customers-and-opted-out-of-lending-to-the-poor_-a-new-_fringe-lending_-industry-popped-up-to-meet-their-needs-and-has-grown-ever-since_-there-are-a-variety-of-fringe-loans-across-the-country_-the-most-common-are-payday-loans_-which-are-currently-permitted-in-thirty-eight-states_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-yes_-banks-have-left-many-borrowers-at-the-mercy-of-payday-lenders2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-bail-out-of-continental-illinois-bank-by-the-fdic-provides-important-clues-for-the-fdic-really-operates_li_-_ul_-_h2_introduction_h2_-the-bailout-of-continental-bank-illustrates-how-corrupt-the-fdic-is-by-the-private-banking-sector_-_h2_how-the-fdic-was-pressured-into-overcovering-the-continental-bank-failure_h2_-the-fdic-was-pushed-into-overcovering-the-continental-bank-failure_-and-far-more-than-the-bank-paid-into-the-fdic_-_blockquote_one-of-the-challenges-at-continental-was-that_-while-only-four-per-cent-of-its-liability-was-covered-by-fdic-_insurance_-the-regulators-felt-compelled-to-cover-the-entire-exposure_-which-means-that-the-bank-paid-insurance-premiums-into-the-fund-based-on-only-four-per-cent-of-its-total-coverage_-and-the-taxpayers-now-would-pick-up-the-other-ninety-six-per-cent_-fdic-director-sprague-explains_-although-continental-illinois-had-over-_30-billion-in-deposits_-90-percent-were-uninsured-foreign-deposits-or-large-certificates-substantially-exceeding-the-_100_000-insurance-limit_-off-book-liabilities-swelled-continental_s-real-size-to-_69-billion_-in-this-massive-liability-structure-only-some-_3-billion-within-the-insured-limit-was-scattered-among-850_000-deposit-accounts_-so-it-was-in-our-power-and-entirely-legal-simply-to-pay-off-the-insured-depositors_-let-everything-else-collapse_-and-stand-back-to-watch-the-carnage_-that-course-was-never-seriously-considered-by-any-of-the-players_-from-the-beginning_-there-were-only-two-questions_-how-to-come-to-continental_s-rescue-by-covering-its-total-liabilities-and_-equally-important_-how-to-politically-justify-such-a-fleecing-of-the-taxpayer_-as-pointed-out-in-the-previous-chapter_-the-rules-of-the-game-require-that-the-scam-must-always-be-described-as-a-heroic-effort-to-protect-the-public_-in-the-case-of-continental_-the-sheer-size-of-the-numbers-made-the-ploy-relatively-easy_-there-were-so-many-depositors-involved_-so-many-billions-at-risk_-so-many-other-banks-interlocked_-it-could-be-claimed-that-the-economic-fabric-of-the-entire-nation_of-the-world-itself_was-at-stake_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-one-might-ask_-if-there-are-such-interlocking-risks_-then-why-did-the-government-just-not-take-over-the-bank-and-make-it-a-government-run-bank_-these-questions-are-never-asked_-instead_-the-fdic-normally-places-the-banks-they-save-back-into-private-hands_-_h2_how-the-contential-bank-failure-was-kept-from-wiping-out-the-fdic-reserves_h2_-_blockquote_perhaps-the-most-important-part-of-the-bailout_-however_-was-that-the-money-to-make-it-possible-was-created_directly-or-indirectly_by-the-federal-reserve-system_-if-the-bank-had-been-allowed-to-fail_-and-the-fdic-had-been-required-to-cover-the-losses_-the-drain-would-have-emptied-the-entire-fund-with-nothing-left-to-cover-the-liabilities-of-thousands-of-other-banks_-in-other-words_-this-one-failure-alone_-if-it-were-allowed-to-happen_-would-have-wiped-out-the-entire-fdic_-that_s-one-reason-the-bank-had-to-be-kept-operating_-losses-or-no-losses_-and-that_s-why-the-fed-had-to-be-involved-in-the-bail-out_-in-fact_-that-was-precisely-the-reason-the-system-was-created-at-jekyll-island_-to-manufacture-whatever-amount-of-money-might-be-necessary-to-cover-the-losses-of-the-cartel_-the-scam-could-never-work-unless-the-fed-was-able-to-create-money-out-of-nothing-and-pump-it-into-the-banks-along-with-_credit_-and-_liquidity_-guarantees_-which-means_-if-the-loans-go-sour_-the-money-is-eventually-extracted-from-the-american-people-through-the-hidden-tax-called-inflation_-that_s-the-meaning-of-the-phrase-_lender-of-last-resort_-fdic-director-irvine-sprague_-while-discussing-the-press-release-which-announced-the-continental-bail-out-package_-describes-the-fed_s-role-this-way_-the-third-paragraph-_-granted-100-percent-insurance-to-all-depositors_-including-the-uninsured_-and-all-general-creditors_-the-next-paragraph-_-set-forth-the-conditions-under-which-the-fed_-as-lender-of-last-resort_-would-make-its-loans_-the-fed-would-lend-to-continental-to-meet-_any-extraordinary-liquidity-requirements_-that-would-include-another-run_-all-agreed-that-continental-could-not-be-saved-without-100-percent-insurance-by-fdic-and-unlimited-liquidity-support-by-the-federal-reserve_-no-plan-would-work-without-these-two-elements_-1_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-this-is-a-critical-point_-the-fdic-lacks-the-reserves-to-bail-out-a-bank-of-significant-size_-and-they-will-coordinate-with-the-fed_-which-can-create-as-much-money-as-it-wants-and-has-an-incentive-to-protect-banks-and-their-management-at-the-expense-of-the-public_-in-this-relationship-between-the-fdic-and-the-fed_-the-fed-is-the-senior-partner_-and-the-fdic-is-essentially-a-lacky-of-the-private-banking-interests_-this-gets-to-the-next-important-point_-_h2_a-government-agency-or-controlled-by-the-fed_h2_-the-problem-with-the-fdic-is-that-while-they-are-a-government-agency_-they-are-to-a-great-deal-remotely-controlled-by-the-fed_-which-is-not-a-government-agency_-this-is-explained-in-the-following-quotation_-_blockquote_the-directors-of-the-fdic-did-not-want-to-cross-swords-with-the-federal-reserve-system_-and-they-most-assuredly-did-not-want-to-be-blamed-for-tumbling-the-entire-world-economic-system-by-allowing-the-first-domino-to-fall_-_the-theory-had-never-been-tested_-said-sprague_-_i-was-not-sure-i-wanted-it-to-be-just-then_2-so_-in-due-course_-a-bailout-package-was-put-together-which-featured-a-_325-million-loan-from-fdic_-interest-free-for-the-first-year-and-at-a-subsidized-rate-thereafter_-about-half-the-market-rate_-several-other-banks-which-were-financially-tied-to-first-penn_-and-which-would-have-suffered-great-losses-if-it-had-folded_-loaned-an-additional-_175-million-and-offered-a-_1-billion-line-of-credit_-fdic-insisted-on-this-move-to-demonstrate-that-the-banking-industry-itself-was-helping-and-that-it-had-faith-in-the-venture_-to-bolster-that-faith_-the-federal-reserve-opened-its-discount-window-offering-low-interest-funds-for-that-purpose_-the-outcome-of-this-particular-bailout-was-somewhat-happier-than-with-the-others_-at-least-as-far-as-the-bank-is-concerned_-at-the-end-of-the-five-year-taxpayer-subsidy_-the-fdic-loan-was-fully-repaid_-the-bank-has-remained-on-shaky-ground_-however_-and-the-final-page-of-this-episode-has-not-yet-been-written_-continental-illinois-everything-up-to-this-point-was-but-mere-practice-for-the-big-event-which-was-yet-to-come_-in-the-early-1980s_-chicago_s-continental-illinois-was-the-nation_s-seventh-largest-bank_-with-assets-of-_42-billion-and-with-12_000-employees-working-in-offices-1_-sprague_-pp_-88-89_-2_-ibid_-p_-89_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_h2_why-did-and-does-the-fdic-care-what-the-fed-wants_h2_-this-brings-up-an-interesting-question_-why-is-a-government-agency-being-remotely-controlled-by-the-fed_-which-is-a-cabal-of-private-banking-interests_-this-brings-up-an-extra-problem-with-the-central-bank-being-entirely-private_-it-means-due-to-their-centrality-in-the-financial-system_-that-they-have-great-influence-over-any-financial-regulation-that-the-government-seeks-to-impose_-this-same-issue-came-up-with-the-commodities-futures-trading-commission_-which-was-pressured-not-to-regulate-derivatives-by-then-chairman-allan-greenspan_-by-not-regulating-these-derivatives_-eventually-led-to-the-subprime-mortgage-crisis-of-2007-2008_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-big-banks-parasitize-the-fdic-_span_h1_-_blockquote_it-has-been-mentioned-previously-that-the-large-banks-receive-a-free-ride-on-their-fdic-coverage-at-the-expense-of-the-small-banks_-there-could-be-no-better-example-of-this-than-the-bail-out-of-continental-illinois_-in-1983_-the-bank-paid-a-premium-into-the-fund-of-only-_6_5-million-to-protect-its-insured-deposits-of-_3-billion_-the-actual-liability_-however_including-its-institutional-and-overseas-deposits_was-ten-times-that-figure_-and-the-fdic-guaranteed-payment-on-the-whole-amount_-as-sprague-admitted_-_small-banks-pay-proportionately-far-more-for-their-insurance-and-have-far-less-chance-of-a-continental-style-bailout_-2-how-true_-within-the-same-week-that-the-fdic-and-the-fed-were-providing-billions-in-payments_-stock-purchases_-loans_-and-guarantees-for-continental-illinois_-it-closed-down-the-tiny-bledsoe-county-bank-of-pikeville_-tennessee_-and-the-planters-trust-and-savings-bank-of-opelousas_-louisiana_-during-the-first-half-of-that-year_-forty-three-smaller-banks-failed-without-an-fdic-bailout_-in-most-cases_-a-merger-was-arranged-with-a-larger-bank_-and-only-the-uninsured-deposits-were-at-risk_-the-impact-of-this-inequity-upon-the-banking-system-is-enormous_-it-sends-a-message-to-bankers-and-depositors-alike-that-small-banks_-if-they-get-into-trouble_-will-be-allowed-to-fold_-whereas-large-banks-are-safe-regardless-of-how-poorly-or-fraudulently-they-are-managed_-as-a-new-york-investment-analyst-stated-to-news-reporters_-continental-illinois_-even-though-it-had-just-failed_-was-_obviously-the-safest-bank-in-the-country-to-have-your-money-in_-3-nothing-could-be-better-calculated-to-drive-the-small-independent-banks-out-of-business-or-to-force-them-to-sell-out-to-the-giants_-and-that_-in-fact_-is-exactly-what-has-been-happening_-since-1984_-while-hundreds-of-small-banks-have-been-forced-out-of-business_-the-average-size-of-the-banks-which-remain_with-government-protection_has-more-than-doubled_-it-will-be-recalled-that-this-advantage-of-the-big-banks-over-their-smaller-competitors-was-also-one-of-the-objectives-of-the-jekyll-island-plan_-perhaps-the-most-interesting_and-depressing_aspect-of-the-continental-illinois-bailout-was-the-lack-of-public-indignation-over-the-principle-of-using-taxes-and-inflation-to-protect-the-banking-industry_-smaller-banks-have-complained-of-the-unfair-advantage-given-to-the-larger-banks_-but-not-on-the-basis-that-the-government-should-have-let-the-giant-fall_-their-lament-was-that-it-should-now-protect-them-in-the-same-paternalistic-fashion_-voters-and-politicians-were-silent-on-the-issue_-apparently-awed-by-the-sheer-size-of-the-numbers-and-the-specter-of-economic-chaos_-decades-of-public-education-had-left-their-mark_-after-all_-wasn_t-this-exactly-what-government-schools-have-taught-is-the-proper-function-of-government_-wasn_t-this-the-american-way_-even-ronald-reagan_-viewed-as-the-national-champion-of-economic-conservatism_-praised-the-action_-from-aboard-air-force-one-on-the-way-to-california_-the-president-said_-_it-was-a-thing-that-we-should-do-and-we-did-it_-it-was-in-the-best-interest-of-all-concerned_1-the-reagan-endorsement-brought-into-focus-one-of-the-most-amazing-phenomena-of-the-20th-century_-the-process-by-which-america-has-moved-to-the-left-toward-statism-while-marching-behind-the-political-banner-of-those-who-speak-the-language-of-opposing-statism_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-size-of-the-fdic_s-insurance-cap-tells-us-important-information-about-the-private-banking-control-over-the-fdic_li_-_ul_-_h2_introduction_h2_-the-fdic-insurance-cap-is-far-above-the-typical-account_-this-was-engineered-by-private-banking-interests_-_h2_the-fdic-insurance-cap_h2_-the-excessive-insurance-cap-is-explained-in-the-following-quotation_-_blockquote_the-average-private-savings-deposit-is-about-_6_000_-yet_-under-the-carter-administration_-the-level-of-fdic-insurance-was-raised-from-_40_000-to-_100_000-for-each-account_-those-with-more-than-that-merely-had-to-open-several-accounts_-so_-in-reality_-the-sky-was-the-limit_-clearly-this-had-nothing-to-do-with-protecting-the-common-man_-the-purpose-was-to-prepare-the-way-for-brokerage-houses-to-reinvest-huge-blocks-of-capital-at-high-rates-of-interest-virtually-without-risk_-it-was_-after-all_-insured-by-the-federal-government_-in-1979_-federal-reserve-policy-had-pushed-up-interest-rates_-and-the-sandamp_ls-had-to-keep-pace-to-attract-deposits_-by-december-of-1980_-they-were-paying-15_8_-interest-on-their-money-market-certificates_-yet_-the-average-rate-they-were-charging-for-new-mortgages-was-only-12_9_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h2_insurance-for-depositors-or-for-the-bank_h2_-this-point-should-not-be-missed_-the-insurance-is-that-is-presented-as-for-the-public_-is-not-for-the-public_-but-for-the-banks_-this-brings-up-the-topic-of-the-savings-and-loans-that-eventually-had-to-be-bailed-out-in-the-1980s_-_blockquote_many-of-their-older-loans-were-still-crunching-away-at-7-or-8_-and_-to-compound-the-problem_-some-of-those-were-in-default_-which-means-they-were-really-paying-0_-the-thrifts-were-operating-deep-in-the-red-and-had-to-make-up-the-difference-somewhere_-the-weakest-sandamp_ls-paid-the-highest-interest-rates-to-attract-depositors-and-they-are-the-ones-which-obtained-the-large-blocks-of-brokered-funds_-brokers-no-longer-cared-how-weak-the-operation-was_-because-the-funds-were-fully-insured_-they-just-cared-about-the-interest-rate_-on-the-other-hand_-the-sandamp_l-managers-reasoned-that-they-had-to-make-those-funds-work-miracles-for-the-short-period-they-had-them_-it-was-their-only-chance-to-dig-out_-and-they-were-willing-to-take-big-risks_-for-them-also_-the-government_s-insurance-program-had-removed-any-chance-of-loss-to-their-depositors_-so-many-of-them-plunged-into-high-profit_-high-risk-real-estate-developments_-deals-began-to-go-sour_-and-1979-was-the-first-year-since-the-great-depression-of-the-1930s-that-the-total-net-worth-of-federally-insured-sandamp_ls-became-negative_-and-that-was-despite-expansion-almost-everywhere-else-in-the-economy_-the-public-began-to-worry_-full-faith-and-credit-the-protectors-in-washington-responded-in-1982-with-a-joint-resolution-of-congress-declaring-that-the-full-faith-andamp_-credit-of-the-united-states-government-stood-behind-the-fslic_-that-was-a-reassuring-phrase_-but-many-people-had-the-gnawing-feeling-that_-somehow_-we-were-going-to-pay-for-it-ourselves_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_savings-and-loans-in-the-us-began-with-a-public-service-function-and-focused-on-providing-home-loans_li_-_li_through-corruption_-the-sandamp_l_s-were-eventually-allowed-to-shed-their-public-service-function-and-become-a-speculative-entity_-but-with-government-insurance_li_-_ul_-_h2_introduction_h2_-saving-and-loans-quickly-morphed-in-the-1980s-to-become-entirely-profit-motivated-financial-entities_-eventually-losing-the-plot-as-to-why-they-exited-in-the-first-place_-this-is-explained-in-the-following-quotation_-_blockquote_in-the-early-days-of-the-reagan-administration_-government-regulations-were-changed-so-that-the-sandamp_ls-were-no-longer-restricted-to-the-issuance-of-home-mortgages_-the-sole-reason-for-their-creation-in-the-first-place_-in-fact_-they-no-longer-even-were-required-to-obtain-a-down-payment-on-their-loans_-they-could-now-finance-100_-of-a-deal_or-even-more_-office-buildings-and-shopping-centers-sprang-up-everywhere-regardless-of-the-need_-developers_-builders_-managers_-and-appraisers-made-millions_-the-field-soon-became-overbuilt-and-riddled-with-fraud_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-_h2_a-feature-of-the-reagan-administration_h2_-the-reagan-administration-led-to-an-enormous-corruption-of-public-institutions_-the-savings-and-loans-were-just-one-example-of-this_-and-yet-the-popular-media-describes-reagan-as-one-of-the-best-us-presidents-in-history_-he-is-often-promoted-as-the-_great-communicator_-however-what-he-was-communicating-was-nothing-but-corporate-corruption_-the-quote-continues_-_blockquote_billions-of-dollars-disappeared-into-defunct-projects_-in-at-least-twenty-two-of-the-failed-sandamp_ls_-there-is-evidence-that-the-mafia-and-cia-were-involved_-fraud-is-not-necessarily-against-the-law_-in-fact_-most-of-the-fraud-in-the-sandamp_l-saga-was_-not-only-legal_-it-was-encouraged-by-the-government_-the-garn-st_-germain-act-allowed-the-thrifts-to-lend-an-amount-of-money-equal-to-the-appraised-value-of-real-estate-rather-than-the-market-value_-it-wasn_t-long-before-appraisers-were-receiving-handsome-fees-for-appraisals-that-were_-to-say-the-least_-unrealistic_-but-that-was-not-fraud_-it-was-the-intent-of-the-regulators_-the-amount-by-which-the-appraisal-exceeded-the-market-value-was-defined-as-_appraised-equity_-and-was-counted-the-same-as-capital_-since-the-sandamp_ls-were-required-to-have-_1-in-capital-for-every-_33-held-in-deposits_-an-appraisal-that-exceeded-market-value-by-_1-million-could-be-used-to-pyramid-_33-million-in-deposits-from-wall-street-brokerage-houses_-and-the-anticipated-profits-from-those-funds-was-one-of-the-ways-in-which-the-sandamp_ls-were-supposed-to-recoup-their-losses-without-the-government-having-to-cough-up-the-money_which-it-didn_t-have_-in-effect-the-government-was-saying_-_we-can_t-make-good-on-our-protection-scheme_-so-go-get-the-money-yourself-by-putting-the-investors-at-risk_-not-only-will-we-back-you-up-if-you-fail_-we_ll-show-you-exactly-how-to-do-it_-1_-_how-safe-are-deposits-in-ailing-banks_-sandamp_ls_-u_s_-news-andamp_-world-report_-march-25_1985_-p_-74_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_h2_reaganism-and-deregulation-leads-to-the-sandamp_l-failure_h2_-_blockquote_between-1980-and-1986_-a-total-of-664-insured-sandamp_ls-failed_-government-regulators-had-promised-to-protect-the-public-in-the-event-of-losses_-but-the-losses-were-already-far-beyond-what-they-could-handle_-they-could-not-afford-to-close-down-all-the-insolvent-thrifts-because-they-simply-didn_t-have-enough-money-to-cover-the-pay-out_-in-march-of-1986_-the-fslic-had-only-3-cents-for-every-dollar-of-deposits_-by-the-end-of-that-year_-the-figure-had-dropped-to-two-tenths-of-a-penny-for-each-dollar-_insured_-obviously_-they-had-to-keep-those-thrifts-in-business_-which-meant-they-had-to-invent-even-more-accounting-gimmicks-to-conceal-the-reality_-postponement-of-the-inevitable-made-matters-even-worse_-keeping-the-sandamp_ls-in-business-was-costing-the-fslic-_6-million-per-day_-by-1988_-two-years-later_-the-thrift-industry-as-a-whole-was-losing-_9_8-million-per-day_-and-the-unprofitable-ones_the-corpses-which-were-propped-up-by-the-fslic_were-losing-_35_6-million-per-day_-and_-still_-the-game-continued_-by-1989_-the-fslic-no-longer-had-even-two-tenths-of-a-penny-for-each-dollar-insured_-its-reserves-had-vanished-altogether_-like-the-thrifts-it-supposedly-protected_-it-was_-itself_-insolvent-and-looking-for-loans_-it-had-tried-offering-bond-issues_-but-these-fell-far-short-of-its-needs_-congress-had-discussed-the-problem-but-had-failed-to-provide-new-funding_-the-collapse-of-lincoln-savings-brought-the-crisis-to-a-head_-there-was-no-money_-period_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_h2_the-fed-rides-to-the-rescue_h2_-_blockquote_in-february_-an-agreement-was-reached-between-alan-greenspan_-chairman-of-the-federal-reserve-board_-and-m_-danny-wall_-chairman-of-the-federal-home-loan-bank-board_-to-have-_70-million-of-bailout-funding-for-lincoln-savings-come-directly-from-the-federal-reserve_-this-was-a-major-break-in-precedent_-historically_-the-fed-has-served-to-create-money-only-for-the-government-or-for-banks_-if-it-were-the-will-of-the-people-to-bail-out-a-savings-institution_-then-it-is-up-to-congress-to-approve-the-funding_-if-congress-does-not-have-the-money-or-cannot-borrow-it-from-the-public_-then-the-fed-can-create-it-_out-of-nothing_-of-course_-and-give-it-to-the-government_-but_-in-this-instance_-the-fed-was-usurping-the-role-of-congress-and-making-political-decisions-entirely-on-its-own_-there-is-no-basis-in-the-federal-reserve-act-for-this-action_-yet_-congress-remained-silent_-apparently-out-of-collective-guilt-for-its-own-paralysis_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-this-again-points-to-the-outsized-role-of-the-fed_-because-the-fdic-and-fslic-are-not-funded-anywhere-near-what-their-mandate-would-entail_-it-places-the-fed-as-the-true-bail-out-entity-in-the-us_-however_-the-fed-is-a-private-corporation-that-is-only-responsive-to-private-banking-interests-and-seeks-to-eliminate-responsibility-on-the-part-of-bank-management_-for-example_-the-fed-would-never-require-the-management-of-banks-to-step-down_-and-would-never-recommend-that-a-troubled-bank-be-taken-over-by-the-government_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_what-were-sandamp_ls-originally_span_h1_-_blockquote_the-sandamp_ls-were-distinctively-not-profit-making-entities_they-were-self-help-institutions-for-the-poor_-made-possible-by-government-subsidies-and-regulation_-even-after-the-new-deal-changes_-the-thrift-industry_s-model-remained-_neighbors-helping-neighbors_-and-emphasized-mutual-ownership_-it-focused-on-building-homes-for-neighbors_-not-making-profits_-members-also-participated-heavily-in-governance-and-elected-the-institution_s-officers_-who-were-often-community-leaders_-the-post_wwii-housing-boom-not-only-made-thrifts-the-predominant-mortgage-lenders-in-the-country-but-also-led-to-unprecedented-industry-growth_-their-mission-focused-on-residential-housing_-and-their-business-plan-was-simple_-collect-deposits_-make-mortgage-loans_-because-of-high-demand_-it-was-easy-to-lend-and-become-profitable_-illustrated-by-the-famous-_3-6-3-rule_pay-3-percent-on-deposits_-charge-6-percent-on-loans_-and-be-on-the-golf-course-by-3_00-p_m_-the-thrift-industry-just-sat-back-and-watched-its-loan-volume-grow_-it-had-a-significant-advantage-against-banks-in-collecting-deposits_that-first-_3_-in-interest_-though-modest_-was-more-than-commercial-banks-could-pay-for-consumer-savings_142as-we-saw-with-credit-unions_-these-large-profits-changed-the-industry_-by-the-1960s_-the-industry-bore-little-resemblance-to-the-charitable-and-mission-oriented-industry-of-the-1800s-or-even-the-1930s_-sandamp_ls-possessed-over-_100-billion-in-assets-and-competed-vigorously-with-banks-for-consumer-deposits_-having-graduated-their-customers-into-the-middle-class-through-affordable-homeownership_-they-had-abandoned-their-mutual-ownership-and-no-longer-rejected-profits_-they-looked-nothing-like-the-bailey_s-building-and-loan_-and-soon-the-industry_s-growth-naturally-led-to-increased-political-influence_not-only-had-the-industry-stopped-pursuing-its-mission_-it-appeared-to-be-actively-fighting-it_-the-industry-forcefully-opposed-the-first-federal-legislative-attempt_-the-housing-act-of-1949_-to-provide-public-housing-for-the-low-income_-it-labeled-the-attempt-_socialism_-and-a-threat-to-private-business_-apparently_-the-sandamp_ls-had-already-forgotten-that-they-owed-their-very-existence-to-heavy-federal-government-support_-they-believed-that-if-the-government-started-building-housing-for-the-poor_-they-would-lose-their-prime-spot-atop-the-mortgage-finance-industry_-senator-john-bricker_-cozy-with-the-sandamp_l-industry_-revealed-this-fear-to-congress_-_where-do-we-stop_-with-government-threatening-to-encompass-between-one-third-to-one-half-of-the-home-financial-field_-_the-thrift-industry_s_-very-existence-is-at-stake_-by-the-1970s_-market-competition-hampered-the-3-6-3-gravy-train_-and-thrifts-joined-banks-in-pushing-for-deregulation-so-that-they-could-remain-profitable_-congress-and-the-thrift-regulators-famously-responded-with-several-deregulatory-actions-that-would-allow-the-weakened-thrift-industry-to-survive-in-a-hypercompetitive-financial-sector_145-the-_reforms_-removed-their-interest-rate-caps_-broadened-their-permissive-activities-beyond-home-mortgages_-and-removed-geographic-restrictions_-sandamp_ls-could-now-offer-credit-cards-and-traditional-interest-bearing-checking-accounts-as-well-as-engage-in-commercial-and-general-consumer-lending_-they-could-also-invest-in-commercial-paper-and-corporate-bonds-before-commercial-banks-were-able-to-invest-in-any-type-of-securities_-mutual-ownership-was-also-abandoned_-previously_-an-sandamp_l-was-required-to-have-at-least-four-hundred-shareholders_-with-no-one-shareholder-owning-more-than-25-percent-of-the-stock_-now_-a-single-shareholder-could-own-an-sandamp_l_-at-the-same-time_-congress-increased-their-insurance-from-_40_000-per-account-to-_100_000-per-account-and-placed-the-full-faith-and-credit-of-the-united-states-behind-the-fslic-insurance-fund_148the-moral-hazard-introduced-by-increased-fslic-insurance_-combined-with-deregulation-and-increasing-competition_-led-to-a-toxic-mix_-thrift-owners-could-deal-fast-and-loose-with-deposits-that-were-fully-insured-and-backed-by-the-government_-the-industry-immediately-became-an-attractive-target-for-many-unscrupulous-investors-and-organizations_-the-loosened-regulations-attracted-the-interest-of-anyone_-including-people-with-ties-to-the-mafia-and-other-organized-crime_-who-wanted-access-to-millions-of-fslic-insured-dollars-without-much-fear-of-close-scrutiny-from-regulators_-in-reference-to-the-sandamp_l-industry-in-the-1980s_-representative-jim-leach-said_-_what-has-developed-_-is-a-giveaway-system-where-the-potential-profit-has-been-privatized-while-the-potential-loss-has-been-socialized_-one-of-the-ironies-of-deregulation-is-that-it-bred-problems-that-could-only-be-remedied-through-more-deregulation_-without-an-orienting-mission_-the-thrift-was-just-like-any-other-bank_but-with-a-more-compliant-regulator_-for-example_-the-repeal-of-the-interest-rate-cap-posed-a-problem-for-sandamp_ls_-whose-assets-were-primarily-composed-of-long-term-home-loans-that-continued-to-pay-interest-at-low-rates_-sandamp_ls-had-to-pay-a-sudden-jump-in-rates-to-attract-deposits_-but-their-existing-long-term-borrowers-were-not-paying-the-corresponding-jump-in-rates_-meaning-that-much-more-money-flowed-out-than-in_-sandamp_ls-were-caught-in-an-interest-rate-squeeze_-the-garn-st_-germain-act-addressed-this-by-allowing-sandamp_ls-to-lend-to-short-term-and-higher-profit-products-like-securities-or-commercial-paper_products-that-had-nothing-to-do-with-the-sandamp_ls_-core-mission_-the-act_-in-an-attempt-to-allow-the-industry-to-bring-in-more-loans_-dropped-the-down-payment-requirement-for-home-loans-and-allowed-sandamp_ls-to-offer-variable-rate-mortgages-to-shift-some-of-the-interest-rate-risk-onto-their-customers_-these-products-included-the-exotic-adjustable-rate-mortgages-that-were-among-the-highest-defaulting-loans-during-the-2008-financial-crisis_-the-point-of-deregulation-was-to-help-the-sandamp_l-help-itself-in-an-unregulated-free-market_-the-strategy_-called-_gambling-for-resurrection_-indicated-the-general-banking-philosophy-of-the-time_-many-blamed-the-industry_s-lack-of-profitability-on-onerous-regulation-and-advocated-deregulation-so-that-sandamp_ls-could-compete-with-other-market-entities-on-an-even-playing-field_-but-these-institutions-had-been-playing-a-different-game_-they-were-distinctly-not-pure-profit-organizations_-all-of-their-restrictions_-such-as-mutual-ownership_-a-singular-focus-on-home-loans_-and-interest-rate-caps_-served-a-purpose_-but-once-they-became-profit-oriented-banks-with-any-public-purpose-set-aside_-they-suffered-not-only-an-interest-rate-squeeze_-but-a-mission-squeeze_-trying-to-serve-two-masters_profits-and-the-public-good_proved-impossible_-so-they-chose-to-chase-profits_-rather-unsuccessfully_-disaster-eventually-struck_-and-the-thrift-industry-famously-imploded_-the-federal-government-bailout-cost-somewhere-between-_87-billion-and-_130-billion_-some-claim-that-deregulation-caused-the-collapse-by-allowing-risks-to-enter-the-previously-sound-industry_-one-expert-notes-that-the-thrift-industry-_captured-its-regulatory-process-more-thoroughly-than-any-other-regulated-industry-in-the-country_-responding-to-this-charge_-the-thrift-regulator-was-changed-from-the-fhlbb-to-the-office-of-thrift-supervision-_ots_-a-slap-on-the-wrist-to-a-defunct-agency_-in-reality_-in-1989-president-george-h_-w_-bush-gave-a-speech-promising-regulatory-reforms-and-said-that-_never-again-will-america-allow-any-insured-institution-_to_-operate-without-enough-money_-meanwhile_-the-fhlbb-employees-walked-outside-their-agency-to-a-hotel-to-watch-the-speech-and-walked-right-back-to-work_the-sign-on-the-door-was-soon-changed-to-reflect-the-name-of-the-new-agency_-predictably_-the-ots-would-be-in-trouble-again-in-2008_-regarded-as-the-most-irresponsible-of-federal-regulators-for-failing-to-meaningfully-oversee-the-large-and-powerful-thrifts_-like-wamu_-aig_-and-indymac_-under-its-charge_-dodd-frank-finally-abolished-the-ots-in-october-2011_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-one-way-of-describing-this-is-that-the-later-sandamp_ls-were-a-disaster_-and-it-demonstrates-the-problems-in-migrating-an-entity-with-public-support-and-a-public-service-function-so-far-from-its-original-roots2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-world-bank-is-an-international-banking-cartel-that-imposes-neoliberal-policies-on-countries-through-banking-control_li_-_ul_-_h2_introduction_h2_-like-the-imf_-the-world-bank-pretends-to-be-international-and-associated-with-the-government_-when-it-is-controlled-by-the-us-government-and-is-funded-out-of-the-us-treasury_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-world-bank-in-action_span_h1_-the-following-is-an-example-of-how-the-world-bank-functions_-_blockquote_in-india_-the-world-bank-funded-the-construction-of-a-dam-that-displaced-two-million-people_-flooded-360-square-miles_-and-wiped-out-81_000-acres-of-forest-cover_-in-brazil_-it-spent-a-billion-dollars-to-_develop_-a-part-of-the-amazon-basin-and-to-fund-a-series-of-hydroelectric-projects_-it-resulted-in-the-deforestation-of-an-area-half-the-size-of-great-britain-and-has-caused-great-human-suffering-because-of-resettlement_-in-kenya_-the-bura-irrigation-scheme-caused-such-desolation-that-a-fifth-of-the-native-population-abandoned-the-land_-the-cost-was-_50_000-per-family-served_-in-indonesia_-the-transmigration-program-mentioned-previously-has-devastated-tropical-forests_at-the-same-time-that-the-world-bank-is-funding-reforestation-projects_-the-cost-of-resettling-one-family-is-_7_000_-which-is-about-ten-times-the-indonesian-per-capita-income_-livestock-projects-in-botswana-led-to-the-destruction-of-grazing-land-and-the-death-of-thousands-of-migratory-animals_-this-resulted-in-the-inability-of-the-natives-to-obtain-food-by-hunting_-forcing-them-into-dependence-on-the-government-for-survival_-while-nigeria-and-argentina-are-drowning-in-debt_-billions-from-the-world-bank-have-gone-into-building-lavish-new-capital-cities-to-house-government-agencies-and-the-ruling-elite_-in-zaire_-mexico_-and-the-philippines_-political-leaders-became-billionaires-while-receiving-world-bank-loans-on-behalf-of-their-nations_-in-the-central-african-republic_-imf-and-world-bank-loans-were-used-to-stage-a-coronation-for-its-emperor_-the-record-of-corruption-and-waste-is-endless_-but-the-real-eye-opener-is-in-the-failure-of-socialist-ventures_-those-magnificent-projects-which-were-to-bring-prosperity-to-the-underdeveloped-countries_-here-are-just-a-few-examples_-before-receiving-loans-from-the-world-bank_-tanzania-was-not-wealthy_-but-it-fed-its-own-people_-and-it-had-economic-growth1_-graham-hancock_-lords-of-poverty_-the-power_-prestige_-and-corruption-of-the-international-aid-business-_new-york_-atlantic-monthly-press_-1989_-pp_-59_60_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_strong_a-href_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_-target_blank_-rel_noopener_https_www_scribd_com_doc_54912935_the-creature-from-jekyll-island-g-edward-griffin_a_strong_-the-world-bank-is-barely-covered-by-the-international-media-and-when-it-is_-the-false-claims-about-the-world-bank_s-charitable-and-socially-beneficial-outcomes-tend-to-be-repeated-without-critical-analysis_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_world-bank-in-argentina_span_h1_-this-quote-explains-what-the-world-bank_-along-with-the-imf-did-to-argentina_-_blockquote_argentina-once-had-one-of-the-highest-standards-of-living-in-latin-america_-but-then-it-became-the-recipient-of-massive-loans-from-the-world-bank-as-well-as-commercial-banks-in-the-united-states_-since-the-money-was-given-to-politicians_-it-was-used-to-build-the-only-system-politicians-know-how-to-build_-socialism_-by-1982_-the-gross-national-product-was-in-a-nose-dive_-manufacturing-had-fallen-to-less-than-half-of-capacity_-thousands-of-privately-owned-companies-had-been-forced-into-bankruptcy_-unemployment-was-soaring_-and-so-was-welfare_-by-1989_-inflation-was-running-at-an-average-of-5_000_-and_-in-the-summer-of-that-year_-topped-at-1_000_000_-banks-were-offering-interest-rates-of-600_-per-month-in-hopes-of-keeping-deposits-from-being-moved-out-of-the-country_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-_h2_how-do-the-world-bank-and-imf-really-work_h2_-so-few-journalists-know-enough-about-the-world-bank-and-the-imf-to-writing-any-articles-on-these-entities_-the-following-quote-explains-how-they-work_-_blockquote_capital-for-the-imf-and-the-world-bank-comes-from-the-industrialized-nations_-with-the-united-states-putting-up-the-most_-funds-consist-partly-of-hard-currencies_such-as-the-dollar_-yen_-mark-and-franc_but-these-are-augmented-by-many-times-that-amount-in-the-form-of-_credits_-these-are-merely-promises-by-the-member-governments-to-get-the-money-from-their-taxpayers-if-the-bank-gets-into-trouble-with-its-loans_-while-the-imf-is-gradually-evolving-into-a-central-bank-for-the-world_-the-world-bank-is-serving-as-its-lending-arm_-as-such_-it-has-become-the-engine-for-transferring-wealth-from-the-industrialized-nations-to-the-underdeveloped-countries_-while-this-has-lowered-the-economic-level-of-the-donating-countries_-it-has-not-raised-the-level-of-the-recipients_-the-money-has-simply-disappeared-down-the-drain-of-political-corruption-and-waste_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_creature-from-jekyll-island_span_span_strong_-the-point-of-the-imf-and-the-world-bank_s-loans-is-to-_span-style_color_-_ff6600_strong_never-be-repaid_strong_span_-the-loans-are-extended-and-rolled-over_-and-then-the-political-elite-in-the-borrowing-countries-are-required-to-implement-neoliberal-policies-that-neutralizing-participatory-government-and-place-as-many-public-assets-into-private-hands_-through-privatization_-this-is-explained-in-the-following-quotation_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_imf-and-world-bank-as-protege-of-the-fed_span_h1_-while-the-fed-was-setup-to-be-purely-a-central-bank-and-focused-on-the-money-of-the-us_-it-has-since-its-inception-been-involved-in-international-affairs_-negatively-intervening-in-the-affairs-of-other-countries_-this-pattern-has-grown-as-time-has-progressed-from-its-origination-in-1913_19142024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_it-is-little-discussed-in-the-modern-era-regarding-the-long-history-of-the-us-of-banking-concentration_li_-_ul_-_h2_introduction_h2_-concerns-around-banking-concentration-have-been-a-long-term-issue-of-many-leaders-in-us-history_-this-is-explained-in-the-following-quotation_-_blockquote_although-jefferson-and-jackson-may-have-been-wrong-in-their-solutions_-they-were-prophetic-in-their-fears_-they-worried-that-money-tended-to-flow-where-there-was-more-money-and-banks-that-became-too-large-and-powerful-would-only-lend-where-profits-were-highest-and-thus-create-inequalities_-but-they-miscalculated-that-keeping-banks-geographically-dispersed-could-preclude-centralized-banking-power_-the-modern-world-has-made-that-solution-insufficient_-there-is-no-doubt-thomas-jefferson-would-have-been-just-as-uncomfortable-with-our-current-bifurcated-nationwide-banking-systems-_one-for-the-rich-and-one-for-the-poor_-as-he-was-with-a-big-city-banking-monopoly-that-left-out-poor-rural-farms_-the-point-was-that-the-rich-and-poor-should-operate-in-credit-markets-governed-by-the-same-rules_-banks-must-not-have-the-power-to-anoint-winners-and-losers_-the-fight-for-equality-in-banking_-which-started-before-the-ink-dried-on-the-constitution_-ended-sometime-in-the-last-few-decades-as-deregulation-did-away-with-most-meaningful-attempts-to-restrict-bank-power_-what-eventually-happened-was-predictable_-banks-became-large-and-powerful-and-stopped-serving-a-large-sector-of-the-population_-instead-of-bank-wars-or-even-bank-skirmishes_-politicians-pushed-laws-favoring-bank-profitability-and-efficiency-over-public-needs_-any-suggestion-that-banks-should-be-forced-to-lend-to-less-profitable-borrowers-was-seen-as-a-government-intrusion-into-a-private-market_-and-because-our-politicians-have-gone-from-fighting-the-centripetal-force-of-bank-power-to-helping-it-along_-the-accumulated-power-of-banks-has-become-harder-to-dislodge_-banks-disowned-their-_state-institution_-past-and-clothed-themselves-in-the-language-of-the-market_-this-was-the-whole-point-of-three-decades-of-deregulation_to-free-banks-from-state-imposed-restrictions-and-separate-them-from-the-state-so-that-they-could-compete-in-the-market-like-other-businesses_-but-in-the-banking-business_-deregulation-turned-out-to-be-a-one-sided-deal_-banks-enjoyed-significant-profits-in-the-deregulated-banking-market-for-decades_-but-when-the-market-turned-on-them_-the-federal-government-swooped-in-to-save-them_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_the-risk-imposed-by-banks_h2_-_blockquote_-_p-class_md-end-block-md-heading-md-focus_whereas-in-the-middle-ages-the-key-threat-to-banks-was-sovereign-failure_-today_-as-andrew-haldane_-director-at-the-bank-of-england_-explains_-_perhaps-the-biggest-risk-to-the-sovereign-comes-from-the-banks_-causality-is-reversed_-one-lesson-of-the-recent-global-crisis-is-that-fragility-in-a-large-and-complex-banking-sector-has-the-potential-to-sink-nations_-the-implications-of-that-shift-affect-how-we-should-think-about-banking-policy_-the-nature-of-the-bank_government-relationship-changed-significantly-throughout-various-phases-of-u_s_-history_-but-the-general-contours-of-the-social-contract-remained-roughly-the-same_-banks-were-supported-as-long-as-they-enabled-the-strength-of-the-democracy-and-would-be-restricted-if-they-came-to-present-a-threat-to-democracy_-for-hundreds-of-years_-this-country_s-leaders-were-afraid-of-excessive-bank-power-and-the-inequalities-of-access-it-would-inevitably-produce_-many-presidents-and-lawmakers-fought-and-resisted-the-natural-tendency-of-banks-to-grow-large-and-powerful-and-favor-the-profitable-few-over-the-many_-then-they-stopped-fighting_-and-what-was-always-feared-came-to-pass_p_-_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-all-of-this-is-why-the-us-economy-has-been-financialized_-this-financialization-places-the-overall-economy-at-the-control-of-the-private-banking-interests-and-emphasizes-industrial-capitalism_-which-is-what-was-previously-the-strategy-of-the-united-states_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_jefferson_s-opposition-to-a-central-bank_span_h1_-the-opposition-to-concentrated-banking-interests-was-so-strong-that-thomas-jefferson-opposed-the-creation-of-a-central-bank_-as-the-following-quotation-explains_-_blockquote_jefferson-and-the-rural-farmers-of-the-american-colonies-feared-that-a-robust-centralized-banking-system-would-amass-wealth-and-power-in-cities_-away-from-farmers_-he-also-feared-that-banks-would-provide-too-much-credit_-which-would-destroy-the-agrarian-principles-of-hard-work-and-thrift_-jefferson_-who-derided-banks-as-being-_more-dangerous-than-standing-armies_-was-not-alone-in-his-disdain_-banks-and-bankers-were-cast-as-villains-flaunting-easy-money-and-debt_-farmers-were-the-protagonists-whose-work-made-the-economy-possible_-in-1811_-former-president-john-adams-wrote_-_our-whole-banking-system-i-ever-abhorred_-i-continue-to-abhor_-and-shall-die-abhorring_-similarly_-in-1833_-william-gouge_-a-treasury-official-and-economic-advisor-to-andrew-jackson_-described-banks-and-their-outsized-power-as-_the-principal-cause-of-social-evil-in-the-united-states_-these-sentiments-were-rooted-in-the-traditional-protestant-and-agrarian-principles-of-thrift-and-self-reliance_-as-well-as-a-distrust-of-artificial-power-derived-from-the-concentrated-control-of-money_-the-american-republic-was-a-distinct-break-from-the-old-world-social-order_-and-one-of-its-central-premises-was-that-every-person_-regardless-of-social-rank-or-accumulated-wealth_-would-enjoy-_equality-of-opportunity_-one-historian-explains-that-as-long-as-the-_channels-of-ascent-and-descent-were-kept-open-it-would-be-impossible-for-artificial-aristocrats-or-overgrown-rich-men-to-maintain-themselves-for-long_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-it-should-be-noted-that-these-quotations-are-barely-mentioned-on-discussions-of-the-founding-fathers_-it-almost-appears-as-if-none-of-the-founding-fathers-had-anything-negative-to-say-about-concentrated-banking-interests_-and-as-if-none-of-the-debates-and-discussions-they-had_-had-anything-to-do-with-banking_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-problem-and-threats-imposed-with-accumulated-capital-_span_h1_-this-concern-is-explained-in-the-following-quotation_-_blockquote_many-saw-excessive-bank-power-through-accumulated-capital-as-a-formidable-threat-and-expressed-fears-that-banks-would-amass-political-power-and-influence-and-wield-it-to-thwart-the-budding-democracy_-william-findley-described-banks-as-_artificial-creature_s_-endowed-with-powers-not-possessed-by-human-beings-and-incompatible-with-the-principles-of-a-democratic-social-order_-_this-institution_-having-no-principle-but-that-of-avarice_-which-dries-and-shrivels-up-all-the-manly_-all-the-generous-feelings-of-the-human-soul_-will-never-be-varied-in-its-object-and-if-continued-will-accomplish-its-end_-viz_-to-engross-all-the-wealth_-power-and-influence-of-the-state_-_the-growing-economy-needed-those-with-money_-which-had-been-accumulated-in-the-old-world_-to-lend-in-order-to-support-new-ventures_-this-formative-tension-between-protecting-the-principles-of-democracy-and-enabling-a-burgeoning-laissez-faire-spirit-of-limitless-prosperity-shaped-the-evolution-of-the-social-contract_-the-fear-of-too-much-bank-power-led-the-government-to-keep-banks-under-strict-supervision_-banks-were-given-state-charters-and-allowed-to-lend-with-heavy-restrictions-as-well-as-charters-requiring-them-to-honor-a-distinctively-public-mission_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-this-has-of-course-come-to-pass_-all-of-the-major-banks-and-most-of-the-smaller-banks-meet-this-definition-of-_no-other-principle-than-avarice_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_how-banking-charters-used-to-be-temporary-_span_h1_-one-of-the-features-which-were-designed-to-restrict-the-concentration-of-financial-power-in-banks-was-that-banking-charters-were-temporary_-this-is-explained-in-the-following-quotation_-_blockquote_in-particular_-early-state-laws-attempted-to-keep-banks-small-and-short-lived_-in-keeping-with-widely-held-fears-of-concentrated-economic-power_-the-state-of-new-york_-for-example_-issued-all-of-its-banks-charters-with-an-expiration-date_-legislatures-renewed-the-charters-subject-to-conditions-or-more-commonly_-denied-requests-for-charter-extensions-to-keep-banks-from-amassing-too-much-power-or-market-share_-in-addition_-state-law-imposed-participation-requirements-to-prevent-privately-controlled-banks-from-being-dominated-by-a-few-individuals-or-economic-interests_-one-historian-asserts_-_in-practice-state-legislatures-viewed-banking-corporations-as-instrumentalities-of-the-state_-established-to-serve-various-public-purposes-as-well-as-the-private-interests-of-stockholders-and-borrowers_-in-schaake-v_-dolley_-the-kansas-supreme-court-explained-that-banking-is-not-_a-matter-of-private-concern-only_-like-the-business-of-the-merchant_-and-for-all-purposes-of-legislative-regulation-and-control-it-may-be-said-to-be-_affected-with-a-public-interest_-_-the-court-made-it-clear-that-banking-needs-to-be-distinguished-from-_ordinary-private-business_-because-of-its-_public-nature_-because-banks-received-_public-patronage_-a-state-bank-was-_a-trustee-of-the-fiscal-affairs-of-the-people-and-of-the-state_-the-most-important-charter-impositions_-and-the-most-long-lasting_-were-prohibitions-on-bank-size-and-location_-unit-banking_-wherein-a-single-bank-operates-in-a-single-region_-was-the-norm-in-u_s_-banking-for-almost-two-centuries_-most-banks-did-not-open-branches-outside-a-state_-or-even-within-a-state-in-many-cases_-for-much-of-u_s_-banking-history_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-this-shows-how-at-this-time-the-us-government-sought-to-keep-banks-on-a-_tight-leech_-also_-unlike-today_-it-was-openly-expressed-that-banks-are-not-like-other-businesses_-_h2_limitations-on-bank-branching_h2_-a-unit-bank-is-when-a-bank-operates-only-one-branch_-branching-is-when-a-bank-is-allowed-multiple-branches_-there-was-previously-all-manner-of-limitations-on-bank-branching_-including-the-ability-to-the-only-bank-within-one-state_-over-time-these-restrictions-were-loosened-as-bankers-increasingly-took-over-the-regulations-of-banks_-this-is-explained-in-the-following-quotation_-_blockquote_a-coalition-of-community-bankers-warned-against-national-bank-branching_-stating_-_such-branching-would_-create-a-brood-of-two-hundred-or-three-hundred-great-central-banks_-with-10_000-to-15_000-branches-in-large-cities-as-well-as-small_-and-as-such-branches-would-have-no-capital-and-only-figure-head-management_-individualism-in-management-would-cease_-local-taxes-_would_-be-evaded_-_there-would-be_-no-home-distribution-of-profits_-local-progress-_would-be_-retarded_-in-short_-the-great-central-banks-would-skim-the-cream-from-the-whole-country-to-enrich-_their-own_-exchequers_-these-rules-were-anticompetitive-and-held-banks-hostage-to-a-single-region_s-credit-markets_-the-situation-was-not-only-inefficient-but-also-unstable_-if-the-region-in-which-a-bank-was-forced-to-concentrate-its-resources-suffered-bad-weather-or-a-local-disaster_-the-bank-would-sink_-and-many-did_-banking-crises-and-failures-were-chronic-during-this-era_-nonetheless_-these-restrictions-remained-because-rural-farmers-needed-and-wanted-the-lower-rates-for-credit-that-unit-banking-uniquely-enabled_-and-the-state_-through-chartering-laws-and-restrictions_-made-it-so_-during-the-era-of-state-chartered-banking_-some-states-experimented-with-unregulated-banking_-this-phase_-called-_free-banking_-or-_wildcat-banking_-lasted-from-1837-to-1862-and-is-considered-a-disaster-by-most-scholars_-this-short-experiment-with-free-banking-stands-as-the-only-example-since-the-1600s-of-any-banking-system-worldwide-operating-without-government-support_-not-every-state-allowed-free-banking_-but-those-that-did-saw-bank-charters-explode-because-anyone-could-charter-a-bank_-but-no-one-trusted-these-banks_-many-of-them-would-pop-up-in-desolate-areas-for-the-sole-purpose-of-not-having-to-redeem-the-bank-notes-they-had-issued_-thus-earning-the-name-_wildcat_-banks_-the-banks-that-existed-during-free-banking-lasted-an-average-of-five-years_-and-half-of-them-failed_-the-turbulence-and-constant-bank-failures-were-unsustainable_-and-the-period-ended-relatively-quickly_-the-union_s-financial-emergency-during-the-civil-war-was-the-impetus-that-finally-begat-national-banking_-the-union-needed-credit-to-fund-an-expensive-and-protracted-war_-and-because-of-the-magnitude-of-the-crisis_-president-lincoln-and-treasury-secretary-salmon-chase-were-finally-able-to-overcome-agrarian-opposition_-but-congress-had-written-jacksonian-opposition-to-national-banking-into-laws-prohibiting-the-treasury-from-participating-in-nationwide-monetary-policy_-and-so-to-finance-the-war_-the-federal-government-had-to-depend-entirely-on-private-state-bankers-in-new-york_-boston_-and-philadelphia_-this-dependence-on-private-loans-significantly-restrained-federal-spending_-president-lincoln-and-secretary-chase-needed-much-more-than-what-they-could-borrow-from-these-banks_-the-way-to-loosen-credit-would-be-to-establish-a-national-paper-currency-so-that-the-federal-government-could-fund-itself_-allowing-the-federal-government-to-print-and-sell-_greenbacks_-to-banks-and-raise-the-money-it-needed_-national-banks-could-not-branch-within-any-state-that-did-not-allow-such-nor-could-any-bank-branch-outside-of-its-state_-the-banks-were-also-only-to-engage-in-traditional-banking-activities_-such-as-lending-and-deposit-taking_-and-were-to-steer-clear-of-the-territory-covered-by-wall-street-investment-banks_-such-as-underwriting_-trading-in-stocks-or-private-bonds_-or-merchant-banking_-these-acts-served-as-the-template-for-later-restrictions-on-state-banks_-activities-as-well_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-necessity-for-a-banking-public-option-_span_h1_-jefferson-supported-a-public-banking-option_-something-that-never-came-to-fruition-unless-one-includes-the-medium-duration-us-post-office-banking-that-existed-in-the-us-from-1911-to-1967_-this-is-explained-in-the-following-quotation_-_blockquote_over-the-past-several-decades_-nearly-all-of-the-government-and-industry-initiatives-aimed-at-financial-inclusion-have-focused-on-community-efforts-to-bank-the-poor_jefferson_s-localism-still-runs-deep-in-banking-politics_-however_-the-problem-of-access-is-fundamentally-different-today-than-it-was-historically_-disparities-in-access-are-not-regional-but-based-almost-purely-on-income_-banks_-local-or-otherwise_-do-not-lend-to-the-poor-due-to-one-straightforward-economic-reason_-they-can-make-more-profits-elsewhere_-any-effort-to-bank-the-poor-must-recognize-that-centralized_-national_-and-large-banks-won-a-decisive-victory-over-small-community-banks_-alexander-hamilton-rightly-believed-that-government-controlled-central-banking-was-essential-to-coordinating-a-modern-economy_-but-thomas-jefferson-was-also-right-that-permitting-banking-power-to-accumulate-in-the-hands-of-the-few-does-so-at-the-expense-of-the-many_-the-dilemma-of-living-in-a-hamiltonian-banking-world-without-addressing-the-jeffersonian-nightmare-of-inequality-has-led-to-the-current-crisis-of-the-unbanked_-but-there-is-a-hamiltonian-solution-to-jeffersonian-fears_-a-public-option-in-banking_a-central-bank-for-the-poor_-the-core-function-of-the-central-bank_-or-federal-reserve_-is-to-infuse-liquidity-into-troubled-banks-so-that-they-can-withstand-a-temporary-credit-crunch-and-get-back-on-their-feet_-a-public-option-would-provide-the-same-short-term-credit-help-to-individuals-so-that-they_-too_-can-withstand-a-personal-credit-crunch-and-get-back-on-their-feet_-indeed_-in-the-modern-banking-landscape_-only-a-large_-liquid-lender-is-able-to-lower-the-costs-of-lending-to-the-poor_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_big-banks-killing-smaller-banks_span_h1_-_blockquote_as-bank-of-america-was-growing_-the-community-banks-of-america-were-dying_-when-most-people-discuss-this-trend-of-mergers-and-consolidations-in-the-banking-industry_-they-focus-on-the-resulting-too-big-to-fail-banks-that-have-come-to-dominate-the-industry_-but-these-banks-were-built-using-an-already-existing-checkerboard-of-community-banks-across-the-country_-each-bank-that-bank-of-america-purchased-originally-started-as-a-small-community-bank-before-being-turned-into-a-megabank-branch-or-closed-in-the-name-of-efficiency-and-replaced-by-an-atm-machine_-market-forces-have-always-applied-to-banks_-but-the-tight-margin_-high-stakes-nationwide-banking-market-is-new_-the-full-range-of-intensely-competitive-market-forces-have-applied-to-banks-to-a-much-greater-degree-during-the-last-thirty-years_with-the-clear-exception-of-the-largest-banks_-which-are-too-big-to-fail_-community-banks_-struggles-to-stay-profitable_-however_-emanate-not-only-from-market-principles_-but-also_-more-recently_-from-regulatory-pressure_-the-dodd-frank-wall-street-reform-and-consumer-protection-act-_dodd-frank_-regulatory-regime_-a-response-to-the-2008-financial-crisis_-primarily-purported-to-address-the-risks-in-the-large-bank-sector_-most-scholars-and-industry-observers-claim-that-the-act-falls-short-of-true-reform-for-the-large-banks_-but-when-applied-to-small-banks_-dodd-frank-is-overkill_-dodd-frank-has-placed-added-rules-on-community-banks_-which-claim-that-they-are-_too-small-to-comply_-community-banks-claim-that-its-onerous-regulatory-demands-create-compliance-costs-that-are-reducing-their-already-small-margins_-large-banks-can-absorb-these-costs-and-have-large-compliance-departments-to-deal-with-the-regulatory-mandates_-small-banks-are-spending-limited-resources-to-comply-with-these-laws_-which-are-mismatched-to-the-risks-their-industry-faces_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-have-a-problem-existing-without-government-involvement_li_-_li_this-is-something-banks-try-to-hide-from-the-public_li_-_ul_-_h2_introduction_h2_-the-money-creation-function-is-a-core-capability-of-governments_-governments-provide-insurance-to-banks-and-deputized-banks-to-engage-in-money-creation-by-allowing-them-to-have-a-banking-charter_-this-is-explained-in-the-following-quotation_-_blockquote_one-of-the-most-important-and-oft-forgotten-truths-about-any-banking-system-is-that-it-simply-cannot-exist-without-the-government_-lending-and-borrowing-have-taken-place-for-as-long-as-recorded-history_-before-the-nation-state_-borrowing-and-lending-were-connected-to-religious-temples_-the-nucleus-of-each-society_-but-the-banking-system-we-know-today_-which-allows-for-the-development-of-modern-economies-by-issuing-bank-notes_-lending_-and-accepting-deposits_-started-with-an-original-transaction-between-a-government-and-private-bankers_-the-bank-of-england-was-formed-in-1694-because-king-william-iii-needed-a-loan-of-1_2-million-pounds-to-finance-a-war-against-france_-forty-london-merchants-joined-forces-to-issue-the-loan_-in-return_-the-crown-gave-them-a-monopoly-on-issuing-bank-notes_the-genesis-of-state-sponsored-paper-money_-the-notes-were_-in-fact_-the-king_s-promise-to-pay-back-the-loan_-he-never-paid-it-back-and-those-notes-and-their-successors-have-been-circulating-and-multiplying-ever-since_-the-bank-of-england-and-the-network-of-banks-it-created-became-the-model-for-the-world_s-current-banking-system_a-model-where-the-bank-initially-existed-to-meet-the-needs-of-the-state_-italy_-spain_-and-france_-too_-created-the-first-banks-to-help-the-monarchy-fund-a-war_-the-united-states-came-late-to-the-game_-but-it_-too_-formed-a-banking-system-whose-existence-depended-on-the-state_2_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-bank-failures-of-the-depression-were-hugely-significant-events-in-us-banking-history_li_-_ul_-_h2_introduction_h2_-the-stock-market-and-banking-crisis-of-1930_s-was-not-only-controlled-by-private-banking-interests_-but-private-banking-interests-fought-hard-to-not-engage-in-debt-free-spending-that-could-have-pulled-the-us-out-of-the-depression_-the-us-did-not-exit-the-depression-until-the-beginning-of-ww2_-the-great-depression-allowed-for-a-great-concentration-of-wealth_-this-fact-is-left-out-of-most-explanations-of-the-period_-this-is-explained-in-the-following-quotation_-_blockquote_any-skepticism-about-banks-before-the-1930s-turned-to-outright-hostility-as-the-american-people-faced-unprecedented-suffering-due-to-bank-failures_-the-public-anger-and-distrust-of-banks-that-peaked-during-the-great-depression-led-to-an-even-stronger-bank-state-relationship_-it-was-a-high-mark-of-explicit-government-involvement-in-banking_-drawing-from-a-rise-in-public-anger-and-populist-fervor_-however_-the-great-depression-banking-reforms-were-a-continuation-rather-than-a-change-in-the-ongoing-bank-state-relationship_although-jeffersonian-fears-of-centralized-banking-power-had-never-been-realized_-many-now-saw-the-calamity-of-the-great-depression-as-jefferson_s-and-jackson_s-worst-fears-coming-to-pass_-it-was-louis-brandeis-who-picked-up-where-they-left-off_-and-he-would-be-the-most-forceful-reminder-that-banks-were-different-than-other-institutions_that-their-growth-and-amassed-power-posed-a-threat-against-which-the-public-and-policymakers-should-constantly-be-vigilant_-brandeis-ably-articulated-jefferson_s-point-and-applied-it-to-the-modern-landscape_-he-argued-that-these-banks-were-injuring-the-very-people-whose-deposits-were-used-to-secure-the-banks_-dominant-positions_-the-control-of-_other-people_s-money_-allowed-financial-oligarchies-to-turn-high-profits-into-outsized-political-influence_-_if-the-banker_s-power-were-commensurate-only-with-their-wealth_-brandeis-said_-_they-would-have-relatively-little-influence-on-american-business_-instead_-brandeis-noted-that-the-large-investment-banks-controlled_-either-directly-or-indirectly_-a-staggering-_22-billion-dollars_-more-than-three-times-the-value-of-all-property_-real-and-personal_-in-new-england_-with-large-investments-in-american-business_-including-railroads_-industrial-corporations_-and-life-insurance-companies_-banks-and-investment-bankers-requested-directorships-on-company-boards_-j_-p_-morgan-himself-held-seventy-two-directorships-in-forty-seven-of-the-largest-corporations-in-the-country_-according-to-brandeis_-this-situation-was-ripe-with-conflict-and-self-dealing_-even-though-the-era-preceding-the-great-depression-saw-increased-concentrations-of-wealth-in-the-hands-of-the-few_-brandeis-was-not-concerned-about-wealth-inequality_-what-worried-brandeis-was-the-increased-influence-of-those-who-used-other-people_s-wealth_-he-explained-the-difference-using-j_-p_-morgan_s-bank-as-an-example_-_they-control-the-people-through-the-people_s-own-money_-_personal-wealth_-does-not-endanger-political-or-industrial-liberty_-it-is-insignificant-in-amount-as-compared-with-the-aggregate-wealth-of-america_-or-even-of-new-york-city_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_the-great-depression-leads-brandeis-to-recommend-nationalizing-the-banks_h2_-the-private-banks-were-so-disinterested-in-serving-the-public-interest-during-the-great-depression-that-louis-brandeis-recommend-nationalizing-the-banks_-this-is-explained-in-the-following-quotation_-_blockquote_in-addition-to-recommending-conflict-of-interest-legislation-that-would-deter-banker-directorships_-brandeis-suggested-a-more-fundamental-solution_turning-banks-into-public-utilities_-comparing-them-to-the-country_s-railways_-then-an-essential-utility-of-commerce_-he-argued-that-banks-should-be-treated-not-as-private-business-but-as-a-public-service_-_the-dependence-of-commerce-and-industry-upon-bank-deposits_-as-the-common-reservoir-of-quick-capital-is-so-complete_-that-deposit-banking-should-be-recognized-as-one-of-the-businesses-_affected-with-a-public-interest_-_-brandeis-was-drawing-not-only-from-a-century-of-american-history-that-supported-his-proposition-but-on-like-minded-policymakers-like-senator-robert-owen_-chairman-of-the-committee-on-banking-and-currency_-who-brandeis-quoted-in-his-treatise_-_my-own-judgment-is-that-a-bank-is-a-public-utility-institution-and-cannot-be-treated-as-a-private-affair_-for-the-simple-reason-that-the-public-is-invited_-under-the-safeguards-of-the-government_-to-deposit-its-money-with-the-bank_-and-the-public-has-a-right-to-have-its-interests-safeguarded-through-organized-authorities_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-there-is-little-doubt-that-the-great-depression-could-have-been-ended-very-quickly-if-the-us-had-nationalized-the-banking-system2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_banks-have-long-been-considered-different-from-other-types-of-corporations_li_-_li_they-have-been-assumed-to-have-a-public-service-function-that-has-been-increasingly-eroded-from-earlier-years_li_-_ul_-_h2_introduction_h2_-banks-exist-because-of-governments-_or-in-ancient-times-temples_-which-were-also-supported-by-and-connected-to-governments_-banks-without-the-support-of-governments-have-a-very-poor-history_-this-is-explained-in-the-following-quotation_-_blockquote_many-continued-to-advocate-that-banks-were-distinct-from-other-corporate-entities-because-of-their-dependence-on-the-government_-amidst-the-debate_-gerald-corrigan_-president-of-the-federal-reserve-bank-of-new-york_-addressed-this-question-head-on-in-a-1982-essay-titled-_are-banks-special_-the-fact-that-the-question-needed-to-be-asked-reveals-how-significantly-the-world-of-banking-had-changed-in-the-prior-decade_-corrigan-answered-the-question-in-the-affirmative-and-stated-that_banks-and-bank-regulators-have-long-since-recognized-the-importance-of-banks-acting-in-ways-that-preserve-public-confidence_-deposit-insurance-and-direct-access-to-the-lender-of-last-resort-are-uniquely-available-to-banks-to-reinforce-that-public-confidence_-indeed_-deposit-insurance-and-access-to-the-lender-of-last-resort-constitute-a-public-safety-net-under-the-deposit-taking-function-of-banks_-the-presence-of-this-public-safety-net-reflects-a-long-standing-consensus-that-banking-functions-are-essential-to-a-healthy-economy_-however-the-presence-of-the-public-safety-net-uniquely-available-to-a-particular-class-of-institutions-also-implies-that-those-institutions-have-unique-public-responsibilities-and-may-therefore-be-subject-to-implicit-codes-of-conduct-or-explicit-regulations-that-do-not-fall-on-other-institutions_-corrigan_s-view-was-in-line-with-the-history-of-banking_-but-it-was-out-of-sync-in-the-1980s_-and-he-lost-this-ideological-battle_-a-study-released-by-the-federal-deposit-insurance-corporation-_fdic_-titled-_mandate-for-change_-restructuring-the-banking-industry_-illustrates-the-logic-of-the-winning-argument_-the-fdic-proposed-that-the-glass-steagall-restrictions-and-the-bhca-_be-abolished_-in-order-to-allow-banks-the-_freedom-to-operate-in-the-marketplace-without-undue-regulatory-influence_-and-the-fdic-responded-to-the-_specialness_-of-banks-due-to-government-support-by-indicating-that-fdic-insurance-would-be-priced-more-_efficiently_-as-banks-became-_subjected-to-greater-market-discipline-through-the-refining-of-failure-resolution-policies_-in-other-words_-fdic-insurance-was-only-a-_subsidy_-if-it-was-underpriced_-and-therefore_-it-was-possible-to-find-an-accurate-market-price-for-this-government-support_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h2_the-great-depression-leads-brandeis-to-recommend-nationalizing-the-banks_h2_-the-private-banks-were-so-disinterested-in-serving-the-public-interest-during-the-great-depression-that-louis-brandeis-recommend-nationalizing-the-banks_-this-is-explained-in-the-following-quotation_-_blockquote_in-addition-to-recommending-conflict-of-interest-legislation-that-would-deter-banker-directorships_-brandeis-suggested-a-more-fundamental-solution_turning-banks-into-public-utilities_-comparing-them-to-the-country_s-railways_-then-an-essential-utility-of-commerce_-he-argued-that-banks-should-be-treated-not-as-private-business-but-as-a-public-service_-_the-dependence-of-commerce-and-industry-upon-bank-deposits_-as-the-common-reservoir-of-quick-capital-is-so-complete_-that-deposit-banking-should-be-recognized-as-one-of-the-businesses-_affected-with-a-public-interest_-_-brandeis-was-drawing-not-only-from-a-century-of-american-history-that-supported-his-proposition-but-on-like-minded-policymakers-like-senator-robert-owen_-chairman-of-the-committee-on-banking-and-currency_-who-brandeis-quoted-in-his-treatise_-_my-own-judgment-is-that-a-bank-is-a-public-utility-institution-and-cannot-be-treated-as-a-private-affair_-for-the-simple-reason-that-the-public-is-invited_-under-the-safeguards-of-the-government_-to-deposit-its-money-with-the-bank_-and-the-public-has-a-right-to-have-its-interests-safeguarded-through-organized-authorities_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-while-banks-have-this-safety-net_-in-the-modern-era-they-have-come-to-take-their-safety-nets-for-granted_-knowing-that-no-matter-how-badly-they-behave-and-how-irresponsible-they-are_-the-government-will-bail-them-out2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_obama-was-a-cat_s-paw-for-private-banking-interests_-however_-he-did-try-to-allow-for-mortgage-modification_-but-the-banks-would-not-accept-this_li_-_ul_-_h2_introduction_h2_-this-quote-explains-what-obama-wanted-to-do_-_blockquote_when-president-obama-proposed-a-bill-in-congress-that-allowed-judges-to-modify-home-mortgages-so-borrowers-could-avoid-foreclosure_-the-banks-swiftly-killed-the-bill-and-refused-to-even-negotiate-with-senators-over-some-of-its-provisions_125-the-banking-sector-hired-more-lobbyists-and-gained-unprecedented-access-to-washington-insiders_-leading-a-senior-obama-advisor-to-remark_-_you-would-hope-after-american-taxpayers-stepped-in-to-save-these-companies-from-a-disaster-of-their-own-making-they-would-be-deploying-their-army-of-lobbyists-to-strengthen-and-not-thwart-financial-reform_126-according-to-a-congressional-staffer_-the-path-to-reform-looked-like-_an-orchestrated_-well-funded-effort-by-banks-to-manipulate-our-legislation-and-leave-no-fingerprints_127-banks-fought-most-attempts-at-major-banking-reform_-arguing-that-any-reforms-that-lowered-bank-profits-would-lead-to-a-longer-crisis-and-recovery-period_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_usury-is-the-charging-of-interest-on-loans_li_-_li_however_-in-the-last-hundreds-of-years_-the-term-usury-has-been-diluted-to-mean-only-charging-excessive-interest_li_-_ul_-_h2_introduction_h2_-usury-has-a-long-history-of-being-opposed-my-many-religions-as-the-following-quote-explains_-_blockquote_in-fact_-every-major-religion-has-spoken-directly-about-usury-or-interest-and-has-expressly-prohibited-it-at-one-point-or-another_2-most-of-these-ancient-cultures-considered-any-interest-collected-on-a-loan-to-be-forbidden-usury_-and-the-word-usury-was-synonymous-with-interest_3-today_-nearly-all-societies-allow-a-lender-to-charge-reasonable-interest-and-consider-usury-to-be-_too-much-interest_-or-above-what-their-laws-allow_-laws-on-usury_-then_-are-just-how-much-a-society-deems-is-too-much-to-charge-on-a-loan_in-the-years-2000-bc-to-1400-bc_-the-vedic-texts-of-ancient-india-mentioned-usury_-in-the-years-700-bc-to-100-bc-the-sutra-texts_-as-well-as-the-buddhist-jatakas-of-600-bc-to-400-bc_-prohibited-usury_-vasishtha_-a-well-known-hindu-lawmaker-of-that-time_-forbade-usury-and-disparaged-the-practice_-saying-that-only-_hypocritical-ascetics-are-accused-of-practicing-it_4the-torah-and-the-talmud-contain-various-passages-prohibiting-the-jews-from-charging-any-interest-on-loans_it-was-all-prohibited-usury_-ezekiel-18_13-states_-_he-_who_-hath-given-forth-upon-usury_-and-hath-taken-increase_-shall-he-then-live_-he-shall-not-live_-he-hath-done-all-these-abominations_-he-shall-surely-die_-his-blood-shall-be-upon-him_-there-were_-however_-loopholes-in-the-blanket-prohibition_-specifically_-_unto-a-stranger-thou-mayest-lend-upon-usury_-but-unto-thy-brother-thou-shalt-not-lend-upon-usury_-that-the-lord-thy-god-may-bless-thee-in-all-that-thou-settest-thine-hand-to-in-the-land-whither-thou-goest-to-possess-it_-_deut_-23_19_-jewish-leaders-interpreted-this-to-mean-that-although-jews-could-not-lend-with-interest-to-other-jews_-they-could-lend-freely-to-gentiles_-ignoring-these-prohibitions-led-to-painful-debt-stories_-nehemiah_-a-jew-living-under-persian-rule-in-445-bc_-gives-a-vivid-account-of-the-people_s-outcry-over-their-mounting-debts-and-mortgaged-fields-and-their-growing-sense-of-powerlessness-as-they-sold-their-daughters-into-slavery-to-pay-their-debts_-he-responded-with-indignation_-_when-i-heard-their-outcry-and-these-charges_-i-was-very-angry_-i-pondered-them-in-my-mind-and-then-accused-the-nobles-and-officials_-i-told-them_-_you-are-charging-your-own-people-interest_-_-_you-are-selling-your-own-people_-what-you-are-doing-is-not-right_-let-us-stop-charging-interest_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_nehemian_s-story-of-usury-_span_h1_-_blockquote_nehemiah_s-account-is-interesting-not-only-because-of-his-moral-qualm-with-usury-but-because-when-he-presents-the-situation-to-the-nobles-and-officials_-they-too-acknowledge-the-unfairness_-and-even-though-it-meant-smaller-financial-gains-on-their-part_-they-promised-to_and-did_stop-the-practice_-for-these-jews_-the-practice_s-immorality-was-enough-to-end-it_-it-was-not-dissimilar-to-the-custom-in-ancient-persia-where-rulers-issued-periodic-amnesty-for-all-debts-every-few-years_-the-slates-would-be-wiped-clean-and-all-debts-forgiven_6-this-ceremony-had-not-only-religious-significance-but-also-political-and-practical-utility_-canceling-the-debts-subdued-unrest-that-might-threaten-political-power_in-many-early-european-societies-where-usury-prohibitions-were-common_-jews-were-the-only-sources-of-loans_-laws-prohibited-jews-from-entering-many-other-professions_-but-jewish-scriptures-expressly-permitted-lending-to-non-jews_-jews-operated-as-the-primary-moneylenders-during-much-of-the-middle-ages_-jewish-lenders-would-sit-on-benches-near-the-market_-or-bancas-in-italian-_from-which-the-word-bank-originates_-and-lend-to-others-with-interest_-cultural-disdain-for-all-moneylenders_-combined-with-or-perhaps-leading-to-rampant-anti-semitism_-resulted-in-horrible-violence-and-appalling-injustices-toward-the-jews_-even-though-their-borrowers-knew-the-terms-of-the-bargains-they-so-willingly-made-when-they-needed-money_-they-nonetheless-vilified-their-lenders_-in-1190_-after-destroying-their-lenders_-account-books_-the-nobility-of-europe-massacred-the-jews-of-york-to-whom-they-were-in-debt_-european-historian-joseph-patrick-byrne-reported_-_money-was-the-reason-the-jews-were-killed_-for-had-they-been-poor_-and-had-not-the-lords-of-the-land-been-indebted-to-them_-they-would-not-have-been-killed_7-king-edward-i-later-expelled-the-jews-from-england-in-1290-based-on-a-similar-antagonism_8-and-then-there-are-the-accounts-of-christian-rulers-imprisoning-their-jewish-lenders-and-extracting-teeth-and-other-body-parts-when-their-debts-became-due_-perhaps-this-cultural-guilt-led-shakespeare_s-fictitious-jewish-lender_-shylock_-to-famously-demand-_a-pound-of-flesh_for-centuries_-christians-were-also-forbidden-to-lend-with-interest_-gospel-writer-luke-proclaimed_-_lend_-hoping-for-nothing-again_-_luke-6_5_-amid-his-message-of-peace-and-love_-in-an-uncharacteristic-display-of-anger_-jesus-christ-expelled-the-_moneychangers_-or-lenders_-from-the-temple-grounds_-the-temple-was_-at-the-time_-a-place-of-considerable-commerce_-but-christ-acted-in-_righteous-anger_-and-purged-those-who-profited-from-loans-because-he-regarded-lending-on-interest-not-as-common-business-but-rather-a-moral-perversion_-he-drove-the-point-home-with-his-parable-of-the-unforgiving-servant_-in-which-a-certain-man-owing-a-large-amount-of-money-to-his-master-or-king-is-forgiven-his-debt-and-then-turns-around-and-imprisons-his-servant-for-failing-to-pay-him-a-debt-much-smaller-than-what-he-himself-owed_9-_forgive-us-our-debts-as-we-forgive-our-debtors_-christ-prayed_early-christian-codes-reinforced-this-message-and-made-it-explicit_-in-325-ad_-the-council-of-nicaea-banned-the-practice-of-usury_charging-any-interest_among-clerics_-in-789-ad_-charlemagne-forbid-usury-among-all-people_-perpetuating-st_-ambrose_s-characterization-of-usury-as-a-transaction-in-which-_more-is-asked-than-is-given_10things-escalated-from-there_-in-1139_-the-second-lateran-council-in-rome-called-usury-_theft_-and-forced-those-who-had-demanded-interest-to-pay-it-back_-the-church-was-strict-about-this-prohibition-and-even-punished-transactions-that-tried-to-hide-usury_-the-council-of-vienne-in-1311-declared-heretics-of-anyone-who-said-usury-was-not-a-sin_11-the-sixteenth-century-reformers-continued-the-prohibition_-martin-luther-was-rather-vociferous-in-his-disdain_-_therefore-is-there-on-earth-no-greater-enemy-of-man_-after-the-devil_-than-a-gripe-money-and-usurer_-for-he-wants-to-be-god-over-all-men_-and-since-we-break-on-the-wheel-and-behead-highwaymen_-murderers-and-housebreakers_-how-much-more-ought-we-to-break-on-the-wheel-and-kill-_-hunt-down_-curse-and-behead-all-usurers_12-but-the-historian-roger-ruston-claimed-that-around-the-1620s_-persuaded-by-the-forces-of-capitalism-that-became-harder-to-ignore_-_usury-passed-from-being-an-offence-against-public-morality-which-a-christian-government-was-expected-to-suppress-to-being-a-matter-of-private-conscience-_and_-a-new-generation-of-christian-moralists-redefined-usury-as-excessive-interest_13and-yet-even-as-recently-as-2014_-the-pope-spoke-out-against-usury_-calling-it-a-_social-ill_-he-explained_-_when-a-family-has-nothing-to-eat_-because-it-has-to-make-payments-to-usurers_-this-is-not-christian_-it-is-not-human_-and-stated-that-_this-dramatic-scourge-in-our-society-harms-the-inviolable-dignity-of-the-human-person_14muslims-are-also-forbidden-to-require-any-interest-of-borrowers_-they-are-the-only-religion-that-still-abides-by-this-rule_-although-creative-adherents-of-sharia-law-have-found-loopholes-that-permit-something-equivalent-to-modern-loans_-an-entire-field-of-law-called-islamic-banking-helps-businesses-involved-in-trade-with-muslim-institutions-find-ways-to-engage-in-credit-transactions-that-do-not-run-afoul-of-usury-laws_-the-qur_an-_2_275_-states_-_those-who-charge-usury-are-in-the-same-position-as-those-controlled-by-the-devil_s-influence_-this-is-because-they-claim-that-usury-is-the-same-as-commerce_-however_-god-permits-commerce_-and-prohibits-usury_-thus_-whoever-heeds-this-commandment-from-his-lord_-and-refrains-from-usury_-he-may-keep-his-past-earnings_-and-his-judgment-rests-with-god_-as-for-those-who-persist-in-usury_-they-incur-hell_-wherein-they-abide-forever_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_islam-and-usury-_span_h1_-_blockquote_in-islam_-economist-ahmad-explained-that-god-_permits-trade-yet-forbids-usury-_-the-difference-is-that-profits-are-the-result-of-initiative_-enterprise-and-efficiency_-they-result-after-a-definite-value-creating-process_-not-so-with-interest_-these-prohibitions-also-contained-clear-social-justice-elements_those-who-had-money-could-not-extract-_rents_-from-those-who-did-not-because-it-would-magnify-existing-inequalities_-the-indian-tradition-holds-that-_it-is-usury_the-rankest_-most-extortionate_-most-merciless-usury_which-eats-the-marrow-out-of-the-bones-of-the-_cultivators_-and-condemns-him-to-a-life-of-penury-and-slavery_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_historical-opposition-to-usury-_span_h1_-_blockquote_in-300-bc_-aristotle-wrote-in-politics_-_the-most-hated-sort-_of-moneymaking_-and-with-the-greatest-reason_-is-usury_-which-makes-a-gain-out-of-money-itself_-and-not-from-the-natural-use-of-it_-for-money-was-intended-to-be-used-in-exchange_-but-not-to-increase-at-interest_-and-this-term-usury_-which-means-the-birth-of-money-from-money_-is-applied-to-the-breeding-of-money-because-the-offspring-resembles-the-parent_-wherefore-of-all-modes-of-making-money-this-is-the-most-unnatural_-folklore-and-literature-also-often-vilify-usurers_-dante_-shakespeare_-dickens_-dostoyevsky_-and-many-others-cast-moneylenders-as-their-villains_-dante-placed-usurers-in-the-seventh-rung-of-hell_-_from-each-neck-there-hung-an-enormous-purse_-each-marked-with-its-own-beast-and-its-own-colors-like-a-coat-of-arms_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_h2_what-happened-to-usury-caps_h2_-usury-caps-have-been-increasingly-removed-allowing-extraordinary-levels-of-interest-to-be-charged_-as-is-covered-in-the-following-quotation_-_blockquote_usury-limits_-which-had-hovered-around-6-to-12-percent-for-most-of-u_s_-history_-were-allowed-to-reach-300-to-700-percent_-inflationary-pressures-caused-the-initial-deregulation-of-interest-rates-by-the-states_-but-it-was-a-supreme-court-decision-that-ultimately-eradicated-real-interest-rate-caps-in-the-country_-in-marquette-national-bank-v_-first-omaha-service-corporation_-the-supreme-court-said-that-a-credit-card-lender-could-export-the-interest-rates-of-one-state-to-any-other_-banks-immediately-lobbied-for-and-were-granted-the-same-privilege_-predictably_-lenders-began-to-charter-in-states-with-the-highest-rates_-which-they-then-exported-nationwide_-this-in-turn-caused-a-_race-to-the-bottom_-as-states-competed-for-lending-businesses-by-lowering-borrower-protections-and-increasing-usury-limits_-the-u_s_-supreme-court-case-allowing-rates-to-be-exported-did-not-apply-to-payday-lenders-because-the-industry-was-not-prevalent-at-the-time_-however_-payday-lenders-were-able-to-quickly-take-advantage-by-_borrowing_-bank-charters_-a-practice-dubbed-_rent-a-bank_-in-order-to-_benefit_-from-high-interest-rates_-after-banking-laws-prohibited-this-arrangement_-payday-lenders-fled-to-charter-on-native-american-reservations_-which-are-exempt-from-state-usury-laws_-in-order-to-charge-high-rates_-these-lenders-have-been-known-to-charge-effective-interest-rates-of-up-to-2000-percent_-the-result_-as-explained-by-one-scholar_-_the-problem-of-loan-sharking-was-brushed-aside-by-making-_high-interest-rates_-once-typical-only-of-organized-crime_-perfectly-legal_and-therefore_-enforceable-no-longer-by-just-hired-goons-and-the-sort-of-people-who-place-mutilated-animals-on-their-victims_-doorsteps_-but-by-judges_-lawyers_-bailiffs_-and-police_blockquote_-the-current-president-of-the-us_-was-a-major-proponent-of-increasing-the-ability-to-export-usurious-interest-rates-from-some-states-to-others_-as-he-was-himself-from-the-credit-card-capital-of-the-us_-delaware2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-cfpb-was-put-into-place-to-try-to-protect-consumers-in-banking_li_-_ul_-_h2_introduction_h2_-the-cfpb-is-as-follows_-_blockquote_the-cfpb_-created-in-2010_-is-the-first-federal-regulator-with-the-direct-mandate-to-protect-consumers-from-harmful-or-abusive-financial-products_-the-agency-has-already-gained-a-reputation-as-a-tough-and-effective-regulator-and-has-placed-payday-lending-reform-near-the-top-of-its-agenda_-the-federal-agency-cannot-lower-state-interest-rates_-but-it-can-curtail-the-abusive-and-predatory-aspects-of-the-industry_-the-agency-has-already-proposed-rules-that-would-either-require-payday-lenders-to-do-underwriting-for-loans-and-show-that-the-borrower-can-repay-the-loan-or-prohibit-excessive-renewals-of-the-same-loan_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-as-soon-as-the-trump-administration-took-office-they-went-about-to-undermine-the-cfpb2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_the-fed-has-a-payments-and-clearing-system-for-chartered-banks_li_-_ul_-_h2_introduction_h2_-the-fed-payments-and-clearing-system-is-described-in-the-following-quotation_-_blockquote_only-chartered-banks-are-allowed-access-to-the-payments-and-clearing-system_-which-is-a-network-created-and-operated-by-the-federal-reserve_-the-doj-targeted-banks-that-were-_involved-with-or-willfully-blind_-to-consumer-fraud-schemes-that-require-payment-systems-to-debit-funds-from-consumer-accounts_108-in-august-2013_-new-york-financial-services-superintendent-benjamin-lawsky-sent-117-financial-institutions-_including-bank-of-america_-wells-fargo_-jpmorgan-chase_-and-citigroup_-a-list-of-thirty-five-payday-lenders-who-violated-new-york-usury-laws_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-as-soon-as-the-trump-administration-took-office-they-went-about-to-undermine-the-cfpb2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_there-is-a-social-contract-between-the-government-and-banks-as-part-of-banking_li_-_li_this-article-explains-that-contract-and-how-it-is-routinely-violated_li_-_ul_-_h2_introduction_h2_-banks-originally-had-a-social-expectation-that-they-would-support-the-public-interest_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_the-importance-of-the-us-post-office-in-us-history_span_h1_-the-importance-of-the-us-post-office-is-covered-in-the-following-quotation_-_blockquote_a-social-contract-has-existed-between-banks-and-the-government-since-the-early-days-of-the-republic_-the-government-supports-the-banks-through-trust-inducing-insurance_-bailouts_-liquidity-protection_-and-a-framework-that-allows-the-allocation-of-credit-to-the-entire-economy_-banks_-in-turn_-operate-as-the-central-machinery-of-the-economy-by-providing-transaction-services_-a-medium-for-trade_-and-individual-and-business-loans-that-spur-economic-growth_-this-entanglement-between-the-state-and-the-banking-system-must-surely-mean-that-banks-should-not-exclude-a-significant-portion-of-the-public-from-the-bounty-of-government-support_-this-is-not-just-a-banking-market-problem-but-a-threat-to-our-society_s-democratic-principles_-when-the-state-becomes-so-heavily-involved-in-the-banking-system_-that-system-cannot-create-or-contribute-to-such-a-vast-inequality_many-policymakers-have-inferred-this-obligation-on-the-part-of-banks-and-have-attempted-to-force-banks-to-extend-credit-beyond-their-preferred-customer-base_-the-banking-industry-has-vigorously-opposed-these-efforts_-but-the-democratization-of-credit-is-not-an-issue-that-should-be-left-to-the-banks_-the-supply-of-credit-has-always-been-a-public-policy-issue_-with-banks-functioning-as-intermediaries_-insofar-as-the-state-enables-credit-markets_-all-creditworthy-americans-deserve-equal-access-to-credit_-especially-because-reasonable-and-safe-credit-can-provide-a-smoother-path-both-through-and-out-of-poverty_-if-banks-are-not-providing-credit-to-the-poor_-the-state-should-provide-it-directly_the-existing-post-office-framework-represents-the-most-promising-path-toward-effectuating-such-a-public-option_-american-banks-long-ago-deserted-their-most-impoverished-communities_-but-post-offices_-even-two-centuries-later_-have-remained_still-rooted-in-an-egalitarian-mission_-there-have-never-been-barriers-to-entry-at-post-offices_-and-their-services-have-been-available-to-all_-regardless-of-income_-and-so_-it-is-not-unreasonable-to-suggest-that-as-america_s-oldest-instrument-of-democracy-in-action_-the-post-office-can-once-again-level-the-playing-field_-and-in-the-process_-save-itself-from-imminent-demise_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong2024-07-05daily0.5https://realstoryonbanking.com/item/h2_span-style_color_-_ff6600_executive-summary_span_h2_-_ul_-_li_fringe-lenders-not-only-offer-usurious-interest-rates_-they-also-violate-the-privacy-of-their-customers-on-a-regular-basis_li_-_ul_-_h2_introduction_h2_-fringe-lenders-like-payday-and-title-loan-lenders-have-a-pattern-of-violating-the-privacy-of-their-customers_-_h1-class_md-end-block-md-heading-md-focus_span-class_md-plain-md-expand_privacy-violations_span_h1_-this-is-covered-in-the-following-quotation_-_blockquote_in-contrast_-fringe-lenders-often-collect-and-share-customer-data-and-sell-defaulting-loans-to-other-private-buyers_transactions-that-are-often-kept-secret_-once-you-have-entered-into-a-contract-for-a-loan-with-one-of-these-lenders_-the-right-to-collect-on-that-loan-can-be-sold-to-any-third-party_-the-post-office_s-collection-process_-on-the-other-hand_-would-have-to-be-made-public-and-submitted-to-agency-and-legislative-review_-which-would-offer-more-transparency-than-any-other-current-lending-and-collecting-mechanisms_-the-individuals-involved-would-maintain-the-same_-if-not-higher_-privacy-protections-granted-to-all-other-customers-of-regulated-banks_blockquote_-_strong_span-style_color_-_99cc00_source_-_span-style_color_-_000000_how-the-other-half-banks_span_span_strong_-_strong_a-href_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_-target_blank_-rel_noopener_https_www_amazon_com_how-other-half-banks-exploitation_dp_0674286065_a_strong_-this-explains-the-extremely-low-standards-in-the-fringe-lending-area2024-07-05daily0.5