California’s Governor to Choose Wall Street or Main Street with Public Bank Bill

By Carl Herman, National Board Certified Teacher in economics, government, and history, who blogs as the Nonpartisan Examiner at Examiner.com. Carl was one of the leaders who launched the microcredit movement, and is a tireless activist for peace and justice.

Credit can, and should, be created to maximize public benefits.

California’s legislative chambers passed AB 750 to fund a formal study of benefits of a state-owned bank. The bill is before Governor Brown for his approval or veto.

A state-owned bank for California has several and immediate benefits. Ellen Brown expertly explains and documents:

North Dakota, the one state that currently has its own bank, is the only state to be in continuous budget surplus since the banking crisis began. North Dakota’s balance sheet is so strong that it recently reduced individual income taxes and property taxes by a combined $400 million and is debating further cuts. It also has the lowest unemployment rate, lowest foreclosure rate and lowest credit card default rate in the country, and it hasn’t had a bank failure in at least the last decade.

Revenues from the Bank of North Dakota (BND) have been a major boost to the state budget. The bank has contributed over $300 million in revenues over the last decade to state coffers, a substantial sum for a state with a population less than one-tenth the size of Los Angeles County. North Dakota is an oil state, but according to a study by the Center for State Innovation, from 2007 to 2009 the BND added nearly as much money to the state’s general fund as oil and gas tax revenues did. Over a 15-year period, according to other data, the BND has contributed more to the state budget than oil taxes have.

North Dakota is a conservative red state, not the sort you would expect to be engaging in government enterprise. But the conservative justification for a state-owned bank is that it preserves state sovereignty, allowing the state to be independent of Wall Street and the Feds. The BND is not a business competitor of the local banks but partners with them, helping with capital and liquidity requirements. It participates in loans, provides guarantees, and acts as a sort of mini-Fed for the state.

According to the annual BND report for 2010:

Financially, 2010 was our strongest year ever. Profits increased by nearly $4 million to $61.9 million during our seventh consecutive year of record profits. . . . We ended the year with the highest capital level in our history at just over $325 million. The Bank returned a healthy 19 percent ROE, which represents the state’s return on its investment.

A 19 percent return on equity beats the 170 billion dollars LOST by CalPERS and CalSTRS, California’s two public pension funds, by the time the stock market hit bottom in March 2009. The BND was making record profits all through that period.

For further understanding, please watch the 8-minute video at left and read here, here, and here.

Governor Brown, so far, has upheld the current criminal political and economic “leadership,” and requires a “Scrooge conversion” before he becomes a partner of the people. We know this is true because he does not declare his support for the people with other “emperor has no clothes” obvious crimes of “leadership”:

  1. Congressional reports disclose that all “reasons” for war with Afghanistan and Iraq were known to be lies as they were told.
  2. Orwellian unlawful wars, including using depleted uranium weapons to damn victims with continuous misery and death.
  3. Obfuscation and silence of the obvious answer of ending an Orwellian “debt supply” and replacing it with money. This is the national solution for our so-called “monetary” system.
  4. Silence while the US allows a million children a month to die of preventable poverty, even though historically ending poverty reduces population growth rate, the investment is less than 1% of the developed nations’ gross national incomes (GNI), and the US has promised this amount and reneged multiple times.
  5. Torture, extrajudicial assassinations (including against American citizens) and indefinite detentions.
  6. Destruction of the US Constitution as the US devolves into a form of government closest to fascism and nowhere near a constitutional republic.
  7. Literally throwing Americans onto the streets rather than take any of a dozen acts to allow them to stay in their homes.
  8. Intentional unemployment, crime, infrastructure decay, fear, anger, depression (both economic and psychological) rather than create money for full employment.
  9. US corporate media complicity to lie by omission and commission to keep the above facts unrecognized by the American public.
  10. You should also know this area of Truth: the King family’s civil trial found the US government guilty of Dr. King’s assassination. US Corporate media refused to cover the trial or interview Dr. King’s wife. His family’s opinion is that the US government murdered Dr. King to end his protests against unlawful US wars and his call to end poverty.

Perhaps the most egregious documentation of current California government fraud is in the data of collective government Comprehensive Annual Financial Reports (CAFRs) that reveal trillions of our dollars “invested” on Wall Street while lying in omission that they have no money for budgets. The data is explained and documented here. For an example to understand what this means, the University of California system (UC) had a budget deficit that resulted in thousands of students denied enrollment, thousands of staff laid-off, a 32% tuition raise, and a 10% employee pay-cut with furloughs to reduce education days. The deficit could have been fully-funded with less than one-fifth of one percent of California’s documented investments. And no, the amount required for retiree benefits is only one-half of one percent of the total; that’s the specious and usual “official” lie to keep those investments on Wall Street. These trillions is an “over-tax” of Californians’ money and expresses current “leadership” commitment to loot the people for the benefit of Wall Street.

A public bank for California would also eliminate the specious reason of needing to over-tax anyone because short-term credit would always be available at-cost.

Another way to understand what a public bank does for cost reduction is that it’s similar to removing “health care” companies from standing between the public and medical professionals. Cost-benefit analyses range between $100 to $300 billion annual cost increase to the US by paying for health care companies as profit-taking “middle men” rather than having at-cost health care. That is, Americans would collectively save $100 to $300 billion every year with universal health care, no insurance companies, and no administrative red tape.

The lack of health care kills about 45,000 Americans every year according to the recent study championed by Harvard’s Medical School. US “leadership” choice to transfer $100 to $300 billion every year from Americans to oligarchs while killing over 100 Americans every day is what Governor Brown has stood for so far. California could enact just as easily as having a public bank. So far, the Governor has chosen silence on public banking and empty rhetoric with no leadership for single-payer health care.

The long-term savings for single-payer health care in California could be funded in the short-term with credit from California’s own bank. Another example of lack of true leadership is that you have to hear about this idea from me rather than either political party or corporate media.

That said, if Governor Brown strongly stood with the people and rebuked his fascist “masters,” perhaps a hundred others in similar positions would act. This would end the crimes instantly that inside and outside of the US kill millions, cause suffering for billions, and loot trillions of dollars.

You can contact Governor Brown’s office to urge him to sign AB 750 by writing or calling:

Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814

Phone: (916) 445-2841
Fax: (916) 445-2841
Fax: (916) 558-3160

Email: http://gov.ca.gov/m_contact.php

This entry was posted in Politics / World News. Bookmark the permalink.
  • http://tiffanihillin.tumblr.com Tiffani Hillin

    Well written, inspiring and brilliant. We have much potential to live up to here in the States! I’m excited to see citizens taking their power back! This is how we do it!

  • Bev

    Governor Brown ought to also look at the following:

    from:
    http://www.nakedcapitalism.com/2011/01/state-banks-or-if-you-cant-regulate-tbtf-banks-why-not-compete-instead.html

    joebhed from http://www.economicstability.org/
    http://www.economicstability.org/joes-monetary-literacy-course
    says:
    January 25, 2011 at 3:34 pm

    Yves,
    Great that you’re talking about monetary alternatives – something outside the normal financialist’s scope of discussion.

    The best thing that can come of a well-thought out state banking proposal is the education of the state populous regarding things monetary and how the monetary powers are set up, and the potential for state benefits.

    The worst thing about any move to direct state banking is IF it removes from the same state population the proper understanding of the need for and potential for federal banking and monetary reform.

    Dennis Kucinich’s Bill, H.R. 6550, the National Emergency Employment Defense (NEED) Act of 2010, provides the superior fix to that almost un-fixable of our national financial systems, the private, debt-based money system of money creation using bank-credits and consumer-debts, known as fractional reserve banking.

    The Kucinich Bill – available here –

    http://kucinich.house.gov/UploadedFiles/NEED_ACT.pdf

    puts an end to the entire private fractional reserve
banking system, replacing it with one of government-issue of the nation’s circulating media, without issuing any debt.

    When its complete, even the state banks will have to switch over to a full-reserve based lending system. But no problem there.

    ……

    http://www.monetary.org/

    The 7th Annual AMI Conference will be held at University Center, in Chicago, Sept. 29 – Oct. 2, 2011. The deadline for early registration is soon! We continue to confirm additional speakers for this year’s conference.

    ……..

    http://www.monetary.org/american-money-scene-5-august-16-2009/2009/08

    Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problem
    by Jamie Walton, AMI researcher

    “We may not be able to stop them, but we can join them. We the people need to play the bankers’ game ourselves.”1 – that was written by one of the promoters of the notion that the state governments should go into the fractional reserve banking business to beat Wall Street at its own game and solve their fiscal problems.
    snip

    So what is the solution?

    It’s the monetary system which must be changed to end the fiscal crisis, and State governments cannot do this – it’s a matter for the Federal Government.

    Under present constitutional and legal conventions, the only institutions that can create money without debt are national treasuries and/or central banks. State governments within a federal nation cannot do this – the problem can only be solved at the national level.
    snip

    We have a big problem in our economy and society today: too much debt. Banking cannot solve this problem because banking produces debt, which is the problem. It’s incredible that even now the delusion of borrowing ourselves out of debt is still seen as a solution, by anyone, let alone so-called reformers. We’re in a deep hole because we listened to cheerleaders yelling “keep on digging” without thinking. We cannot afford to keep doing this any more.

    Proposing to get governments involved in banking is the complete opposite of a solution, because it keeps the problem in place.

    As American Monetary Institute Chapter Leader, Dick Distelhorst, says:

    “We don’t want to put the government into the banking business – we want to get the banks out of the money creation business!” – Dick Distelhorst

    The correct solution to the crisis was presented in Stephen Zarlenga’s speech at the U.S. Treasury in December, 2003, titled “Solution to the States’ fiscal crisis” (read it at http://www.monetary.org). That solution has become the proposed American Monetary Act.
    snip

    Historical experience has taught us what we need to do:

    1. Put the Federal Reserve System into the U.S. Treasury.

    2. Stop the banking system creating any part of the money supply.

    3. Create new money as needed by spending it on public infrastructure, including human infrastructure, e.g. education and health care.

    These 3 elements must all be done together, and are all in draft legislative form as the proposed American Monetary Act (read it here: http://www.monetary.org/amacolorpamphlet.pdf).

    The correct action is for Congress to fulfil its constitutional responsibilities to furnish the nation with its money by making the American Monetary Act law.

    The correct action for the States is to insist on this Federal action!

    Genuine monetary reform is the solution to the nation’s fiscal problems, and that can only be achieved at the national level.
    snip

    Jamie R. Walton

    …………

    http://www.monetary.org/news


    How the Economists Facilitated the Crisis and How HR 6550* Solves it

    snip

    On December 17, 2010, Congressman Dennis Kucinich introduced the National Emergency Employment Defense Act (“NEED,” HR 6550*) which contains all the monetary reform provisions of The American Monetary Act- see the brochure at http://www.monetary.org. It is much more than regulation; it fundamentally reforms our private CREDIT/DEBT system now wrecking our nation and harming all humanity, and replaces it with a government MONEY system.


    The Act achieves reform with 3 basic provisions. All three are necessary; doing one or two of them wouldn’t work and could cause more damage.

    In brief:


    First the Federal Reserve gets incorporated into the U.S. Treasury where all new money is created by our government – what people think happens now.


    Second, It ends the fractional reserve system. Banks no longer have the accounting privilege of creating our money supply. All their previously issued credit is converted into U.S. Money through an elegant and gentle accounting change. The banks are held accountable for this conversion and from that point operate the way people think they do now – as intermediaries between depositors and borrowers.


    Third, new money is introduced by the government spending it into circulation for infrastructure, starting with the $2.2 trillion the engineers tell us is needed to properly maintain our infrastructure over the next 5 years. Infrastructure will include the necessary human infrastructure of health care and education.


    Banks are encouraged to continue lending as profit making companies, but are no longer allowed to create our money supply through their loan making activity.


    Thus, The NEED Act nationalizes the money system, not the banking system. Banking is absolutely not a proper function of government, but providing the nation’s money supply is a key function of government. No one else can do it properly. Talk of nationalizing the banking business really acts like a poison pill to block real reform. Same for talk of the states going into the banking business keeping the fractional reserve system in place, and allowing the banks to continue creating what we use for money! That would reform nothing and actually endorses the fractional reserve system! It is a farcical diversion, misleading some good people away from real monetary reform at the only time reform is possible – during a crisis. All serious Monetary reformers understand that banks can not be allowed to create our money supply.


    Despite prejudice against government, most people are surprised to learn that history shows government has a far superior record in controlling the money system than private controllers have. And yes that includes the continental currency, the Greenbacks and even the German Hyperinflation; which by the way took place under a completely privatized German central bank, with all governmental influence removed! These facts, though not taught in your econ classes, are discussed at length in my book The Lost Science of Money available here.
 http://www.monetary.org/

  • Bev

    Governor Brown ought to look at the following, in addition to your proposal. And, for maximum problem solving he should attend The 7th Annual AMI Conference will be held at University Center, in Chicago, Sept. 29 – Oct. 2, 2011.

    from:
    http://www.nakedcapitalism.com/2011/01/state-banks-or-if-you-cant-regulate-tbtf-banks-why-not-compete-instead.html

    joebhed from http://www.economicstability.org/
    http://www.economicstability.org/joes-monetary-literacy-course
    says:
    January 25, 2011 at 3:34 pm

    Yves,
    Great that you’re talking about monetary alternatives – something outside the normal financialist’s scope of discussion.

    The best thing that can come of a well-thought out state banking proposal is the education of the state populous regarding things monetary and how the monetary powers are set up, and the potential for state benefits.

    The worst thing about any move to direct state banking is IF it removes from the same state population the proper understanding of the need for and potential for federal banking and monetary reform.

    Dennis Kucinich’s Bill, H.R. 6550, the National Emergency Employment Defense (NEED) Act of 2010, provides the superior fix to that almost un-fixable of our national financial systems, the private, debt-based money system of money creation using bank-credits and consumer-debts, known as fractional reserve banking.

    The Kucinich Bill – available here –

    http://kucinich.house.gov/UploadedFiles/NEED_ACT.pdf

    puts an end to the entire private fractional reserve
banking system, replacing it with one of government-issue of the nation’s circulating media, without issuing any debt.

    When its complete, even the state banks will have to switch over to a full-reserve based lending system. But no problem there.

    ……

    http://www.monetary.org/

    The 7th Annual AMI Conference will be held at University Center, in Chicago, Sept. 29 – Oct. 2, 2011. The deadline for early registration is soon! We continue to confirm additional speakers for this year’s conference.

    ……..

    http://www.monetary.org/news


    How the Economists Facilitated the Crisis and How HR 6550* Solves it

    snip

    On December 17, 2010, Congressman Dennis Kucinich introduced the National Emergency Employment Defense Act (“NEED,” HR 6550*) which contains all the monetary reform provisions of The American Monetary Act- see the brochure at http://www.monetary.org. It is much more than regulation; it fundamentally reforms our private CREDIT/DEBT system now wrecking our nation and harming all humanity, and replaces it with a government MONEY system.


    The Act achieves reform with 3 basic provisions. All three are necessary; doing one or two of them wouldn’t work and could cause more damage.

    In brief:


    First the Federal Reserve gets incorporated into the U.S. Treasury where all new money is created by our government – what people think happens now.


    Second, It ends the fractional reserve system. Banks no longer have the accounting privilege of creating our money supply. All their previously issued credit is converted into U.S. Money through an elegant and gentle accounting change. The banks are held accountable for this conversion and from that point operate the way people think they do now – as intermediaries between depositors and borrowers.


    Third, new money is introduced by the government spending it into circulation for infrastructure, starting with the $2.2 trillion the engineers tell us is needed to properly maintain our infrastructure over the next 5 years. Infrastructure will include the necessary human infrastructure of health care and education.


    Banks are encouraged to continue lending as profit making companies, but are no longer allowed to create our money supply through their loan making activity.


    Thus, The NEED Act nationalizes the money system, not the banking system. Banking is absolutely not a proper function of government, but providing the nation’s money supply is a key function of government. No one else can do it properly. Talk of nationalizing the banking business really acts like a poison pill to block real reform. Same for talk of the states going into the banking business keeping the fractional reserve system in place, and allowing the banks to continue creating what we use for money! That would reform nothing and actually endorses the fractional reserve system! It is a farcical diversion, misleading some good people away from real monetary reform at the only time reform is possible – during a crisis. All serious Monetary reformers understand that banks can not be allowed to create our money supply.


    Despite prejudice against government, most people are surprised to learn that history shows government has a far superior record in controlling the money system than private controllers have. And yes that includes the continental currency, the Greenbacks and even the German Hyperinflation; which by the way took place under a completely privatized German central bank, with all governmental influence removed! These facts, though not taught in your econ classes, are discussed at length in my book The Lost Science of Money available here.
 http://www.monetary.org/

    ………

    http://www.monetary.org/american-money-scene-5-august-16-2009/2009/08

    Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problem

    by Jamie Walton, AMI researcher

    “We may not be able to stop them, but we can join them. We the people need to play the bankers’ game ourselves.”1 – that was written by one of the promoters of the notion that the state governments should go into the fractional reserve banking business to beat Wall Street at its own game and solve their fiscal problems.
    snip

    So what is the solution?

    It’s the monetary system which must be changed to end the fiscal crisis, and State governments cannot do this – it’s a matter for the Federal Government.

    Under present constitutional and legal conventions, the only institutions that can create money without debt are national treasuries and/or central banks. State governments within a federal nation cannot do this – the problem can only be solved at the national level.
    snip

    We have a big problem in our economy and society today: too much debt. Banking cannot solve this problem because banking produces debt, which is the problem. It’s incredible that even now the delusion of borrowing ourselves out of debt is still seen as a solution, by anyone, let alone so-called reformers. We’re in a deep hole because we listened to cheerleaders yelling “keep on digging” without thinking. We cannot afford to keep doing this any more.

    Proposing to get governments involved in banking is the complete opposite of a solution, because it keeps the problem in place.

    As American Monetary Institute Chapter Leader, Dick Distelhorst, says:

    “We don’t want to put the government into the banking business – we want to get the banks out of the money creation business!” – Dick Distelhorst

    The correct solution to the crisis was presented in Stephen Zarlenga’s speech at the U.S. Treasury in December, 2003, titled “Solution to the States’ fiscal crisis” (read it at http://www.monetary.org). That solution has become the proposed American Monetary Act.
    snip

    Historical experience has taught us what we need to do:

    1. Put the Federal Reserve System into the U.S. Treasury.

    2. Stop the banking system creating any part of the money supply.

    3. Create new money as needed by spending it on public infrastructure, including human infrastructure, e.g. education and health care.

    These 3 elements must all be done together, and are all in draft legislative form as the proposed American Monetary Act (read it here: http://www.monetary.org/amacolorpamphlet.pdf).

    The correct action is for Congress to fulfil its constitutional responsibilities to furnish the nation with its money by making the American Monetary Act law.

    The correct action for the States is to insist on this Federal action!

    Genuine monetary reform is the solution to the nation’s fiscal problems, and that can only be achieved at the national level.
    snip

    Jamie R. Walton

  • Bev

    pardon the double posting, i thought the first did not take.

  • Bev

    Monetary Reform:

    http://www.monetary.org/demons

    What do the Occupiers want? Mainly Economic Justice!

    To
    get economic justice, you must have monetary justice and the AMI has
    been working at gaining monetary justice since 1996. We have made
    progress. Our research results, The Lost Science of Money by Stephen
    Zarlenga demonstrate that decades of research and centuries of
    experience shows that three things are absolutely needed:

    The
    present form of the Federal Reserve System must be ended – it must
    become a part of our government – what people mistakenly think it is
    now! In the Treasury Department is best.

    The accounting privilege that banks now have to create what we use for money out of debt, must
    stop once and for all. What’s called fractional reserve banking must be decisively ended.

    The
    Congress must understand and be empowered to create new money and spend
    it into circulation as money, not debt. For example the $2.2 trillion
    dollars the Engineers tell us is needed
    for infrastructure over the
    next 5 years. As the system progresses, health care and education, and
    grants to the states are made.

    Now some good news: Congressman
    Dennis Kucinich (D Ohio. 10th Dist) on September 21st, introduced HR2990
    which does those very things!!!! Congressman Conyers of Detroit
    co-sponsored it.

    We need to see that people realize there is a
    bill which achieves these goals, already in the Congress. That they can
    help by asking their representatives and Senators to support it. Also
    their school Boards, State reps and Senators, City Councils, newspaper
    editors, etc, etc, etc.

    We have materials which can help them do
    all that, available for the asking, but first they have to become aware
    of HR 2990, and there are four attachments which will help you make it
    clear to them:

    First, a half page Flyer announcing the HR 2990 which should be handed to everyone at a demonstration.

    Second,
    “The Need for Monetary Reform”, a one page (double-sided) sheet for
    those who want to know more. It’s exactly 800 words and you can reprint
    it easily, even get it into newspapers.

    Third, a fact sheet on HR 2990 describing what the bill does to stabilize America’s financial
    situation, including the creation of 7 million of jobs.

    Fourth,
    our 32 page booklet, which includes some history, our answers to the 20
    most frequently asked questions, the American Monetary Act, and much
    more. Copy and photocopy the one attached, or get pre printerd ones from
    us at 10 copies for $30.

    I ‘m suggesting you print these out,
    photocopy several hundred of them and head to the nearest demonstration!
    Stay at least a few hours. Let me know what happens. To find the
    nearest demonstration to your location, Google: “Occupy(insert your city
    here)” and check it out.

    Warm regards to you and good luck! Remember this is a non-partisan activity!

    Stephen Zarlenga
    AMI

    ………
    ………

    http://www.monetary.org/how-th

    


How the Economists Facilitated the Crisis and How HR 6550* Solves it




    (HR 2990 for 2011, Needs to be reintroduced for the current year)


    Economist Jamie Galbraith in testimony to the Senate Crime subcommittee on May 4th, 2010:




    False “monetary” beliefs (some call them theories) have misdirected
    public policy decisions for decades, with devastating effect! Errors of
    Concept, methodology and factual errors led to disastrous outcomes for
    our nation and have the potential to gradually take America down into an
    unprecedented abyss of lawlessness and deprivation. Consider the
    present insane calls for austerity. Economists have allowed the idea to
    prevail that a government has to be run the way a shopkeepers runs his
    store. These times call for greater care and some heroism among
    economists; and cowardice is no longer tolerable among those who do
    understand.




    Which particular monetary errors? Most importantly, economists have
    not understood or appreciated the difference between money and credit.
    That using credit for money is dangerous, harmful and unnecessary. Can’t
    they read Knapp’s “State Theory of Money, available in English since
    the early 1920s, to understand credit is just one type of money system,
    and not a good one at that?

    snip

    


Many economists have falsely concluded that “all money is debt,”
    and while most money in our particular mis structured system is debt,
    this attitude ignores the possibility and necessity to define a better
    system based on government money, not private debt. This failure to
    understand the concept of government money as opposed to private credit,
    has had immense and deadly repercussions. The Great Henry Simons summed
    it up in one magnificent sentence in the 1930s:


“

    The mistake … lies in fearing money and trusting debt.”




    Henry Simons, (Economic Policy for a Free Society, 1930s, P.199)

    This fundamental error has allowed the most egregious banking and
    money system to dominate our society for a century. It has caused
    immense damage:

    For example: The privatization of our monetary system, with control
    over public policy being in unelected hands, for whoever controls the
    money system, over time will control the nation.

    And look what they have done with that power:

    * They’ve given special privilege to create money to some, and
    disadvantage to others; which has led to an obscene concentration of
    wealth and a corresponding poverty! This has encouraged lawlessness and
    corruption among the privileged; pushing them to diseased excess for
    acquisition, and ignoring those among us in great need.

    * They’ve turned economics into a primitive religion, and worshipped
    the “market” as a god, despite all evidence to the contrary. A primary
    tool they use is to denigrate and ignore evidence. “Anecdotal” was the
    description Greenspan used for real evidence that challenges their
    theories. A fundamental sin of poor methodology.

    * They have placed an unnecessary ball and chain on the leg of every
    producer by having the money supply itself bear an unnecessary interest
    cost to society.

    * They’ve foisted a “fractional reserve” system on us prone to
    periodic collapse. Credit will collapse during a crisis. Money does not
    collapse. Credit will collapse during a crisis. Money does not collapse. Money does not collapse.

    In our present system most of what we use for money – more accurately
    purchasing media – comes into existence as an interest bearing debt,
    when banks make loans. In that sense, most money in our fractional
    reserve system – is debt. But economists can’t seem to grasp that those
    rules can and must be changed. Afraid to confront their paymasters, who
    are benefitting from the injustice, they can’t conceive of practical
    ways we can use real government issued money for money instead of
    substituting private debt for it. They ignore previous attempts such as
    the Chicago Plan of the 1930s; and smear prior periods when such real
    money was used successfully.

    Errors of methodology regarding money include refusal to examine the
    facts and a tendency to ignore history where the monetary facts are
    found. This leads to the silliest errors of fact regarding monetary
    history including:

    * Being unaware of the colonial periods’ excellent experience with government money.

    * The Continental Currency – they are generally unaware they were destroyed by Brit counterfeiting.

    * The Greenbacks – which is mistakenly characterized as worthless
    paper money, ignoring that they ultimately exchanged one for one with
    gold.

    * The French Assignats – where they have again ignored Brit
    counterfeiting and enshrined the propaganda book written by a banking
    heir as unbiased fact (White’s Fiat Money in France)!

    * The German Hyperinflation is not recognized as occurring under a privately owned and privately controlled Reichsbank!

    * Regarding the FED as part of the government!

    * The Free banking Schools misidentify the Free banking period
    because New York’s “Free Banking Law” gave better results. But despite
    its title it imposed much stronger requirements and regulations and was
    the opposite of free banking!

 

 

Twitter