Category Archives: nation state

The Ultimate Regulatory Reform: Abolish Fractional Reserve Banking!

fractional reserve banking II

The Trump Administration has presented the first part of its plan to overhaul a number of Wall Street financial regulations, many of which were enacted in the wake of the 2008 financial crisis.  The report is in response to Executive Order 13772 in which the US Treasury Department is to provide findings “examining the United States’ financial regulatory system and detailing executive actions and regulatory changes that can be immediately undertaken to provide much-needed relief.”*

In release of the first phase of the report, Treasury Secretary Steven T. Mnuchin stated: “Properly structuring regulation of the U.S. financial system is critical to achieve the administration’s goal of sustained economic growth and to create opportunities for all Americans to benefit from a stronger economy.  We are focused on encouraging a market environment where consumers have more choices, access to capital and safe loan products – while ensuring taxpayer-funded bailouts are truly a thing of the past.”**

Some of its highlights include:

  • Community financial institutions – banks and credit unions – are critically important to serve many Americans
  • Capital, liquidity and leverage rules can be simplified to increase the flow of credit
  • We must ensure our banks are globally competitive
  • Improving market liquidity is critical for the U.S. economy
  • The Consumer Financial Protection Bureau must be reformed
  • Regulations need to be better tailored, more efficient and effective
  • Congress should review the organization and mandates of the independent banking regulators to improve accountability***

 

Not surprisingly, most of the banking industry expressed support for the report, critics (mostly Democrats) pointed out that it would lead to the type of practices that produced the 2008 panic in the first place.  Both opponents and those in favor as well as the clueless financial press fail to grasp the underlying cause of not only the recent crisis, but the majority of those which have occurred for the past century.

Quite simply: the fundamental cause of the 2008 financial crisis was fractional-reserve banking (FRB).  FRB is the practice whereby banks keep a “fraction” of the funds deposited by customers in their vaults lending out the rest at interest and “profit.”  Banks are thus inherently unstable since if all depositors came at once and demanded their money (a “bank run”), banks could not be able to redeem their deposits.  Moreover, FRB encourages banks to engage in exceedingly speculative and risky behavior which creates unsustainable bubbles throughout the economy.

The nation’s central bank, the Federal Reserve, was created by the banksters and politicos to enshrine this immoral and economically ruinous practice into the heart of the American financial landscape.  Any “reform” of Wall Street’s financial practices that does not address FRB by doing away with it and the institution (the Fed) which enables it to exist, is doomed.

The banks in collusion with the Fed are able to expand the money supply through this process while enriching the banksters’ balance sheet.  On the macro level, the creation of money through FRB is the genesis of the destructive boom-bust cycle.

This is why banks and the entire financial system are so prone to reoccurring crisis and no regulation, reform, or Treasury Department “findings,” can make such a system “stable.”  The only true reform is to abolish FRB and establish a monetary order that requires all financial institutions to keep 100% reserves of depositors’ assets.

The Treasury Department’s recommendations are mere window dressing by the very banksters whose opulent livelihoods are predicated on FRB.

The elimination of FRB would go beyond a beneficial financial revolution, but would affect the foreign policy of the USSA.  Without the ability to create money via FRB, the murderous American Empire could simply not exist, nor would the nation’s draconian domestic security state.

With his selection of crony capitalists and members of Goldman Sachs to his economic team, it is apparent that President Trump does not understand the true nature of the nation’s financial woes or what precipitated the last financial crisis and what will assuredly lead to a far bigger mess down the road.  If he did, his next Executive Order would be to implement steps and procedures to eliminate the scourge of fractional reserve banking forever.

*U.S. Department of the Treasury, “A Financial System That Creates Economic Opportunities.”  6 June 2017.  https://www.treasury.gov/press-center/press-releases/Pages/sm0106.aspx

**Ibid.

***Ibid.

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com

The Cost of a Trump Presidency

Syrian Bombing

Last Thursday’s wanton attack on a Syrian air field by the US and its bellicose actions toward North Korea have brought to the forefront the real cost of candidate Trump’s landslide victory last November.

Unlike most laymen, accountants, and financial analysts, economists look at cost differently.  For economists, cost or more specifically, “opportunity cost,” means “a benefit that a person could have received, but gave up, to take another course of action.  Stated differently, opportunity cost represents an alternative given up when a decision is made.”

Such thinking can be roughly applied to the political realm.  In the case of last fall’s US Presidential election, the cost of Donald Trump’s unexpected victory was not the money spent on the campaign, but the diffusion (hopefully, only temporary) of the growing anti-Establishment groundswell that was percolating not only in America, but across the globe.

The Trump phenomenon, Brexit, Texas secession talk, anti-immigration gatherings, central bank scrutiny, the exposure and decline of the lying, dominant mass media, and other populist movements and causes were symptoms of the masses dissatisfaction with their exploitation by the ruling elites. Trump’s triumph has squashed and defused many of these populist uprisings since a number of his campaign themes empathized with these trends.

A similar situation occurred after Ronald Reagan’s victory in the 1980 election as the great anti-government wave, which swept him into power, dried up almost immediately since Ronnie was perceived as “one of us.”  Of course, Reagan was a disaster and fulfilled none of his anti-government campaign rhetoric, but instead went on to become, for a time, the biggest Presidential spender in US history.

A Clinton victory, although certainly tyrannical in the short run, would have, no doubt, furthered the anti-Establishment fires and inspired more.  For example, Texas may be now on the road to independence from the Federal Leviathan.

The ills that plague the US and, for that matter, the Western world, will not be solved through a Trump Presidency in “making America great again,” but will only come about through political decentralization and the abolition of central banking with a return to sound money.  Concomitant with political decentralization and secession is military contraction, as smaller political jurisdictions will have lesser pools of wealth to tap from while the absence of an inflationary central bank will make military adventurism extremely difficult to conduct.

Yet, before such a transformation can take place, an ideological foundation must first be established.  A Hillary Clinton Administration would have provided fertile ground for such change.

Since the groundwork for a depoliticized world has not been laid, a Trump Presidency made sense as long as he kept as close as possible to his campaign agenda, the most important of which was foreign policy.  His condemnation of the neocons’ policies which have bankrupted the nation, murdered thousands of innocents abroad, and heighten tensions everywhere was crucial in his shocking victory last November.  It is apparent that he did not understand how important this support was or he would have never undertaken such an utterly stupid decision.

With the strike on Syria and seemingly more military action in the offering, Trump’s Presidency is now the worst of all possible worlds, at least in the short run, for those opposed to the New World Order.  Most serious observers, however, understood, especially after the appointment of so many Goldman Sachs cretins, Israeli Firsters, and nutty warmongers to his administration, that Trump would eventually succumb to the pressure.  More importantly, Trump was never fully grounded in an America First mindset, probably not knowing where that term originated or its gallant founders.

All, however, is not lost.

Trump’s capitulation makes it abundantly clear that the system itself is beyond repair.  Getting the right individual to salvage the American welfare/warfare state cannot be done.  Trump had many advantages that no future candidate will likely possess which means that anybody that follows will be an “insider.”  Much of his base, therefore, will no longer support a future Republican candidate or will give him only lukewarm support .  With no independent personality to rally around, the millions of disappointed Trumpians will seek new governing paradigms which hopefully will lead to the growth of secession movements.

Ultimately, however, a permanent American foreign policy of non intervention, peace, and free trade will only come about when there is a change in the prevailing ideology of society where all contenders for political office espouse such a notion and today’s warmongers are seen for what they are: enemies of humanity and its Creator.

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com/

Welcome to Totalitarian America, President Trump!

Deep-State-vs-Trump II

If there had been any doubt that the land of the free and home of the brave is now a totalitarian society, the revelations that its Chief Executive Officer has been spied upon while campaigning for that office and during his brief tenure as president should now be allayed.

President Trump joins the very crowded list of opponents of the American State which includes the Tea Party, tax resistors, non-interventionists, immigration opponents, traditional family advocates, and a host of others who have been spied upon, persecuted and badgered by federal “intelligence” authorities.  While Congress conducted some feeble hearings and investigations of the shenanigans of the US spy agencies during the interminable Obummer Administration, no real action or reform was taken to reign in the eavesdropping and spying by the national security state on American citizens.

Hopefully, the surveillance of President Trump will change his outlook on the US “intelligence community” especially in regard to those courageous souls who have spoken out and risked life and limb to alert the public about their rulers’ nefarious activities.  Edward Snowden should be among the first to receive a pardon while the person who provided him sanctuary from his American persecutors, the reviled Vladimir Putin, should be commended for his noble act, a rarity among world leaders in this democratic age.

President Trump has demonstrated throughout his life loyalty to those who have supported him.  He should, therefore, do all in his power to extricate Julian Assange from the Ecuadoran Embassy in Great Britain and provide him with safe conduct to the US or any destination in which the heroic whistleblower prefers.  Without the deluge of Wikileaks during last fall’s presidential contest exposing the massive corruption of the Clintonistas, it is unlikely that Trump would have ever prevailed never mind winning by an electoral landslide.

Not only has candidate and President Trump been monitored, but just about every American citizen is under surveillance, the data of which can be used against them at the appropriate time if and when they should challenge the American Leviathan.  NSA whistleblower William Binney confirmed what has been long known in government circles and by those Americans awake to Washington’s tyranny.

Binney confirmed Trump’s suspicion about surveillance to Fox News, “I think the president is absolutely right.  His phone calls, everything he did electronically was being monitored.”* He added that, “Everyone’s conversations are being monitored and stored.”

Ironically, it has been the immense wealth generated by a relatively free market in America that has provided the means for the government to create, expand, and maintain such a sophisticated and dangerous spying apparatus that is now being used on the very people funding it.  That such a situation could emerge under the supposed “checks and balances” of the US Constitution demonstrates again how truly worthless the document is in the protection of individual rights.

While reform of the current system has proven to be futile and without any constitutional restraint, it, unfortunately, will mean that spying and the murderous US empire of which it is a part will continue as long as the economy does not collapse and the dollar retains its world reserve status.  A silver lining, therefore, from a dollar crisis, would mean a decline in the US military and security state.

Of course, the demise of the US spy and military establishment will not be a simple process, but will be fraught with tremendous social and political upheaval and more than likely bloodshed as the Deep State will do everything in its power to protect its turf.

While a collapse may be a ways off, it is hoped that the spying on President Trump will move him to rethink his position on the Deep State which wants to sabotage his every move that goes against its interests most notably a potential detente with Russia.  Talk of deescalation of American military presence in world affairs is anathema to the powers that be.

In his Inaugural Address, President Trump repeatedly promised to put America first.  The nation’s intelligence agencies do not share that vision, but instead owe their allegiance to the New World Order.  If the President has not figured this out after having been secretly monitored, there is little hope for the near future.

*Tyler Durden. “Former NSA Whistleblower: ‘Trump Is Absolutely Right, Everything Was Being Monistored.'”  Zero Hedge.  3 March 2017. http://www.zerohedge.com/print/589722

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com/

California, Nestle and Decentralization

calexit

Nestle USA has announced that it will move its headquarters from Glendale, California, to Rosslyn, Virginia, taking with it about 1200 jobs.  The once Golden State has lost some 1600 businesses since 2008 and a net outflow of a million of mostly middle-class people from the state from 2004 to 2013 due to its onerous tax rates, the oppressive regulatory burden, and the genuine kookiness which pervades among its ruling elites.* A clueless Glendale official is apparently unconcerned about the financial repercussions of Nestle’s departure saying that it was “no big deal” and saw it as an “opportunity,” whatever that means!

The stampede of businesses out of what was once the most productive and attractive region in all of North America demonstrates again that prosperity and individual freedom are best served in a political environment of decentralization.

That the individual states of America have retained some sovereignty, despite the highly centralized “federal” system of government of which they are a part, has enabled individuals and entrepreneurs living in jurisdictions that have become too tyrannical to “escape” to political environments which are less oppressive.  This, among other reasons (mainly air conditioning), led to the rise of the Sun Belt as people sought to escape the high taxes and regulations of the Northeast to less burdensome (and warmer!) southern destinations.

This can also be seen on a worldwide scale.  The US, for a long time, had been a haven of laissez-faire economic philosophy, which, not surprisingly, became a magnet for those seeking opportunity and a higher standard of living.  No longer is this the case as increasing numbers of companies and individuals are seeking to avoid American confiscatory tax and regulatory burdens and move “offshore” or expatriate to more favorable economic climates.

The idea of political decentralization as a catalyst for economic growth has become a part of a “school of thought” in the interpretation of how Europe became so prosperous compared to other civilizations.  After the fall of the Roman Empire, Europe for centuries was divided politically among numerous jurisdictions and ruling authorities with no dominant central state on the Continent.  The multitude of governing bodies kept in check, to a large degree, the level of taxation and regulation.  If one state became too draconian, it would lose population to less oppressive regimes.

Just as important, Europe’s governing system was aristocratic and monarchical which has proven to be far more conducive for economic growth than democracies.

While the economic oppressed can escape among the various states, there is no avoidance from the wrath of the federal government unless through expatriation and that option has become less viable with those leaving still subject to tax obligations.  This, fundamentally, is the crux of the problem and has been since the ratification of the US Constitution in 1789.

The chance that a totalitarian state such as California or the Leviathan on the Potomac would actually reform themselves or relinquish power through legislative means is a mirage.  Nor will revolution work as revolutionaries while appearing altruistic, typically get a hold of the machinery of government to plunder society for their own self interest on a far grander scale than the supposed despots which they replaced!

The only viable option for the productive members of society to seek redress of state oppression is to argue, work, and eventually fight for political secession and the fragmentation of states as much as possible.  Decentralization is the only hope for those opposed to the modern, omnipotent nation state.  Moreover, any notion or effort to salvage the current centralized political system must be abandoned.

Naturally, before the breakup of the nation state can become a reality, the ideological case for political decentralization must be made.  Public opinion must be convinced of the superiority of a world consisting of many states.  Such a cause, however, will be considerably difficult after generations have been raised and made dependent upon social democracy.

When Nestle and other oppressed businesses and individuals can easily escape the clutches of totalitarian entities like California and, more importantly, the most dangerous government on the face of the earth for freer destinations, then will individual liberty and economic growth be assured.

*Terry Jones, “Another Big Company Departs California – Will Last One to Leave Shut the Lights?”  Investor’s Business Daily. February 3, 2017.  http://www.investors.com/politics/commentary/another-big-company-departs-california-will-last-one-to-leave-shut-the-lights/

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com/