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... early instance of the impulse that led to the repeal of Glass-Steagall ~ the troubling demands of the Eastern Money Center banks for sound collateral for loans interfered with the desire of the Western Pioneers for liquidity and for state chartered banks willing to provide that liquidity through extreme leverage.

Wasn't it in Michigan where there were two barrels of gold bullion, which did a leap frog along the path of the bank inspector, with the one barrel at the bank that the bank inspector was inspecting, and the other barrel making the journey from the bank that had just been visited to the bank about to be visited next.

There are also the stories of the reserves of hard currency, also in barrels, with the top fifth of the barrel full of silver and the bottom four fifths full of nails.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Mon Apr 16th, 2012 at 11:39:01 PM EST
[ Parent ]
I don't argue that a National Bank is not necessary, but just that all three versions in the USA have proven highly problematic at providing for the common good, as opposed to the good of the bankers. We need one, but, so far, every attempt has turned malignant. The one positive out of this sorry history is that FDR and Marriner Eccles have demonstrated that an existing bank can be reformed. So we now have to demonstrate anew the ability to again generate such a reform, but this time it will be against a financial complex that also knows that it can be done.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Apr 17th, 2012 at 11:22:56 AM EST
[ Parent ]
My point is that saying that they are "problematic" seems for some reason to suggest that the "no build option" is superior, when in my view, the No Bank Option was worse than both the Second Bank of the United States and the Federal Reserve System, warts and all ...

... and all too often the warts are put under a magnifying glass bought and paid for by those who want to in fact make the problems worse and instead eliminate either the good that they do do, or guarantee that they do not start doing the good that they might do.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Apr 17th, 2012 at 12:47:25 PM EST
[ Parent ]
... and all too often the warts are put under a magnifying glass bought and paid for by those who want to in fact make the problems worse and instead eliminate either the good that they do do, or guarantee that they do not start doing the good that they might do.
This ties in with Metatone's recent writing on learned helplessness.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Wed Apr 18th, 2012 at 04:17:37 AM EST
[ Parent ]
... system are not things that can be fixed by assuming that the current actions of the Federal Reserve are the best that is possible from the system as current designed, because then the structural reform proposals will omit the parts that can and in the past have worked quite well, where the problem is not structural at all but rather regulatory capture by the regulated industry.

Not only could we have better, but we could have better under the existing rules. Regulatory capture does not automatically or even necessarily require some systemic reform: it may, instead, require a movement committed to capturing the regulator back in the interest of the affected community rather than the regulated industry.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Wed Apr 18th, 2012 at 09:36:55 AM EST
[ Parent ]
"We need one, but, so far, every attempt has turned malignant."

Thoughtless growth, as required by capitalism, often turns malignant.

Maybe the system is wrong, not the tweaks.

Align culture with our nature. Ot else!

by ormondotvos (ormond.otvosnospamgmialcon) on Tue Apr 17th, 2012 at 06:42:59 PM EST
[ Parent ]
The Federal Reserve From Creation in 1913 To Destruction in 2013 | Video Rebel's Blog

The Federal Reserve was created in 1913 to do four things which the FED is still engaged in today.  The Panic of 1907 was caused by speculators who used borrowed money to buy stock and by bucket shops which defrauded investors.  The Monetary Reform Commission  run by Senator Nelson Aldrich wanted an elastic currency so  the financial blunders of the 0.1% could be covered up by passing the costs onto the 99.9% through inflation. An elastic currency also allowed the costs of wars to be disguised  by inflation. The Federal Reserve also set up a fractional reserve banking system which permitted ten dollars to be loaned out for every one in deposit. This intentionally created an exaggerated credit cycle so bankers could profit from the wild swings in the prices of stocks and mortgages. And finally the Federal Reserve Note is an interest bearing currency which requires us to give the banks 500 billion dollars a year in interest payments for debts which are fictions created by a law passed in 1913. The Federal Reserve was designed to transfer our wealth to the bankers.

The Federal Reserve Act's elastic currency made it possible for President Wilson to promise to enter WW I. Wall Street wanted to enter the war so they could bankrupt England, overthrow the Czar killing 60 million Russians in the process and set up Palestine as a Jewish colony to be protected by the British Army. This was similar to WW II. The Japanese Emperor had  promised to withdraw from China and to even become an ally against Stalin as early as 1936. The German General staff under Beck and Canaris sent two men in March of 1938 to negotiate a treaty with the English offering to arrest Hitler. This means that World War II from the Rape of Nanking to the atomic bombs dropped on Hiroshima and Nagasaki and from the invasion of Poland to the fall of Berlin need not have happened. That 58 million people died for nothing does not merit a footnote in the stories told by the victorious Allies.

After WW II the US gave north Korea to Joe Stalin so they could set up the Korean war to get anti-Communists killed while running America into ground. On 11-22-1963 President Kennedy was killed on the 53rd anniversary of the first meeting to create the Federal Reserve as a message to the voters  to leave the FED alone. JFK's death also allowed Israel to develop the nuclear weapons he had opposed. It also allowed the US to be led into the Vietnam war so America could lose it while killing a generation of anti-Communists and anti-Globalists, That millions of people died in Korea and Indo-China and even more Unpayable Debts were piled onto America which  was very good in the eyes of bankers.



'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Tue Apr 17th, 2012 at 10:12:56 PM EST
[ Parent ]
That's an excellent example of what Bruce was talking about.

Everything in that quote is wrong.

Oh, and the language is Breivikesque.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Apr 18th, 2012 at 04:07:59 AM EST
[ Parent ]

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