The private banking monolith is an autocracy, virtually independent of regulation. In its latest show of power, JPMorgan acquired Bear Stearns at bargain basement prices in a hostile takeover conducted behind closed doors, funded with a $55 billion advance from the bankers’ bank, the Federal Reserve. (See “The Secret Bailout of JPMorgan,” webofdebt.com/articles.) The CEO of JPMorgan sits on the Board of the New York Fed, making decisions that benefit his own very extensive stock portfolio. Federal statute makes this sort of conflict of interest a criminal offense. (See “What’s the Difference Between Lehman Brothers and Bear Stearns?”, webofdebt.com/articles.) But who is there to complain? Politicians say they can do nothing. The banking lobby is too big to be policed.
Congress has no authority over the Federal Reserve. Like the market itself, legislators just wait with bated breath to hear what the Fed Chairman is going to say next. State leaders who have attempted to police the banks, from Huey Long to Eliot Spitzer, have been taken down themselves. The proposal now on the table is for the privately-owned Federal Reserve to police the whole banking industry, a clear case of the fox guarding the henhouse. (See “April Fools,” webofdebt.com/articles.)
So who has the clout to stand up to the banks? We the people will have to do it ourselves, armed with some hefty lawsuits. Banks are now facing what could become a tsunami of private litigation. (See “Let the Lawsuits Begin,” webofdebt.com/articles.) We can catch that wave and ride it to shore. This blog page aims to address how we might set up a lobby or coalition for that purpose. Your thoughts are invited!
I heard on Alex Jones today, via Stan Monteith, that the Federal Reserve is now paying local banks interest on money the local banks are loaning the Fed.
In other words, the Fed is engineering a contraction.
Dear Warren,
No doubt, but a contraction of “Main Street’s money supply, not Wall Street’s. It has been bothering me, the question of how some will try their best to redirect the coming necessary monetary inflation away from wage earners and wages, and towards investors and creditors. I am curious if that could succeed.
I follow Australian economist
Steven Keen He has simple dynamic models of endogenous credit money flows which are quite edifying and show that
1. Loaning at interest does not destroy money;
2. Firms can make profits greatly in excess of loan obligations;
3. Reinvestment of loan repayments from bank reserves creates new money.
After a shock such as the real estate bubble, banks stop reinvesting which causes deflation. Bernanke’s helicopter money is impotent against this shutdown in credit.
I haven’t yet discovered Keen’s prescription for the economy but am still looking.
Previous with fixed link
I follow Australian economist
Steven Keen He has simple dynamic models of endogenous credit money flows which are quite edifying and show that
1. Loaning at interest does not destroy money;
2. Firms can make profits greatly in excess of loan obligations;
3. Reinvestment of loan repayments from bank reserves creates new money.
After a shock such as the real estate bubble, banks stop reinvesting which causes deflation. Bernanke’s helicopter money is impotent against this shutdown in credit.
I haven’t yet discovered Keen’s prescription for the economy but am still looking.
Hi Warren, I think that might be because Keen doesn’t have an Rx for the economy… at least one that is of value. The Austrians see most of the problems. It is only the solutions they lack. Worse yet, their solutions would take us back to the beginnings of the problem, only with the goldbugs even more richer than then. You really need to look elsewhere for solutions. Ellen’s book tells us that, and much, much more.
Jere
I have read a lot of comments regarding the previous and current government, banking and Fed policies and problems. Why has no one mentioned the OECD and how they probably tie into this?
Do a search on the internet for OECD – their propaganda is pushed all over.
I heard you on KPFK fm today, and was the first caller. I’m so outraged by the money system. If there is any way to topple these rip-off banks and establish sensible public-owned local banks that count me in. I want to own my home and instead of paying double it’s value to Countrywide as Interest, I’d rather repay a reasonable loan to a public bank….let my interest work for the public finance system. Readers here should listen to the radio interview, Ellen speaking to Rosanne Barr. Check out the program archives for March 25, 2009, 5 to 6pm:
http://www.kpfk.org
The Web pf Debt Forum is now open.
We are pleased to announce the opening of our Web of Debt Forum at http://www.forum.webofdebt.com. Here is a place where those who have an interest in our Coalition for Justice in Banking and Money Reform Think Tank discussions can continue these discussions in orderly sub-forums, topics, and threads without wading through huge distracting off-topic posts. Registration is as quick and simple as you desire to make it. Any registered user can start new topics; so current events can be discussed as well. Books, videos, or articles of interest by anyone may be discussed, including those by Ellen H Brown. Many articles can be found on EHB’s blogsite, http://webofdebt.wordpress.com . along with other valuable information on money and monetary reform issues.
There are sections for discussing problems with our current economic and monetary system, proposals for reforms or alternative systems, and methods of implementing them, or bringing them into being. Various contingencies can be discussed, along with local, state and national solutions, or even international and global ones.
So bring your best ideas on money reform and lets start turning them into reality. Join in the discussions at the Web of Debt Forums. http://www.forum.webofdebt.com/
Jlh/EHB
I don’t think the reform being considered by Congress goes far enough because I don’t think they (and we) know the extent to which bankers will go to get their way. On suspicious practices at amcore bank in IL, I recommend the following:
http://euandus3.wordpress.com/2009/11/05/advantage-banks/