Monetary Policy, Banking, and Finance

by Christopher Alan Reid

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Some observations to start:

A currency system that automatically creates debt for the citizenry as a byproduct of each unit of currency created seems like a deeply flawed system, & the very definition of parasitism. Why should US taxpayers be charged what is essentially a fee for the creation of a currency medium that their very existence, trade, & tax dollars make possible? This automatically, systemically created debt, imposed for the privilege of having a currency medium that we the citizens make possible through our very existence, trade, & taxes, is a nonsensical system whose only purpose is to enable parasitism. Purposely convoluted & unnecessarily artificial at its core, this is theft & fraud by another name, pure & simple. The monopoly benefits go directly to central banking interests (the Federal Reserve), given said monopoly power over currency by a wholly corrupted political & bureaucratic class in government. And this is but the first layer of parasitism, fraud, & theft.

At levels two & three, banks then pay interest to use that currency, & in turn charge yet more interest to citizen borrowers to use that same currency that their very existence, trade, & tax dollars made possible. We’re paying 3 layers of interest for the privilege of using a currency that owes its very existence & possibility to us, & we’re getting zero benefit from that. Again, this seems like a deeply flawed system. Nothing but layers of parasitism built on top of layers of parasitism. Outright theft & fraud.

Neither organization in this system did anything whatsoever to create value or make any productive gains, not the Federal Reserve, & not the banks. They’re reaping extraordinarily massive sums of money from the system without providing anything of value or any productive gains in return. Again, this is the very definition of parasitism. It’s outright theft & fraud, thinly disguised by layers of complication.

By design, the sole purpose of granting monopoly power to create this unnecessarily artificial currency is that it enables & facilitates parasitism, fraud, & theft at levels unprecedented throughout all of human history.

Many better systems are possible, preferable, & vastly superior in their outcomes & benefits for the American people. Any that are not similarly irreciprocal or parasitic would be acceptable, & a significant improvement over the current system.

The Federal Reserve is both obsolete & parasitic. It serves no useful purpose, & was never able to avoid any of the crashes it was lauded to be able to stop. In fact, it appears to enthusiastically feed the bubbles that make crashes possible, which it is doing currently.

The Federal Reserve must be shuttered, abandoned, & permanently retired, never to be revived again. Banks must be shuttered, abandoned, & permanently retired, never to be revived again. They represent an ongoing naked theft from the American people; an insatiable parasite that feeds on American prosperity; & a collection of masked bandits in fine suits, robbing American wealth.

If we wish to protect our wealth & prosperity, we must exercise our sovereignty & take responsibility.

Monetary policy and Currency policy must be under the direct & sole authority of the American people (US citizens), to be carried out by the US Treasury at our request.

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Many possibilities vastly superior to the current parasitic system exist. The most important thing is to move from a parasitic system that steals prosperity from the American people, to a system that focuses on producing real value & real gains in productivity.

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What will accomplish our needs?

It’s been said that an eight year old with an abacus can manage a sound money system.

Whether or not that’s strictly true, I think the central implications from that statement are worth examining.

First, a sound money system, & sound monetary policy should be both simple & straightforward.

And second, any complexity beyond that point is purely for the purpose of obfuscating & facilitating fraud.

These seem to be salient points, & a good place to start the discussion of monetary policy & a sound money system.

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A Sound Money System & Its Component Parts:

A currency that has stability & doesn’t lose its value seems like a reasonable place to start. If a currency can’t crash, or at least can’t move to zero, that’s probably a very good thing. In that regard, gold, silver, or a basket of stable commodities would make sense & probably fit the bill nicely. Different asset classes based on all these backings seems acceptable too. I don’t think you can go wrong with any of those, all of them, or a combination of them. Debt-backed currency is where we start to run into issues. It opens up too much opportunity for fraud, & unlimited money printing with no accountability from the responsible institutions, resulting in devastating bubble & crash cycles that always leave the US taxpayer stuck with the cleanup bill, despite having no responsibility for the failure & fraud. It’s widely believed that we’re in the bubble before the crash of one of those cycles right now (time of writing Nov 2019). Clearly we need to address & fix this recurring problem. Clearly that needs to be done at the structural & institutional level by changing the organizations & institutions that are responsible for the cycle, as well as the structure of the monetary system itself, which enables & incentivizes it. Endlessly bailing them out & rewarding them for what amounts to blatant fraud & reckless behavior is, was, & always will be a ludicrously unwise response. (How has that worked out for us so far? Have the crashes, crises, & bailouts not been coming with increasing frequency? Why do you suppose that might be? A learned response, perhaps?)

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In considering the use of debt, Jim Quinn captures the issue nicely in his incendiary piece “See You On The Dark Side Of The Moon”, which includes some excellent commentary on the banking industry, as well as, some other geopolitical & social issues.

Jim explains: (emphasis mine)

 “The credit card was in its infancy. People paid cash for their purchases. Nixon closing the gold window and the proliferation of credit by the financial industry marked a terrible turning point for the country. Politicians were unrestrained from making promises on the backs of unborn generations. The national debt was $458 billion in 1973, after 184 years as an independent country. We create that much debt in about 5 months today. From $458 billion to $23.1 trillion in 46 years. Debt to GDP ratio up from 32% to 110%, all thanks to the Federal Reserve, their Wall Street owners, and the captured politicians in Washington.

It’s not money that makes the world go around, it’s debt.”

https://www.theburningplatform.com/2019/12/01/see-you-on-the-dark-side-of-the-moon/

It’s hard to ignore the fact that we might not be handling the use of debt wisely after reading those words.

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While we might wish to retain the ability to finance some very important large endeavors, undertaken for national benefit, through the issuance of some sort of debt, it’s pretty clear that we need to set some standards & basic principles that it would be wise to follow. First & foremost, ending debt-backed currency, but just as importantly & perhaps more so, putting all authority for monetary policy & debt control back under the direct control & authority of the American people. He who controls the money, controls the country. That would be us, We the people. If we are not willing to take that step, then we are willingly giving up our sovereignty. We must take responsibility for a sound money system & monetary policy. Things of such import cannot be left up to others, and we cannot afford to grant that authority to others. History shows all too clearly what happens when we do. Parasitism, corruption, endless cycles of bubble & crash, & runaway debt, with the American people left to pick up the tab. This unaccountable runaway debt creation that funds market bubble-crash cycles is playing itself out right now under Fed leadership, enabled & facilitated by a completely corrupted political & bureaucratic class. (Ready to pay another cleanup bill?)

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Countless volumes have been written on these financial & monetary issues. It is well beyond our scope to discuss every facet here. Many configurations will work. As we move away from an inherently parasitic & unstable system, the most important considerations are creating a sound & reasonable base, retaining authority over monetary policy, & protecting that system from corruption.

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A sound & reasonable base:

1. Monetary policy and Currency policy under the direct & sole authority of the American people (US citizens), carried out by the US Treasury at our request.

2. Sound money that doesn’t devalue. (Gold/silver/basket of commodities-backed currency)

3. No Federal Reserve, no banks. (Parasitic, unproductive, & unstable by nature; they produce nothing & only take from the system, effectively robbing the American people of their wealth.)

4. Wise debt policy under the direct & sole authority of the American people (US citizens), carried out by the US Treasury at our request.

5. Citizen Account Monetary & Reserve System for the dispersal of federal monies, the housing of reserves, & the expansion or contraction of capital within the money system. 

Citizen Account Monetary & Reserve System (CAMRS) (Like “cameras”, so citizens can keep an eye on their money!) (see companion docs on CAMRS for specifics)

6. Elected Citizen Account Boards (ECAB): Sub-regional & local advisory boards, chosen yearly in a vote by the citizens of the sub-region & locality. – Businesses & individuals will come to these entities to apply for loans, taking the place of the parasitic Federal Reserve & banking system. (see companion docs on CAMRS for specifics) 

7. The reintroduction of accountability & criminal penalties to the financial world would go a very long way towards ensuring its long-term health & viability. The constant pressure from employing Reciprocal Law would do this well; leaving the ability to punish any irreciprocality, parasitism, or corruption, without needing a new law for every new financial product or procedure created. If it violates any of the 5 reciprocity tests, it’s not legal. The open gate for staying ahead of regulations & illegality by continually creating new products with new names would finally close for good.

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This is our system. We should claim it, & take responsibility.

We are the ones providing the money in the first place (US citizen taxpayers), AND the ones on the hook when some problem develops in the system and needs something like a bailout; which we’ve provided frequently of late, now having bought this system many times over. So it’s fully appropriate, & it only makes sense that we retain COMPLETE & DIRECT AUTHORITY, CONTROL, & OWNERSHIP of the monetary system & monetary policy. This is imperative & not negotiable. Retaining that direct control, authority, & ownership is the only way we can absolutely ensure there will be no tolerance for fraud, corruption, parasitism, or runaway debt. And it’s the only way we can ensure that we have complete autonomy to make changes when necessary.

Beyond this sound & reasonable base, many things are possible, and many things may develop & bloom.

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© 2019  Christopher Alan Reid

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Please remember to keep in mind:

Comments Sections – An Educational Resource & A Civic Commons

When I open a comments section, it no longer belongs to me alone. It becomes a civic commons.

It belongs to all the people who make valuable contributions to it, & all of the people who benefit from that; past, present, & future.

Anyone who makes uninformed, disingenuous, or malicious contributions is stealing from that civic commons. They are stealing the value of that civic commons, that property, from everyone else who contributes, & everyone else who might have benefited. This is parasitism. Taking from others for your own personal gains and offering nothing of value in exchange, while also polluting the content; much like someone would pollute a water source leaving everyone else unable to drink from it, or worse, making them sick when they do. It’s a parasitic theft. And it’s a parasitic theft with long term-damages, & sometimes with the intent to inflict long-term damages. Anyone who engages in that type of behavior spotlights themselves as a person of poor character & malicious intent. This is a symptom & a clue. Such people generally make those same decisions in many, if not all aspects of their lives. These are the people who have adopted a parasitic lifestyle. These are the people who constantly take from society & give nothing in return except pollution. These people are the enemy that we fight against.

If you’re intent on being that enemy, having identified yourself as a person of poor character & malicious intent, in this context, you’ll likely just be ignored. No one is likely to take the time to engage in pointless battle with the hordes of Straw Man Army parasites that seem endemic on internet comment sections, nor add to the volume of that pollution by doing so.

If you want to contribute, please add something of value to the civic commons, increase the value of our cultural property.

You can think of this as a self-service portal that people can drink from if they’re thirsty, while leaving something to drink for others if they have it to spare.

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A genuine critique isn’t undertaken for the purpose of disingenuous criticism & undermining. It compares & contrasts, offering better solutions where it finds weaknesses. It does all of this without offering disingenuous arguments that amount to little more than poorly disguised attempts at straw man attacks. If you have something to contribute, demonstrate good character & offer something more than a pollution of the commons; make a contribution that adds value to the commons. This discussion is a civic commons, a collective investment, owned by the people who have made investments that increase its value.

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