Apr 3·edited Apr 3

Would you have an issue if the goldsmith issued gold receipts - not backed by gold but by property? I’m on the same page as you but I think the collateral is something overlooked when criticising fractional reserve banking. Collateral allows for the increase (loans made) & subsequent decrease (loans repaid) in the money supply.

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Somebody is going to take a big haircut on the CRE loans that are going belly up. Same with RRE, just like in 2008 & 2009. That is the problem we have now, the banks are not at risk for any bad decisions they make.

If you give someone a $100M loan on a building that is now worth $30M, who is on the hook for the $70M hickey, the depositors.

Our banking system is miserably broken. The Fed keeps printing money to bale themselves out. It doesn’t hurt the bankers. It is an extremely hurtful tax on the depositors, who like the article points out, just wants to pay their bills.

We have to suffer the pain and stop this madness. The Weimar Republic is upon us.

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The problem is the same as it always is.


The Constitution did not authorize the Congress to sublet their duty to "coin money" to an entity called the Federal Reserve. The ability to create money is a power that should not be trusted to the whims of a group or class of people.

By giving the ability to coin money to the House, the founders put that power as close to the people as possible. That way the people could have direct influence of very the money and its usage by the vote. That reach was circumvented by the Federal Reserve Act. This was done on purpose to fast track and streamline the ability to create and control money, and put that power in the hands of banksters and not the people. We have been fucked ever since.......and the raping has finally reached a level that even the dumbest of the dumb know something is wrong.

The system is not just flawed, it is outright evil. It shouldn't be shut down, it should be burned down and those involved severely punished as to make an example of them to the other would-be parasites that lurk in the wings.

The irony is that these bankster, criminal bastards are some of the most respected and revered sonsofbitches on the planet.........AND........everyone dreams of heing like them with their power and money. Instead of dealing with the evil, people dream of being rich enough so they can live with and like the evil bastards. The very class of people that should abolish these parasites.......the business class......are too busy trying to make another dollar and keep up with the money gangsters, and we the peopIe suffer the shit end of the ponzi.

You are never going to change this "system"........it is THE system that runs and controls the world. You don't change it, you destroy it or you learn to live with it. Those in control and comfortable with it, will die before they agree to give up their power. You are never going to vote the power away from them.

You think it's bad now?......and it is. Wait until they go all digital, and this ponzi casino will ratchet up another 10 notches. "For the love of money is the root of all evil."

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What's truly laughable about readers/commentators such as "Samizdat" is that they don't have the slightest knowledge of any history of any kind whatever, or psychology, or sociology, or, in particular, economics. Afa "bitcoin" is concerned, as I have previously noted, its just another "fiat" instrument, only even further removed from "reality" than "primary" money substitutes (such as the dollar up to 1971). Bitcoin's particular "Achilles Heel" is that it depends for function upon uninterrupted operation of the "grid" 24/7/365. I would be interested to know if there is ANY knowledgeable reader of this blog who thinks that that is a likely or even possible near-term future - even in the US.

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If gold depositors know the bank will lend claims to gold exceeding the amount of gold in the vault, and in return for taking that risk, they agree to accept the interest income and convenience that goes along with being a gold depositor, how is this "fraud"? Fraud means deception. No deception, no fraud. Here's how it would work if banking were free of regulation and government guarantees: People would learn very quickly that their gold was at risk. They would know how to read a bank balance sheet and choose a good bank. Allowing banks to create credit freely would soon make "fractional reserve banking" practically non-existent. Here is Von Mises quoting a 19th Century banker, Enrico Cernuschi, speaking at the French Banking Inquiry in 1865: "I want to give everybody the right to issue banknotes so that nobody should take any banknotes any longer."

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But how would the parasites make their way off of the backs of others without the fraud and theft?

The only thing giving dollars value now is

possible loss of collateral if you can’t obtain enough of them to pay debt. That’s how the debt based monetary systems work. Hence, why they say “debt is the money of slaves.” If new debt note dollars don’t continue to expand, then collateral is lost through bankruptcy, because evermore are needed to service interest. Which is how banks strip debtors of assets through money supply contraction. US dollars remain stronger than other currencies because more debt is in dollars. More debt equates to more demand.

The big problem is debt has already expanded to the point it cannot be made good on in honest money terms. It must be devalued through inflation and there’s no getting out of that.

You don’t have this problem under a gold standard, because gold, being tangible commodity money, doesn’t allow for debt to expand more than there is gold to redeem the debt. Money supply (and therefore debt) only expands when demand for money is high enough to make it worth spending labor and resources to mine more. (They say the work and resources required to mine gold equates to what the average worker must expend to get it.) Therefore, making it much more difficult for the parasites live off the backs of debt slaves. God forbid should they have to work or innovate or create for their livelihood!

The way I see it, the constitution mandated honest money! The constitution outlines the republic, so I think it’s safe to say our republic has been lost. Franklin warned, “we have a republic if we can keep it”. Well, we couldn’t keep it, It ended in 1971.

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"Closest to the printer" came to the fore with the Covid money creation. A bunch of scared citizens of around 100 countries had been hit for a loan from their futures to print then turn around and hand it to governments, banks, global corps.

Those closest had bought everything and drove up real property prices BEFORE inflation was even starting. It was a supply thing.

Then, with the very loan they had from the people, they created said money. Inflation roared in and took the value ofthe money down 20%, now added to the price shocks the big places caused.

So, now, the little guy is down 40% in his efforts to buy a house, a business or 5 acres.

It baffles me that a million angry young professionals on reddit don't understand that their heroes in the government/financial/global control world were the exact people that stopped them from being able to buy a house.

Out here in the heartland, we know the reasons, we vote against such powers in general and know nothing will change. But we don't cheerlead them while they rip us off.

We buy a modest house and improve it. We are STILL living within our means, despite those close the printer or their buddies with 100k average annual salary that are renting tiny apartments.

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Great article, unfortunately Banks are necessary evils !!

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Apr 3·edited Apr 3

One way to eliminate fractional reserve banking and have 100% reserve is to go totally to CBDCs with MMT. That way the sovereign would become the sole source and sink for money. Since each currency unit is traceable by its blockchain, a bank could only lend out the actual units deposited. The sovereign would create currency units by spending them into existence and its central bank would create them and lend them to banks at a below market interest rate. The bank would make the difference between the market rate and the central bank rate. The tax collector and the central bank would also be a sink that removes money from circulation. In this system there would be no government bonds since the sovereign would never need to borrow. This is one reason I expect CBDC to be introduced in the next crisis, which will be a federal debt crisis.

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But there is no gold supporting our currency anymore. Which makes the entire system even more tenuous and more easily manipulated. Those in charge of the “central bank” are the true power brokers.

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This is why we bitcoin

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That's funny. Because BTC has been around 15 years now, and I haven't see yet how BTC, in any way, fixes, solves, or even reduces this "problem."

Now I have seen it add to the problem by giving the banksters mafia another out-of-thin-air, make believe asset class on which they can create more fraudulent fiat, but I have not seen where shitcoin has slowed down the fraud and corruption one bit.

What you really believe is that BTC is going to make you so rich that you will be insulated from the fraudulent banksters cabal. Rich in what? Dollars? You can get out of the water all you like, but as long as you've got to get back in the water at some point, the sharks will be there to take a bite out of you ass.........and everything you want or need is in the water and controlled by the sharks.

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You need to study Bitcoin because you clearly haven't a clue

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Sure thing, super prick.

Everyone who disagrees with shitcoin, "doesn't have a clue." Did you disprove one thing I said? No, no you didn't. So I think it would be much more correct to say you don't have a clue.

I wish you dumbasses could tell me something I don't know. I wish there was some obvious piece to this shit show puzzle I was missing. I have outlined several things you are obviously missing. Please get back to me when you have something other than a "decentralized block chain" or "only 21 million ever in existence." Please come back when you can explain how a digital currency, made from and maintained by wasting energy, that is owned by maybe 2% of the planet, hoping to cash it in for more fiat, is going to change anything.

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Is the bitcoin that touched you inappropriately in the room here with us now?

Seriously though, as soon as you wrongly accused bitcoin of being an "out-of-thin-air, make believe asset class" you invalidated everything else you posted.

Not understanding why you're wrong on this *is the key issue*. I don't have the time nor motivation to educate ignorant luddites.

Have a good day, sir. And good luck, it sounds like you're going to need it.

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Apr 3·edited Apr 3

Ignorant luddites?

Demonstrating you have a vocabulary doesn't make you any less of any prick, it just means you're an educated prick.

Tell me this, how much does a shitcoin weigh? I could easily say that because you think shitcoin is not created out of thin air and a make believe asset class, you are an ignorant technophile. Does that make us even?

Your last remark is the most arrogant of all. The assumption that because I don't agree with your software currency, my future is bleak? LMAO. When this dam of shit breaks, if you can keep your head above the flow of shit long enough, come look me up, I'll have some food, water, clean clothes, and dry space for you to find some rest. And don't worry about paying, your shitcoin wouldn't buy anything at my place anyway.

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Bitcoin only has value to the extent the pimps can keep suckering gullible gambling Muppets into the nothingness of an imaginary computer currency pyramid scheme. BC is the liability of pimp ability (to sucker in muppets)!

You can't build a monetary system around bitcoin. It simply does not work.

Whereas monetary systems have been built around gold--whenever govt did not forcibly stop it.

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"Whereas monetary systems have been built around gold--whenever govt did not forcibly stop it."

Your honor, I rest my case.

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You truly are a fool if you think governments, can’t put an end to bitcoin, post haste It just so happens it’s not a threat to them. They’re simply allowing the gambling to go on, similar to gambling in Las Vegas. The big difference is bitcoin, can’t make for a viable monetary system, whereas gold can and has!

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