.. maybe it’s a failure of Government-sponsored corporatism.

Let’s not get caught up in the great distraction that is the left/right political circus.  The reason we have such greed and fraud is because of Government regulation, whether “left” or “right” is in power. First a principle:

Fractional Reserve Banking = Fraud (legalized fraud)

“But the Government stands up for the little guy.” — ‘Conventional’ Wisdom

Every corporation, in some form, receives the protection of Government.  A corporation is a legal entity given privileges and protections that an individual does not have.  In reality, it exists in a Government file folder, and is given legal force by the Government.  Banks are just special corporations that are offered all of the normal protections, but are also allowed to commit fraud, charge you for it, and charge you to protect themselves from failure!

Our system of banking is a Government/Banking partnership.  Ever wondered why both Bush and Obama are surrounded by Wall Street insiders?  Even if there were some kind of regulatory failure, do we really trust the same people that raped and pillaged the Social Security and Medicare trust funds, created unfunded liabilities of $99.2 trillion dollars, and launched an endless series of unconstitutional foreign wars, to oversee anything but their own enrichment?

Let’s Compare Wal-Mart to a Bank

Is fractional reserve banking fraud?  You be the judge.

• If Wal-Mart sold the same physical item to 10 different people, the managers would go to jail for fraud.
• Have you ever heard of a “run on Wal-Mart”?
• Why not?
• Because the product is really there.
• Does the government need to insure Wal-Mart’s “deposits” (inventory).
• No – because the product is really there.
• Have you ever heard of a “run on a bank”?
• Yes, and why?
• Because the money isn’t really all there.
• The bank gives 10 people a claim to the same dollar, we call it fractional reserve banking, and “economists” claim it creates wealth.  (It does for the banks.)
• The government prevents this fraud from being exposed by “insuring” the deposits, and creating trillions, confiscated from your back pocket in the form of inflation, to bail out the banks when the marketplace attempts to correct their fraudulent activities.  (Drive them out of business.)
• The Government is not protecting you, it is protecting the system.
• Every dollar is loaned into existence and “leveraged” 10:1.
• The leveraging is called “fractional reserve”, and it is a legal form of fraud, giving 10 people a claim to the same actual dollar.
• Your “asset” (your dollar) is somebody else’s liability.
• Why do you think it is labeled a “Federal Reserve Note”?
• There is no realistic cap on how many dollars the government and the banks can create – together.  (Remember its a partnership.)
• When they inflate, inflate, inflate it will eventually reverse.
• The resulting recession is merely the marketplace attempting to correct the imbalance.  (The “marketplace” is just you and me voting with our wallets in mundane, everyday, voluntary activities.)

Do We Have a Captalist System?

No.  It is corporatism.  Government by, for, and of, big corporations – particularly the banks.  (Take a look at H.R. 875.  Supposedly about food safety, it should be called the “Agri-Business Take Over and Elimination of Independent Food Production Act”.  It’s written by congresswoman DeLauro whose husband is a Monsanto executive!  And she’s Democrat, supposedly standing up for the little guy.  You can’t make this stuff up …)

Big corporations want regulation.  Why compete in the marketplace when you can just cozy up to politicians and have them write laws in your favor?  It is a mechanism used to support cartels and prevent competition.  It is a restraint on trade.  And who trades?  You and me!  We trade!  Trade is the basis of a civilized society.  It is nothing more than mutual interdependence, creating social order and raising the standard of living for all people.  We rely on each other to survive!

You can not have capitalism, nor a free market, with a central bank and fractional reserve banking.

How Do We End the Fraud?

Like the Constitution, the US Dollar is just a “goddamn piece of paper” (thanks George W).  So what gives it value?  Simple – one statement:  “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE”.  Through government fiat (force) you are compelled to take it.  This is why it is called a fiat currency.  Without the government force, you and I would rather have something of value in exchange for our labor.

Remove the language and the house of cards that is our banking cartel would come crashing down.  Capital would once again return to the people where it belongs.  It is your labor that creates products and services.  It is your labor that is taxed to save the banks.  It is your labor that keeps the real economy functioning.  It is your purchasing power that is eroded by the inflationary, fiat currency system.

Repeal Legal Tender Laws.  End the Fed.  End the Fraud.

Imagine if you had the power to create money.  Would you use it to shape the world to your own benefit?  Do you think the banks do?  Do you think the Federal Reserve does?  Not to think so is naive.