A Central Bank, as the Federal Reserve currently functions, collectivizes the debit of a nations individuals (US Citizens.) A debit is something regarded as disadvantageous or unfavorable. For example, the obligation to work for others in the market is a debit that is measured using the standard value metric we call the Federal Reserve Note (or … Continue reading Understanding GSEs, Capital, and Spending
What is the purpose of a National border? There are differing laws on either side and a border is a distinctive boundary. Boundaries have costs and purposes. They keep the bad out and the good in. They create a functioning healthy system within. Taking in nutrition and expelling waste. Given the idea that in a … Continue reading Border Tariffs and Immigration
This article is a response to: Polleit, Thorsten, "The Fed's Great Unwind: Will It Sink Us?" The Austrian 3, no. 6 (2017): 4–6. Which is published here. I thought the Fed was a central government bank that all of the commercial banks with government charters were members of. Since the commercial banks’ lending adds to … Continue reading Demystifying the Fed
The Parziale Proposal The call to split up the commercial banks from the investment banks as occurred in the Glass-Steagall Act of 1933 or at least to limit proprietary trading by banks and their affiliates is the spirit behind The Volcker Rule: to end systemic financial risk and the mentality of "Too big to fail". Fundamental to this charge is … Continue reading Proposal for Volcker Rule Alternative (Draft 12/7/2017)
There has been talk that money and markets have been getting in the way of a good society. So people say that people may be better off without money altogether. Some of these ideas are surly based in truth, but the question is how many of these problems are caused by the current financial regulatory … Continue reading What role should money and markets play in a good society?
Wall St's beginning was wealthy people lending to the government to fund war campaigns. This lending in the for of bonds has thousands of years of tradition. It isn't difficult to understand today that a standard measure of value like the Dollar doesn't have to be centrally controlled. There was a time when a … Continue reading Central Banking is a Soviet Ideal
I was saying that banks create the money stock when they buy government bonds. That money stock is destroyed when bond principal and interest is paid. The government spends the newly created borrowed money how the few in Congress guess is best for the collective. Then they income tax the productively of the collective to … Continue reading Quick Recap
I ran into Garry Leech's article on CounterPunch: Why America’s Next President Will Not Be a Socialist. I'd been wondering what the heck Bernie was about and was grateful it was somewhat explained. I got about half way through when I realized that he made a distinction between socialist, social democrat, democratic socialist, and capitalism. … Continue reading Unconfusing the ‘isims’
A Standard Measure While you may have never sat down to think about it, the Dollar is a measurement unit. Like a ruler measures length a Dollar measures value. They are both standards that we all commonly agree to use to make measurements with. If you want to tell somebody how long something is you … Continue reading How to Maintain the Dollar’s Value and the Inflation Tax
To live by the law of the Elastic Republic is to have liberty. Elastic Republic is designed for people who have the liberty to volunteer their time to work on projects. The Ballot market provides every member the ability to be a part of a organized community that is "bigger then me." It is the ability … Continue reading Who For?