How Our Banking System Evolved, Why We're Captive to the Banksters and How to Fix It.

[longfisher]

I had no idea this was how things worked...

http://www.truthout.org/global-debt-...out/1307386310

Chime in GlennW. What do you think of this?

LF

[mvsusaf]

Without a national currency we would be at money changing booths going from Delaware to NJ.
Saw this in Europe before the Euro and it still goes on between the Republic of Ireland and the northern part of Ireland.

One big pain!

[Glenn W]

Most everyone with an undergraduate degree in Business has taken "Money & Banking" and will recall the chapters on the Money supply and the money multipier. Now this dingbat writes a book on a topic that has been known and measured for generations----- Trust me, the guys at the Fed are well aware on the money multiplier in establishing monetary policy.

[clt_capt]

If you want to see how things work - Go out and rent "Too Big to Fail" - It will open your eyes to what happened behind the scenes with the Bailout and all of the huge investment bank deals...

[longfisher]

...too big to fail and agree with Captian Clit.

Glenn, my degrees, both undergraduate and graduate, were in the sciences. Never had any coursework whatsoever in money supply. I'll be lots are like me even if they went to college.

I thought the banks just loaned out the money they took in as deposits. WRONG.

I don't want to judge your criticism on his work. You know better than I, I'll agree. But what do you think of the example of S. Dakota's public banking system. The difference between how they've faired vs. the rest of the states is dramatic and remarkable. And, the artible suggests that S. Dakota erected their existing public banking system in an effort to avoid the ravages of the private banking system which were visited on S. Dakota during or near the Great Depression.

Would such a thing work elsewhere?

LF

[Glenn W]

Don't know anything about S Dakota banking (and very little on the details of any banking operations), but I think one must consider the needs of S. Dakota for generations--- farm and agricultural loans.--- a far cry from commercial paper and financing of debt required by large businesses.--- when I hear of "public banking" I think of the concept of credit unions--- works well for personal and small business needs. I also think of the Louisianna parish banking laws----- perhaps this had something to do with the State's lack of developement for generations?---- don't know. It would seem that the biggest problem we have is that Commercial banks are not really banks anymore, but rather an arm of Wall Street interests--- perhaps a move back to more logical and stricker regulation is the answer.

[longfisher]

Well put.

I think the Dakota system, described in the article by the way Glenn, is more than just credit unions and such. There's, apparently, a State Bank and legislation to fund it, regulate it and perhaps most importantly mandate that the profits are returned to the citizens. VERY different from private banking.

LF

[Catcher's Mitt]

i really don't know much compared to the powers that be. but hording money is one of the oldest and hardest problems to break. every time there is a recession......somebody is hording money again...............

[Catcher's Mitt]

i really don't know much compared to the powers that be. but hording money is one of the oldest and hardest problems to break. every time there is a recession......somebody is hording money again...............