Greens for Monetary Reform

In reforming the money system as laid out in the Greening the Dollar part of our GPUS Platform — the private bank Members of the FED will no longer be the creators and issuers of our nation’s "money." Nor will those banks have the power to determine what "Economists" call the capital development of the national economy.

This Earth that Greens are trying to save, for the children to love and to enjoy, is a separate monetary economy from that of today’s "Bankers World" sphere. It is the Banker’s School of Money system, after all, that will be coming in for a softer-landing than it deserves — after monetary reform is achieved.

With a Pen.

A Green Party Discussion of our Central Bank

First, from the ‘Eight-Miles-High’ perspective, let’s explore the ancient GoldSmith Bankers origins of the FED’s fractional-reserve banking system of money — central banking today.

Understanding central banking’s particular institutional history can go a long way to gleaning what is needed for progressive political activists to achieve socio-economic and monetary justice — for the children — and their planet.

Second, let’s explore the modern FED’s operations from the micro level. Let’s lay bare the economic tyranny that this central banking system called the FED has wrought upon our nation and our people — just during the last week or so.

1. ON CENTRAL BANKING’S IMMORAL, IF NOT ILLICIT, ORIGINS

I remember being surprised when my dad pointed out that the truth of the centuries-old beginnings of this money system — what Soddy called the “confidence trick’ of private, journal-entry money creation and issuance — was clearly spelled out in the Fed’s Modern Money Mechanics publication. And there I read it. (Please recall Soddy in this learning moment.)

MODERN MONEY MECHANICS   FRB-Chicago. (1972)

”… This unique attribute of the banking business was discovered many centuries ago.

It started with goldsmiths. As early bankers, they initially provided safekeeping services, making a profit from vault storage fees for gold and coins deposited with them. … Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts … were acceptable as money …

Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money …

Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, …"

Central Banking’s "ABOUT US". I have always appreciated its candor.

So this FRB system was started by a bunch of ‘privileged pretenders’ — liars, cheats and crooks — unjustly enriching themselves through trickery and sleight of hand … unlike, it seems, the bankers of today. The Goldsmith bankers stepped in with their new fictitious Gold “receipts” to fill the credit gap, profiteering for a few hundred years — smooth sailing around the world.

UNTIL … the North American Colonies — those independent rascals who had devised their own working money systems to achieve their prosperity, and used their ‘Colonial Scrip’ monies for longer than we’ve had the FED. The Colonists defended their right to use their monies. England passed laws against these colonial money powers, and King George ordered the law’s enforcement.

Our forefathers Declaration of Independence was necessitated, and its declared rights were then defended in a bloody Revolutionary War — won by the stalwart revolutionary Colonial patriots demanding only the use of their own money.

But look around. Once more today, that hard-won monetary freedom has been eroded to nothing in our 250-year evolution as a failed experiment of monetary democracy. I would argue that perhaps more than any other potential driver of future social equity and justice, it is this nation’s "monetary democracy" experiment that is in dire need of the wisdom of the Colonies, as presented in the Platform of the U.S. Green Party.

Let’s move that People’s Money’ revolution forward once more, For the last time.

2. THE FED’S MODERN-DAY TYRANNIES — SIMPLY BECAUSE THEY CAN

From the Fed’s ubiquitous Goldsmith Ancestry to this week’s pilfering of yet another $24 Billion from American Taxpayers, without even a need to shout: "HANDS UP!!"

By increasing the Fed’s target (Fed Funds) interest rate by another three-quarters (¾) of one percent last week, the Fed at the same time increases the amount of the CENTRAL BANK’s interest payments to its Member Banks holding so-called central bank "reserves," this time by another $24 Billion, all at no cost to the Federal Reserve Banking System. This is ONLY because that money is stolen from the US taxpayers — who have already paid it in interest TO THE FED‘s Reserve Banks holding Treasuries they bought, also for nothing.

So, five or six hundred years after central banking’s origination, the total fraud and deception of the American people continues.

In considering this injustice of the Fed’s move, please keep in mind its ancestry.

The FED never asked Congress its opinion on increasing the payments of interest on reserve balances. They say this is because the Fed is INDEPENDENT of possible political pressures that might interfere with maximizing, or optimizing, the economy’s output — strictly for political gain.

HOW does the Fed PURLOIN $24 Billion of hard-earned and paid-in taxpayer money, being held, ostensibly in trust by the FRBS — to be returned as a remittance TO THE TREASURY — and then hand that taxpayer money over to the Fed’s Member Bankers — as an interest payment on the Member Bank’s holdings of some odious fiduciary media that the Fed itself created out of nothing — colloquially, central bank reserves.

HOW?? Answers: 1. Accounting, and 2. The Nation’s Money Power

A quick review of the Fed’s Annual Report of the Fed’s Operating Statement provides the answer. Open this link: https://www.federalreserve.gov/aboutthefed/files/combinedfinstmt2021.pdf

At the top is the source of ALL the Fed Bank’s Operating Income — the Interest that taxpayers pay on our Public Debt. $122 BILLIONS.

[page 4, Combined Statements of Operations (in millions),
Total Interest Income: 2021 $122,555, 2020 $101,542;
Net Interest Income: 2021 $116,806, 2020 $92,943 increase $23,863 billion)]

Then, the Fed’s expenses are deducted, here listed from back when the Fed’s target interest rate was in the One Quarter of One Percent range. The Interest expense on reserves (a deduction to Net Interest Income) was only $5.74 BILLIONS. And that, ladies and gentlemen is the ‘payment-deduction’ that just went up BY ANOTHER $24 BILLIONS.

The “payment” of the ‘Interest On Reserve Balance’ (IORB) accounts becomes a deduction from the Net Income of the Fed.

That deduction from ‘net income’ of the Fed is a matching reduction in the amount of ‘net income’ the Fed repays, via remittance, annually to the Treasury. When that $24 Billion is added to the two previous increases — like $75 Billion, and then we pay the cost of the Fed Banks and the Board of Governors LUNCHES, so another $7 Billion or so. The next thing you know, we the people are out the whole $122 Billion we already paid in interest on those holdings.

Then, what happens? The government is short, let’s say, a Hundred Billion in paying its Bills, and must either cut spending (very difficult), or BORROW ANOTHER $!00 BILLION.

So, take a vote. Central Bank Independence. A Bad Thing? Or A Very Bad Thing?

IN CLOSING

I have tried to advance our understandings of the reality of the history of fractional reserve banking at the Fed, born inauspiciously by the printing of fraudulent ‘receipts’ by the Goldsmith Bankers of yore. A long travesty of private privilege centuries old. Yet enduring.

I have tried at the same time to shed some light on the very real anti-social monetary outcomes, the TYRANNY if you will, that such a PRIVATE money and banking relationship brings into evidence.

TO THE RAMPARTS!

Thanks.

Joe Bongiovanni,
The Money Apprentice

Green Party of Virginia