The Central Bank Advantage for Capital?

[georgephillip]

Can anyone who's mentally capable of understanding Rothschild-speak explain in plain English what advantage central banking provides for capital, and does this advantage come at the expense of labor?

"'The few who understand the (central banking) system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.' The Rothschild brothers of London writing to associates in New York, 1863."

Famous Quotations on Banking

 

[georgephillip]

"'The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilization.' Otto von Bismark (1815-1898), German Chancellor, after the Lincoln assassination"

 

[RandomVariable]

There are a fair number of videos on YouTube on the matter. I have no idea how much of it bears any resemblance to the truth. If you would like a link I can see if I can find one that appears at least coherent.

 

[georgephillip]

There are a fair number of videos on YouTube on the matter. I have no idea how much of it bears any resemblance to the truth. If you would like a link I can see if I can find one that appears at least coherent.

Thanks.
There's no shortage of what appears to be hyperbole on this subject:

"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”

– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s"

One can only wonder if Ellen Brown's solution is a simple as it sounds?

"If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves.

"Among other benefits to the taxpayers. a truly 'federal' Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades."

Who Owns The Federal Reserve? | Global Research

 

[sameech]

One can only wonder if Ellen Brown's solution is a simple as it sounds?

"If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves.

"Among other benefits to the taxpayers. a truly 'federal' Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades."

Who Owns The Federal Reserve? | Global Research

I suppose whether or not you see that as a problem or a solution depends on what your view is as to the credit theory of money. I know that some have a nebulous belief that the US dollar derives its value from the assets of the government (I have seen estimates putting that around $130T and our unstated debt somewhere around $100T) and therefore is still a commodity-backed currency with more room for new currency so a direct issuance would be okay. Others disagree with what money represents, notably debt, so we would need a mechanism like the fed to make the debits equal the credits.

 

[georgephillip]

One can only wonder if Ellen Brown's solution is a simple as it sounds?

"If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves.

"Among other benefits to the taxpayers. a truly 'federal' Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades."

Who Owns The Federal Reserve? | Global Research

I suppose whether or not you see that as a problem or a solution depends on what your view is as to the credit theory of money. I know that some have a nebulous belief that the US dollar derives its value from the assets of the government (I have seen estimates putting that around $130T and our unstated debt somewhere around $100T) and therefore is still a commodity-backed currency with more room for new currency so a direct issuance would be okay. Others disagree with what money represents, notably debt, so we would need a mechanism like the fed to make the debits equal the credits.

Do you believe such a mechanism would have to be in the hands of private middlemen earning a profit for balancing debits and credits?

 

[sameech]

Do you believe such a mechanism would have to be in the hands of private middlemen earning a profit for balancing debits and credits?

I don't think that federal reserve really earns a profit in that way, but of course not. Having a middleman certainly adds a check to the whims of government at least theoretically, but a responsible government would not necessarily need it, and that we have it does not mean that the federal reserve hasn't become a servant of political whims. The best middleman would probably be some institution detached from a single government--a currency board for multiple like governments/economies, but I am not willing for the US to give up its sovereignty over its currency the way European nations have.

 

[RandomVariable]

There are a fair number of videos on YouTube on the matter. I have no idea how much of it bears any resemblance to the truth. If you would like a link I can see if I can find one that appears at least coherent.

Thanks.
There's no shortage of what appears to be hyperbole on this subject:

"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”

– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s"

One can only wonder if Ellen Brown's solution is a simple as it sounds?

"If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves.

"Among other benefits to the taxpayers. a truly 'federal' Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades."

Who Owns The Federal Reserve? | Global Research

Is it? For Brown's suggestion to be implemented presumably it would have to pass both chambers of Congress and get a Presidential signature and none of that will happen with Republicans in control any one of those pieces.

 

[georgephillip]

There are a fair number of videos on YouTube on the matter. I have no idea how much of it bears any resemblance to the truth. If you would like a link I can see if I can find one that appears at least coherent.

Thanks.
There's no shortage of what appears to be hyperbole on this subject:

"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”

– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s"

One can only wonder if Ellen Brown's solution is a simple as it sounds?

"If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves.

"Among other benefits to the taxpayers. a truly 'federal' Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades."

Who Owns The Federal Reserve? | Global Research

Is it? For Brown's suggestion to be implemented presumably it would have to pass both chambers of Congress and get a Presidential signature and none of that will happen with Republicans in control any one of those pieces.

I'm not sure a majority of DC Democrats would support her suggestion either.
There has been some recent support for public banks operating at the level of North Dakota's State Bank:

"A growing number of policymakers have been looking to North Dakota and its state bank. Why, you ask? Founded in 1919 with $2 million in capital, the Bank of North Dakota (BND) now operates with more than $270 million. More to the point, it has handed over some $300 million to North Dakota's treasury over the past decade."

The Case for a State-Owned Bank

 

[Ahsan558]

It has give many advantages to the capital like revenue, infrastructure, debt and other investments.

 

[georgephillip]

It has give many advantages to the capital like revenue, infrastructure, debt and other investments.

Is this part of what you're referring to?

"The largest U.S. banks, including JPMorgan Chase (JPM) & Co. and Citigroup Inc., have been able to borrow more cheaply in bond markets than smaller rivals, in part because of investor perceptions that they were too big to fail, according to a Federal Reserve Bank of New York researcher.

"The five largest banks paid on average 0.31 percentage point less on A rated debt than their smaller peers, according to a paper released today by the Fed district bank based on data from 1985 until 2009."

Fed Economist Says Big Bank Borrowing Advantage Increases Risk - Bloomberg