Thank you for this diagnosis. You are absolutely right: "At base is the replacement of wealth with debt." You are right that the Federal Reserve and fractional reserve banking are the architects of this system. You are right that the system is producing a doom loop.
But you stop at the door of the cure.
You say we need to "change the economic and political calculus completely." But you do not say how.
1. Nationalize the 12 Federal Reserve Banks and place them under the U.S. Treasury.
2. Issue all new money as a debt-free, permanently circulating asset — not as interest-bearing debt.
3. End the private monopoly on money creation and the fractional reserve system.
Lincoln did this in 1862 with the Greenbacks. It saved the Union. The economy grew. The currency held. The bankers fought to kill it — because it threatened their power.
We can do it again.
The cure is not vague. It is not "changing the calculus." It is taking the money power back from the bankers and restoring it to We the People.
You must understand that your proposal is nothing but "rinse/repeat" of the same. As long as the economy is driven by the sole power of the "capital", changing who controls the capital doesn't change the underlying fundamentals. Same sheep, different clothes. Power is addictive, we should focus on preventing people becoming "power junkies".
Diesel shortage = food shortages = rationing (food riots ensue) = lockdowns = martial law (possibly war declared to invoke wartime powers act) = financial system collapse (the great taking) = digital id requirement = total surveillance = transportation restrictions = 15 minute cities = tokenization of all assets = total control = depopulation.
Keep it coming, Frank, no matter how brief. 1/ Re the trolley problem: it's always about death and killing, the thematic core of the ruling class. 2/ One thing you missed on the crisis list was the bank Repo Crisis of late 2019 which, in my view and others, triggered Operation Covid. 3/ the fake climate change narrative, along with UN Agenda 2030/50, is the playbook - and the excuse - of the liberal end times, global starvation and general nastiness.
Never apologize to anyone anytime for stating your opinion Frank. (as an aside, do you have a broadsword at home? ( And if you do- keep the steel sharp- ) you're going to need it.
I had the radio on the other day- playing was a fine rendition of 'Brother Can you Spare a Dime'
In 2008 when the world governments decided to use a concept called "quantitative easing" I remember commenting to a work colleague that these actions were going to come back and bite us.
Here’s an excellent thread from a former head of Goldman Commodity research guy Jeff Currie. Backs up what you are saying. You can pretty much feel it in your bones. I have ever since Covid.
Unfortunately, nothing which is happening today is a result of capitalism. It is due to centralisation. This contest of this century is decentralisation vs centralisation.
If you view the current world through this lens, you will see that centralisation is already failing: commodity supply chains, state authority, mass media, and so on. Each is being replaced be decentralised systems: local organisations, social media. Supply chains will be most disrupted as they move from being valued by the dollar - the single indicator of value - to multiple commodities which reflect local needs.
In the digital workd, the near-zero marginal cost of replication removes the economic barrier to decentralization, exposing the manifest inefficiencies and single points of failure and manipulation in centralised architectures.
We must now "pay the piper" and do this in the physical world.
Few ideas have endured so long, and with so little empirical support, as the belief that banks are mere intermediaries—collecting deposits from savers and lending them out to borrowers. This picture, enshrined in textbooks for over a century, became known as the Fractional Reserve Theory of Banking. It portrays a financial system in which the central bank creates base money, commercial banks multiply it through lending, and reserves act as the limiting mechanism that keeps the entire structure safe.
It is an elegant story—simple, intuitive, and entirely false.
The last decade has witnessed its quiet death. Central banks themselves have confessed that the theory does not describe the modern monetary system. Empirical studies have confirmed that new loans create new deposits, not the reverse. And history shows that endogenous money creation long predates the establishment of any central bank. The “fractional reserve” model lingers not because it is true, but because it is familiar—a relic of an age when we preferred mechanical simplicity to systemic truth.
What Central Banks Actually Do
Central banks create only reserve money—a specialized form of liquidity used for settlements between banks. These reserves circulate within the banking system but cannot be lent to the public. They are accounting entries, not circulating funds; assets to commercial banks and liabilities to the central bank.
Reserves serve two narrow functions: to settle interbank obligations and to maintain systemic stability. They are hermetically sealed from the public sphere. The money you and I use—checking deposits, mortgages, business loans—arises entirely from the balance sheets of commercial banks.
This distinction, long obscured in economics education, was made explicit in two extraordinary public statements:
∙ The Bank of England’s Quarterly Bulletin (2014) declared that “whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s account.”
∙ The Deutsche Bundesbank’s Monthly Report (2017) confirmed that “banks create book money just by making an accounting entry.”
Both institutions flatly refuted the notion that banks lend out deposits. Money is created at the moment of lending and extinguished when loans are repaid.
Unfortunately, nothing which is happening today is a result of capitalism. It is due to centralisation. This contest of this century is decentralisation vs centralisation.
If you view the current world through this lens, you will see that centralisation is already failing: commodity supply chains, state authority, mass media, and so on. Each is being replaced be decentralised systems: local organisations, social media. Supply chains will be most disrupted as they move from being valued by the dollar - the single indicator of value - to multiple commodities which reflect local needs.
In the digital workd, the near-zero marginal cost of replication removes the economic barrier to decentralization, exposing the manifest inefficiencies and single points of failure and manipulation in centralised architectures.
We must now "pay the piper" and do this in the physical world.
Some ''tools'' to support resurgence of ''the living infrastructure'' as co-owners and custodians who've agreed to cause no harm as they unfold their own local ''Market-Space'' https://co-oplab.com
Thank you for this diagnosis. You are absolutely right: "At base is the replacement of wealth with debt." You are right that the Federal Reserve and fractional reserve banking are the architects of this system. You are right that the system is producing a doom loop.
But you stop at the door of the cure.
You say we need to "change the economic and political calculus completely." But you do not say how.
Here is what we at monetaryalliance.org propose:
1. Nationalize the 12 Federal Reserve Banks and place them under the U.S. Treasury.
2. Issue all new money as a debt-free, permanently circulating asset — not as interest-bearing debt.
3. End the private monopoly on money creation and the fractional reserve system.
Lincoln did this in 1862 with the Greenbacks. It saved the Union. The economy grew. The currency held. The bankers fought to kill it — because it threatened their power.
We can do it again.
The cure is not vague. It is not "changing the calculus." It is taking the money power back from the bankers and restoring it to We the People.
You must understand that your proposal is nothing but "rinse/repeat" of the same. As long as the economy is driven by the sole power of the "capital", changing who controls the capital doesn't change the underlying fundamentals. Same sheep, different clothes. Power is addictive, we should focus on preventing people becoming "power junkies".
So true. I very much concur that the solution to our current predicament is to trust in God. No one on earth is coming to help us.
Diesel shortage = food shortages = rationing (food riots ensue) = lockdowns = martial law (possibly war declared to invoke wartime powers act) = financial system collapse (the great taking) = digital id requirement = total surveillance = transportation restrictions = 15 minute cities = tokenization of all assets = total control = depopulation.
Keep it coming, Frank, no matter how brief. 1/ Re the trolley problem: it's always about death and killing, the thematic core of the ruling class. 2/ One thing you missed on the crisis list was the bank Repo Crisis of late 2019 which, in my view and others, triggered Operation Covid. 3/ the fake climate change narrative, along with UN Agenda 2030/50, is the playbook - and the excuse - of the liberal end times, global starvation and general nastiness.
Never apologize to anyone anytime for stating your opinion Frank. (as an aside, do you have a broadsword at home? ( And if you do- keep the steel sharp- ) you're going to need it.
I had the radio on the other day- playing was a fine rendition of 'Brother Can you Spare a Dime'
Or Forty Trillion.
I am not trained in economics so will read these opinions with interest.
For some reason, ringing in my head is the aphorism: "Neither a lender nor borrower be.". Maybe it's pertinent, maybe not.
Thank you Frank for all you do!
In 2008 when the world governments decided to use a concept called "quantitative easing" I remember commenting to a work colleague that these actions were going to come back and bite us.
Here’s an excellent thread from a former head of Goldman Commodity research guy Jeff Currie. Backs up what you are saying. You can pretty much feel it in your bones. I have ever since Covid.
https://x.com/commodmkt/status/2090414593113756080?s=42
Unfortunately, nothing which is happening today is a result of capitalism. It is due to centralisation. This contest of this century is decentralisation vs centralisation.
If you view the current world through this lens, you will see that centralisation is already failing: commodity supply chains, state authority, mass media, and so on. Each is being replaced be decentralised systems: local organisations, social media. Supply chains will be most disrupted as they move from being valued by the dollar - the single indicator of value - to multiple commodities which reflect local needs.
In the digital workd, the near-zero marginal cost of replication removes the economic barrier to decentralization, exposing the manifest inefficiencies and single points of failure and manipulation in centralised architectures.
We must now "pay the piper" and do this in the physical world.
The Persistence of a Myth
Few ideas have endured so long, and with so little empirical support, as the belief that banks are mere intermediaries—collecting deposits from savers and lending them out to borrowers. This picture, enshrined in textbooks for over a century, became known as the Fractional Reserve Theory of Banking. It portrays a financial system in which the central bank creates base money, commercial banks multiply it through lending, and reserves act as the limiting mechanism that keeps the entire structure safe.
It is an elegant story—simple, intuitive, and entirely false.
The last decade has witnessed its quiet death. Central banks themselves have confessed that the theory does not describe the modern monetary system. Empirical studies have confirmed that new loans create new deposits, not the reverse. And history shows that endogenous money creation long predates the establishment of any central bank. The “fractional reserve” model lingers not because it is true, but because it is familiar—a relic of an age when we preferred mechanical simplicity to systemic truth.
What Central Banks Actually Do
Central banks create only reserve money—a specialized form of liquidity used for settlements between banks. These reserves circulate within the banking system but cannot be lent to the public. They are accounting entries, not circulating funds; assets to commercial banks and liabilities to the central bank.
Reserves serve two narrow functions: to settle interbank obligations and to maintain systemic stability. They are hermetically sealed from the public sphere. The money you and I use—checking deposits, mortgages, business loans—arises entirely from the balance sheets of commercial banks.
This distinction, long obscured in economics education, was made explicit in two extraordinary public statements:
∙ The Bank of England’s Quarterly Bulletin (2014) declared that “whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s account.”
∙ The Deutsche Bundesbank’s Monthly Report (2017) confirmed that “banks create book money just by making an accounting entry.”
Both institutions flatly refuted the notion that banks lend out deposits. Money is created at the moment of lending and extinguished when loans are repaid.
While the interest charged on this ''counterfeiting'' process guarantees scarcity as a major control mechanism and related ''elite'' plunder.
HOW TO MAKE FLAT BREAD THE OLDEST BREAD IN THE WORLD PERFECT SURVIVAL BREAD
https://youtu.be/iLOLk70yvoI
You mean a chapatti
Perhaps solutions for us po folks.
Unfortunately, nothing which is happening today is a result of capitalism. It is due to centralisation. This contest of this century is decentralisation vs centralisation.
If you view the current world through this lens, you will see that centralisation is already failing: commodity supply chains, state authority, mass media, and so on. Each is being replaced be decentralised systems: local organisations, social media. Supply chains will be most disrupted as they move from being valued by the dollar - the single indicator of value - to multiple commodities which reflect local needs.
In the digital workd, the near-zero marginal cost of replication removes the economic barrier to decentralization, exposing the manifest inefficiencies and single points of failure and manipulation in centralised architectures.
We must now "pay the piper" and do this in the physical world.
Some ''tools'' to support resurgence of ''the living infrastructure'' as co-owners and custodians who've agreed to cause no harm as they unfold their own local ''Market-Space'' https://co-oplab.com
Looking forward to it.