Monetary Reforms: How to flush out the clever bastards

Monetary Reforms: How to flush out the clever bastards
by Marco Saba. March 17, 2020

  Throughout history we find various examples of crisis situations in which attempts have been made to propose alternatives to the current functioning of the banking and monetary system. Since the 30s of the last century, after the great crisis of 1929 engineered by anarchist bankers, various English or American authors have tried their hand writing essays on the issue: Irving Fisher, Ezra Pound, C.H. Douglas, H.W.S. Russell, Mark Jeffrey, etc. (you can find the Italian translations in my website Amazon amazon.com/author/marcosaba ). More recently we have movements (MMT, M5S, Positive Money, AMI, Whole Coin, etc.) and individuals (Rossi-Barnard, Borghi, Bagnai, Comparison, etc.) who have been active in the field, and others will soon be activated to ride the wave.

   The problem is: how to understand if they are people in good faith or co-opted on purpose to "medicate" the arguments and solutions proposed ?
For those who are fasting in the sector it is not very easy to understand it, because apparently every proposal may seem plausible. A minimum cultural background is necessary to distinguish between those who are in good faith and those who play the enemy's game, that is, unconscious or paid.

   Let us see, then, what are the "untouchable" points in the reform proposals, according to the anonymous bankers, to better understand the issue.

1. The public debt. Excursus: the clever bastards proposal will NOT contain a clear explanation of how this debt was formed and conducted since the times of the allied "liberation", nor of who are the beneficiaries and victims of the system of accounting mystification that allows a state "with popular sovereignty" to subcontract to private banks that create deposits from nothing ad hoc, the sovereignty of the money beater to cover the expenses of the sovereign (banking seigniorage and its social, economic and subversive consequences). This is a net loss equivalent to all the proceeds from the sale of the securities obtained by the Treasury. Public debt is an untouchable subject and must remain "regardless".

2. Seigniorage. Definition: the clever bastards proposal will adopt the banking explanation that, magically, seigniorage on banknotes and bank deposits should not be calculated in the same way as seigniorage on coins, i.e. the difference between the costs of creation and the nominal value of the monetary medium. Since they invented that the New Seigniorage would only be the one earned with the interest received from the use of the new currency, this would then be returned through normal taxation. It is a figure between one thousand and two thousand billion euros per year of net loss for the state.

3. Accounting. Irregularities: the clever bastards proposal must not mention the fact that when the bank creates money it does not register a cash inflow even though it uses this money "like a master" (mortgages, cash advances, etc.). The double definition of cash and "balance sheet liability" is incurable except with other irredeemable liabilities (ECB money). Not detecting this problem will cause damage whether the system is nationalized or remains as it is.

4. The Magisterium of Credit. The clever bastards proposal will not mention the arbitrary allocation of the new currency created by the banks, central or not, which represents a real policy that is able to manipulate the economic success or not of entrepreneurs more or less close to bankers. Bankers will never finance initiatives that they perceive as "enemies" because of the very fact of questioning their dubious practices. You see the deadly struggle against companies or actors dealing with cryptocurrencies or alternative currencies, with account closures, boycotts, money-laundering allegations and so on. There is no credit court, so those who do not obtain the necessary funding to start or continue the business become an economic dead without the possibility of recourse to a judge. The system is private and there is no public substitute to remedy it.

5. The monetary register. The clever bastards proposal will not give indications to establish a real monetary register where banks will have to register the new money created so as to know how much is actually in circulation.

6. Sponsorship. The proponents of the clever bastards reforms will not clearly reveal whether or not they have been forged by interest linked to the current banking status of the system.

7. The Constitution and laws. No clever bastards reforms will propose amendments to the Constitution or new laws that clarify key points, for example whether banking money is now legal tender since it is the only way to pay taxes....

8. State infiltration. The clever bastards proposal will not contain an active system of prevention so that public and P.A. offices are prevented from being held by persons connected to the banking cartel or the issuing bankitalia. (Finance Ministers, Heads of Cabinet, etc. etc.).

9. The state treasury. The paracula proposal will not call into question the fact that the state treasury has been entrusted to the (private) Bank of Italy for over a century without a regular call for tenders and is automatically renewed every twenty years. The treasury management control body is entrusted to men of honour from bankitalia, of course.

10. The judicial subornation. The proposed paracula will not provide for mechanisms to control that the judicial body is not remote-controlled by the banking cartel (ordinances and rulings on banking matters drawn up by the bank's own lawyers, relatives and lovers of judges hired in the bank, corruption of the bankruptcy court of executions and, in general, a whole series of favouritism specific to bankers: the systematic filing of criminal charges for usury, the presumption of the correctness of the banks, the systematic adoption of the instrument of reckless litigation to intimidate those who sue the banking system, etc.. etc.).

11. The loot. The proposal paracula will not indicate how to dispose of all the seigniorage loot accumulated by the Bank of Italy over the years and privatized to the chetichella: gold, foreign currencies, valuable real estate, etc, etc, etc..

   Now you have 11 key tools and concepts to understand if any reform proposal, however tempting, can be genuine or not.

CASE STUDY: MMT

   We come to a case study that is often talked about and that has been parachuted to us from beyond the Atlantic: the MMT (Modern Monetary Theory). The first thing that jumps out at us is that they want to maintain the public debt system by shamelessly asserting that the central bank is the state's (and not the other way around, as we are now seeing...). But we have the smoking gun on wikipedia under the NEED Act. In 2011, at the proposal of the American Monetary Institute (created by the late Steven Zarlenga) the good U.S. Democrat MP Dennis Kucinich made a bill never passed, the NEED Act, National Emergency Employment Defense Act, (H.R. 2990).




Dennis Kucinich and Steven Zarlenga.

"According to the Congressional Research Service, a nonpartisan division of the Library of Congress, the NEED Act, in brief, would^[2] replace "Federal Reserve notes" with "United States Money" and dismantle the Fed. In this, the Act

• Instructs the Secretary of the Treasury to originate "United States Money" to address any negative fund deficit spending;
• Subjects to criminal and civil penalties any person who engages in "fractional reserve banking;"
• Prohibits federal borrowing (except by a national bank, federal savings association, or federal credit union) from any source other than the Treasury;
• Requires the Treasury Secretary to begin the process of retiring all outstanding U.S. debt by paying the bearers in "United States Money;"
• Directs the Treasury Secretary to purchase all net financial assets in the Federal Reserve System, including the Federal reserve banks, and to return all reserves held by the Fed to the member banks in the form of "United States Money;"
• Establishes various institutions to replace the Fed System: (1) the Monetary Authority responsible for monetary supply policy; (2) the Bureau of the Federal Reserve that administers "United States Money;" (3) the Emergency Board tasked with recommending to Congress when a national emergency requires the President to issue a certification of emergency for the exercise of authority by the Monetary Authority as lender of last resort; and (4) a revolving loan fund in the Treasury for re-lending to banking institutions.
• Sets forth a conversion process to replace fractional reserve banking with the lending of "United States Money;"
• Sets a ceiling on interest rates."

     And then, still on wikipedia, what do we find out?

"Post Keynesian economists, such as L. Randall Wray, have argued repeatedly on the "foolishness" of notions such as promoted by the NEED Act, pointing out that if money does not represent debt, in the form of a tax credit, then it is useless.
Economist and investor Warren Mosler has pointed out that the NEED Act is an "innocent fraud," because it undertakes to end a system that has ceased to exist a long time ago."

The Cat....

and the Fox !

   These two paraculi mentioned above, Wray and Mosler, are the very heart of the MMT that is being passed off in Italy as a "panacea" that would solve our problems.... Without going into the personal files of the two individuals and their links with the CIA and the US banking system, the above is enough to disqualify them forever from any objective and reasoned discussion.

   If the reader, politician or simply curious, would like to have a personalized and dispassionate advice, he can reach me at my Telegram account for further explanations: https://t.me/Marco_Saba

   If instead you want an example of a serious proposal that goes ahead with a pilot project from April 2019, redistributing seigniorage with a universal income, go here: https://equacoin.cash

Paolo Rossi (alias "Barnard"), the Italian journalist 

who tried to smuggle the MMT in Italy...