Thursday, October 15, 2009

Clash of Cultures on trial in Florida U.S. Constitution vs Islam ...tempers fly!

Source Atlas Shrugs
If you've been following this Tifqa Bary case you need to see this video.

Juicy video. Much thanks to Mark Campbell for sending this for Atlas readers to munch on. Campbell caught the second half of my "debate" with Keating (along with Rep. Adam Hasner's excellent remarks, as well as those by Alan Kornman of Act for America).

Let me add that Campbell also witnessed Phil Keating sprint from the courtroom after the decision was announced that Rifqa would be returned to Ohio. Campbell was standing right next to Keating when he gleefully announced with thumbs raised to the waiting press, "she is going back to Ohio, boys!", smirking, smiling broadly. Here is Mark Campbell's account:
Phil Keating was sitting behind me during the whole Rifqa hearing in the auxiliary courtroom. As we exited the courthouse Keating limped up to the news crews stationed outside and gleefully exclaimed with both thumbs raised high before him, "She's going back to Ohio, boys!"
Keating took me on at the last hearing here, siding again with Islamists and CAIR, And this is FOX, which gives a good indication of what Rifqa and we are up against. Rifqa took them all on. Consider what furnished and paid for Rifqa's parent's legal team. (Phyllis Chesler here)
CAIR has also consistently lied about honor killings in North America.
Most recently, CAIR funded the lawyers for Fathima Rifqa Bary’s parents (she’s the Muslim teenager who converted to Christianity and ran away after she said her father had threatened to kill her). CAIR and their lawyers insisted that Rifqa had never been abused or threatened, that apostates are never killed by their Muslim families or communities. They specifically told Florida law enforcement authorities that there is no such thing as an honor killing in Islam. CAIR’s usual line is that every community has its share of “domestic violence.”
However, in a previous study in Middle East Quarterly, and in a new, forthcoming study which will appear in MEQ as well, I have shown that honor killings and western-style domestically violent femicides are very different. Although some Hindus and some Sikhs do commit honor murders, this is mainly a Muslim-on-Muslim and male-on-female crime.
CALL THE GOVERNOR to keep Rifqa in Florida.
Governor Charlie Crist's office: Phone: (850) 488-4441, (850) 488-7146
Fax: (850) 487-0801
Email: Charlie.Crist@MyFlorida.com

Flu Shots and You ...strange things could happen - This is just one reason why they should not be mandatory. Are you listening Massachusetts?

Source: MyFoxDC.com

Woman Disabled by Flu Shot Reaction

[see video below]

Updated: Wednesday, 14 Oct 2009, 5:29 PM EDT
Published : Tuesday, 13 Oct 2009, 11:27 PM EDT

WASHINGTON, D.C. - An Ashburn, Virginia woman is in the fight of her life after suffering a very rare side effect to the seasonal flu shot.

The vast majority of doctors say flu shots are safe. In this case, the FDA says they found nothing wrong with this particular batch, but sometimes there are complications.

That's apparently what happened to Desiree Jennings, and now her life will never be the same.

At 26 years old, Desiree Jennings was the picture of health. She's a Washington Redskins cheerleader and an avid runner. Her life changed forever on August 23 when she says she got a seasonal flu shot at a local grocery store.

"I was training for a half marathon then," said Jennings, crying. "It just all went so fast."

Ten days after receiving the shot, she came down with the flu. After that, her health spiraled downwards. She started passing out and had to be hospitalized twice.

"We went to an urgent care place and they wouldn't even let her get out of my truck because she was seizing in the back so bad, so they called an ambulance immediately," says her husband, Brendan Jennings.

Doctors at Fairfax Inova and Johns Hopkins diagnosed her with a rare neurological disorder called dystonia. They think it was caused by a severe reaction to the flu shot.

Desiree now has difficulty speaking, walking, and even eating. During an interview with FOX 5, she had several seizures. The effects are irreversible.

If video does not appear click here http://www.myfoxdc.com/dpp/health/101309_woman_disabled_by_flu_shot_reaction_dystonia

Ode to Chalres Kuralt ...sort of

Source: Tygrrr Express

Now here's a good story if for no other reason it brought back some fond memories of my previous readings of great books about America (see comments at the end of Eric's editorial) ~ Norman E. Hooben


Ode to Chalres Kuralt–10 Cities in 10 Days

One man I have always admired is Charles Kuralt.

I have said on many occasions that if I had unlimited money, I would get a Camper or an RV and just drive around America shaking hands, meeting people, and hearing their stories.

I even envy presidential candidates. They get to shake hands with Americans all across this country. The ones that sincerely enjoy it are more lucky than they realize.

I remember once reading about a town called Lazy Lake, Florida, that supposedly had 35 people, 33 adults and a pair of children. In determining the public official;s such as police chief, fire chief, and Mayor, they would supposedly get together and say, “This week, who wants to be what?”

I have no idea if this is true. I just know that I would have been happy to meet all of them.

I recently came back from four cities in four days.

On Saturday, October 3rd, I was in Yuba County, which is an hour North of Sacramento. I spoke to the Yuba County Republican Party at an event put on by Gun Owners of California.

For those who think that California is city life, California has many parts that are as rural and country as anywhere in Middle America. Most of the people I met had jeans and boots on. There was not a single necktie. They owned guns, and knew how to use them responsibly.

What they were not was hayseeds. They knew more about legislation coming before Congress on many issues than any other group of people I have ever met.

They were also not wild-eyed conspiracy nuts. They were as normal as normal can be.

I got to meet Terri and John Rutherford. The Rutherfords live on 23 acres of land. Yet they didn’t have to spend millions of dollars to buy a house. They simply got some tools, and built it.

This can do spirit was admirable.

I told John Rutherford that if I had to live there for more than a week, I would go out of my mind. He laughed. I told him that I knew why he lived there. It was peaceful and quiet. He agreed. I told him that I was a high stressed, high strung, stockbrokerage Type A personality. I need action. However, there are times when even people like me need to block it all out.

To spend even a few hours in his part of the world was pure paradise.

Besides, for those who don’t want it. He will do just fine if you don’t show up.

The Rutherfords showed me a slower pace, and I could even feel myself calming down.

They told me that I had a place to stay whenever I wanted. I told them that if they insisted on making that offer, I might take it. We all laughed. At some point, I will visit Yuba County again. I just need a truck to go on the gravel roads. Rental cars are not built for where I was.

On Sunday, October 4th, I was in Palm Springs. This was a different kind of beauty. The Palm trees were as beautiful as anything I had ever seen in South Florida. I spoke to the Palm Beach Lincoln Club. I was the opening act for Congresswoman Mary Bono Mack.

While the audience was right of center, this crowd was tilted heavily toward Log Cabin Republicans and American Indians.Congresswoman Bono Mack was engaging, funny, and warm.

I got to spend time with Bob and Elise Richmond. Elise has a radio show. She is on her way to stardom.

Like the Rutherfords, the Richmonds had their politics matched only by their hospitality and kindness toward me. Like me, they like their football. The sportsbar we went to was much quieter and more relaxing than anything I was used to. You could actually hear the games.

Monday, October 5th had me back in Los Angeles. I attended a Jewish football watching party for the holiday of Sukkos. Brett Favre and the Vikings defeated his old team, the Packers. I managed to experience my favorite sport and my religion in abundance.

Tuesday, October 6th had me in San Diego. The morning started with me attending a luncheon for a group called CALA, Citizens Against Lawsuit Abuse. Hugh Hewitt was the featured speaker. He has treated me with much kindness since the first time I met him. After the luncheon, we all went to a carpet store, Coles Carpet.

Now spending hours in a carpet store is something I have never done before. However, Hugh Hewitt broadcast his show from there. After his show, there was a reception. So many people are passionate about abusive lawsuits. These people are not rich. I saw small business owners.

Yet what made it even nicer was that a friend I had made awhile back randomly walked in. Woody Woodrum runs the San Diego chapter of the Eagle Forum, a socially conservative group. I Emceed the kickoff event for his chapter.

We greeted each other warmly, and then I let him know that the kindness he had shown me was about to be repaid. I had to leave the CALA event for a totally different Republican experience, and I wanted him to join me. I am glad he did.

We drove to the UCSD Campus in La Jolla, San Diego. I spoke to the College Republicans. Alec Weisman set it up. After making them laugh, we all went to dinner and had a great time. Like typical college students, they had a bed for me to crash on. However, I decided to drive back to my own bed in Los Angeles.

Four cities in four days was tiring, but yet I was more mellow than I had been in years.

Yes, these were mainly Republican events, but the people were so different. Anybody thinking all Republicans or conservatives are the same simply has not met them.

Gun owners in Yuba County, Log Cabin and American Indian Republicans in Palm Springs, small business owners in San Diego, and college students in La Jolla had one thing in common. They all treated me with kindness, and gave me a rich experience that will one day lead to me being a more well rounded person.

I am not well rounded. I don’t know anything about most things. I tell people I know nothing about virtually everything. Yet after these four days, at least I scratched the surface of a few more things.

Yet this is not being done for leisure. I am not Charles Kuralt yet. I am not financially comfortable enough to be retired. I am on a speaking tour to promote my book, “Ideological Bigotry.”

Yet this really is about much more than capitalism. It is about making friends I will have for life.

If it was not politics, it would be something else. Those who think I only shake conservative hands simply don’t know me. My passion for football has allow me to meet total strangers living in Canton, Ohio, while enjoying the Hall of Fame Game. It has allowed me to meet the Jewish communities of Waikiki, Honolulu, Oahu, as well as Maui, while enjoying the Pro Bowl. The Draft was in New York City, but people came from all over America.

I am fairly convinced that many of the black and Hispanic people I was belly bumping with in Oakland while rooting for the Raiders did not share my politics. Sports has allowed me to meet more people.

Yet beyond sports and politics, there are too many people that impact us in ways they will never know.

My cab driver in Israel was named Faisal. He was an Arab. I had never met an Arab before in Israel. He was a nice guy. Yet the lady at the hotel in Indian Wells, California laughed because I did not know what county I was in. It turned out to be in Riverside County, not San Bernardino County. She was the very first person I had ever met in Riverside County. Who cares? I do.

I met Thaddeus McCotter, who lives in Inyo County, which is Central California. I can’t wait to go to Inyo County. Why? Because it’s there.

Yet four cities in four days was only California. Now it is time for 10 cities in 10 days.

October 15th is Orange County with Chuck DeVore, followed by Conejo Valley in Ventura County on the 16th. That night I take a redeye, where on the 17th I am in Duplin County, North Carolina. It is not a well known area, but I bet the BBQ will be fabulous. On the 18th I am in Maryland. The day has me opening for Senate candidate Jim Rutledge in Monkton, while the early evening has me in Montgomery County speaking to the ladies.

On the 19th I may spend the morning at Leisure World. A gentleman from Judicial Watch will be speaking to the senior citizens. Lunchtime has me in Washington, DC, since Ilan Berman is speaking to the Republican Jewish Coalition about Israel and Iran. Later that night I head to Arlington Virginia to speak to the Young Republicans.

On the 20th I fly back to Los Angeles, get in just before midnight, sleep for a few hours, and then hit the road again for three straight days of the Republican Women’s Federated in three different Southern California counties. The 21st is Lakside in San Diego, the 22nd is Diamond Bar in LA County, and the 23rd is Palm Springs again. I do come home on the 24th, but there is a great event in Malibu. I might attend, if my eyes and body still work. They better. I have a football league I play in, and the game is in Venice on the 24th.

My exact itinerary is below, for those who wish to attend the events. Yet the events are secondary.

What matters to me is that there are so many good people in this world.

It may seem like a hectic pace, and it is. However, it beats cabin fever and driving myself crazy thinking about stuff I should not be thinking about anyway.

After years of being hot headed, I am trying to slow down, calm down, and dare I say it…relax.

Stress kills people. I want to stick around for awhile. I have the best friends a guy could possibly ask for.

Those are just the ones I have already met. The ones I haven’t met are just around the corner.

I hope I make Charles Kuralt proud. Even if I don’t meet as many people as he did, it will have been worth the trip. Who knows? One day I may have that Camper or RV and really get on the road.

Whether it’s Eastbound and Down from Texarkana to Atlanta, the Alabama Jubilee, or Blue Moon of Kentucky, adventure abounds.

So when you see me, shake my hand. It doesn’t matter what your politics are. We can agree to disagree over a hot meal and a ball game.

Shake my hand. We will both be glad you did.

“Time to board another plane…memories of you still remain…this is how my life unravels…as the carnival travels.”

“San Diego Gravel…Brooklyn New York Lower Level…South Beach Miami Revel…Hawaii’s Inner Navel…LA, Chicago, Hotlanta, off to swing life’s gavel…as the carnival travels.”

“Flying down the highway headed West. In a streak of black lightning, called the Tygrrrr Express.”

10 cities in 10 days.

The Tygrrrr Express is fully fueled and ready to go.

On to the next adventure.

eric

Thursday, October 15—I will be speaking to the Lake Forest Chapter of the Republican Women’s Federated in Orange County. I will be the undercard for Chuck DeVore. 6:30pm at the Uncorked Wine Bar 22343 El Paseo, Suite A, Rancho Santa Margarita. Please contact Donna Delano for details.

http://www.ocgop.org/yourcity/index.cfm/Lake_Forest_28.htm

Friday, October 16—I will be speaking to the Conejo Valley Republican Women’s Federated at an 11:30am luncheon at the Thousand Oaks Inn. Please contact Dianne Alexander for more details.

http://www.cfrw.org/divisions/listbycounty.php?county=ventura

Saturday, October 17—I will be speaking at a Barbecue for the Duplin County Republican Party in North Carolina at 4pm. East Duplin Sr. Citizens Building - Hwy 241. Contact Judy Arnett for more details.

http://www.duplincountygop.com/?page=events

Sunday, October 18—I will be speaking as the undercard for U.S. Senate Candidate Jim Rutledge at a fundraiser in Monkton County, Maryland, at 2pm. The fundraiser takes place at Manor Tavern. Please contact Lisa Fitzhugh for details.

http://www.rutledgeforussenate.com/

Sunday, October 18—I will be speaking to the Montgomery County Republican Women’s Federated in Maryland at 4:30pm at La Tasca Restaurant, which is located at 141 Gibbs Street in Rockville’s Town Center. Please contact Liz Rubin for details.

http://latascausa.com/location5.cfm

Monday, October 19—Tom Fitton is speaking to the Leisure World Republican Club in Silver Springs, Maryland at 10am. Please contact Mary Ann Johnston for details.

http://mcyr.org/calendar/event.aspx?id=515

Monday, October 19—I will be attending a brown bag lunch at Noon with Ilan Berman, who will be addressing the Washington, DC chapter of the Republican Jewish Coalition.

http://www.rjchq.org/Events/eventdetail.aspx?id=15f3b662-0b5d-4143-a70d-399f88bb8376

Monday, October 19—I will be speaking to the Arlington, Virginia, Young Republicans. The event takes place at RiRa Irish Pub, Clarendon, 2915 Wilson Boulevard. Please contact Ian Meyeroff for details.

http://www.afcyr.org/index.php

Wednesday, October 21—I will be speaking to the Lakeside Republican Women’s Federated in San Diego County at 10am at the Fire Station, 12365 Parkside 92040. 619-390-2350. Please contact Joan Buselt for details.

http://www.sandiegorepublicans.org/clubs/

Thursday, October 22– I will be speaking to the Diamond Bar Republican Women’s Federated at an evening dinner party. The event will be at the Diamond Bar Country Club and Golf Course. Please contact Trisha Bowler for details.

http://www.ci.diamond-bar.ca.us/index.aspx?recordid=7609&page=253

Friday, October 23—I will be speaking to the Palm Springs Republican Women’s Federated at an evening dinner. Please contact Sharon McCabe for details.

http://www.psrwf.org/

Saturday, October 24–Play football in Venice, dinner in Malibu?

Sunday, October 25–Watch NFL football at home. Just let me relax. Please.

eric

___________

2 Responses to “Ode to Chalres Kuralt–10 Cities in 10 Days”

  1. Norm Says:

    Wonderful story…
    I loved Charles Kuralt but I think he got his idea for traveling around the country from Ernie Pyle. If you can find it, I highly suggest you read ‘Home Country’ by Ernie Pyle. It was first published in 1935…if you cannot find a copy I will gladly loan you mine. And probably the best book ever written about America’s homeland during World War II was ‘ The American Home Front’ by Alistair Cooke…you can learn a lot about this country from that one book alone! First published in 2007, the entire manuscript was found in a closet after his death…it was written in 1942! An amazing book! Wonderfully written!…almost as wonderful as yours (LOL)

    Norm

  2. Norm Says:

    …Also check out John Steinbeck’s ‘Travels With Charlie’. Not near as good as Pyle or Cooke but has some interesting oddities like the one where he went to a motel (should say, “cabins”) in Vermont and no-one was around…he spent the night and checked out in the morning and still no-one was around!

The Constitution of Honduras was just negated. ...Will Obama try it here? ...and where's the media? UpDated

Update to previous story at bottom of page... Still the news is bad!

Honduras de facto leader dampens hope of Zelaya deal

TEGUCIGALPA (Reuters) – Honduras' de facto leader Roberto Micheletti appeared to back away on Wednesday from a proposed deal to resolve a political crisis sparked when the army ousted President Manuel Zelaya in a coup.

Zelaya's lead negotiator Victor Meza had earlier said the two sides agreed on the wording of an agreement, and the army chief said a resolution was near.

But negotiators who met later with Micheletti in the presidential palace in Tegucigalpa said no final deal had been reached on the central issue of reinstating the leftist Zelaya, who was toppled in a June 28 coup.

"The dialogue on this point has been cordial and both sides have made important advances. However, at this moment, there is no final agreement on this point," they said in a statement.

The coup triggered Central America's worst crisis in years. It has become U.S. President Barack Obama's first major test in Latin America after promising better relations with the region.

The central issue in negotiations this week is the return of Zelaya to power, but Micheletti, a veteran politician who took office after the putsch, said on Wednesday that the Supreme Court would have to decide the future of his rival.

"As I understand it, Zelaya is asking that Congress determine if he can return or not," Micheletti said. "But it is the Supreme Court that has to decide."

The proposal put together by negotiators is also believed to contain plans for a interim government with representatives from both camps.

Army chief Romeo Vasquez, a key figure in the coup, said a deal appeared close. "I know that we have advanced significantly, we are almost at the end of this crisis," he told local radio HRN.

HOLED-UP IN EMBASSY

Zelaya was toppled and forced into exile by soldiers but slipped back into Honduras last month and took refuge in the Brazilian embassy in the capital to avoid arrest.

On Wednesday, he met with negotiators in the embassy to review the proposed deal. "The final edition of this text is in discussion," Zelaya told reporters.

A wealthy rancher who wears a cowboy hat, Zelaya angered powerful conservatives when he was in power by building close ties with Venezuela's socialist President Hugo Chavez and toying with reform of the constitution, possibly to allow re-election for presidents.

The United States and other foreign governments have condemned the coup against Zelaya and threatened not to recognize elections called for November 29 if democracy is not restored before that date.

Heather Berkman, an analyst for political risk consultants Eurasia Group, said the looming elections had increased pressure on the de facto government to find a solution.

"The real concern of the political and economic elites is that the international community will not recognize the elections," Berkman said earlier on Wednesday.

The reinstatement of Zelaya would be a Latin American foreign policy victory for Obama, who came out against the coup in a break with past U.S. policy that tacitly supported the ouster of leftist presidents in the region.

Socialist leaders such as Chavez have said Obama needs to push harder to bring back Zelaya. At home, Obama has been criticized by Republicans for sticking by the leftist president

See also: http://edition.cnn.com/2009/WORLD/americas/10/14/honduras.political.turmoil/



Source Atlas Shrugs

This bad news folks...very bad news! And why was it not blasted all over the radio and television? Do you think Obama and company may have had something to do with it? Ya'all be careful now hear! ~ Norman E. Hooben ...geeesh, things are really get bad out there!

Honduras to Restore Ousted President, Chavez Proxy Zelaya

Due to the relentless pressure from Obama. Zelaya's coup on the Honduran constitution was illegal. Perhaps Obama hopes to replicate the same thing here. US media is not yet reporting this....................

Honduras to restore ousted president. New Age (hat tip Kenneth)

Honduran negotiators reached agreement on Wednesday on a plan to restore President Manuel Zelaya to office and end a political crisis triggered by his ouster in a June coup.

"We have agreed in a document on point number six, which relates to the restitution of the powers of state to where they were before June 28, 2009," Victor Meza, Zelaya's representative, told a news conference.

Restoring the state to the situation before the coup would imply Zelaya's return to office, something that had been opposed by Robert Micheletti, the head of the coup-backed interim government.

Micheletti and Zelaya must now ratify the agreement reached by their representatives in talks Tegucigalpa.

==========================

In effect, The Constitution of Honduras was just negated.

Clearly, they will vote him out - if the fix is not in. Previously at Atlas: Busted: Corrupt Zelaya Fixed Election Results for Vote that never took place

Obama backed the Chavez backed Zelaya coup.

What happened in Honduras was nothing short of the preservation of their democracy. Their president, Zelaya, tried to usurp the will of the people (sound familiar?).

Take this hypothetical: Imagine Obama announced that he was going to hold a referendum on legalizing a third term for himself. Imagine that even his attorney general Eric Holder advised him that it was illegal. Imagine that the Supreme Court ruled that holding the referendum was unconstitutional. In spite of that, let's imagine that Obama coerced the FEC to hold the referendum anyway. Then we found out that the referendum was being financed by Hugo Chavez. What should the Joint Chiefs do? That is exactly what occurred in Honduras to a tee. The Honduras Attorney General and their Supreme Court did exactly that. Their Generals did what they had to.

Wednesday, October 14, 2009

Reclaiming The Money Power For The People

Source Web Of Debt

"Trusting Timothy Geithner to determine the day to day credit needs of the country would be the equivalent of trusting the Russian Soviet to accurately determine how many size 9 shoes its population needed."

An Open Letter To The American Monetary Institute

MORE THAN ONE WAY TO RECLAIM THE POWER TO CREATE MONEY

Sirs: This is in response to the entry posted on your American Monetary Institute blog on August 16, 2009, which references my articles on a state-owned bank solution to the credit crisis. I was disappointed to read that you thought my proposal was “an insult to humanity,” as the idea was actually drawn from the AMI’s book The Lost Science of Money. I do quite a bit of writing and speaking, and I always follow your lead in saying the ideal monetary model is that established in Benjamin Franklin’s colony of Pennsylvania, which not only spent but lent money into the economy, through its own publicly-owned bank. The Lost Science of Money calls it “Pennsylvania’s Superior Money System.” On pages 370-71, your book quotes Pennsylvania Governor William Keith, who wrote of the province’s founding of a publicly-owned bank:

“It is inconceivable to think what a prodigious good effect immediately ensued on all the affairs of that province . . . . The poor middling people who had any lands or houses to pledge, borrowed from the loan office, and paid off their usurious creditors. The few rich men who had before this [quit] the trade – except that of usury – were obliged to build ships, and launch out again into trade.”

It is submitted that our proposals aim for the same thing – reclaiming the money power for the people themselves. We would just get there by different routes. My public bank would create credit on its books, lend it, and charge interest on it. You would have a public entity create money and lend it to private banks at interest, which would then lend it to consumers and businesses at interest. The private banks in your scheme would no doubt tack their interest costs onto the interest charged to the end borrowers, since banks are in the business of making a profit, and that is the only way they could make a profit in your system. My proposal would just eliminate the profits to the private banker middlemen. Banking would become a non-profit public service, with the interest returned to the public purse.

You maintain that publicly-owned banks are “mainly a distraction from genuine reform of the system, as encapsulated in the proposed American Monetary Act.” Indeed, much in that Act is excellent; but it would leave the determination of how much credit is available in the economy to a central planning board, when the money supply needs to be flexible, expanding and contracting organically in response to the needs of trade. The American Monetary Act gives the final word on the money supply to the Secretary of the Treasury, under the guidance of an independent monetary board. Today, that would be Timothy Geithner. Trusting Timothy Geithner to determine the day to day credit needs of the country would be the equivalent of trusting the Russian Soviet to accurately determine how many size 9 shoes its population needed. When the pot of available funds decreed by the Treasurer ran out, creditworthy borrowers would be turned away, and the economy would falter.

Ready credit is what makes an economy run smoothly, and its availability should not be subject to the whims of a political body. Credit-money is created when creditworthy borrowers take out loans. Banks merely “monetize” the borrowers’ promise to repay. As The Lost Science of Money makes clear, “money” is not a commodity but is created by legal agreement. Credit-money is created when the “full faith and credit” of the community is advanced to the borrower. The function of the banker is just to oversee the agreement, acting as the middleman who advances the funds and collects them back. Publicly-owned banks are the most efficient and cost-effective way to get ready credit into the economy. They are not a temporary stopgap measure, any more than the land bank of the colony of Pennsylvania was.

You have divided your objections to state-owned banks into two groups, “moral” and “technical,” with separate numbering for each. I will follow your numbering in addressing these points.

Moral Objections

1. You state that for a public bank to engage in “fractional reserve” lending – that is, to create credit on its books – is immoral. That appears to me to be a mischaracterization of the problem. What is immoral is the private creation of money. Both our proposals are attempting to overcome that flaw. I am just suggesting that publicly-owned banks are the most direct and practical means to that end. Congress is now owned by Wall Street, as Congressmen themselves are complaining. States, on the other hand, still have some autonomy.

2. You state that banks cannot create credit on their books but can make loans only against 90-95% of their deposits. This is no longer true. Federal Reserve data establishes that the reserve requirement is now essentially obsolete. For a detailed discussion, see Jake Towne, “Yes, Virginia, There Are No Reserve Requirements (Part 2),” August 12, 2009, establishing that “reserve requirements are effectively not in existence and easily avoided by accounting tricks in the U.S. banking system.” See also Eric deCarbonnel, “US Banks Operating Without Reserve Requirements” (March 29, 2009), stating, “Although, under current regulations, all depository institutions are required to maintain reserves against transaction (checking) deposits, the reality is they don’t.” Both articles are supported with Federal Reserve data.

What limits bank lending today is chiefly the capital requirement, and states are in a far better position to meet that requirement than private banks are. Banks must have Tier 1 capital equal to 4% of loans and other risk-weighted assets, and they must have combined Tier 1 plus Tier 2 capital of 8% of risk-weighted assets. Tier 2 capital includes several things, but the most interesting here is the appreciated value of unencumbered real assets. For a private bank, that typically means only the building that houses it; but a state has buildings, prisons, parks, etc. peppered all over the state. It has a HUGE asset base, so it basically does not have to worry about Tier 2 capital at all.

That just leaves Tier 1 capital, which is essentially the bank’s own money. For a private bank, that generally means the capital contributed by shareholders and the interest earned on loans. Again, a state has a huge amount of money of its own. A friendly regulator could count the state’s whole revenue base as Tier 1 capital. But let’s say that the state wants to dot all the i’s and cross all the t’s by actually setting aside enough Tier 1 capital to please the regulators. At 4%, $1 billion would be enough to create $25 billion in credit – virtually enough to meet California’s $26 billion budget deficit in one fell swoop. You say that this would just be a loan, which has to be paid back; but that is not necessarily the case. The state owns the bank, so it can roll the loan over as long as needed; and the interest returns to its own coffers, so the loan is essentially interest-free. The federal government has been rolling over its debt since the days of Andrew Jackson. For a state to create interest-free money on its books and roll the loans over indefinitely produces the same result you wish to achieve – an interest-free government-issued money supply. In both our schemes, the government gets the money interest-free, while private borrowers get it with an interest charge attached.

You say that only the federal government, not the states, can create money under the Constitution; but this is not true. The Constitution forbids states only to issue “bills of credit,” which has been interpreted to mean paper money. U.S. Supreme Court case law holds that a state can own a bank, and that the banknotes issued by the bank are not the sorts of “bills of credit” forbidden to the states by the Constitution. Banks no longer issue banknotes, but the principle still holds: bank-created money is not forbidden to governments any more than to private banks. We know that private banks create money. In fact, they create virtually all of our money. The ownership of the bank will not affect the bank’s ability to create credit on its books. Rather, it will just achieve our mutually desired end of transferring the power to create money from private to public control.

3. “The problem is being misidentified as interest,” you maintain, “when the problem is debt.” You argue that all money could be created interest-free by the government, just as coins are today; and that this would save the taxpayers money. I totally agree with that: Congress should issue money outright. That was the model followed in the colony of Pennsylvania, which we agree was the ideal model. Congress should create not just coins but paper dollar bills and accounting entry money. But that is a completely different issue from consumer credit or debt. You are not proposing to eliminate banks that charge interest to borrowers; you would just tack an extra interest charge on by making banks borrow from the government as the ultimate creator of credit. Under my proposed system, as in yours, the government would be the ultimate issuer of credit; but with a bank that was state-owned, the extra interest drawn off by private banker middlemen would be eliminated.

Technical Objections

1. You state that “no bank’s an island . . . If the other banks aren’t lending, a State-run bank wouldn’t be able to lend either.” Today, the other banks are not lending because they are not able to meet the capital requirement for additional loans; and this is because the “shadow lenders” have disappeared – the investors who were taking loans off their books, making room for more loans. A state-owned bank would have huge capital and deposit bases and a clean set of books, and therefore would have a huge capacity for lending as and where needed. It would not be dependent on other banks to meet its reserve requirement, which as noted above is now essentially obsolete.

2. You caution about following the model of the Bank of North Dakota, which you warn is playing with fire because it is not FDIC insured and could be subject to a bank run. In fact, the FDIC is now broke – literally. Its own funds offer little if any protection. In a few months it will have to start borrowing from the government. If the banks were owned by the government in the first place, this problem would have been obviated.

3. You say that a state bank would take deposits away from other banks, reducing the lending ability of those banks. However, the overall credit capacity of the system would not be reduced; the business would just move to the state-owned bank, as well it should if the latter can provide superior service at cheaper rates. The State of California has $17.6 billion in demand deposits and NOW deposits, which could be moved at will; and most of the banks it has them at actually turned down California’s request to honor its IOUs. Some of those banks got taxpayer bailout money specifically to keep credit flowing to the states and consumers, an obligation they have clearly failed to fulfill. California owes them nothing and has every right to remove its deposits from those banks into its own. That is free-market capitalism. More than that, it is a matter of survival. Why should we be feeding parasitic out-of-state banks that aren’t helping us in return? The Bank of North Dakota was set up in exactly those circumstances: the farmers were losing their farms to the Wall Street bankers, so they set up their own credit system to escape the Wall Street maelstrom — and it worked, brilliantly well.

4. You state that the meager benefits of forming a state-owned bank would not be worth the costs. However, you are looking at a very limited range of benefits. Let’s consider again California. With its enormous capital base, California could generate enormous amounts of credit, which could be used to refinance its existing debt; and since the state would own the bank, it would pocket the interest. California pays $5 billion yearly in interest alone — as much as some states’ whole budgets. Just that savings would make a state-owned bank worth the trouble; but a state-owned bank could serve more purposes than that. It could eliminate the cost of borrowing for income-generating projects such as infrastructure, low-cost housing, and alternative energy development. On average, interest has been calculated to compose 50% of the cost of every project. Moreover, the state wouldn’t have to scramble around looking for a loan when it needed one, knuckling under to inflated interest rates. On the question of costs, today a bank can be set up on the Internet, without even the cost of a physical building.

5. You suggest that negotiating better terms with existing banks would be more cost-effective than setting up a new bank. Again, you are overestimating the costs and underestimating the potential benefits of a state-owned bank.

6. You write, “We citizens have only so much energy and time to devote to changing our world for the better. Diverting good people into nonsense condemns us to continue suffering unnecessarily. This time of crisis must be used for real reform, not diversions.” I agree with that. The economy is in an emergency state. We cannot afford to wait for a Congress that has been captured by the same private money-creating monopoly from which we are trying to free ourselves.

Your plan represents a far more radical diversion from the status quo than mine and is therefore a harder sell to make to basically clueless politicians. A state-owned bank has already been operating very successfully for 90 years in one pioneer state, and following that model would require doing nothing different from what banks do now. How can regulators object, when we’ll be satisfying all their requirements? In fact, the shift will seem so minor that its significance is liable to be missed. Even committed monetary reformers like yourselves have apparently missed its implications and potential. Through state-owned banks that create money on their books, we can achieve what Benjamin Franklin, Thomas Jefferson, Abraham Lincoln and William Jennings Bryan all aimed to achieve: a publicly-created money supply issued by the people for the people.

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