When the gangsters are the "power elite" turf wars have no boundaries. The whole system is and always will be a brilliant scam, as long as there are people who make the rules for the rest. Sadly, people think they need other adults to control and tell them what to do rather than following a good conscience.
The monopolists did not do this on their own, they had help, from us. Yes, we the people helped them. If you look at the wealth distribution graph between the 0.1% and the rest, for the past century, you will find a golden period of increasing prosperity free m the end of WW2 for 50 years, using Keynes theory of aggregate demand. Then suddenly in 1980, economists like Laffer, Hyak and Friedmen came up with supply side economics for perpetual employment, by reducing taxes on h to help rich and cutting social benefits on the poor. That was when monopoly capitalism began, but it wasn’t till Gordon Gekko used the term “greed is good, that a tapeworm was introduced into the cultural zeitgeist and began to eat away our values. If everything has a price, then nothing has value! Save in order to spend was overtaken by spend in order to save! Our own greed is a tapeworm planted inside the zeitgeist.
The success or failure for any economic system theory is in the assumption of the participants. Mises attempted to resolve this for liberal systems in Human Action but as a treatise the principles hold true regardless of the concept.
It boils down to the fact that economics cannot be a true science as it's impossible to predict ex ante because doing so requires ideally rational, informed, free individuals in a system free of corruption. This is impossible. Individuals are often irrational and illogical, do not act perfectly in their own interest and there's externalities causing imbalance.
Therefore economics is a social science where it's sometimes possible to apply mathematical models ex post analytically. All practical systems can eventually succumb to the lying, stealing, cheating inherent tendency in humanity regardless of what they might be called academically. Adam Smith is just as valid as Keynes or Marx or Mises in their textbooks but will falter in the real world of humans rather than robots.
Sometimes that means being pleasantly surprised by the creativity and generosity of humans but often it leads to misery due to the greed and ego. Many thinkers on the subject have their theories but it seems to me the primary question is whether the individual has freedom to succeed or fail in an impartially competitive system. Competition is implicit because resources are fundamentally limited. Competition doesn't have to mean war, although that is the human experience it seems. But some sort of debate or struggle over how best to use resources is inescapable.
So the best economic system is the one where the most number of people can be content and fulfilled. This is measured I think by the ancillaries such as how much art is created, happiness, leisure time, etc. But that's also why economics can't be a true science. The measurement of success is subjective. Using productivity and output are the results of trying to make the observation and equations converge. Yet, without at least trying to apply forward metrics you easily can end up with disproportionate poverty and hunger. It's a never-ending cycle of trying to find the most stable point.
Toby, Are you not confusing capitalism with progressive liberal crony capitalism (that driven by politicians). Surely you have the right as an individual to use the earned capital (money) form your hard work for your benefit?
John D. Rockefeller and his fellow 19th-century capitalists held one absolute belief: that great monetary wealth could not be accumulated under the impartial rules of a competitive laissez-faire society. The only sure path to massive wealth was monopoly: drive out competitors, reduce competition, eliminate laissez-faire, and above all, secure state protection for your industry through compliant politicians and government regulation. This approach results in a legal monopoly, and a legal monopoly always leads to wealth.
This "robber baron" scheme is also the socialist plan. The key difference between a corporate state monopoly and a socialist state monopoly is essentially the identity of the group controlling the power structure. We call this phenomenon of corporate legal monopoly—market control acquired by political influence—by the name of corporate socialism.
What about this-The United States of America is a Corporation. The Constitution was changed-it’s all in this website-there’s a five minute film which shows people in a very easy way, what has happened to America: https://www.youhavetheright.com/tour1/
Everyone needs to know this, to know your real rights!
This is false information. The federal act creating the District of Columbia in 1871 did just that and a few related things. Cities have always been called municipal corporations. However, they are publicly owned corporations responsible to the people and not private corporations responsible to private shareholders. Just read the entire Act very carefully and you will see for yourself.
Washington DC, The Vatican and City of London are the control centres that the globalists or whatever anyone wants to call them, will be using to control people in 15 minute cities around the world. These 3 places are “untouchable” for any person who is not part of what will be the “ruling” elite.
By false info, do you mean that website, or the things I said, or both?
I’m not even American, so I won’t be going through that act very carefully I’m afraid. But I might, because it might be very important.
But sooner or later, probably by mid next year, people will realise that cities will simply become open air prisons, digital prisons at that, unless most of the world’s population ditch the phones that will enslave everyone, and stop using digital “stuff” as much as humanly possible, so we can be human and free, not living this existence that has fooled most of us into believing we are free.
I realise the irony of using a digital device to communicate, but look at the world! Europe (and U.K. soon) have misinformation laws. Australia has digital ID ready to go, and mis/dis information laws on the way. Canada is….in a bad way. As is New Zealand. Brazil, Argentina have tyrants for leaders, same same (meant to be double same, they often speak like that) for Singapore, they’ve only known tyrants and are too scared to say boo. I don’t know about Africa, but a lot of leaders there have been killed, e.g. Gadafi, but apparently he was doing a good job for his people, and was killed shortly before he was going to say bad things about the U.N.
False flag wars and rumours of wars are a’plenty. Each side of each war are serving the desires of the globalists. It’s just like a uniparty.
I don’t know what’s going to happen to the United States of America, (or the United States for America, which seems to not exist anymore) after the selection-but I know of a few people who live in America who are scared, one conservative but not really supporting Trump, another who is very left and they’re too scared to go and vote, another who is outraged (rightly so) by all the immigrants (illegals) who can vote, it seems, they also are too scared to vote, another who got “kicked out” of a voting station for complaining about the machine “flipping” their vote. I think that’s it, as far as voting goes.
But all these people know that their State’s Governor doesn’t care about the people, and nor do other State’s Governors, and that they only want to look good to the globalists, they’re being good little puppies, trained by their masters. These people know that not one politician really cares for the people of America. They know people have to stand up for the rights that are left for them. And cities will definitely not be caring about their citizens. People have to declare they are not citizens, but Sovereign Humans, or Sovereign men and women and children, all of whom answer to God only.
The laws from politics have turned on everyday people, all around the world, and if people don’t know that, they will be lost. These globalists want to kill most of us, just as described on the Georgia guidestones. I wonder why they blew them up?!
And those in charge will not care about acts and constitutions-all this has been planned for centuries, only the method has come to light recently. All that the WEF has been saying about agenda 2030 is bit by bit coming true. By 2030, we will all definitely own nothing, but I don’t know about being happy, if one is still alive.
Sorry for the long answer, off track because so much is happening, and soon I won’t even be able to write stuff like this. I don’t mean to come across as offensive, but I just want people to know what’s happening to them! If I can wake up only one person about this, it will be a win, of sorts.
I was referring to your statement that the United States is a corporation and to the website material you cited supporting that. I did not read the entire website. That federal statute created the District of Columbia and made some appropriate related adjustments. D.C. like other cities is a municipal corporation. The statute did not amend the U.S. Constitution or change our form of government at all. A good friend of mind who's a blogger was spreading the same information that you and the website you cite were spreading. I'm a lawyer, so I read every word of the statute and reached the conclusion I state above and explained it to my friend. To his credit he abandoned those claims about the 1871 statute.
It’s going to be interesting the next few years as the Trump team takes on the challenge of what to do about it all- dismantling the dysfunctional system while maintaining a basic social safety net will be tricky biz! I hope the country has the gumption to face the hard task.
"Baby boomers were going to retire with a record $76 trillion in assets. Stealing that $76 trillion was one of the objectives of Covid."
Toby, this feels too convoluted and complex. KISS please. I would rather just want to think that China intended to weaken and destroy the USA thru any and all means necessary. Trump got in their way and served him a dose of TsunTsu. They used their tentacles inside globalism's big pharma to poison the west and much of the world. They used blackmail to achieve it. Now its just of matter of waiting out the slow motion epic disaster train set in motion. When countries are sufficiently weakened, sickened and demoralized (the USA is close) it will be time for invasion, one nation at a time.
Follow the money. China holds our debt, they don't want to invade. It was our virus in the first place, we just contracted it out to China for cheap labor. Cold War thinking does not explain this. China and the U.S. are working on this together. This is a robbery.
BIG time robbery! Daylight robbery. Robbery under arms. Every government is in on this. These governments are trying to kill and not stopping others from killing—ALL of us! Governments and their heads think they’ll be spared and looked after by the so called globalists! They’re dreaming. They have much money now, but soon won’t. Just ask the WEF.
"Then they gave the Presidential Commendations, the Nobel Prize, honorary doctorates, and every public health award ever conceived (and some new ones they just made up) to the people who came up with this scheme. That’s the world we live in today with the worst people in human history still holding all of the most prestigious positions in society."
No different than the kids who pick clover out of the grass right in the middle of every soccer game.
At the end of the season, they too receive a trophy.
your succinct summary of capitalism is excellent, and something I want to share far and wide. However, the covid section makes it impossible for me to share with certain friends. They will see that part and dismiss the entire article. I believe it's likely that the covid section is all true. What I can't be sure of is how much of it was planned. And what I would not be able to do at all is convince my covid-vaccinated friends that it was planned.
I would love to see an abridged version of this article with the covid part left out. I could share that with everyone, regardless of their views on covid.
Or maybe I just create a pdf with covid stuff left out and share that if you have no objections to that.
Capitalism is a big umbrella, same as socialism. It's not fair but neither is wrong to blame capitalism for the system we have now. I think it's better defined as corporatism or fascism but in the end it doesn't matter. In some versions of capitalism the fruits of your labor (capital) is fairly accumulated but for that to happen the money must also be subject to competition. All the economic systems have failure points because they're all derived from humans, who have failings. Capitalism relies on honesty and since some people are willing to lie, steal and cheat it must eventually fail. Socialism relies on lack of ego and since some people are willing to exploit it too must eventually devolve. It's an endless cycle so no matter what -ism we use the battle comes down to whether the individual has rights and economic power or not. We did for a while early on in the American experiment. We don't now. Can we get it back? Maybe, maybe not. The fundamental structure of the Constitutional Republic is a major step for humanity, though. The American (or perhaps Swiss) model is a step in the right direction. I believe there are a couple of reasons why ours has failed. One is the Federal Reserve and the other was recognizing corporations as equals with people legally.
I still say that capitalism is not the problem. The fundamental problem underlying all this is the fraudulent monetary practice known as fractional reserve banking, which is undergirded and strengthened by central banks using fiat currency. If this were recognized for the fraud that it is and outlawed, we would have had a very different picture over the last 300 or so years. I'm ordinarily against the death penalty, but it might be effective against fractional reserve banksters.
Fractional reserve is not how banks create money. The correct term is credit creation. Richard Werner in 2014 did the first ever empirical tests proving conclusively that banks create new money or credit in the amount of the loan when they make a loan. His proof demonstrates that the fractional reserve theory is wrong and that the "intermediation" theory, that banks lend their deposits and do not create new money, is also incorrect. Fiat money is not the problem. As Werner also shows, the biggest problem is that private for-profit banks create 97% of our money and they do it mainly to maximize their own profit in mind. That very often works much against the public interest. Instead of lending mainly to create new goods and services, which is not inflationary, they do much lending to inflate existing assets, creating bubbles and crashes. They sell out at top dollar just before the crash and then buy up small businesses and banks for pennies on the dollar when the economy hits bottom. It's all preventable through public banks and nonprofit banks that prioritize the benefit of the local community and focus on productive lending that creates new goods and services and thereby avoids inflation, bubbles, and crashes. See Richard Werner: "How do banks create money..." https://www.sciencedirect.com/science/article/pii/S1057521914001434 and “Can banks individually create money out of nothing? The theories and the empirical evidence”
Correct. When gains are privatized and losses socialized then it's not capitalism anymore. Fractional reserve banking introduces incentive to play loose and take risks that a bank would not if they had to cover the losses. But it's bigger than that, it's the money (or properly the currency) supply. If there was competition for money then a system of banks could decide to fractional reserve but they would be put at a competitive disadvantage against another money supplier who was more conservative if the economy contracts. On the other hand, in a strong economy the money supplier who is willing to hang closer to the edge might offer higher returns for such an appetite for risk. Ultimately for capitalism to function the risk of failure must be equal (or at least significantly possible) to the benefit of success. So if you make a poor decision bankruptcy has to be a real function to clear out malinvestment and punish wrong decisions. We stopped being capitalist certainly when the Federal Reserve was put in place and when there were public responses to depressions and too big to fail. Had we been capitalist in 2008 all those banks would have gone under. Problem is that in the prior decades everyone was pushed into 401Ks and tying their savings up in Wall Street and mortgages. So the economy was already too far gone for that to happen. There is no solution that does not come with pain and the longer we forestall the more painful the collapse will be. There's no was tens of trillions in debt is ever paid back and all those bankers with yachts and private islands aren't going to be the ones feeling it when it's the Animal Farm scenario and the nominal dollar "value" is lost against the actual utility of things.
IMHO, money control must be highly pulverized and cannot be under control of a single entity (Government) or an oligopolic group (Big Banks too big to fail).
One such idea is have strict controls based on amount of land and productive assets, like buildings and industrial instalations, as long as there is good depreciation accounting rules included. A small regional monetary authority should issue money and credit according to those assets and publicly register its issuance into some Money Printing Authority of sorts.
This will keep credit availability in lockstep to overall wealth and may reduce inflationary spikes due to free credit creation.
And to counter money shortage due some disaster, there should be an insurance reserve of sorts attached to every level on the monetary chain.
Okay, there are lots of holes in this idea, but its just a general idea of what money should be created and used.
PLEASE help COVID whistleblower Dr Chris recover his 'hijacked' income.
https://givesendgo.com/drshoemaker?utm_source=sharelink&utm_medium=copy_link&utm_campaign=drshoemaker
When the gangsters are the "power elite" turf wars have no boundaries. The whole system is and always will be a brilliant scam, as long as there are people who make the rules for the rest. Sadly, people think they need other adults to control and tell them what to do rather than following a good conscience.
The monopolists did not do this on their own, they had help, from us. Yes, we the people helped them. If you look at the wealth distribution graph between the 0.1% and the rest, for the past century, you will find a golden period of increasing prosperity free m the end of WW2 for 50 years, using Keynes theory of aggregate demand. Then suddenly in 1980, economists like Laffer, Hyak and Friedmen came up with supply side economics for perpetual employment, by reducing taxes on h to help rich and cutting social benefits on the poor. That was when monopoly capitalism began, but it wasn’t till Gordon Gekko used the term “greed is good, that a tapeworm was introduced into the cultural zeitgeist and began to eat away our values. If everything has a price, then nothing has value! Save in order to spend was overtaken by spend in order to save! Our own greed is a tapeworm planted inside the zeitgeist.
The success or failure for any economic system theory is in the assumption of the participants. Mises attempted to resolve this for liberal systems in Human Action but as a treatise the principles hold true regardless of the concept.
It boils down to the fact that economics cannot be a true science as it's impossible to predict ex ante because doing so requires ideally rational, informed, free individuals in a system free of corruption. This is impossible. Individuals are often irrational and illogical, do not act perfectly in their own interest and there's externalities causing imbalance.
Therefore economics is a social science where it's sometimes possible to apply mathematical models ex post analytically. All practical systems can eventually succumb to the lying, stealing, cheating inherent tendency in humanity regardless of what they might be called academically. Adam Smith is just as valid as Keynes or Marx or Mises in their textbooks but will falter in the real world of humans rather than robots.
Sometimes that means being pleasantly surprised by the creativity and generosity of humans but often it leads to misery due to the greed and ego. Many thinkers on the subject have their theories but it seems to me the primary question is whether the individual has freedom to succeed or fail in an impartially competitive system. Competition is implicit because resources are fundamentally limited. Competition doesn't have to mean war, although that is the human experience it seems. But some sort of debate or struggle over how best to use resources is inescapable.
So the best economic system is the one where the most number of people can be content and fulfilled. This is measured I think by the ancillaries such as how much art is created, happiness, leisure time, etc. But that's also why economics can't be a true science. The measurement of success is subjective. Using productivity and output are the results of trying to make the observation and equations converge. Yet, without at least trying to apply forward metrics you easily can end up with disproportionate poverty and hunger. It's a never-ending cycle of trying to find the most stable point.
Toby, Are you not confusing capitalism with progressive liberal crony capitalism (that driven by politicians). Surely you have the right as an individual to use the earned capital (money) form your hard work for your benefit?
John D. Rockefeller and his fellow 19th-century capitalists held one absolute belief: that great monetary wealth could not be accumulated under the impartial rules of a competitive laissez-faire society. The only sure path to massive wealth was monopoly: drive out competitors, reduce competition, eliminate laissez-faire, and above all, secure state protection for your industry through compliant politicians and government regulation. This approach results in a legal monopoly, and a legal monopoly always leads to wealth.
This "robber baron" scheme is also the socialist plan. The key difference between a corporate state monopoly and a socialist state monopoly is essentially the identity of the group controlling the power structure. We call this phenomenon of corporate legal monopoly—market control acquired by political influence—by the name of corporate socialism.
Antony C. Sutton, Wall Street and FDR, Chapter 5.
Just started reading. Typo ... "necessary" should necessarily be "necessarily". Thanks Toby!
Fixed! Thank you!!!
Don't know if you follow economist Richard Wolff, but he is worth listening to. He breaks down capitalism like no one can.
He's great! I saw him speak in person in 2011!
People surely aren’t just waking up to all this?
What about this-The United States of America is a Corporation. The Constitution was changed-it’s all in this website-there’s a five minute film which shows people in a very easy way, what has happened to America: https://www.youhavetheright.com/tour1/
Everyone needs to know this, to know your real rights!
This is false information. The federal act creating the District of Columbia in 1871 did just that and a few related things. Cities have always been called municipal corporations. However, they are publicly owned corporations responsible to the people and not private corporations responsible to private shareholders. Just read the entire Act very carefully and you will see for yourself.
Washington DC, The Vatican and City of London are the control centres that the globalists or whatever anyone wants to call them, will be using to control people in 15 minute cities around the world. These 3 places are “untouchable” for any person who is not part of what will be the “ruling” elite.
By false info, do you mean that website, or the things I said, or both?
I’m not even American, so I won’t be going through that act very carefully I’m afraid. But I might, because it might be very important.
But sooner or later, probably by mid next year, people will realise that cities will simply become open air prisons, digital prisons at that, unless most of the world’s population ditch the phones that will enslave everyone, and stop using digital “stuff” as much as humanly possible, so we can be human and free, not living this existence that has fooled most of us into believing we are free.
I realise the irony of using a digital device to communicate, but look at the world! Europe (and U.K. soon) have misinformation laws. Australia has digital ID ready to go, and mis/dis information laws on the way. Canada is….in a bad way. As is New Zealand. Brazil, Argentina have tyrants for leaders, same same (meant to be double same, they often speak like that) for Singapore, they’ve only known tyrants and are too scared to say boo. I don’t know about Africa, but a lot of leaders there have been killed, e.g. Gadafi, but apparently he was doing a good job for his people, and was killed shortly before he was going to say bad things about the U.N.
False flag wars and rumours of wars are a’plenty. Each side of each war are serving the desires of the globalists. It’s just like a uniparty.
I don’t know what’s going to happen to the United States of America, (or the United States for America, which seems to not exist anymore) after the selection-but I know of a few people who live in America who are scared, one conservative but not really supporting Trump, another who is very left and they’re too scared to go and vote, another who is outraged (rightly so) by all the immigrants (illegals) who can vote, it seems, they also are too scared to vote, another who got “kicked out” of a voting station for complaining about the machine “flipping” their vote. I think that’s it, as far as voting goes.
But all these people know that their State’s Governor doesn’t care about the people, and nor do other State’s Governors, and that they only want to look good to the globalists, they’re being good little puppies, trained by their masters. These people know that not one politician really cares for the people of America. They know people have to stand up for the rights that are left for them. And cities will definitely not be caring about their citizens. People have to declare they are not citizens, but Sovereign Humans, or Sovereign men and women and children, all of whom answer to God only.
The laws from politics have turned on everyday people, all around the world, and if people don’t know that, they will be lost. These globalists want to kill most of us, just as described on the Georgia guidestones. I wonder why they blew them up?!
And those in charge will not care about acts and constitutions-all this has been planned for centuries, only the method has come to light recently. All that the WEF has been saying about agenda 2030 is bit by bit coming true. By 2030, we will all definitely own nothing, but I don’t know about being happy, if one is still alive.
Sorry for the long answer, off track because so much is happening, and soon I won’t even be able to write stuff like this. I don’t mean to come across as offensive, but I just want people to know what’s happening to them! If I can wake up only one person about this, it will be a win, of sorts.
I was referring to your statement that the United States is a corporation and to the website material you cited supporting that. I did not read the entire website. That federal statute created the District of Columbia and made some appropriate related adjustments. D.C. like other cities is a municipal corporation. The statute did not amend the U.S. Constitution or change our form of government at all. A good friend of mind who's a blogger was spreading the same information that you and the website you cite were spreading. I'm a lawyer, so I read every word of the statute and reached the conclusion I state above and explained it to my friend. To his credit he abandoned those claims about the 1871 statute.
Ok, I’m not a lawyer, so won’t dispute what you are saying.
Many people believe it though, so maybe it’s just a worldwide rumour. 🙂
But the other stuff I said, I believe it’s truth, and will happen.
It’s going to be interesting the next few years as the Trump team takes on the challenge of what to do about it all- dismantling the dysfunctional system while maintaining a basic social safety net will be tricky biz! I hope the country has the gumption to face the hard task.
"Baby boomers were going to retire with a record $76 trillion in assets. Stealing that $76 trillion was one of the objectives of Covid."
Toby, this feels too convoluted and complex. KISS please. I would rather just want to think that China intended to weaken and destroy the USA thru any and all means necessary. Trump got in their way and served him a dose of TsunTsu. They used their tentacles inside globalism's big pharma to poison the west and much of the world. They used blackmail to achieve it. Now its just of matter of waiting out the slow motion epic disaster train set in motion. When countries are sufficiently weakened, sickened and demoralized (the USA is close) it will be time for invasion, one nation at a time.
Follow the money. China holds our debt, they don't want to invade. It was our virus in the first place, we just contracted it out to China for cheap labor. Cold War thinking does not explain this. China and the U.S. are working on this together. This is a robbery.
BIG time robbery! Daylight robbery. Robbery under arms. Every government is in on this. These governments are trying to kill and not stopping others from killing—ALL of us! Governments and their heads think they’ll be spared and looked after by the so called globalists! They’re dreaming. They have much money now, but soon won’t. Just ask the WEF.
"Then they gave the Presidential Commendations, the Nobel Prize, honorary doctorates, and every public health award ever conceived (and some new ones they just made up) to the people who came up with this scheme. That’s the world we live in today with the worst people in human history still holding all of the most prestigious positions in society."
No different than the kids who pick clover out of the grass right in the middle of every soccer game.
At the end of the season, they too receive a trophy.
your succinct summary of capitalism is excellent, and something I want to share far and wide. However, the covid section makes it impossible for me to share with certain friends. They will see that part and dismiss the entire article. I believe it's likely that the covid section is all true. What I can't be sure of is how much of it was planned. And what I would not be able to do at all is convince my covid-vaccinated friends that it was planned.
I would love to see an abridged version of this article with the covid part left out. I could share that with everyone, regardless of their views on covid.
Or maybe I just create a pdf with covid stuff left out and share that if you have no objections to that.
You confuse Capitalism and Statism.
Capitalism is a big umbrella, same as socialism. It's not fair but neither is wrong to blame capitalism for the system we have now. I think it's better defined as corporatism or fascism but in the end it doesn't matter. In some versions of capitalism the fruits of your labor (capital) is fairly accumulated but for that to happen the money must also be subject to competition. All the economic systems have failure points because they're all derived from humans, who have failings. Capitalism relies on honesty and since some people are willing to lie, steal and cheat it must eventually fail. Socialism relies on lack of ego and since some people are willing to exploit it too must eventually devolve. It's an endless cycle so no matter what -ism we use the battle comes down to whether the individual has rights and economic power or not. We did for a while early on in the American experiment. We don't now. Can we get it back? Maybe, maybe not. The fundamental structure of the Constitutional Republic is a major step for humanity, though. The American (or perhaps Swiss) model is a step in the right direction. I believe there are a couple of reasons why ours has failed. One is the Federal Reserve and the other was recognizing corporations as equals with people legally.
You confuse capitalism and free markets. What he's describing is not statism, it's capitalism.
please elaborate.
Academic Agent's take on elite theory (The Populist Delusion) is very interesting.
I still say that capitalism is not the problem. The fundamental problem underlying all this is the fraudulent monetary practice known as fractional reserve banking, which is undergirded and strengthened by central banks using fiat currency. If this were recognized for the fraud that it is and outlawed, we would have had a very different picture over the last 300 or so years. I'm ordinarily against the death penalty, but it might be effective against fractional reserve banksters.
Fractional reserve is not how banks create money. The correct term is credit creation. Richard Werner in 2014 did the first ever empirical tests proving conclusively that banks create new money or credit in the amount of the loan when they make a loan. His proof demonstrates that the fractional reserve theory is wrong and that the "intermediation" theory, that banks lend their deposits and do not create new money, is also incorrect. Fiat money is not the problem. As Werner also shows, the biggest problem is that private for-profit banks create 97% of our money and they do it mainly to maximize their own profit in mind. That very often works much against the public interest. Instead of lending mainly to create new goods and services, which is not inflationary, they do much lending to inflate existing assets, creating bubbles and crashes. They sell out at top dollar just before the crash and then buy up small businesses and banks for pennies on the dollar when the economy hits bottom. It's all preventable through public banks and nonprofit banks that prioritize the benefit of the local community and focus on productive lending that creates new goods and services and thereby avoids inflation, bubbles, and crashes. See Richard Werner: "How do banks create money..." https://www.sciencedirect.com/science/article/pii/S1057521914001434 and “Can banks individually create money out of nothing? The theories and the empirical evidence”
https://www.sciencedirect.com/science/article/pii/S1057521914001070
Correct. When gains are privatized and losses socialized then it's not capitalism anymore. Fractional reserve banking introduces incentive to play loose and take risks that a bank would not if they had to cover the losses. But it's bigger than that, it's the money (or properly the currency) supply. If there was competition for money then a system of banks could decide to fractional reserve but they would be put at a competitive disadvantage against another money supplier who was more conservative if the economy contracts. On the other hand, in a strong economy the money supplier who is willing to hang closer to the edge might offer higher returns for such an appetite for risk. Ultimately for capitalism to function the risk of failure must be equal (or at least significantly possible) to the benefit of success. So if you make a poor decision bankruptcy has to be a real function to clear out malinvestment and punish wrong decisions. We stopped being capitalist certainly when the Federal Reserve was put in place and when there were public responses to depressions and too big to fail. Had we been capitalist in 2008 all those banks would have gone under. Problem is that in the prior decades everyone was pushed into 401Ks and tying their savings up in Wall Street and mortgages. So the economy was already too far gone for that to happen. There is no solution that does not come with pain and the longer we forestall the more painful the collapse will be. There's no was tens of trillions in debt is ever paid back and all those bankers with yachts and private islands aren't going to be the ones feeling it when it's the Animal Farm scenario and the nominal dollar "value" is lost against the actual utility of things.
IMHO, money control must be highly pulverized and cannot be under control of a single entity (Government) or an oligopolic group (Big Banks too big to fail).
One such idea is have strict controls based on amount of land and productive assets, like buildings and industrial instalations, as long as there is good depreciation accounting rules included. A small regional monetary authority should issue money and credit according to those assets and publicly register its issuance into some Money Printing Authority of sorts.
This will keep credit availability in lockstep to overall wealth and may reduce inflationary spikes due to free credit creation.
And to counter money shortage due some disaster, there should be an insurance reserve of sorts attached to every level on the monetary chain.
Okay, there are lots of holes in this idea, but its just a general idea of what money should be created and used.