classical economics
for analysis,  forecasting
and policy design

Return To Capitalism

End the Fed and TBTF Banks
By Wayne Jett © July 8, 2018

     If the current American economic system were capitalism, then blaming capitalism for the horrible plight inherited by President Trump might make sense. But capitalism lost much of its role in America when the global ruling elite got their privately owned Federal Reserve in 1913 and imposed the Great Depression beginning in October, 1929. Since then, mercantilism has ruled economic affairs in the U. S. and the world. But now, with uprooting of the elitist cabal on Trump’s agenda (per “The Plan” exposed by #Q-Anon), capitalism’s window of opportunity for return may be opening.

     The case is made in The Fruits of Graft – Great Depressions Then and Now that, whenever fault is found in U. S. economic affairs, capitalism is blamed. Or, if politics are involved, capitalism is blamed in conjunction with republican representative government. In either case, the true culprit has been the king-making power system called mercantilism imposed by the elitist cabal which has ruled the world for centuries.

Mercantilism In Control

     Mercantilism was the genteel name used by academics, economists and politicians to identify that power system for hundreds of years until the mid-20th century. By then, FDR had done much to consolidate elitist influence in academia and the media so that capitalism – not mercantilism – could be blamed for all ills. Though many ills flowed directly from elitist ownership of the Federal Reserve and the big, international banks of Wall Street, the strength of this argument was ignored in the halls of power.

     Congress and Woodrow Wilson sold out to the elitist cabal in 1913 by creating the Federal Reserve and by granting complete, secret control over creation of currency to the same private parties who, by definition, own the biggest banks in the nation. Now, 105 years later, America’s economic system is mercantilism incarnate.

     The Fed provides Wall Street banks limitless financing. The big banks finance – or underwrite securities to raise capital for – national and international firms created to dominate each and every niche of business enterprise. How are main street, family-owned businesses to survive, much less compete from a position of strength?

     Main street businesses have little or no chance to compete head-to-head locally, much less on an interstate playing field. Such businesses – the hallmark of capitalism – are penned into a progressively smaller arena of competition. Eventually, many are driven entirely out of business, such as has been experienced during the decade of 2007-2016. Smaller banks serving local businesses and residents have succumbed to the Too Big To Fail Wall Street banks, which Congress and the Fed allowed to spread to every part of the country.

Drain the Swamp, the Fed and Wall Street

     This is a dreadful economic/financial malady – just as bad as the political swamp in Washington, D.C., which so richly deserves draining. You will not be surprised that the two crises are very closely related. The political swamp has been created by the same elitist cabal which owns the Fed and the Wall Street banks.

     Draining the D. C. swamp requires unseating the ruling elite and bringing them to justice. Previous reports here have described how that is being done and progress to date. Fundamental reform of the financial system imposed by the elitist cabal should follow draining of the swamp as night follows day. Ending the Fed and creating a sound money system will go far towards restoring real, competitive capitalism in America and the world.