Home > Uncategorized > Wisconsin Should Form its Own Bank

Wisconsin Should Form its Own Bank

by Jim Hogue
for Vermont Commons

This is not rocket science, but since when did a good, simple idea trump power and corruption? There are many policies that won’t be enacted that would be beneficial to Wisconsin and every other state. One such policy would be a state bank, combined with complementary currencies. This two-pronged policy would eliminate state debt and further insulate the states from fluctuations (or crashes) of the dollar. Having been a student of state banking and complementary currencies for many years, it is hard for me to imagine why the states have not followed the lead of North Dakota, which is not only well in the black, but self-sufficient to boot. After repeated lessons in government/central bank corruption in the early 1900s, they seceded from that system and created their own money supply. Why the rest of the states have bowed to the intimidation of the Feds, or simply failed to grasp the problem and solutions is not clear to me. I suppose that inertia is the most reasonable answer. To the states: inertia is no excuse. Denial is no excuse.

What’s the problem? When the Continental Congress refused to accept the Vermont Republic as a state, the citizens did not cry in their soup. Their leaders realized who the enemy was and took a few brilliant steps to trump them. Today, the states seem to have no idea that the central banks and the federal government are one in the same, and that they are using the states as cash cows and cannon fodder. Why is that so difficult? They are robbing us blind with a laundry list of taxes, 44 to be exact, plus their own bail-out. And most of this money goes to pay the bankers (and their armies) who have ripped us off in the first place. I don’t know if the people and their state legislators are in denial, or if they are paralyzed with confusion. Exempt California from confusion, as they handled their debt problem with warrants – a form of state-issued, public credit, complementary currency.

I do see the temptation to remain in the maze: low interest rates from the Fed and some high returns elsewhere that the states can tap into. If you are making money, why change? But most states are not making money; their portfolios are at very high risk due to speculative forces beyond their control, and their public wealth is being sent to the bond holders who lend states the money that the states could be creating. Another reason for not implementing a state bank might be that some states have programs (like student loans) that do one or two functions that a state bank might do. Yet another reason might be the evaporated multiplier. It used to be that money spent into the local economy would circulate within it. That is hardly the case now, with purchases by almost all sectors of the economy being made for out-of-state and out-of-country goods. And even the profits that end up in the states are invested out of the states. I won’t make light of that flight-of-capital. But I still maintain that the lack of understanding and foresight on the part of the states is jaw-dropping. Faced with shortages created by the central banks, they still insist in going to them hat in hand instead of looking to public credit currency. In Wisconsin, the governor is lying, and the unions are missing an opportunity to trump him and solve the problem.

As I write this, the unions have already caved in to all of Walker’s demands, save the right to strike. They did not need to do that, but due to their failure to understand how money is created, they surrendered when victory was within their grasp. Walker distorts and the people comply.

Compare this to what happened in 1776.

The original colonies suffered far less in taxes as a percentage of their wealth than the states do today. The crown (the British Bankers) demanded only that the colonies use their currency and pay a tax on certain commodities (Sugar Act, Stamp Act, Townsend Revenue Act). That was plenty to make the bankers rich. And the colonists wouldn’t stand for it, not even the Tea Tax, which actually lowered the price of English tea. I believe you know what that disagreement lead to. Today’s bankers and their servants have increased the temperature of the boiling water gradually enough that few seem to have noticed. To the colonists The Stamp Act was unacceptable. The Stamp Act!? What have we become that we allow ourselves to be such sheep while pretending to defend democracy? In our time, not only do the states give up their financial sovereignty, but they do it gladly – like servants who can’t do enough to please their masters. This is with one glorious exception: North Dakota.

In Wisconsin there seems to be no attention paid to the solution to the problem in which they find themselves. Sure they have bills to pay, and the normal, corrupt methods are not working. So . . . What is the nature of the discussion? What are the parameters of the discussion? Firstly, the governor and his sycophants are operating under the lie that the state has no money. They have not admitted (assuming they know what they are doing), or grasped (assuming that they don’t know what they are doing) that the CAFR (Comprehensive Annual Financial Reports) accounts could be leveraged to pay every financial demand now placed upon them. And they could do that with no bonds floated to Wall Street and beyond (Oh my God). The states could also institute a 1% or less tax on trades (Wall Street Tax) beyond a one million dollar ceiling, which would net the states millions in revenue. These particular scenarios they don’t want us to understand. They prefer “austerity,” but on whose part? Please contemplate why. Here’s a hint – they don’t give a damn whether or not we survive except to pay our taxes and fight their wars. That’s how they get rich, and why the poor stay poor.

By forming a state bank and a state currency, we the people would be re-defining our relationship with the federal government and de-funding some of their imperial designs. At least, we would no longer be openly supporting them.

So, with a little brain work and effort, we could pay all our bills, keep all the pension funds and other programs working, and begin to starve the beast at the same time. Is there a governor or state legislature with the guts to do that? Is there a governor or state legislature that would put the welfare of the state before feeding the corruption of the Central Banks?

Jim Hogue

Someone, please, get this to the workers in Wisconsin. The union leaders are either out to lunch or in the bag. JH

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