If it weren't for heavy government interference in the marketplace, most of us would be poor, there would be no meaningful middle class, and we would be living under a feudal society. The middle class (the empowered poor) must be created through free public education, universal healthcare, housing assistance, and an organized labor force. Even in the golden age of social liberalism, we fell short on most of these goals.
The Bug Beautiful Bill lays out a plan to steal from the poor to feed the wealthy. The wealthy funded Charlie Kirk to do his egregious exploitation of youth. Truth is bloody chum in the water brings sharks. They will bite anything and that is not violence. What they bite brings emotionally soothing food for the soul. There is a need for social services to address those emotionally challenged individuals that strike out with gunshots. Instead of reaching out to help, some crazed individuals like Kirk torture them repeatedly with heteronormativity. This is not politics, this is abuse. Yes. This is systemic abuse and societal failure. Those are both fixable. Some do not want to fix. They want to exploit. I am disgusted by those making a living by bellowing in this type of torture chamber. https://hotbuttons.substack.com/p/bloody-chum?r=3m1bs
The idea that government has no role in the economy is a crock. We would never have had a broad middle class if government didn’t intervene. What we have to do now is to ensure that people of all ethnic, faith, diverse, and disability backgrounds have a fair shot at joining a middle class. We also need to dismantle the unfair advantage the wealthy have stolen from the rest of society in stock options, offshoring, and what FDR called economic royalist.
Thank you. I found his like to be similar to Nick Fuentes and Alex Jones, et al. Stirring up hate. Hate mongers. It distresses me that Trump and Vance move to try to spin this into a Reichstag Fire event to subvert Democracy. Hence it is important to spread the truth as far and as fast as we can. At the moment we must await the experts who sift the data. I fear they may be muzzled by the Administration or the Republican governor.
WE paid for Charlie's last trip on Air Force Two. He came home with the Vice President and military personnel carrying him. That alone has pissed off many veterans or their families. He was memorialized in a building WE helped pay for as well.
The ostentation for Kirk, the TRump military parade, and the ballroom are all messages. We can take take take.
Meanwhile, TRump and Hegseth released a snuff film about eleven unknown Venezuelans that WE paid to kill. They enjoyed doing the first murders so much, they did it again. Yesterday TRump reveled in it sitting in the White House WE paid for. Psychopaths!
When the rich don't pay their fair share for all the services they suck out of the system, everyone else has to. Good Americans and immigrants do all the work and these f-ers get to choose who gets the crumbs. Just saw a clip where Charlie said he didn't believe in free lunch---for poor kids.
What an awful display of hate and greed that send-off was. Sickening. See you in the streets.
In Baghdad By the Sea we get news the rest of the country doesn't. Vladimir Padrino López, Defense Minister of Venezuela’s Bolivarian National Armed Forces, before talks between Russian President Vladimir Putin and Venezuelan President Nicolás Maduro at the Moscow Kremlin on May 7, 2025. TASS Mikhail Metzel/Russian Presidential Press and Information Office/TASS/Sipa USA
Is Russia involved in our drug interdictions?
"Venezuelan Defense Minister Vladimir Padrino López has issued a stark warning to neighboring Guyana and Trinidad and Tobago, saying Caracas would retaliate if any attack against the country were launched from their territories."
"According to the minister, U.S. aircraft are not simply conducting routine patrols but are equipped to monitor Venezuelan territory in real time. The planes, he claimed, are “designed to collect and process information in real time, up to 200 miles, meaning their range reaches Venezuelan territory.”
"In his remarks, Padrino also accused the United States of harboring aggressive intentions against Venezuela. “We know the deployment they have in the Caribbean with every intention of sowing war,” he said. He said U.S. forces recently detained a Venezuelan tuna-fishing boat for eight hours before releasing it. No details were provided about the location or identity of the vessel.
"The warning to Guyana and Trinidad and Tobago echoed earlier rhetoric from Venezuela’s leadership. Vice President Delcy Rodríguez last week branded both countries “vassals” of the United States.
"'You should take it easy, don’t dare, don’t even think about it. You are lending yourselves to the perverse plans of an aggression against the Venezuelan people,' Rodríguez said."
Our economy is a festering pimple that will be popping soon. Corporations and ultra-rich people can only extract so much before the masses rise up. We need to identify every corporation that is extracting excess wealth from the economy and boycott them. I can think of no better way to bring them to heel. We can’t count on elections to solve our problems because by next fall the system will be rigged.
The reason young people fall for Charlie Manson’s (oops, I meant Kirk) twisted logic is that their future appears bleak, and unfortunately it is.
I can't say this enough, that this is what the Democratic Party should be out talking about every day. I realize that a lot of people that lived it don't realize what has happened, and anyone under 50 has an even less chance of realizing this.
Perhaps the real "suckers and losers" have not been laid to rest at Normandy American Cemetery and Memorial [France,] and all such hallowed ground both domestic and overseas.
Perhaps the "suckers and losers" are the plain people — the everyday citizens.
What often is not discussed, is that in addition to the morbidly rich's theft of wealth making life miserable for the working class, but it also threatens the stability of the whole system. The system depends on the consumer classes having enough income to allow them to make the purcheses that keep the system going. If the consumer classes (rich people do not buy a lot more stuff--they stash the money instead.) cannot buy stuff, the factories decrease their output, lay people off, and economic collapse just muchrooms from there. So, while we are focusing on the injustice, let us remember that we are also threatening to lose it all. How are we keeping the system going with so much wealth of the working classes already having been sucked up into the upper class? Credit. People are buying on credit. The percent of credit debt is now past what it was in 2008 and past what it was in 1929. Of course, living on credit just excelerates the speed of upper class theft of working class wealth because of the interest payments added. Are the morbidly rich worried about this outcome? Hell no. They like economic downturns. That's when they pick up the failing businesses for pennies on the dollar. Put your money in commodities.
While killing anyone for their beliefs is utterly Unamerican and raises the political temperature, I just saw this in the "Harper's Weekly Review" mailing. There are references to everything stated here. Talk about Unamerican....
The U.S. defense secretary ordered his staff to identify members of the military who had “mocked” the activist’s death; the deputy secretary of state said his own department would “undertake appropriate action” against non-citizens’ “making light” of the killing; a Louisiana congressman called for social media platforms to ban anyone “celebrating” the murder; a right-wing influencer posted that she was tracking those glorifying the killing and would “ruin” their careers; and while guest-hosting Kirk’s podcast, the U.S. vice president instructed listeners to call the employers of those found “justifying or celebrating” his death. A political analyst, a lawyer, a sports journalist, a middle school football coach, a public relations employee of the Carolina Panthers, a Washington Post columnist, a firefighter, a United Airlines pilot, employees at Delta Air Lines and American Airlines, a junior strategist at Nasdaq, and a U.S. Secret Service agent were fired, suspended, or are under investigation by their employers for comments they made in the wake of the assassination.
The delusion that the right wing nuts have is because of the worldview they have adopted from Fox News. Murdoch is a poison that must be expelled from America and all propaganda needs to be taken off the air permanently. Why is this allowed? The sickness that is Murdoch must be eliminated from all public spaces. The Chosen One is rising and there be dragons.
You're so right about Fox; I was sorely disappointed (and disillusioned) when they got away with paying a sizable, but totally inadequate fine, instead of losing their broadcast license.
And Trump wants to end ‘all this killing of the right , by the left”.
He has excitedly killed fourteen people in the past two weeks because “ they’re drug dealers”. He doesn’t know that to be true . It works for him to create an atmosphere of ‘constant killing’ of people he has no personal knowledge of .
Weapons of real mass destruction are not (only) what you have been taught. I let you put them in the order you fancy. Marketing and hollywood. Selling dreams, the american way of life, pollute baby pollute, buy baby buy. Inherent part of wild capitalism and its “easy credit” schemes. Just get a loan, the more the better, work like a donkey, do not think please, just get more debts and shut up. Reimburse with high interest. Then and only then come the nuclear bomb and gas weapon, etc. THINK please
Please listen to a song by a North Carolina country rock band named interestingly, American Aquarium called "The World is On Fire". You will be moved....
"I started writing this song the night after the last election. I found myself stuck soundly between anger and confusion. How did we get here? What is wrong with people? How did our country fall this far out of touch with each other? Every eight years, “your side” either wins or loses. You get to walk around with your chest barreled out, triumphantly boasting of the change to come, or you are forced to cower in defeat, mumbling about how the “new guy” is going to be the final nail in our democracy.."
Go to spotify or Youtube and search for songs by Thom and Louise Hartmann, you will love them. I don't know who the singers are,or who is playing the instruments but the songs are ccurrent and have a country air about them.
To preach this sermon without speaking of the loss of America's percentage of world GDP makes your argument fall flat. I would love to see all of those things implemented, but I'm not sure they would produce the same result. I'm not sure our economy could handle the debt, or the public could handle the tax burden. We are a very selfish culture with individual and myopic vision. I just don't know...
The way it works, poor folks have to spend all their income, benefitting the rest of society. So if they have a subsistence it "floats all boats." paraphrasing JFK quoting Keynes.
Mr. Farrar. I was recently surprised to learn that the U.S. banking system is no longer a fractional system, as of 2020, I think. Man, we are in for a terrible financial collapse if that tax reduction for the rich combines with Trump's insane tariffs in such a way as to remove a sufficient amount of money from our economy. A run on only a few banks could do us in. The run could be set off by a collapse in the crypto business.
Mr Dobbertin. There is no such thing as a fractional system. It is a fractional reserve system. Meaning that a financial institution can loan out money on the basis of a fraction of the reserve it has on hand. Reeserves are Government Securities, Corporate Bonds, and demand deposits ( checking accounts,not savings accounts)
I have seen nothing reported that that the fractional reserve set by the Federal Reserve was down to 0% or eliminated it period. If they did that, then financial institutions could create unlimited amounts of money, the only thing holding them back would be interest rates.
The supply of money in circulation is limited by the interest rates, increase interest rates and you decrease the supply of money, decrease interest rates and you increase the supply of money, that is why Trump wants the Fed to decrease interest rates, Trump or rather his advisors, are Keynesians
Bank runs are a thing of the past. They happened when the medium of exchange was tied to gold or silver. A person could present their bank note, and did so until the 1930's, when the FDIC was created by Law..
The Xmas movie, It's a wonderful life with Jimmy Stewart is about a run on the bank.
The first run on a bank happened in England, the newly chartered Bank of England, built on the back of the East India Company. Had a run on the banks gold.
Banks took in gold for safe keeping, issued notes (a liability on the bank) in exchange, . promissory notes, the promise was to redeem the notes for gold.
Well a rumor started that there wasn't enough gold in the vaults to redeem all of the notes in existence, and their wasn't, and the Bank of England was on the verge of rupturing, (bankrupt).
The response was genius, they hired the foremost alchemist of the realm, Isaac Newton, as the 1st Warden of the mint, that assuaged the fears of the crowd and stopped the run on the bank
June 16, 1933 President Franklin Roosevelt signs the Banking Act of 1933 into law creating the Federal Deposit Insurance Corporation (FDIC). This put an end to runs on the bank
Here is how money is removed from the system.
First debts are paid down and paid off. As you pay principal on a loan or mortgage or credit card, you are removing that amount of money from the system.
As you pay your taxes you are decreasing the money supply by that amount of money from circulation, it then goes to the US. Treasury which then uses it to pay the interest, on government securities, and if any left over to redeem securities that have matured., but pay interest first.
The interest paid, is to large institutions, sovereign funds, and the Federal Reserve system, which is a corporation owned by member banks who buy in at 6% of their capitalization.
I don't see tariff's as a way to remove money from the system. I see tariff's as a means to reduce consumption, as raising prices will reduce demand, in theory but Americans are addicted to debt, especially their credit cards, so as prices increase so will the demand for debt.
The demand for debt is supposedly elastic, meaning sensitive to interest rates, for large purchases like mortgages yes, but not for credit cards,
People are not even cognizant of credit card interest rates, which can reach 27% or more, because they pay a minimum due on the balance, and their debt will be inherited by their children.
A bank goes out of business primarily through insolvency, where its assets (like loans and investments) become worth less than its liabilities (what it owes to depositors and others), making it unable to cover its obligations
A banks assets are its loans, mortgages, corporate bonds and government securities.
Title 12 USC, authorized the fed to monetize corporate bonds, but had no need to do so and didn't. Until the administration of Trump 45, when it made a decision to allow member banks to include corporate bonds in their reserve base, this increased the reserve base and along with Powell dropping the interest rate to .25 basis points for securities sold through.t he open market window to member banks, he created a temporary surge in the money supply, through increasing the demand for debt. But the consequences were increasing inflation, and Jerome Powell and his committee, hauled it in. Trump remembers that surge in economic activity, until COVID, and wants a repeat.
The economic crisis of 2008, was brought about by banks approving mortgages at sub prime rates, using Adjustable Rate Mortgages (ARM), but then, interest rates surged and the people who held mortgages were no longer able to make payments, and the mortgages held as a reserve base, were worthless than than what it owned o depositors and others., and then the bank bail out. financed of course by federal debt.
The real beneficiary was the Association of Primary Dealers in Government Securities, or rather those that survived the crash, banks like Lehman Brothers were out, as was their membership in the APDGS
However your point is made. Trump and Musk journeyed to Ft Knox to see if all of the gold that they were going to own, was actually there.
The plan is to replace the Federal Reserve note, with Crypto
The "come back" is like what the Heritage Foundation says when it wants to "save America" actually what they want is to return America to the America before the Revolutionary War. specifically ruled by a brutal King and his greedy oligarchs, savery was OK, women had no rights, etc etc etc.
If it weren't for heavy government interference in the marketplace, most of us would be poor, there would be no meaningful middle class, and we would be living under a feudal society. The middle class (the empowered poor) must be created through free public education, universal healthcare, housing assistance, and an organized labor force. Even in the golden age of social liberalism, we fell short on most of these goals.
Yesterday, Trump announced that he wants to end quarterly SEC reports.
No doubt to hide economic con artistry and other scams.
The Bug Beautiful Bill lays out a plan to steal from the poor to feed the wealthy. The wealthy funded Charlie Kirk to do his egregious exploitation of youth. Truth is bloody chum in the water brings sharks. They will bite anything and that is not violence. What they bite brings emotionally soothing food for the soul. There is a need for social services to address those emotionally challenged individuals that strike out with gunshots. Instead of reaching out to help, some crazed individuals like Kirk torture them repeatedly with heteronormativity. This is not politics, this is abuse. Yes. This is systemic abuse and societal failure. Those are both fixable. Some do not want to fix. They want to exploit. I am disgusted by those making a living by bellowing in this type of torture chamber. https://hotbuttons.substack.com/p/bloody-chum?r=3m1bs
The idea that government has no role in the economy is a crock. We would never have had a broad middle class if government didn’t intervene. What we have to do now is to ensure that people of all ethnic, faith, diverse, and disability backgrounds have a fair shot at joining a middle class. We also need to dismantle the unfair advantage the wealthy have stolen from the rest of society in stock options, offshoring, and what FDR called economic royalist.
Carl, your Substack link is a MUST READ. Your analysis of Kirk and his deplorable thoughts/behavior is outstanding. Thank you for sharing.
Thank you. I found his like to be similar to Nick Fuentes and Alex Jones, et al. Stirring up hate. Hate mongers. It distresses me that Trump and Vance move to try to spin this into a Reichstag Fire event to subvert Democracy. Hence it is important to spread the truth as far and as fast as we can. At the moment we must await the experts who sift the data. I fear they may be muzzled by the Administration or the Republican governor.
A contrarian would ask Tim Scott, and all the Black Republican officeholders how they feel about it?
How does Fuentes feel about Stephen Miller? Howard Lutnick? Steve Witkoff? Jared Kushner and Ivanka Trump? Candace Owens? Miriam Adelson?
Can't Laura Loomer do something about this?
The image is very disturbing
Trump and Vance, Bondi are on a Jihad against anyone who speaks ill of Kirk, and the truth is speaking ill.
Kirk is Trump's Horst Wessel, his murder is a Reichstag moment. They are using it to squelch all debate and to go after the Democratic party.
The NAZI's had a hymn, an anthem the Horst Wessel Lied. I am waiting for them to come up with a Charlie Kirk anthem.
Maybe they will recycle this one: https://www.youtube.com/watch?v=KUguJTrR5xI&list=RDKUguJTrR5xI&start_radio=1
The rich get....
WE paid for Charlie's last trip on Air Force Two. He came home with the Vice President and military personnel carrying him. That alone has pissed off many veterans or their families. He was memorialized in a building WE helped pay for as well.
The ostentation for Kirk, the TRump military parade, and the ballroom are all messages. We can take take take.
Meanwhile, TRump and Hegseth released a snuff film about eleven unknown Venezuelans that WE paid to kill. They enjoyed doing the first murders so much, they did it again. Yesterday TRump reveled in it sitting in the White House WE paid for. Psychopaths!
When the rich don't pay their fair share for all the services they suck out of the system, everyone else has to. Good Americans and immigrants do all the work and these f-ers get to choose who gets the crumbs. Just saw a clip where Charlie said he didn't believe in free lunch---for poor kids.
What an awful display of hate and greed that send-off was. Sickening. See you in the streets.
Three more dead Venezuelans. https://www.washingtonpost.com/national-security/2025/09/15/trump-venezuela-drug-strike/
No details.
In Baghdad By the Sea we get news the rest of the country doesn't. Vladimir Padrino López, Defense Minister of Venezuela’s Bolivarian National Armed Forces, before talks between Russian President Vladimir Putin and Venezuelan President Nicolás Maduro at the Moscow Kremlin on May 7, 2025. TASS Mikhail Metzel/Russian Presidential Press and Information Office/TASS/Sipa USA
Is Russia involved in our drug interdictions?
"Venezuelan Defense Minister Vladimir Padrino López has issued a stark warning to neighboring Guyana and Trinidad and Tobago, saying Caracas would retaliate if any attack against the country were launched from their territories."
"According to the minister, U.S. aircraft are not simply conducting routine patrols but are equipped to monitor Venezuelan territory in real time. The planes, he claimed, are “designed to collect and process information in real time, up to 200 miles, meaning their range reaches Venezuelan territory.”
"In his remarks, Padrino also accused the United States of harboring aggressive intentions against Venezuela. “We know the deployment they have in the Caribbean with every intention of sowing war,” he said. He said U.S. forces recently detained a Venezuelan tuna-fishing boat for eight hours before releasing it. No details were provided about the location or identity of the vessel.
"The warning to Guyana and Trinidad and Tobago echoed earlier rhetoric from Venezuela’s leadership. Vice President Delcy Rodríguez last week branded both countries “vassals” of the United States.
"'You should take it easy, don’t dare, don’t even think about it. You are lending yourselves to the perverse plans of an aggression against the Venezuelan people,' Rodríguez said."
Read more at: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article312113274.html#storylink=cpy
All Venezuela has to do Daniel, is welcome Exxon back in and pay them reparations for lost profits. then all will be well.
Our economy is a festering pimple that will be popping soon. Corporations and ultra-rich people can only extract so much before the masses rise up. We need to identify every corporation that is extracting excess wealth from the economy and boycott them. I can think of no better way to bring them to heel. We can’t count on elections to solve our problems because by next fall the system will be rigged.
The reason young people fall for Charlie Manson’s (oops, I meant Kirk) twisted logic is that their future appears bleak, and unfortunately it is.
I can't say this enough, that this is what the Democratic Party should be out talking about every day. I realize that a lot of people that lived it don't realize what has happened, and anyone under 50 has an even less chance of realizing this.
Perhaps the real "suckers and losers" have not been laid to rest at Normandy American Cemetery and Memorial [France,] and all such hallowed ground both domestic and overseas.
Perhaps the "suckers and losers" are the plain people — the everyday citizens.
Maybe WE are the real "suckers and losers."
At least the Republicans among us, anyway.
And the 90 million who stayed home.
VOTE !!!
What often is not discussed, is that in addition to the morbidly rich's theft of wealth making life miserable for the working class, but it also threatens the stability of the whole system. The system depends on the consumer classes having enough income to allow them to make the purcheses that keep the system going. If the consumer classes (rich people do not buy a lot more stuff--they stash the money instead.) cannot buy stuff, the factories decrease their output, lay people off, and economic collapse just muchrooms from there. So, while we are focusing on the injustice, let us remember that we are also threatening to lose it all. How are we keeping the system going with so much wealth of the working classes already having been sucked up into the upper class? Credit. People are buying on credit. The percent of credit debt is now past what it was in 2008 and past what it was in 1929. Of course, living on credit just excelerates the speed of upper class theft of working class wealth because of the interest payments added. Are the morbidly rich worried about this outcome? Hell no. They like economic downturns. That's when they pick up the failing businesses for pennies on the dollar. Put your money in commodities.
While killing anyone for their beliefs is utterly Unamerican and raises the political temperature, I just saw this in the "Harper's Weekly Review" mailing. There are references to everything stated here. Talk about Unamerican....
The U.S. defense secretary ordered his staff to identify members of the military who had “mocked” the activist’s death; the deputy secretary of state said his own department would “undertake appropriate action” against non-citizens’ “making light” of the killing; a Louisiana congressman called for social media platforms to ban anyone “celebrating” the murder; a right-wing influencer posted that she was tracking those glorifying the killing and would “ruin” their careers; and while guest-hosting Kirk’s podcast, the U.S. vice president instructed listeners to call the employers of those found “justifying or celebrating” his death. A political analyst, a lawyer, a sports journalist, a middle school football coach, a public relations employee of the Carolina Panthers, a Washington Post columnist, a firefighter, a United Airlines pilot, employees at Delta Air Lines and American Airlines, a junior strategist at Nasdaq, and a U.S. Secret Service agent were fired, suspended, or are under investigation by their employers for comments they made in the wake of the assassination.
Look up "Horst Wessel Effect".
The delusion that the right wing nuts have is because of the worldview they have adopted from Fox News. Murdoch is a poison that must be expelled from America and all propaganda needs to be taken off the air permanently. Why is this allowed? The sickness that is Murdoch must be eliminated from all public spaces. The Chosen One is rising and there be dragons.
You're so right about Fox; I was sorely disappointed (and disillusioned) when they got away with paying a sizable, but totally inadequate fine, instead of losing their broadcast license.
And Trump wants to end ‘all this killing of the right , by the left”.
He has excitedly killed fourteen people in the past two weeks because “ they’re drug dealers”. He doesn’t know that to be true . It works for him to create an atmosphere of ‘constant killing’ of people he has no personal knowledge of .
Look around Trump.
Are elections in danger??
Read about the work of the ETA - saving the security of elections..
https://electiontruthalliance.org/
Weapons of real mass destruction are not (only) what you have been taught. I let you put them in the order you fancy. Marketing and hollywood. Selling dreams, the american way of life, pollute baby pollute, buy baby buy. Inherent part of wild capitalism and its “easy credit” schemes. Just get a loan, the more the better, work like a donkey, do not think please, just get more debts and shut up. Reimburse with high interest. Then and only then come the nuclear bomb and gas weapon, etc. THINK please
Please listen to a song by a North Carolina country rock band named interestingly, American Aquarium called "The World is On Fire". You will be moved....
You mean, https://www.youtube.com/watch?v=Ym0SRvCtYYc ?
Written after the 2020 election. https://americansongwriter.com/american-aquarium-find-hope-new-track-world-fire/
"I started writing this song the night after the last election. I found myself stuck soundly between anger and confusion. How did we get here? What is wrong with people? How did our country fall this far out of touch with each other? Every eight years, “your side” either wins or loses. You get to walk around with your chest barreled out, triumphantly boasting of the change to come, or you are forced to cower in defeat, mumbling about how the “new guy” is going to be the final nail in our democracy.."
BJ Barham
Go to spotify or Youtube and search for songs by Thom and Louise Hartmann, you will love them. I don't know who the singers are,or who is playing the instruments but the songs are ccurrent and have a country air about them.
This is a telling of facts.
To preach this sermon without speaking of the loss of America's percentage of world GDP makes your argument fall flat. I would love to see all of those things implemented, but I'm not sure they would produce the same result. I'm not sure our economy could handle the debt, or the public could handle the tax burden. We are a very selfish culture with individual and myopic vision. I just don't know...
The way it works, poor folks have to spend all their income, benefitting the rest of society. So if they have a subsistence it "floats all boats." paraphrasing JFK quoting Keynes.
Debt is America's superpower it powers consumption, and that has the whole world groveling at our feet like hungry salespersons.
That credit card in your pocket, that car loan, that mortgage, you are part of the problem.
Mr. Farrar. I was recently surprised to learn that the U.S. banking system is no longer a fractional system, as of 2020, I think. Man, we are in for a terrible financial collapse if that tax reduction for the rich combines with Trump's insane tariffs in such a way as to remove a sufficient amount of money from our economy. A run on only a few banks could do us in. The run could be set off by a collapse in the crypto business.
Mr Dobbertin. There is no such thing as a fractional system. It is a fractional reserve system. Meaning that a financial institution can loan out money on the basis of a fraction of the reserve it has on hand. Reeserves are Government Securities, Corporate Bonds, and demand deposits ( checking accounts,not savings accounts)
I have seen nothing reported that that the fractional reserve set by the Federal Reserve was down to 0% or eliminated it period. If they did that, then financial institutions could create unlimited amounts of money, the only thing holding them back would be interest rates.
The supply of money in circulation is limited by the interest rates, increase interest rates and you decrease the supply of money, decrease interest rates and you increase the supply of money, that is why Trump wants the Fed to decrease interest rates, Trump or rather his advisors, are Keynesians
Bank runs are a thing of the past. They happened when the medium of exchange was tied to gold or silver. A person could present their bank note, and did so until the 1930's, when the FDIC was created by Law..
The Xmas movie, It's a wonderful life with Jimmy Stewart is about a run on the bank.
The first run on a bank happened in England, the newly chartered Bank of England, built on the back of the East India Company. Had a run on the banks gold.
Banks took in gold for safe keeping, issued notes (a liability on the bank) in exchange, . promissory notes, the promise was to redeem the notes for gold.
Well a rumor started that there wasn't enough gold in the vaults to redeem all of the notes in existence, and their wasn't, and the Bank of England was on the verge of rupturing, (bankrupt).
The response was genius, they hired the foremost alchemist of the realm, Isaac Newton, as the 1st Warden of the mint, that assuaged the fears of the crowd and stopped the run on the bank
June 16, 1933 President Franklin Roosevelt signs the Banking Act of 1933 into law creating the Federal Deposit Insurance Corporation (FDIC). This put an end to runs on the bank
Here is how money is removed from the system.
First debts are paid down and paid off. As you pay principal on a loan or mortgage or credit card, you are removing that amount of money from the system.
As you pay your taxes you are decreasing the money supply by that amount of money from circulation, it then goes to the US. Treasury which then uses it to pay the interest, on government securities, and if any left over to redeem securities that have matured., but pay interest first.
The interest paid, is to large institutions, sovereign funds, and the Federal Reserve system, which is a corporation owned by member banks who buy in at 6% of their capitalization.
I don't see tariff's as a way to remove money from the system. I see tariff's as a means to reduce consumption, as raising prices will reduce demand, in theory but Americans are addicted to debt, especially their credit cards, so as prices increase so will the demand for debt.
The demand for debt is supposedly elastic, meaning sensitive to interest rates, for large purchases like mortgages yes, but not for credit cards,
People are not even cognizant of credit card interest rates, which can reach 27% or more, because they pay a minimum due on the balance, and their debt will be inherited by their children.
A bank goes out of business primarily through insolvency, where its assets (like loans and investments) become worth less than its liabilities (what it owes to depositors and others), making it unable to cover its obligations
A banks assets are its loans, mortgages, corporate bonds and government securities.
Title 12 USC, authorized the fed to monetize corporate bonds, but had no need to do so and didn't. Until the administration of Trump 45, when it made a decision to allow member banks to include corporate bonds in their reserve base, this increased the reserve base and along with Powell dropping the interest rate to .25 basis points for securities sold through.t he open market window to member banks, he created a temporary surge in the money supply, through increasing the demand for debt. But the consequences were increasing inflation, and Jerome Powell and his committee, hauled it in. Trump remembers that surge in economic activity, until COVID, and wants a repeat.
The economic crisis of 2008, was brought about by banks approving mortgages at sub prime rates, using Adjustable Rate Mortgages (ARM), but then, interest rates surged and the people who held mortgages were no longer able to make payments, and the mortgages held as a reserve base, were worthless than than what it owned o depositors and others., and then the bank bail out. financed of course by federal debt.
The real beneficiary was the Association of Primary Dealers in Government Securities, or rather those that survived the crash, banks like Lehman Brothers were out, as was their membership in the APDGS
However your point is made. Trump and Musk journeyed to Ft Knox to see if all of the gold that they were going to own, was actually there.
The plan is to replace the Federal Reserve note, with Crypto
The "come back" is like what the Heritage Foundation says when it wants to "save America" actually what they want is to return America to the America before the Revolutionary War. specifically ruled by a brutal King and his greedy oligarchs, savery was OK, women had no rights, etc etc etc.
The graphic with article says it all.