The End of the American Middle Class? « Steve Perillo Blog | The personal Blog of Steven Perillo, CEO of Perillo Tours & Classical Music Composer

I am testing out the idea that a super charged Glass Stegal may be an improvement. I just don't see how a complete revolutionary overthrow legal tender laws, fractional reserve banking and central banking can be politically accomplished. It is just too much for people to wrap thier heads around. Even among libertarians, denial of the utter insanity of the existing financial system is widespread. I wrote the below to a lefty blog entry linked below...

√ Your heart is in the right place. However calling for more regulation of the banks is in essence working for them. They have proved capable of buying off the regulators at every turn. Even Barney Franks former chief aid just took a job as PR guy for GS

The problem is that banks lend out more money than they have. In it's essence this is worse than counterfeiting. Not only does the artificially created money dilute the money that everybody has to earn, but then the society is gradually enslaved in ertsaze debt.

As a first step a supercharged Glass Stegal act needs to be implemented. The ultimate real regulation needs to be done. The banks need to be broken up into deposit institutions and investment institutions.

The deposit institutions will not be allowed to loan out anything. They will keep cash on hand and store and redistribute it for a modest fee.

The investment banks will be stripped of depositor insurance and all other guarantees. They willl attract investors by their investment skills, prudence, and transparancey, as desired by the investors.

The present system rests on the fraud of fractional reserve banking held together by the printing press behind it and the forced use of the banks fake money forced down the publicc's throat by the legal tender laws.

I urge to read Murray Rothbard's book, What has the Government done to our money. Students of Rothbard and the Austrian School of Economics understood the problem and urged reforms in some cases decades ago. Ron Paul accurately warned about Fannie Mae back in 2003 and even predicted the natural response. Obama has just given them a blank check for three years, no limit no kidding, and the CEO of Fannie just got a 6 mil pay check approved by the pay czar.

Ultimately fractional reserve banking needs to go, along with the Fed and the legal tender laws. Until then we are all prisoners of the financial military complex.