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John Lounsbury
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John Lounsbury, Managing Editor and Co-founder of Global Economic Intersection, provides comprehensive financial planning and investment advisory services to a small number of families on a fee only basis. He has a background which includes 34 years with a major international corporation, 25... More
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  • An "Emperor's New Clothes" Moment For Central Banking 4 comments
    Feb 10, 2013 2:00 PM

    This past week one of the leaders in global finance, Adair Turner, chairman of the FSA (Financial Services Authority), gave a speech of adairturnerhistoric importance. In an address to the Cass Business School, 06 February 2013, Turner proposed that governments should use money for themselves and for ordinary citizens that is directly produced and not be restricted to that obtained via issuance of private bank credit as the global financial system has operated by and large for 100 years.

    Anatole Kaletsky (Reuters) called the address an "emperor's new clothes" moment. He also said it a "truly historic speech."

    This is an astounding development for those (including me) who have been arguing that the monopoly of private banking for money creation is a seriously misdirected economic policy. This monopoly is directly responsible for the mismanagement of the business cycle for the past century.

    With the historic Adair Turner paper we could finally see the question I have asked for several years discussed:

    Why must nations with sovereign currency pay interest to use their currency (except for that they reclaim from citizens in the form of taxes)?

    Read the rest of the news article here.

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  • SeekingTruth
    , contributor
    Comments (1166) | Send Message
    1.Do not debase the value of the currency by profligate, immoral, adverse political, or inexpert and self destructive operations.
    2.Do not create monetary privileges to an undeserving class of people or enterprises by which they can unfairly profit at the expense of others.
    3. Place one group in charge, such as the US Treasury, and make it clear that they will not tolerate blackmail from the banksters, and put ample legal and enforceable teeth into it.
    4. Establish full accountability and transparency to the public, and establish national priorities for the printing of money that holds up to critical analysis in providing the most good with the least damage.


    Sounds like a few people like Adair Turner are starting to standup and speak up, and I applaud their efforts, and also yours, John Lounsbury. Thank You both sincerely.
    The four steps above would cease the FED from existing in its current form, and probably eliminate it altogether.


    Unfortunately, any system, even a perfect one, can be abused and exploited by a corrupt administration with self serving purposes and agenda.
    We remain exceptionally vulnerable to this threat, and they are always knocking on the door trying to get in, while some are already in, and stay in far too long.
    Without substantial improvements to our Constitution, I see no solution to these ongoing and potentially ruinous threats.
    10 Feb 2013, 08:56 PM Reply Like
  • John Lounsbury
    , contributor
    Comments (3970) | Send Message
    Author’s reply » Seeking Truth - - -


    You have made possibly the most important observation of all:


    "Unfortunately, any system, even a perfect one, can be abused and exploited by a corrupt administration with self serving purposes and agenda."


    I would add that the threat is really much wider than "the administration." There are always those that will try to subvert the best system designs for individual gain at the expense of all others. According to Ayn Rand, the new intellectual guide for the global oligarchy, that is the way progress is made for society.


    I disagree. I feel there must be a way to limit unproductive greed while rewarding productive ambition. I use the word "productive" here in a societal sense. After all, what is the value of great wealth if the whole of society is made poorer?


    The most productive force of human kind is ambition. It can also be very destructive if employed in a way that disadvantages many for the advantage of a very few. Great wealth is only justified in my mind if it is accompanied by a resulting benefit to society as a whole.


    My philosophy is that political and economic systems should have two goals, neither to the exclusion of the other: There must be opportunity for adequate (even generous) rewards for effective individual initiative and also distribution of benefits to all of society. Any system that emphasizes one over the other is self-destructive, in my opinion.
    11 Feb 2013, 03:45 PM Reply Like
  • John Lounsbury
    , contributor
    Comments (3970) | Send Message
    Author’s reply » Two other resources for this story:


    Opinion by Derryl Hermanutz


    Discussion on LinkedIn


    I hope that others will carry this story forward. This is a discussion I have been involved in for a couple of years. It needs wider participation.
    11 Feb 2013, 03:49 PM Reply Like
  • SeekingTruth
    , contributor
    Comments (1166) | Send Message
    A superb response you have made that deserves every honest and just American's recognition and praise.


    I did not intend to limit the predatory domain only to various administration's even though they tend to be the key power that lends increased facility to the shadow government that sustains its even greater power continuously over successive generations.
    It is a symbiotic relationship that they together have honed and perfected over time.
    The shadow government may sometimes have the "B" team in office for them, like now, but they are never out of the game (office), and are always eager to get their first string back in action where they can exploit war profiteering and regulatory mayhem and destruction to their maximum benefit.
    What will break this cycle?
    Probably nothing, but we could alleviate it by improving our Constitution to allow for public financing of elections and to modify our monetary system by eliminating or reducing the power of the FED, and better defining and enforcing white collar crime, downsizing the major banks, etc. to name just a few of scores of things that could be done, had we the intelligence and the will.
    11 Feb 2013, 07:51 PM Reply Like
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