The campaign of intentional destruction of the West now in the first stages of its culmination in the banking system is quite straightforward:
- Flood the economy with money, so that lots of firms find it easy to profit, so that they then flood the banks both large and small with more deposits than they can quickly deploy in mortgages or other debt instruments of their own manufacture.
- Guarantee the banks a return – a very small return – on Treasury bonds that are super easy to buy, so that they buy lots of them (as they try their best to find good economic projects to which they can loan money).
- Impose a massive regulatory burden that messes with all supply chains. Add fires at industrial facilities of all sorts. In particular, crack down on domestic energy production. Watch as prices rise.
- To control inflation, increase interest rates.
- The value of bank assets – not just Treasuries, but all their long term assets (mortgages, credit card debt, and so forth) – falls as interest rates rise. Bank balance sheets turn upside down: they are, many of them, insolvent.
- Guarantee all the deposits of only the largest banks. Watch as the bigger depositors of smaller regional banks flee for the safe haven of banks too big to fail.
- Smaller regional banks begin to fail, and are quickly bought at fire sale prices by the biggest banks.
- But the biggest banks are all insolvent, too. Their deposits are entirely insured by the FDIC, but their equity is entirely dependent upon cash infusions from the Fed. The Fed effectually owns them. And their stockholders want that, because if the Fed does not control the biggest banks, those banks will fail – meanwhile, their depositors will be insured by the FDIC – and they will be agglomerated into one big bank.
- Even if the biggest banks remain “independent” of the Fed, they are nonetheless no more than instruments of the Fed. The Fed calls the tune, and they dance to it.
- There is then in effect only one big bank: the Fed. It can dictate policy to all the others, which are in the final analysis only its branches.
What happens then? Whatever the Fed wants to happen, happens. If the Fed decides that this or that sort of person or institution – the Catholic sort, e.g. – ought to be debanked, it will happen.
Everyone will feel some need to support this system, because everyone will depend upon it for every transaction whatever, outside their own family.
Alternative media of exchange might spring up. But The Bank could crush them, too. We may expect that The Bank will crush cryptocurrencies.
Let’s just hope the alternative payments systems now under development in the BRICS trade group get going, fast. I see no other way to avoid incorrigible totalitarian tyranny.
God send I am wrong.
The Orthosphere 
I find it interesting how the mind can make sense of anything and often in incredible ways, all the while being oblivious and discounting of its own abilities and processes. Seems like a recipe for disaster.
“I find it interesting how the mind can make sense of anything and often in incredible ways”
Humans can talk themselves into anything at all. See Jim Jones and the Peoples’ Temple, the Holodomor, Joseph Smith, transgenderism, the belief that Joe Biden is the acting Chief Executive, etc.
“all the while being oblivious and discounting of its own abilities and processes.”
Surely you meant to write, “while utilizing its own abilities and processes.” See point 1, above. Humans harness a whole array of mythologies to get through their lives and keep their societies functioning with their big, complicated brains.
You vill get in zee pods und eet zee bugs then.
Viewed a page like this one?
No digital bucks for you this month and all stores have been notified of your wrongthink thoughtcrime, no entry for you!
War for Lebensraum. Or maybe liquidation of undesirables will commence before the war this time; usually it’s the other way around because the sovereign wants to make sure to have all the relevant people to hand first.
Or hadn’t you noticed we’re at war with the last USG-independent Western(ish) major power?
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The Bank of England was founded in 1694 to purchase the National Debt created by King William III’s wars in the Low Countries.
The Bank would pay off the government’s creditors and the government would pay it interest. To secure this, all government revenues would be paid into the Bank.
To fund this, the Bank issued undated stock paying 4%. This stock was eagerly subscribed, with the required £1.2 m being raised in 12 days.
The result was a great stimulus to commerce. Instead of keeping their reserves in the form of gold and silver in their coffers, merchants bought Bank stock. It was totally secure against theft or loss and paid a modest, but sure, return. If cash were needed, it could be sold or pledged to a banker in a quarter of an hour.
Then there was the Bank’s steadily growing note issue. Although not legal tender, everyone accepted them, because the banks accepted them; that is, they discounted them at par Cash became the small change of commerce.
In 1844, the Bank acquired a monopoly of issuing bank notes in England & Wales and its dominance of the banking system was complete, for it had become the clearing-house for inter-bank transactions.
The Fed at its founding took over private interbank clearing houses. It became also lender of last resort for banks. They still loan each other vast sums every day directly, but when a bank is low on cash and other banks won’t extend credit to it because they suspect it is deeply insolvent, the Fed can step in to provide it a loan that will enable it to satisfy the demands of depositors.
JP Morgan played that same role from his own personal fisc. The Templars used to play it, likewise.
The argument of free banking is that, while a lender of last resort is going to arise organically whether or not a nationally chartered central bank gets involved in the system, the insertion of a nationally chartered central bank into the system prevents the lender of last resort from itself suffering any risk, and thus removes from it all incentive to avoid loss. Risk in the system then explodes, first slowly, then all at once. To prevent that, the lender of last resort must be able to say “no,” and must want to; as JP Morgan and the Templars could, and did. Failure needs to go ahead and fail. Everyone benefits and general financial stability is increased when failures fall soon, while still small.
In the UK, the banks do not borrow from the Bank of England, but from the money-market and the Old Lady of Threadneedle Street lends to the bill-brokers, so its support is indirect, but it is still, in effect, the lender of last resort.