Monetary Policy
Americans have fought over central banking since the founding of the country, but the deleterious history of usurious banking spans millennia. Today, America's Federal Reserve Bank masquerades as a quasi-governmental body, but it is constituted of and ruled by a cabal of unaccountable private banks with common historical roots[1]. A small group of people controls the world's predominant monetary system, allowing them to define the incentive structures for nearly all human activity. No one should be afforded such power, and the rotten fruit of this system proves their malicious intent.
Central banks use fiat money to engineer the economic booms and busts of the business cycle, which creates inequality of wealth and power and reduces the standard of living for the common man. Loose monetary policy harms the lower and middle classes more than any other economic policy of the state. The economic harms cause by usurious banking are antithetical to America's founding principles, but few politicians today understand the history or economics of the monetary system well enough to challenge it. Potential challengers likely recall that the last president to seriously threaten the Federal Reserve Bank was John F. Kennedy.
Reforming this system presents many difficulties. The global financial industry depends on U.S. Treasuries, and the entire world economy is tied to the U.S. economic system to a significant extent. However, the global monetary empire is too destructive to ignore. Moderate banking reforms can have short-term benefits, but they do not address the root of the problem. Tightening the money supply would benefit savers and earners, which is generally beneficial to society, but it also can have drawbacks in some situations. Commodity-backed currencies are less susceptible to inflation but are subject to manipulation by the economic forces of global markets.
ORG's long-term goal is to reassert the federal government's constitutional authority to issue money from the treasury. When the government directly creates an increasing share of its money, the need to borrow from the Federal Reserve Bank will decrease. A gradual approach to such monetary reforms would limit shocks to the economy, but gradualism may prove untenable because the world's most powerful geopolitical actors have demonstrated the will to use economic and even military means stop changes they disfavor. During the transition, programs must be implemented to support the value of the dollar and other economic adjustments made while U.S. debt decreases as a share of the global economy. In the short to medium term, ORG would aim to educate and persuade a critical mass of the citizenry about the historic effects of usurious central banking. As the influence of nationalism reaches academia, qualified economists can more specifically design a better system.
Consumer banking also must be reformed to elevate the standard of living across the socioeconomic spectrum. U.S. households are as beholden to moneylenders as the government, with 80% of Americans currently in debt and a median debt load of $67,900[2]. Reforming the consumer banking system will require careful economic analysis not to disrupt quality of life. Reforms would include eliminating compound interest, limiting interest rates to true risk level, curtailing fractional reserve lending, and outlawing usury. When central bank policy acts to stabilize the value of money over time, rather than its current course to cause massive inflation, much of the impetus for private investors to seek higher interest rates will disappear. In a stable monetary environment, a securitized loan (such as a home loan) could produce a satisfactory profit at only 1% or 2% of non-compounding interest. Such a system would yield fair profits in a truly competitive market environment without causing abusive debt burdens on workers. The monetary system is by far the most important target for reform if nationalism is to achieve the national sovereignty of all citizens.
[1] G. Edward Griffin, The Creature from Jeckyll Island, 1994
