TOWARDS A SOLUTION TO THE DEBT CRISIS IN CALIFORNIA: THE STATE COULD WALK AWAY AND CREATE ITS OWN CREDIT MACHINE

Since Wall Street has failed to provide a functioning credit system, California would be totally justified in providing its own. The other choice is to accept debt peonage.

Read more here-
http://www.webofdebt.com/articles/sunshine_state.php

11 Responses

  1. I believe the “Sunshine State” is Florida and California is the “Golden State”.

    • Oh dear! I just looked it up in wikipedia —

      “The nickname of the U.S. state of Florida; it also has been used for New Mexico, California, and South Dakota”

      Maybe I should change the title though, if not too late. Thanks!

  2. I have sent Ellen’s articles to my state house rep (NC), and since he is currently involved in budget cutting decision-making that doesn’t increase his popularity, he’s become interested in the idea that the states do not have to be held captive to private credit markets to fund their shortfalls.. They can create their own credit machine.

    My rep, for example, does not understand that this recession is the result of a credit freeze. His ideas are ill-informed. He says to me: “….. there is one major missing piece in your analysis: the global economic recession. ” He doesn’t understand the nature of deflation that is the result of credit contraction. The downturn in his mind is the “business cycle”, some vague and mysterious malfunction out there somewhere that causes people to get laid off..

    I would like to suggest to all of EHB’s readers that they contact their state representatives and make them aware of what she’s saying. These people are down in the trenches and they’re hampered by a lack of insight. They’re approachable and looking for input.

    The problem is so very simple: people don’t have any money. That is the cause of the “business cycle”. The solution is to create a state bank to make money available, cheap money. The global economy can go bugger itself. Cheap credit at the local level will stimulate local economies. The problem is cheap credit isn’t available. No credit is available for small business in many cases. The state bank has to step into the breach.

    Wall Street can go to hell.

    • Right on!

  3. After the Fed is abolished and the creative power of issuing our money is returned to “We the People;” I hope Ellen’s face graces one of our USNs.

    Larry

    • Thanks! I didn’t exactly make that up myself though. It probably should be Lincoln, Franklin and Jefferson. Oh wait — they’re already on there!

    • Thanks! I didn’t exactly make that up myself though. It probably should be Lincoln, Franklin and Jefferson. Oh wait — they’re already on there! Best, Ellen

  4. Ellen:

    Thanks for continuing to hammer away on this issue. The private criminal syndicate aka the Federal Reserve has a monopoly on money creation and they have gone on strike in order to shake us down. It is all deliberate. They seek total control of everything but first they must have us homeless and destitute, begging for relief and willing to abandon our Declaration of Independence. I say hell no!

    People who love liberty must always be willing to do battle with tyranny. Our founders declared that our rights are granted to us by our creator and among these are life, liberty and the pursuit of happiness. When our government fails to honor these rights, as they did when creating the unconstitutional federal reserve act of 1913, it becomes the responsibility of we the people to take corrective action.

    1913 was a long time ago but the act of treason by Congress and President Wilson looms larger than ever in this present day and time. Fortunately, the Constitution gives us the remedy. Our local governments, our states, counties and cities are empowered to stand up and defeat tyranny.

    Speaking recently at a gathering here in Rodeo, New Mexico, constitutional expert and former Sheriff Richard Mack cited his landmark case- Mack v US, Supreme Court. Mack told us that in his case, Supreme Court Justice Antonin Scalia found that the US Constitution establishes two separate spheres of government which are among what Scalia called “structural protections of liberty, a healthy balance of power between the States and the Federal Government” the objective being to “reduce the risk of tyranny and abuse from either front.”

    I say it is high time to invoke these structural protections of liberty. Right now the Fed believes it has a choke hold on California but the experience of North Dakota and the experience of Richard Mack shows us that our Republic can be saved.

    As Sheriff Mack told us: “America is in extreme peril”. I say we patriots need to act boldly and put the power of money creation into the hands of our local governments before it is too late. If the state Governors and legislators refuse to act, then we the people must act directly and at the grass roots with petitions. It can be done and it must be done.

    People need to realize that, as Ellen Brown, Richard C. Cook and others have been saying, credit is a public utility just like water, roads, and other elements which make our economy work. Since we look to our local governments to provide our water and our roads, then why not our credit? We need state-owned banks and beyond this why not County or City-owned banks?

    We Americans have been hoodwinked by these criminals long enough. Let’s get going now and return America to the land of the free, home of the brave.

  5. Loved the book, but am not a lawyer, and my knowledge about finance is that I have known something was rotten in our money system for some time. Griffin’s book had a mountain of interesting facts, but it was badly organized and had a fair number of logical fallacies. Yours is far better organized and presents much better approaches to remedies.

    I see that the SEC is planning to label the IOU’s as “securities” in order to “prevent fraud.” If they can only be handled by municipal securities broker-dealers, how will people deposit them or cash them at banks, or use them in daily transactions? Given the situation we are currently in, are the SEC members engaged in looking over their shoulders at people who may think they are a big part of the problem?

    http://www.marketwatch.com/story/california-ious-can-be-considered-securities-sec

    • Thanks Doc Walt. Good points about the SEC limitations. I don’t see why the IOUs would need to be regulated as securities. Why can’t you sell your warrants if you want to, to anyone willing to buy them? It does have that rotten taint!

  6. Regards,
    I am happy with your blog posting
    I want to inform and business credit.
    Good Luck

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