The onion is being peeled in the AIG bailout, which is being compared to the Watergate scandal.

Read more here –

8 Responses

  1. I”m strongly tempted to buy a pitchfork and drive to New York! Anyone want to join me?

  2. Why a pitchfork? I think it’s time for something a little more lethal.
    Like prosecution!

  3. HI Ellen,

    I recently watched the video of your talk. I found the explanation of the multiplier – with the charts from the Dallas fed and Obama’s quote – the clearest and most convincing I’ve seen yet.

    However, there’s certain aspects of the talk I think may be inaccurate (“inflationary” system of original colonies’ direct money creation – I think Zarlenga says the Brits were engaged in counterfeiting), and others I’m still not sure I understand.

    For instance:

    The fractional reserve system is based on the assumption that most of the created money remains on deposit – if everybody tries to withdraw at once, the system collapses, no?

    How then can this be a solution to the immediate California problem
    – who are the state’s creditors? If it’s largely the commercial banks themselves, what’s to stop them from simply saying “OK. We’re withdrawing everything now, at once” and collapsing the newly-created state bank immediately? If so, wouldn’t your plan also need legislation requiring the state’s creditors to keep a certain percentage of the debt in the state bank, or some other complex arrangement? The fractional system seems to me to require the good faith of the depositors/borrowers/creditors. Whereas the large private banks have already demonstrated that their intention is to collapse the system for their own benefit.

    I’ve haven’t read the book so forgive my redundancy if this is covered there.

    Best wishes,


    • Hi Solomon, thanks. I did that presentation last August. You’re right, it is more complicated than that. We’ve since set up a public-banking google group that has explored these issues at length. If you’d like to join, write to “contact us.” I don’t have time right now to give a full reply, but I plan to write an article on it. It can be done!

  4. Power and money corrupts – but also power and money rules. So there you go… No reason to be surprised.

    • sorry for the fatalistic observation – but it is true nevertheless. American democracy is broken. Or rather – it is not democracy at all – it is oligarchy. The group of rich people are serving each other’s interests – and the rest of society is powerless. Actually – they are more than powerless – they are deluded, brainwashed and divided – so the rest of society really do not understand what it is they are doing, and whose interests do they serve.

      • And if we start to understand whom we serve, we’re too powerless (by ourselves) to fix the problem and often too powerless to even help other people see what is really going on.

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