A Sound Banking System Awaits But Humility and Noble Desire

Wall Street will survive if only it gets behind the United States

While the king is at his table, My spikenard sends forth its fragrance.
—Song of Solomon

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In addressing the present peril of those institutions supporting a banking system whose [grossly over-stated] financial "value" rather is burgeoning with exposure to an arrangement that, simply cannot be sustained, harsh reality spoken at the start of the following presentation is but to those presently trapped humble admission whose necessity cannot be escaped. Indeed, the sooner this humility is surrendered, the sooner a more suitable, sustainable and, ultimately, profitable model of investment banking might be achieved: one subsumed to an invigorated credit system anchored by sovereign national banks.




There is no time like now for American investment banking to reorganize and shed the hold of that plainly degraded, Venetian-based, operational principle whose effect presently leaves most interests in a grotesquely bloated, vulnerable condition doomed to demise in chaotic contraction. American investment banking rather could flourish within an environment wherein physical economic productive capacities perpetually are being increased via directed investments venturing improvements in the economy's physical platform, with projects being financed by a national bank (or a combination of sovereign, national banks). These investments venture to expand private sector opportunities for creating that life-enhancing, physical wealth such as, alone, ultimately secures every penny of private investment. Such a virtuous circle efficiently creates that truth-abiding effect wherein mankind increases its capacity to beneficially exercise dominion over nature, and likewise improve its state. Indeed, such an arrangement already has proven the tried-and-true capability, first and foremost, of the constitutional republic that is the United States.

Presently, then, any threat to downgrade U.S. sovereign debt truly is nothing more than the idle ramblings of insane agencies consumed with belief that, mankind must dutifully serve the whims of private interests controlling finance, and this no matter how destructive the terms of the arrangement. Truth is money and credit are worthless conceptions without these being anchored to a system whose purpose serves to increase the productive efficiencies of physical economies, such as uplifts and sustains the wealth of nations. This desirable arrangement, indeed, represents the sort of principle that, the legislative conception known as "Glass-Steagall" was (and still is) designed to foster.

Now, those arguments once put forward by the likes of Alan Greenspan in successfully venturing to repeal Glass-Steagall during the latter 1990s — namely, that competition would be enhanced in an environment devoid of dedicated investment in physical economy — simply do not stand up to reality that, when it comes to such desirable investment in physical economy as will broadly increase productive efficiencies, the essential ingredient is not nearly the availability of competitive financing, but rather the simple will to commit to such capital-intensive forms of investment as, indeed, are necessary to create an economic state wherein all interests assuredly gain power to prosper.

This desirable, more stable state of affairs is the domain of a Hamiltonian credit system — a two-tiered system of finance whose every debt is geared toward increasing the productive power of the physical economy, such as will raise to a virtual certainty the prospect that, principle and interest on all debts easily will be repaid, while the long-term return on necessary physical investments become a font of profits generated by private enterprises operating upon that qualitatively improved physical economy so created. These private enterprises largely being financed at the second tier presents the domain in which American investment banks might operate, seeking to maximize physical gains made possible by those fixed investments in physical economy financed by sovereign, national banks whose basis for existing at all, indeed, is for this very cause of financing every necessary improvement in the physical economy, that private enterprises operating upon it most assuredly might flourish.

Thus, such principle as dedicates government to "promote the general Welfare" represents most sacred ground on which an already well-proven Hamiltonian credit system is founded. That is why anyone in Congress attacking this principle rightly is seen a scoundrel worthy of condemnation in the name of every man and woman who has died on behalf of the cause for which the United States was founded. Any move to strike from the deliberations of the U.S. Congress concern for the general welfare is better judged seditious! Indeed, as breakdown of the global arrangement called "the British Empire" invariably proceeds to destroy its witting agents here in the United States, this sense about the Congress is sure to advance. Better surrender now, then, and get on to creating that best possible future whose promise awaits return in the United States to the American System of Political Economy in formation of a Third National Bank.

—Tom Chechatka