Gary North on current economic affairs and investment marketsGary North -- Specific Answers
HomeContact MeTell a FriendText SizeSearchMember Area
Gain immediate access to all of our current articles, the question-and-answer forums, dozens of free books, and article archives. Click here for details on how to join.

About This Site
Academic Gaps
Articles
Capitalism and the Bible
Clichés of Protectionism
College Finances
Debt Management
Ellen Brown: Critique
Federal Reserve Charts
Gary North's Free Books
Get Published Here!
Gold Price & My Report
Keynes Project
Price Index (U.S.A.)
Questions for Jim Wallis
Remnant Review
Social Security/Medicare
Sustained Revival
Tea Party Economist
U.S. Debt Clock
Yield Curve
Your YouTube Channel
Gary North's Miscellany
Advertising
Blogging
Budgeting for Wealth
Business Start-Up
Career Advancement
Digital Tools
Education That Works
Evernote: Free Notes
Federal Reserve Policy
Fireproof Your Job
Goal-Setting for Success
Great Default
Inheritance Strategies
Insurance
International Investing
Investment Basics
Job and Calling
Keynesian Economics
Leadership
Marketing Case Studies
Obamanomics
Precious Metals
Real Estate
Retirement
Safe Places
State of the Economy
Stocks and Bonds
Study Habits
Video Channel Profits
Members' Free Manuals
Our Products
Contact Me
Help
Tell a Friend
Text Size
Your Account
My 100% Guarantee
Privacy Policy
Terms of Use


This site powered by MemberGate

Economic Error #17: The Banking System Should Be Run Like the Post Office.

Gary North
Printer-Friendly Format

Ellen Brown believes that governments are efficient organizations. As a model of efficiency, she chooses the United States Postal Service. She says that the entire banking system should be run like the old postal savings system.

We need a safe place to keep our money and a practical way to transfer it to others. These services should be performed by a government agency on the model of the now-defunct U.S. Postal Savings System, which operated successfully from 1911 to 1967, providing a safe and efficient place for customers to save and transfer funds. It issued U.S. Postal Savings Bonds in various denominations that paid annual interest, as well as postal savings certificates and domestic money orders. [Web of Debt, p. 401]

I think it is safe to say that Ellen Brown lives in a mental fantasy world. The unfortunate thing is that she invites conservatives to join her in that fantasy world.

The thought of the entire banking system being run with the efficiency of the Postal Service is enough to terrify anybody. Think of standing in line to get money out of the bank or into the bank. Think of trying to get a loan from somebody employed by this new, improved, government-run banking system. Think of the paperwork involved. Think of how well the Postal Service delivers other services.

That Brown expects conservatives to believe that the banking system should be run like the old U.S. Postal Savings Bonds program is mind-boggling. Yet, the fact the matter is, conservatives read her book, and they recommend it to their friends. I know this, because I am constantly being sent recommendations for the book. Liberals do not send me recommendations to help me. Only conservatives do that.

The reason why the Postal Service could offer interest on its bonds is it was acting as an agency of the United States government. The money was turned over to the Treasury, and it was instantly spent on various government projects. The Treasury increased the government's debt, and it paid interest on those savings bonds. The call for the banks of America to be run by government agency is a call for all of the savings of Americans to be turned over to the United States government and spent on government projects. This is what she recommends. She wants to create a welfare state. She says this over and over in her book. Doubt me? Click here. She wants a welfare state funded by the savings of Americans, combined with fiat money.

The old US Postal Savings System had nothing to do with the private sector. None of the money was transferred to individuals seeking loans for businesses, or to buy consumer goods, or anything else. The money was all turned over to the government.

How in the world can this woman get support from conservatives for her ideas? Yet she does. This is indicative of the abysmal economic ignorance of sections of the conservative movement. These people cannot possibly be committed to the free market. They believe in government. Why they think that they should join the Tea Party in order to shrink government, and then read Ellen Brown's Web of Debt, is a mystery to me. I hope it is a mystery to you.

A friend of mine used to stand in line at Christmas at the Post Office. The line stretched on forever, as it usually does at Christmas. As a joke, he said to no one in particular, "This outfit ought to be turned over to the government." I do not think Ellen Brown would have gotten the joke.

For a detailed critique of Ellen Brown's economics, go here:

http://www.garynorth.com/public/department141.cfm|



Printer-Friendly Format
 Tip of the Week
Sign up for my free
Tip of the Week
Verification Characters:    Type     T  Y  J  8  5     here   


Tip of the week archives
On what this icon
means, and how it
can help you,
click here
 Q & A Forums
General Q&A Forum
Advertising and Resumés
Affiliates
American History Topics
Backyard Food Gardening
Banking and Politics
Blog Sites and Web Sites
Books Worth Reading
Bumper Sticker Slogans
Business Forum
Buying Smart
Christian Service Forum
College -- The Cheap Way
Copywriting
Education Alternatives
Food Storage
For Women Only
Fukushima
GNC Benefits
GNC Testimonials
Gold and Silver
Great Default Forum
Health and Diet
Health Insurance
Homeschooling
Investments Forum
Iran War
Job, Calling, and Career
Leadership Development
Legacy Building
Less Dependent Living
Local Political Action
Non-Retirement Forum
One Good Idea
Police State
Privacy
Public Speaking
Real Estate Forum
Remnant Review Forum
Safe Places Forum
Taxation Policy
Typographical Errors
Video Production Basics

 Archives
Reality Check
 Discussion Forum
Search Discussion


Recent Forum Posts
• INVESTING IN TAX LIENS
• monetary deceleration will bring a bust
• Sell some Mineral Rights?
• Amazon versus Walmart
• why do you say public stock investors are doomed?
• silver purchase
• My grandparents are retired with 220k
• Probate Investing
• Gold Purchase
• Shipping Containers
• Job Candidacy
• an unconventional guide to investing...
• Strong Dollar
• Foreign Currencies
• Watch Junk Bonds For Early Warnings Of Fin. Crisis
• Rental Strategy
• Foundation Issues
• Any idea how to market a property to Chinese?
• Buying from a distressed seller
• Menacarow and The Paper Source
• What value should you place on a neighborhood?
• What to Do with Bay Area Home Equity?
• Reverberations from city of Dallas’ HUD discrimina
• “Affirmatively Furthering Fair Housing
• Renting to college students
• On Making an Offer
• SEC Commissioner Warns of Financial Crisis
• Big Data for real estate?
• flooring for rentals
• Mortgage Ideas
• Survivor library
• Missle Silo converted to Condos
• Does the South suck?
• Moving TO the US?
• No City for Old People
• Will you die getting to your bug out location?
• teaching English overseas - some questions
• The state with the most Liberty
• Switzerland and Firearms
• On "Zip Code Searching On The Web"
• Crash Course in becoming an Expat
• Anyone tried Puerto Rico?
• Chattanooga, Tennessee
• Middle Class squeezed out of Chicago
• An Article on Chile
• Sudden Wealth Advice
• Sudden Wealth Advice
• Question on Traditional Pensions
• advice on how do I interact with my older parents?
• Do You Sincerely Want to Be Rich? Why?
• Req. For No 401(k)/Other Pensions via Relocatio
• Cashing out 401K to pay student debt?
• SS @ 62 and still working
• Desolation or Prosperity?
• I take it Retirement Armageddon is not available
• Post Retirement Career
• Social Security - when to start collecting
• 401K Risk
• Detroit Retirees Fight 83% Health Care Cut
• Lump Sum Early DROP
• Walmart, workers and 50% plus 1
• Baxter today, Amelia in two weeks?
• U.N. Arms Trade Treaty
• On line school in CA
• Distractions Disrupting Self-Dicipline
• Finger in the Wind vs. Seize the Day: Amnesty Annu
• Dying Christian women
• Problem: Recovering from an Initial Error in Start
• Recovering from an Initial Error in Starting a New
• best way to communicate with group
• Stupidity- The most common element in the Universe
• Bill Cosby article
• Self-driving cars
• Lincoln Assassination
• The Harvard Classics: Download All 51 Volumes as F
• Janitorial business start up
• Targeted market research?
• Product or service
• Food Service Start Up
• I've been encouraged to start two side businesses
• book keeping as a home based career?
• book on getting organized
• how to decide on a price for my subscription site?
• HP plans to make 3-D printing everyday thing
• Attn eBay'ers: Turbo Lister 2
• 5 Business lessons from Escort (USP)
• Value of Equity in a small business
• Idea for a reality show--"Do That Job!"
• Dun & Bradstreet information
• Warren Buffett and that other guy.