Managing The Capital

Circunstances for the way The Capital is organized to be managed change, but the outcome is the same. Over the course of U.S. political-economic history, statesmen and entrepreneur-statesmen wrestled over whether the banking system should be public or private enterprise.

Where Jefferson wanted to keep the financial system small, private and parochial, Hamilton wanted to establish a national bank with regional branches under a central banking authority, much the way it is organized today, but our financial system is privately owned under private bureaucratic authority of the Federal Reserve Bank, allowing for a Jeffersonian legitimacy with Hamiltonian results.

For Jefferson, having a national bank was a sure way to consolidate power for exploitation of The People like the monarchs did. Hamilton knew that without a central bank with a common currency and coordinated action, economic development for nation building is severely restricted, and he was right, as Jeffersonian Republicans quickly realized.

After the War of 1812, a central means of finance was clearly needed and Jefferonian Republicans occupying the executive went to a national banking system to coordinate national production and build needed infrastructure. Western expansion beyond the Appalachians was financed by the central banking system. The financiers in the system leveraged the assets based on the appreciated value of the land (the labor being put into it to make it productive), so even land that was not productive became overvalued (a bubble).

Of course, that bubble burst and the leverage scheme, the pyramid scheme of borrowed money from the central banking system, collapsed, or as we call it today, unwound.

Banks could not repay the loans from the central bank and had to foreclose on the settlers. This was the panic of 1819. The workers lost everything and moved back to the cities in the East. Now, our Ivy League economists are telling us that the loss of value was just an imaginary value (the bubble). No, the value was collateralized by the labor value and was foreclosed on--it was consolidated, but we are not allowed to talk about that part of it without invoking the fear of socialism.

Instead of fear, and an apoplectic acceptance of the status quo, the virtue, the strength, of our intellect.

Management of The Capital needs to be decentralized for The People. This does not mean we are going to bomb ourselves back to the stone age! Neo-conservatives want us to believe that because it will preserve the power of concentrated capital to maintain a suboptimal sharing of the wealth, and power, or what is wrong with it, just as Jefferson anticipated.

Obama/Biden!