You Say “Sovereign,” I Say “Maybe Not”

07-02-10

THE WEEKLY INFORMATION RESOURCE FOR VETERANS AND ALL PATRIOTIC AMERICANS

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YOU SAY “SOVEREIGN,” I SAY “MAYBE NOT” By Marilyn M. Barnewall NewsWithViews.com Because my career was banking, I have written much about the attack on America’s independent banks by a federal regime that apparently seeks global governance. Attacks? How else do you explain that as of June 30, 2009, the Federal Reserve Bank of St. Louis said there were 6,898 commercial banks in the United States – but as of June 30, 1984, there were 14,369 commercial banks? In 1994, that number was pared down to 10,623. Now we have less than 6,898. How do we stop the ever-growing power of the Federal Reserve System? Why are financial experts talking about a world run by central banks? There are answers but they must be implemented before the power to make changes at the State level is removed. The capacity to control monetary policy at the State rather than federal level and a State currency distribution system are powerful tools. When people hear the words “State Bank,” they may think it means “State-chartered bank.” A State Bank is quite different from a State-chartered bank. The 90-year old Bank of North Dakota is the only State-owned bank in America. Think of a State Bank as a mini-Federal Reserve – only it’s State-owned rather than a Federal Reserve Bank. The Federal Reserve System, a privately-owned corporation that is not part of the federal government, has Member Banks – nationally-chartered (they usually have the word “national” in their name). The Bank of North Dakota has “Member Banks” – State-chartered banks. The Bank of North Dakota, for example, provides its own State deposit insurance coverage – like a mini-FDIC (call it NDDIC).	Nationally-chartered banks (those licensed by the federal rather than State government) can do business in states that have a State Banking system, but cannot be members because of their national Charters. The authority that Charters a bank determines whether it will be a Member of the Federal Reserve System or of a State Bank. The Federal Reserve System clears checks and performs other monetary functions for its members. It establishes monetary policy for the nation. Why? Because the Fed is the only alternative available in the 50 states to perform these functions – except in North Dakota. State Banks can, if they choose, replace Federal Reserve System functions and clear checks and set monetary policy for Member Banks. A State Bank (exemplified by Bank of North Dakota) is the official depository institution for all State collections and fees. It’s very beneficial to local economies. Such a controlled source of funds is called a ‘captive deposit base’. The State Bank pays the State Treasurer a competitive rate of deposit interest that can be used to reduce local tax burdens. In states that are part of the federal system, funds collected by the State leave the State. When a State owns a State Bank, loan policies are determined by the State, not the federal government or the banking cartel known as the Federal Reserve System. State Banks determine loan policies that can support State assets. In North Dakota, loan policy supports agriculture and energy. In Alaska, Texas and Oklahoma, it can support oil. In Colorado, loan policy can support uranium, natural gas, or oil shale production; in Utah, it can support coal. States rich in other things can create loan policies supportive of them. Another thing State Banks make possible is getting away from a fiat currency system (paper money with nothing backing it) dependent upon consumer and business indebtedness to survive. That system has bankrupted our nation. A Sovereign State needs its own currency. The currency must be backed by something other than a Governor’s signature. And, without
		something (like gold, silver, oil, uranium, etc.) backing a State currency, the citizens have the same problem that caused the federal system to fail: a worthless fiat currency. When a State legislatively declares the right to create its own currency, it needs a State banking system or there is no way to exercise power – a required element of “sovereignty.” A State may print as much of its own money as it chooses, but without a distribution system and without a State-owned asset of value backing it, it’s worthless. You thought your State could declare its sovereignty and still trade in the U.S. dollar? You might want to re-think that. Federal governments whose power bases are threatened by State governments declaring sovereignty usually don’t view the State fondly. They usually don’t offer the use of their currency. A State that declares itself sovereign must function independently of the federal government – or it is not sovereign. States that have declared (or will declare) State Sovereignty need to fulfill international standards of sovereignty. A State Bank helps achieve that objective. In other words, legislation declaring a State to be “Sovereign” doesn’t make sovereignty a reality. (continued on page 14)