Thread by @netbacker

At the beginning of what we call “America,” the government wrote laws, one such set of laws created the US dollar.
Because the federal government created the US dollar, you might think the Fed Govt’s understand that US dollar banking is the responsibility of the dollar’s creator.

But, seemingly, the federal government (and the public) don’t get it. Allowing for-profit, private banks to handle that responsibility, competently and without stealing, requires an impossible level of supervision along with a naive belief in the purity of the human spirit.

The words, “for-profit” are key.
#BankFailures #FirstRepublicBank

Instead of their goal being the efficient and honest distribution of dollars, according to the rules and safeguards established by the government, the goal of the for-profit banks is, of course, profits.

Each time the government sees that incompetence combined with dishonesty and the easy availability of billions of dollars leads to losses for the public, new, stricter rules are created, followed by promises of even stricter supervision.

But temptation and incompetence, along with the bribing of lawmakers proves that even the strictest supervision never can overcome human nature to prevent further incompetence and larceny.

So, the government created #FDIC

But even that was not sufficient to guarantee the survival of the most crooked and incompetent banks, which repeatedly tended to fail, leaving the question, “Who will run the bank after it fails, but still has assets and liabilities?”

But here is where we are:
1Private, for-profit banks will continue to bend the rules, cheat the public, and fail, after which the federal government will enter cure-and-recover mode by passing new laws, later to rescind them.

2In many cases, the federal government will run a failed bank until another for-profit entity can be found to take it over. The federal government knows how to run banks and needs no profit motive.

3The federal government will absorb all the losses, up to certain limits (that $250,00 per account, except when the government decides to absorb more than that. It’s all at the discretion of the government which has the unlimited ability to absorb losses.)

4Nothing changes. The “solution” will be stricter regulations until Congress is again bribed to loosen the regulations. Typically, Democrats get tougher, and Republicans get looser, but no one is willing to explain the obvious solution*.

THE SOLUTION*
There is a solution, though because the rich hate it, it never will happen unless the public catches on to the swindle.

The problem lies with the profit motive. Remember “Lead me not to temptation”? Hang millions of dollars in front of even the most honest man’s nose, and he will graduate from stealing office pencils to stealing everything. Period.

The solution is:
1The federal government knows how to run banks.
2The federal government creates the lending rules.
3The federal government creates the bank investing rules.
4The federal government determines the bank security rules.

5The federal government determines interest rates
6The federal government is the one entity in America that has no profit motive.
7The federal government cannot go bankrupt.
8The federal government insures the banks’ customer against loss.

9The federal government supervises the banks
10The solution to private bank insolvency is for private banking to end. The federal government should own and manage all the banks.

There’s no public purpose served by allowing the private sector to run banking
The federal government should run the banking industry itself. No other “solution” will work.

This is not difficult to see, unless one if being bribed not to see it
#FDIC #FirstRepublicBank #SVBBank