Privatization vs Sovereignty
The Alarming Privatization of Government Payments
What is sovereignty? Sovereignty is the supreme power that a nation or state holds to govern itself and make decisions without external interference. It is the capacity of a country to exercise its authority over its territory, government, and citizens. It entails the exclusive right of a state to establish its laws, policies, and government systems, as well as to interact with other countries on the international stage. It is a fundamental principle that underpins the autonomy and independence of a nation, ensuring its freedom to determine its destiny and protect the interests of its people. Creating a debt-free money supply is the most vital prerogative of democratic self-governance.
Most people think the government creates our nation’s money supply, as any sovereign government should, but our monetary system was privatized and given to a corporate monopoly over one hundred years ago. The for-profit commercial banking system creates our money supply as interest-bearing debt in the process of making loans and they are all owned by the biggest wealth management firm in the world. What people don’t know is that it is the source of most of the world’s biggest problems.
While we are all focused on the revelations of where the money has been going, perhaps the most important revelation is that all that money is borrowed at interest. However, reportedly Trump and Musk have taken measures to further privatize the US financial transaction system and scrap oversight bodies. Clearly those oversight bodies have not been doing their job and neither has our corporate donor-controlled Congress but further privatization will only exacerbate the problems. We are all witnesses to the mess the current privatized system has gotten us into; concentration of wealth, wars, homelessness and environmental degradation, just to name a few. If the patient is having trouble breathing, you don’t put a pillow over their face. Real oversight and transparency are what we should be doing, further privatization is not the answer.
This reminds me of what Donella Meadows said about “leverage points”, a point within a system where one small change can change the entire system, and how when system’s analysts identify one, they often discover there is already a lot of attention on it, all pushing it in the wrong direction. Further privatization of our financial system is pushing it in the wrong direction if we want a strong, stable and productive economy. Instead of further privatization of our nation’s finances our government needs to fulfill its obligation to We the People mandated in the Constitution. This would mean reclaiming the nation’s sovereign power to create our money supply debt-free for the security and general welfare of the nation, not for corporate elite profits.
I think most people may never have heard of Sovereign Monetary Reform, despite legislation that has been written and introduced over the years to do so. However, it is a much better alternative to the further privatization of the US financial transaction system and the dismantling of oversight bodies, here are some reasons why:
Stability and Public Trust:
Sovereign monetary systems provide a stable and predictable financial environment. Privatization has lead to volatility and a lack of accountability, eroding public trust in the financial system. A public system ensures that monetary policy is aligned with public interest, rather than being driven by profit motives.
Economic Sovereignty:
Sovereign monetary reform ensures that the government retains control over the money supply, which is crucial for implementing effective fiscal and monetary policies to build a 21st century physical and social infrastructure, energy, transportation, food production, healthcare and education. Privatization has already undermined this control, with conflicts of interest and the loss of our economic sovereignty. By maintaining real oversight bodies, the government can monitor and regulate financial activities to prevent fraud, abuse, and systemic risks. Of course we must have honest people to operate this.
Inclusive Growth:
Sovereign monetary systems allow investment in communities that have intentionally been left behind. Financial resources can be allocated to areas that benefit the broader population, such as infrastructure, education, and healthcare. Privatization often leads to wealth concentration in the hands of a few, exacerbating inequality and limiting opportunities for the majority.
Crisis Management:
In times of economic crisis, a sovereign monetary system allows the government to take swift and decisive action to stabilize the economy, such as injecting liquidity or implementing stimulus measures. Privatization will hinder such efforts, as private entities prioritize their own interests over the public good, worsening the crisis.
Regulatory Oversight:
Oversight bodies doing their job play a crucial role in maintaining the integrity of the financial system by enforcing regulations, preventing illegal activities, and ensuring transparency. Scrapping these bodies will lead to further lack of accountability and increase the risk of financial malfeasance, which could have severe consequences for the economy.
Long-Term Sustainability:
Sovereign monetary reform can be designed with long-term sustainability in mind, ensuring that financial policies support economic, social, and environmental goals. Privatization only focuses on short-term profits, which can lead to unsustainable practices and neglect of broader societal needs.
Historical Precedents:
The 2008 financial crisis highlighted the dangers of insufficient oversight, and the risks associated with excessive privatization. Sovereign monetary systems with robust oversight have proven to be more resilient in the face of economic shocks. Historical examples in the US of debt-free sovereign money are rare but the civil war greenbacks saved the nation from dissolution.
Global Competitiveness:
A well-regulated sovereign monetary system would enhance the US’s global competitiveness by providing a stable and reliable financial environment that attracts investment and fosters innovation. Further privatization will lead to a fragmented and less predictable financial system, potentially deterring international investors.
By emphasizing these points, we can make a compelling case that sovereign monetary reform, supported by strong oversight bodies, is a more effective and sustainable approach than further privatization of the financial transaction system.