Ben Sasse and Rand Paul – Big Differences on Big Banks
Executive Summary of Long Piece Below:
– Central Banking is bad news. Rand is against Central Banking and Ben Sasse is meeting with lobbyists of Big Banks
– Central Banking harms an economy, it hurts the poor and should not be aligned with
– Many prominent Republicans, Founding Fathers and Presidents speak against Big Banks
– Banking needs stronger reserves and the divide of our economic classes would shrink if we used capital from people and not capital created by Wall Street (the backing of the capital is very different)
– Businesses could achieve greater heights of success. Business growth was astounding between the Civil War and The Pre Federal Reserve Era. Wealth would shift to Main Street from Wall Street if we shifted the backing of capital investments to capital created by labor (Hard Work) as opposed to money created by the federal printing press and multiplied by banks by lending larger sums of money based on small amounts possessed.
– Align with conservatives not aligned with Big Banks. Maintain conservative values.
The Entire Article Below
Ben Sasse had Rand Paul visit him in Omaha today. I like Rand Paul. Ben, Rand and I talk a Constitutional game (love Rand’s on the floor Senate speech on killing the American without a trial in a foreign land—great Constitutional work). I was called today by an Omaha news station on Ben and Rand’s comments on economic development and if I would like to respond. Full disclosure, I have not seen or heard a clip from their press conference. I’m unsure of what was said. However, I’m very sure of one thing–their alignment with economic forces (and therefore views) could not be more different. Second, if you are concerned about the voices of entrepreneurs who own tech companies–elect one–me.
Ben and Rand’s relationship with Wall Street do not align. Economic views should start with the role of banking and finance. Ben is meeting with Wall Street banking lobbyists. Rand speaks out against these banks. Does Wall Street or Main Street have Nebraska’s back on economic progress? Does Wall Street or Main Street increase our liberties? I’ll bet my house on Main Street every day of the week.
I like Rand Paul because he is an outspoken opponent of Big Banks in the Republican Party (a needle in a haystack). Wall Street is the largest single supporter of the Republican Party. Big Banks are part of the problem in a struggling national economy (we have centralized control of the money), and the liberty/well-being of the vast majority of our people.
I asked Ben’s campaign specific questions about his views with Wall Street and the Federal Reserve (see last week’s piece) but he did not answer these questions. However, in this excellent piece of investigative journalism on Omaha.com (linked above) Joseph Morton cited Ben Sasse’s meeting with Bank of America, JP Morgan, and Wells Fargo lobbying representatives. The Sasse camp declined to comment on these meetings with Big Bank lobbyists when asked by Joseph Morton.
“Team Player” comments with McConnell and meeting with K-Street lobbyists (banks) should show you establishment behavior is alive and well. The Tea Party money at the beginning was a big need to overcome the substantial lead of Osborn at the beginning of the race. Tea Party rhetoric brought the money into the treasury to win the primary but true colors and beliefs will shine through in time. These same supporters also believed Ben when he said he was an “Anti-Establishment Washington Outsider” – Really? Working for the Department of Justice, Homeland Security, Chief of Staff for Congressman Fortenberry, and the President of the United States in HHS is an “Anti-Establishment Washington Outsider”? I was told by his staff that this statement is a “State of Mind” not a statement on his record. I added that to be fair to Ben but I’m not sure I’m a buyer on that line. I focus on actions not words.
I believe the truth is starting to shine but will the voter have the guts to change their mind in this election? This “Changing of the Mind” of the voter maybe as hard to do as Republicans turning down campaign money that freely runs from the printing presses these banks control. You can’t compete on money (why try) when you have PAC’s that have access to the printing presses or banks that do. However, you can compete on ideas. The problem is that it will takes an electorate to seek out new ideas that are rarely brought to light by a media trained to cover 2 primary voices (that buy the ads on their media I might add). Those who take little time to investigate all civil arguments, and all candidates, are partly responsible. Consider the vote or “Talent” that is buried and not used as a major problem. Those inclined to listen to the 30 second commercials purchased in the media by the money will be contributing to the system of power. Many of these voters will be “Too Busy” working to make a living in a system that is designed to keep more people “Busy and Distracted” from selfless acts of civic responsibility that don’t get them ahead but feeds the instruments of credit that feed the bank.
I implore you to have patience and read on the entirety of this article if you are a voter. You need to have your blinders removed to the problems of a Reserve System. PS–those who think that talks against Wall Street (I would like to clarify for me its Big Banks–not Wall Street) are Anti-Capitalism need to have their heads checked. It’s the opposite. “Central Banking” is just that — “Central Control” of business.
My people are destroyed for lack of knowledge: because thou hast rejected knowledge….
Keep in mind the Fear of God is the beginning knowledge and maybe why we are in short supply of good thought today. PS–I’m far from perfect and am still seeking knowledge I don’t have.
Moving on….Will more reporters like Joseph ask the tough questions and bring to light the financial relationships Ben is in? I like Ben too (sincerely). However, partnerships determine the fate of marriages, businesses, Biblical missions, and political results. Have you examined the partnerships? Ignoring them and solely focusing on the candidate maybe the downfall of the voter and ultimately Ben if elected. As a Christian brother I would advise Ben to walk far away from the Big Banks. As a Christian brother I would warn Ben from aligning with these entities of greed.
Any Reserve System oppresses the people and confiscates their wealth. The reserve system, in my mind, maybe the worst decree that oppresses the poor. There is a warning in Isiah 10: 1-2 on oppressing the poor.
Woe to those who make unjust laws,
to those who issue oppressive decrees,
to deprive the poor of their rights
and withhold justice from the oppressed of my people,
making widows their prey
and robbing the fatherless.
There is a reason Christ turned over the “Money Changers” in the temple. Understanding the relationship between reserve systems, volume of money created, and big banks is paramount to understanding national economics and the growing divide between economic classes. Dave Domina is on the right track but the answer is not redistribution or raising wages. He is right on the mark with his expertise in Anti-Trust law. The primary answer to helping the poor is dealing with the Reserve System, defeat protectionism (I’m an ally with Domina on this topic) in the domestic market place, and protect the poor from runaway inflation. The second step is to focus on increasing the supply of jobs in America with my belief in devaluing the dollar being a poor choice to grow the economy. Short term shots to the arm at the cost of long term financial credibility is not a wise decision.
I’m unsure if either candidate has this knowledge on Reserve Banking. It is ok if they do not. I’m a CPA, MPA, and have studied this–this has been my career pursuits. Ben can win the argument on Healthcare Part D. Dave can guide us in Anti-Trust law. We need a team approach to solving our problems. No one man can be the expert in everything despite many in the populous demanding PHD expertise in immigration, economics, foreign affairs, law, healthcare, etc. at the same time. This is a Republic and I believe in my fellow citizens. I encourage these individuals to speak, write and lead in their areas of expertise. I’m one of very few willing to listen to outside experts on both political sides to seek and find the right answer.
We have the knowledge in this state as a collective and people just need to be heard. This is why I believe my background in the staffing industry (“Head Hunter”) will serve me well if elected. My job was to find the right person for any given problem my clients faced. My job became hiring others who could discern and disseminate the same function. I sold these firms in 2007 as we were successful in building a company based on this skill of finding the right talent for the problem. Staffing taught me well in how to identify the right person, evaluate them for integrity, motivation, and trust worthiness. Finally, I assigned them to the challenges my clients faced for the benefit of both the employee and employer.
Bottom line, we need to get this argument right for the American people. I want to get the right answer for Nebraska. Loyalty to Wall Street banks is not the right answer.
Ironically, the first person fooled by the Big Banks and created the Federal Reserve was a College President – Woodrow Wilson. Woodrow Wilson would issue a long statement of regret years later after he signed the Federal Reserve Act into law.
“A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
I’ll say it again – history repeats itself. Are we poised again for the next College President aligning with Wall Street? I’m unsure if Ben understands how reserve banking works. The reality is very few do. (You can learn more on my YouTube Channel under Crony Capitalism). If Ben is serious about a Constitutional revival he needs to understand Article I Section 8 and the relationship this article has with big banking. The warnings on prominent thinkers are plenty.
“By the means of printing money government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft”
– John Maynard Keynes – “Consequences of Peace” – The Most Prominent 20th Century Economist
“We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it.”
– Louis McFadden – Republican and Chairman of the Committee on Banking and Currency
“I have never seen more Senators express discontent with their jobs….I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgiveable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.”
– John Danforth – Republican Senator from Missouri
Understanding how banks multiply printed money by a 3% reserve ratio adds to the “printing money” scenario. You can lend and thus create $33 on the back of $1. This extra $32 is literally made out of thin air—not labor. Big banks are on the wrong side of liberty, limit economic progress, and inhibit the well-being of our citizens and are a big cause to the disruptions of our domestic tranquility.
“Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”
Abe Lincoln would not recognize his party that has flipped to valuing capital at the expense of labor. We need more capital coming from labor and not banking thin air to lessen the gap between economic classes.
Did you know that purchasing power was the same in 1910 as it was in 1792? Surprise! There was no Federal Reserve. Money was controlled by Congress. However, since the Fed has taken over (PS–It’s not Federal) our dollar has eroded to a purchasing power of 5 cents. Study the facts for yourself. Can you imagine the ramifications to Social Security, Medicare/Medicaid, COLA adjustments to federal wages if purchasing power did not change? Can you imagine the reality that people could save their money from hard work and know they could purchase the same loaf of bread for the same price 30 years later after they earned their wages? Control of retirement to the individual could be accomplished again and those on fixed income would not have to battle the enemy — the destruction of purchasing power to meet retirement needs. This enables many of the financial teachings of Faith based individuals. Work, give, and save. The problem is that in the last 100 years the destruction of the value of savings has been accomplished by the Reserve Board. Forcing clients into riskier assets is the only way to “Stay Ahead” of the destruction of the dollar. Focus on your food bill, gas bill, healthcare bill, tuition bill, utility bill, etc. Ignore the published number from Government. If government published true inflation our Social Security crisis would be worse as government is required to adjust payments by CPI. We should change the formula and quit lying to our seniors if this is a problem. This is a topic for another day.
This destruction of savings is an injustice to those seeking to do the right thing. This is the real culprit behind a lack of savings. Why save when you lose your money to inflation? Investing or spending is the only incentive they give you.
The majority of winners have saved and have invested in entities that multiply money (Real Estate, Big Cap Stocks, Businesses with leverage and loans). Losers have been those who have not saved their money, or stored their money in safe assets. Deploying money in these risk based assets has been the primary path to stay ahead. The problem today at the bottom of the pyramid is that “Bare Needs” have increased in price and “Getting Ahead” is tougher than ever before as the prices of needs continue to run away from these individuals while supply and demand of labor remains a poor equation. Furthermore, wise savers and investors have found that investing in riskier assets is the only way to beat inflation and worse yet those risking in safe assets are seeing a bubble form as dividend yields, rental income yields on newly purchased assets fall as money seeking these assets rise. This is why we need God more than ever because the hurdle is becoming a bigger jump. God and hard work can overcome anything and we need his blessing more than ever before but our duty to fight for justice of his poorest creation should not stop.
I’ve been guilty in this process too. I have made my money by participating in money multiplying instruments (Real Estate, Factored Loans, Etc.). Our predicament is staying ahead of the inflation game and participating in riskier assets at the cost of multiplying money. Big banks become our partners in this pursuit. We should be turning to our fellow Americans and workers instead for more of the capital.
The reality is hard work and better ideas should win. Owners of capital should not be winners based on closer access to the Reserve Bank window but those who have the skill to allocate more work based capital to the right based business opportunities for growth. This job is becoming harder as rates are better for bigger banks (if they want the loan) and the government is becoming a lender (HUD loans) to a level where local banks can’t compete. Government needs to get out of business. Banking business should migrate to the institution who can gather and deploy wealth based from labor based capital. This allows businesses to still win and grow (think post-civil war to the dawn of the Federal Reserve) but allows for individuals to come along for the ride. This will diminish the gap between economic classes and allow the growth of the economy to local Nebraskans not Wall Street fat cats.
The kicker against my Federal Reserve arguments is we may need a Federal Reserve to battle the likes of an International Reserve (a Global Central Bank) to preserve the power of our nation. The International Community is moving to undermine our currency (UN, IMF, China, etc.). The world reserve system is the only thing that maybe worse than a domestic reserve system that most industrialized countries have adopted to manage an economy. The problem is a lesser evil maybe needed to combat a larger evil. The word “Central” in central bank should be the only word an American needs to hear to understand this is bad news to a liberty oriented country. This may be why they market the entity as a “Federal Reserve” despite the fact it is not federal (it is owned by Banks) and advocates for very low “Reserves” in its members lending practices.
“The last duty of a central banker is to tell the public the truth.”
– Alan Blinder, former member of the Board of Governors of the Federal Reserve System
What we can control in the Senate that the Central Bank and I agree on is fixing our budget ASAP. I’m willing to compromise as this should be a paramount interest of both parties (Think Simpson Bowles that was rejected by Obama AND Paul Ryan). Compromise to a Democrat and Republican is about impossible as the disposition of a party based individual is about as hard headed as a new football helmet designed by our own University. This is a bigger need then winning every interest in the party. Americans are blind to this being the biggest need but the awakening will be rude if we don’t solve this problem. Regardless of whether you are a die-hard Republican or a staunch Democrat the prospects are bleak for either of their programs if we lose the full faith and credit of the International Community in our financial instruments. This has already begun with our deplorable treatment of the dollar as a means to grow GDP, the destruction of purchasing power of the currency they hold, public leaders that say one thing and do another, dysfunction of two parties that screams we can’t get anything done with our spending problem, and leadership that has no clue on how to conduct foreign policy to preserve our status in the free world. We can strengthen the dollar and grow GDP by different behavior. We should implore policies that create domestic jobs, reduce regulations on upstanding businesses to stimulate growth and stand up to both parties who cannot execute a cut. This will take economic policies that violate Republican AND Democratic principles. By the way, spare me the Republican cut talks–they are lies. Show me the evidence of real cuts. Like Lebron maybe I’ll return to Cleveland if they actually cut a budget. They need to show me they are committed to cuts and the American people over Wall Street. When Cleveland committed to winning and basketball common sense Lebron decided to return to his home. It will take an allegiance to cuts and people over Wall Street and donors to bring me back to my political party roots. I’m no longer a fool and will not listen to words of fiscal hawks claimed to be in the Republican Party. I focus on actions and not words. Paul Ryan maybe the worst culprit. I think the ideas maybe there but most Republicans are corrupted by the promise of more power (see 2000 Republicans behavior after they passed the Contract with America) to actually follow through. Compromising to the power of money may be true to win an election. However, compromise to money over the right decision was the downfall of the 10 who did not vote with Caleb and Joshua on what was right. I want to see the Promised Land and not the desert. Compromising to these entities of greed that will aid their power over the cause of the people is a very dangerous choice as I have contemplated these decisions in prayer. I will not do it to win and I will put my faith in God over winning a vote to see a better tomorrow for the future children of this land.
Furthermore, we should change reserve ratios tomorrow to improve capital requirements behind lending. We can address certain products in the market that have no capital backing but create tremendous amount of new money and add systematic risk to our economy. I have yet to meet a person that can define what a SWAP is. These SWAPS are a $340+ TRILLION derivative market that has dangerous consequences if the trade goes wrong like it did last decade. Being able to control large financial instruments by trading only the top moving piece of the instrument (derivatives) is a very dangerous game. I don’t have a problem with derivatives that are backed by 100% cash or FULL ownership of the underlying instrument. However, when banks create liquidity by trading these instruments with reserve ratios (not hard money) the shortfalls are disastrous. We learned last decade the GOP is willing to pass those losses if they occur from their largest donor base onto the taxpayer. Banks win you lose. Think of it as playing “Heads I Win, Tails You Lose” with a nickel on the playground. The Republican Party completely aligned (with the exception of Rand Paul) with Wall Street cannot be trusted to do the right thing by the taxpayer again. The next bad trade or the next housing bubble (probably will be a different bubble) when it crashes will be bad. We need more equity in the underlying loans to incent these banks to make safer, equity backed loans. Losses that can be sustained (much higher) will guarantee these banks are better risk managers and make safer bets. High interest loans on pay day advances, 20% interest for a used car to a subprime bower, are loans worth losing. There is a reason we have rentals and my business. Like Jack Nicholson said, “You need us on that wall, you want us on that wall.” Good landlords are imperative to a strong city. Taking advantage of poor risk consumers by putting them in homes and subprime mortgages they can’t afford is a deplorable practice by these entities.
Finally, there has to be a sense of urgency to getting the budget balanced. Period. Our Representatives are too dense to understand what is happening in International Markets and too focused on destroying the opposing party for short term ideological supremacy. If they understood the peril of confidence the world has in our monetary system we would be at the table working on cutting spending right now. We must reestablish confidence in America to preserve the financial power of this country to enable the government to provide what we need (see preamble) at home. Short term economic stimulus by devaluing the dollar at the cost of long term financial credibility is a dangerous game that I don’t believe in.
The ironic piece of Big Banks is that Tea Partiers (the very few who understand the system) and Liberals (the very few that understand the system) can agree on the dysfunction of big banking because it hurts the poor, progress of the economy is slowed, and most importantly the Constitution is violated. Do we believe liberty will grow, the Constitution will be observed, and change will come with allegiance to Wall Street’s centralized control of the banking system? I don’t.
If Rand Paul knew that Ben was fundraising with Big Banks he may change his mind on the endorsement. If liberty minded Nebraskans understood the ramifications of Big Bank allegiance and damages to personal liberty they would change their mind.
“I believe that banking institutions are more dangerous to our liberties than standing armies.”
– Thomas Jefferson
“Whoever controls the volume of money in our country is absolute master of all industry and commerce.”
– President Garfield
“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
– James Madison
I promise you that a Constitutional revival is not possible with an observance of Big Banking interests. Ben will convince you that Big Government and Obama spending is the biggest issue of the day. It is not. The reality is this issue is only a subset issue of a larger problem known as an unchecked monetary supply that enables Republicans (Democrat light) and Democrats to overspend on dominant world-wide influence and power (Read Article 1 and Section 8 on length of time for raising armies abroad) and/or “Great Society” programs that were both not sanctioned by the Constitution of the people. Stopping both forms of overspending starts with taking away the keys to monetary volume from the Central Bank and returning the power of creating money to Congress.
Rand, wake up and understand the allegiance to Big Banks you are endorsing. You need me in the Senate to join you as a conservative speaking out against the abuses to the economy, our government and people that Big Banks facilitate.
Hopefully, Ben gets the message from Rand that partnering with these entities is bad news for the people. Rand has the right view on Big Banks, Ben does not. Let’s get that answer right for the well-being of all our people. I will continue to be a card carrying conservative capitalist. However, my ideology, like Rand’s, has no room for allegiance to Big Banks in legislation. As a last point the American who believes these largest banks are loyal to America need to understand they are not. They view themselves as “World Citizens”. Their businesses are International and most (not all) frankly show no loyalty to this country (unless it makes them money or protects their assets/interests in courts of law or Washington). They are loyal to their bank account over this country and need to be approached accordingly.
Actions speak louder than words. Meeting with Big Bank lobbyists doesn’t pass the smell test. I respectfully request that you clarify your relationship and positions with these entities Ben. Nebraska deserves honesty on the partnerships you are in and the policies you are obliged to pull for the dominant donor base of your party. Nebraska has a second conservative choice that believes in allegiance to Nebraska over Wall Street. Economic progress, justice for all citizens, and observance of the Constitution is needed. Conservative Populism is here and loyalty to donor bases that control the supposed “Conservative” Republican Party need to be dealt with. Please Support Todd Watson for US Senate (Nebraska) today.