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Kevin Phillips, the gifted researcher and author, recently gave new life to an old quote from 1904. That quote is a sharp and accurate observation yet today. The former colonial secretary of Great Britain, Joseph Chamberlain, spoke to British Bankers: “Granted that you are the clearing house of the world, ‘but’ are you entirely beyond anxiety as to the permanence of your great prosperity? . . . Banking is not the creator of our prosperity but the creation of wealth; and if the industrial energy and development which has been going on for so many years in this country were There are two very sharp concepts brought out. First, it is “production” that creates the wealth. The banks are just a service organization, like dry cleaners and casinos. The production, the foundation of the economy, is in mining, farming, manufacturing, and the transport of the products. If the core economic activities are sent abroad, the wealth goes abroad. No banks can replace it. Second, as one economist said recently, banks and the other financial institutions are like the “circulatory system” for the economy. But, as Chamberlain points out, “banking is not the creator of our prosperity.” So, we are back to the issue of 2009. How is it that “banks” brought the United States (and many other countries) to the brink of a global depression? Who let this happen? Click here to contact your representatives in Washington, D.C. Our Elected Officials. – Byron |