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Is Homeland Security Preparing for the Next Wall Street Collapse?

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The Looming Debt Ceiling Crisis

The next crisis on the agenda appears to be the October 17th deadline for agreeing on a federal budget or risking default on the government's loans. It may only be a coincidence, but two large-scale drills are scheduled to take place the same day, the " Great ShakeOut Earthquake Drill " and the " Quantum Dawn 2 Cyber Attack Bank Drill ." According to a Bloomberg news clip on the bank drill, the attacks being prepared for are from hackers, state-sponsored espionage, and organized crime (financial fraud). One interviewee stated, "You might experience that your online banking is down . . . . You might experience that you can't log in." It sounds like a dress rehearsal for the Great American Bail-in.

Ominous as all this is, it has a bright side. Bail-ins and martial law can be seen as the last desperate thrashings of a dinosaur. The exploitative financial scheme responsible for turning millions out of their jobs and their homes has reached the end of the line. Crisis in the current scheme means opportunity for those more sustainable solutions waiting in the wings.

Other countries faced with a collapse in their debt-based borrowed currencies have survived and thrived by issuing their own. When the dollar-pegged currency collapsed in Argentina in 2001, the national government returned to issuing its own pesos; municipal governments paid with "debt-canceling bonds" that circulated as currency; and neighborhoods traded with community currencies. After the German currency collapsed in the 1920s, the government turned the economy around in the 1930s by issuing "MEFO" bills that circulated as currency. When England ran out of gold in 1914, the government issued "Bradbury pounds" similar to the Greenbacks issued by Abraham Lincoln during the US Civil War.

Today our government could avoid the debt ceiling crisis by doing something similar: it could simply mint some trillion dollar coins and deposit them in an account. That alternative could be pursued by the Administration immediately, without going to Congress or changing the law, as discussed in my earlier article here . It need not be inflationary, since Congress could still spend only what it passed in its budget. And if Congress did expand its budget for infrastructure and job creation, that would actually be good for the economy, since hoarding cash and paying down loans have significantly shrunk the circulating money supply.

Peer-to-peer Trading and Public Banks

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At the local level, we need to set up an alternative system that provides safety for depositors, funds small and medium-sized businesses, and serves the needs of the community.

Much progress has already been made on that front in the peer-to-peer economy.  In a September 27 th article titled " Peer-to-Peer Economy Thrives as Activists Vacate the System ," Eric Blair reports that the Occupy Movement is engaged in a peaceful revolution in which people are abandoning the established system in favor of a "sharing economy." Trading occurs between individuals, without taxes, regulations or licenses, and in some cases without government-issued currency.

Peer-to-peer trading happens largely on the Internet, where customer reviews rather than regulation keep sellers honest. It started with eBay and Craigslist and has grown exponentially since. Bitcoin is a private currency outside the prying eyes of regulators. Software is being devised that circumvents NSA spying . Bank loans are being shunned in favor of crowdfunding. Local food co-ops are also a form of opting out of the corporate-government system.   

Peer-to-peer trading works for local exchange, but we also need a way to protect our dollars, both public and private. We need dollars to pay at least some of our bills, and businesses need them to acquire raw materials. We also need a way to protect our public revenues, which are currently deposited and invested in Wall Street banks that have heavy derivatives exposure.

To meet those needs, we can set up publicly-owned banks on the model of the Bank of North Dakota, currently our only state-owned depository bank. The BND is mandated by law to receive all the state's deposits and to serve the public interest. Ideally, every state would have one of these "mini-Feds." Counties and cities could have them as well. For more information, see .     

Preparations for martial law have been reported for decades, and it hasn't happened yet. Hopefully, we can sidestep that danger by moving into a saner, more sustainable system that makes military action against American citizens unnecessary. 

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Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)

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Is Homeland Security Preparing for the Next Wall ... by 911TRUTH on Wednesday, Oct 9, 2013 at 12:38:17 AM
The underlying foundation of people in this countr... by Cynthia Piano on Wednesday, Oct 9, 2013 at 10:22:11 AM
Excellent observation, Cynthia.  FEAR, False ... by Mark Adams JD/MBA on Wednesday, Oct 9, 2013 at 11:56:40 AM
Check out an interesting article by an economist a... by Mark Adams JD/MBA on Thursday, Oct 10, 2013 at 12:40:11 PM
"but what about those who are educated and should ... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:30:43 AM
Let us also consider the possibility that our gove... by Jonathan Huie on Wednesday, Oct 9, 2013 at 10:29:09 AM
That occurred to be too.  Maybe there's a pot... by Maxwell on Wednesday, Oct 9, 2013 at 10:37:31 AM
I'm personally a prepper but let's not pretend pre... by Adam Smith on Wednesday, Oct 9, 2013 at 1:37:30 PM
The Tea Party is not a grassroots movement. The Te... by 911TRUTH on Thursday, Oct 10, 2013 at 12:36:52 AM
My impression is that it began as a grassroots mov... by Amy Schreiner on Thursday, Oct 10, 2013 at 1:11:55 AM
That's what I'd heard, too, Amy, but I highly doub... by 911TRUTH on Thursday, Oct 10, 2013 at 1:36:58 AM
Howdy "Tincansailor". I consider myself to be of "... by Daniel Penisten on Thursday, Oct 10, 2013 at 12:44:29 PM
Let's say, just hypothetically of course, that the... by roy lutz on Wednesday, Oct 9, 2013 at 12:28:38 PM
You just wrote the comment I have been thinking ab... by Hosea McAdoo on Wednesday, Oct 9, 2013 at 12:55:48 PM
"Ask yourself, who gains the most power from the a... by Daniel Penisten on Thursday, Oct 10, 2013 at 12:59:16 PM
Remember Homeland Security is the American SS crea... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:36:29 AM
More realistic prediction: people positioned to gr... by Maxwell on Wednesday, Oct 9, 2013 at 10:29:42 AM
I think you got it Maxwell (Smart?).  This is... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:39:08 AM
Private bankers in charge of our currency and econ... by Lance Ciepiela on Wednesday, Oct 9, 2013 at 10:44:38 AM
And those Homeland Security weapons and ammunition... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:41:21 AM
Ellen, as usual you have found the soft spot in ou... by Paul from Potomac on Wednesday, Oct 9, 2013 at 11:15:53 AM
Ellen Brown's article is ominous, fraught with dan... by Clarc King on Wednesday, Oct 9, 2013 at 11:32:11 AM
"...the Hamiltonian credit system."Wasn't Hamilton... by Daniel Penisten on Thursday, Oct 10, 2013 at 1:08:12 PM
Yes, Alexander Hamilton was the champion for ... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:43:48 AM
It's an ongoing financial coup d'├ętat - of course... by Poor old Dirt farmer on Wednesday, Oct 9, 2013 at 12:03:30 PM
What is the DHS anyway, with 1.6 billion rounds of... by Ernie Messerschmidt on Wednesday, Oct 9, 2013 at 12:50:50 PM
'I think 911 was a coup and DHS was set up to prev... by 911TRUTH on Thursday, Oct 10, 2013 at 12:39:12 AM
I like Jesse Ventura too.  He represents more... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:53:42 AM
Ellen Brown is spot on with her analysis (as u... by Truth Will Prevail on Wednesday, Oct 9, 2013 at 1:56:53 PM
RE: "...President Obama in his remarks on the Do... by Walter J Smith on Wednesday, Oct 9, 2013 at 10:28:53 PM
I live in Central Florida.  This past Tuesday... by John Russell on Thursday, Oct 10, 2013 at 6:06:30 AM
Is this also why we hire mercenaries?  They d... by Teddi Curtis on Thursday, Oct 10, 2013 at 4:13:07 PM
Excellent article, but the question remains whethe... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:22:24 AM
The USA looks increasingly like the dying days of ... by Ted Newcomen on Friday, Oct 11, 2013 at 8:34:09 AM