The prevailing theory of banking for the past century holds that banks function as intermediaries, collecting deposits from depositors and lending them out for interest. This view is maintained, with minor differences, by all neo-classical schools of economic thought regardless of ideological bent. Austrians, Monetarists, and Neo-Keynesian economists alike operate under the assumption that commercial banks merely lend out money which they have first obtained from depositors or the central bank. Paul Krugman, Nobel-prize winning Neo-Keynesian economist writes:

“As I (and I think many other economists) see it, banks are a clever but somewhat dangerous form of financial intermediary… For…


So-called “fiscal responsibility” is one of the most enduring sacred cows of American politics. Politicians across the spectrum work hard to protect their image as sound fiscal stewards. Republicans have tried (and failed) to pass several balanced budget resolutions to ensure the Federal Government’s revenues match or exceed its expenditures. Obama promised to tighten our belts in the wake of the Global Financial Crisis so as not to burden future generations with suffocating tax liabilities. Even Bernie Sanders claims to be a fiscal conservative and concedes that tax increases would be required to fund social programs like Medicare for All…


Despite much Leftist indignation since Fukuyama declared the “End of History” 30 years ago, all current evidence suggests that History may, in fact, have run its course. The grip of neoliberalism today is substantially firmer than it was at the fall of the Soviet Union. Corporate capture of both the media and state enterprise ensures that the interests of concentrated private power are protected at the expense of the working class. Even the recurrent capitalist crises reinforce the status quo, as the powerful are best positioned to take advantage of economic catastrophe. In the decade since the collapse of Lehman…

Charlie Silva, CPA

Corporate accountant and former auditor with degrees in philosophy and accounting.

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