essays

Banks create money out of nothing. Governments and large financial borrowers spend it first. By the time it reaches the worker and the saver, its value has been greatly diluted. This is not conspiracy — it is law, and it has been law since 1694. This essay names the mechanism, traces its history, and shows clearly why no political reform will restore the middle class until this single privilege is revoked. If you believe in a republic of the consent of the governed, this essay is a must read.

For more than three centuries, a privilege granted by government to a small number of licensed lenders has been quietly draining your wealth — legally, invisibly, and by design. It is the power to create purchasing power out of nothing. Around this privilege a system developed that Karl Marx awkwardly called capitalism, a name its beneficiaries embraced with satisfaction, using voluntary free markets as cover for monetary grand theft. Those closest to the source grow rich; those more distant grow poorer. Nearly everyone has been drawn in. This essay names the system, explains how it works, and proposes the constitutional amendment that ends it — restoring the middle class and rebooting the American, and eventually, the global economy.

From the trailhead of empires to the ridge of a one-world global state all of the paths share one trail marker in common: the System of Ex-Nihilo Privilege (SENP). History classrooms now favor social and global lenses over the sovereign state, a shift that plays into the hands of those who would turn the power of sovereign states into policy instruments of global change. Globalism is not old-style imperialism; it treats our world's sovereign states as agents of an elite global principal consisting of central bankers who control our world’s nominal (and, in substance, counterfeit) money supply, prominent government officials who make its issue possible, and the owners of privileged firms who are first in line to receive it extract ever-greater economic rent as a result. This triad of corruption comprises the Golden Triangle of state, banks, and privileged firm owners; it represents the current, late-stage manifestation of the SENP system. A one-world sovereign state, the globalist's target, would not abolish the SENP privilege; rather, it would provide it with a single, more permanent residence. Meanwhile, the Left-Right quarrel over capitalism versus communism leaves the privilege standing. The path that remains is to reject the triangle and the privilege that enables it, and thereby stop further parasitic extraction from our world’s real wealth producers — our entrepreneurs and our workers alike.

The message of the political Left is to steal back. Rarely does it call for the ending of the theft. In contrast, the political Right seeks to hold the line against the Left's theft, but does nothing to bring an end to the original plunder — the legal privilege that gave banks the right to lend purchasing power into existence. As a result, the total amount of theft continues to increase.

Small, highly visible transfers to the poor put a moral face on this arrangement and bind a mass of voters to the hand that writes the checks. Meanwhile, cloaked in the language of DEI and ESG, the principals of the Golden Triangle prepare a new headquarters in the form of a one-world state.

Voluntary, free markets host the theft, but they are not its parasitic source. Killing the host is not the proper cure for the infection. Only by ending the privilege can we dismantle the system and the institutions that have grown up around it in the more than three centuries since the founding of the Bank of England in 1694.