One of the biggest private sectors fueling money into politics these last few years – and causing the revolving door to swing ever faster – is the financial services industry. It is no surprise that financial services corporations are extremely interested in influencing government these days. The financial systems of the United States have been as badly corrupted by corporate influence as have most of our politicians.

Perhaps the most important player in our national economy is the Federal Reserve. In reality, the “Fed” is not federal and has no reserves. The Constitution specifies that only the Treasury Department – part of the federal government – has the power to “Coin money, [and] regulate the value thereof” and lays out no provision for a separate corporation such as the Fed to produce our money supply.

If you have paper money which says “Federal Reserve Note” at its top, it is not produced by the US government, but instead by the corporate-bank-owned Federal Reserve. The distinction is at once significant and irrelevant in this age of electronic money flying across the internet. It’s significant because in all the years since it was created, the Fed has never been audited. It’s arguably irrelevant because dollars – even those “created” by the Fed – are backed by the full faith and credit of the United States. We’re stuck with them.

There are two “solutions” that people knowledgeable about these issues suggest and that seem to make a lot of sense. The first is that the Federal Reserve be nationalized and brought under the purview of the Treasury Department, so the United States goes back to producing and controlling its own money and money supply. The second solution is for each of the 50 states to do what North Dakota did about 90 years ago – create their own state-chartered and state-run banks.

We should also bring back the STET Tax, to put a very small amount of sand into the stock market’s gears, to borrow a phrase from economist Dean Baker who has written on this topic, and thus stabilize both the markets and the economy.

Banks should be thought of as public utilities, even if they’re privately run. They exist to take deposits, facilitate commerce, and lend money to businesses and individuals. As such, they shouldn’t be in the business of gambling or speculating with other people’s money, but thanks to recent changes in regulation, all the big banks do. Until that day when our big banks are brought back under control, there are two alternatives. The first is to move your money into local, community-oriented banks, or switch to community credit unions.

Learn more in chapter six, "Make Congressmen Wear Nascar Patches" of "Rebooting the American Dream".

-Thom

The Daily Stack

Quote: "The labor movement means just this: It is the last noble protest of the American people against the power of incorporated wealth." -- Wendell Phillips.

Carl Wolfson of the KPOJ morning show and Adam Klugman are in for Thom today. Stream Carl's show for the 3 hours before Thom is live. Adam's show is Mad as Hell in America.

Article: "George Bush Book 'Decision Points' Lifted From Advisers' Books " by Ryan Grim.

Movie: "Fair Game".

Free: Chapter One: Bring My Job Home of "Rebooting the American Dream: 11 Ways to Rebuild Our Country" by Thom Hartmann, over at Truthout.

Hour One: Labor News - the great wage theft caper - Kim Bobo, Executive Director of Interfaith Worker Justice, joins Carl and Adam.

Event: National Day of Action Against Wage Theft Thursday, November 18, 2010.

Article: "Shocking State Fair Scandal, Wage Theft Epidemic, Spur Nationwide Protests" by Art Levine.

Book: "Biocidal: Confronting the Poisonous Legacy of PCBs" by Theodore Michael Dracos.

Site: "We The People" (Adam's spot).

Article: "Beck says it's "irrelevant" that Soros is Jewish, then says the "Jews in Israel don't consider him Jewish"".

Hour Two: Family of Secrets... the real story of George W. Bush and the Bush Dynasty - Journalist/Author Russ Baker tells us what he has found out.

Book: "Family of Secrets: The Bush Dynasty, America's Invisible Government, and the Hidden History of the Last Fifty Years" by Russ Baker.

Book: "Decision Points" by George W. Bush.

Book: "A Charge to Keep: My Journey to the White House" by George W. Bush.

Video: "Family of Secrets".

Hour Three: "Acid Christ: Ken Kesey, LSD and the Politics of Ecstasy" - Author Mark Christensen will be here.

Book: "Acid Christ: Ken Kesey, LSD, and the Politics of Ecstasy" by Mark Christensen.

Book: "Revival: The Struggle for Survival Inside the Obama White House" by Richard Wolffe.

Article: "Larry Summers Cast As Dysfunctional Force In 'Revival,' Obama Insider Book" by Sam Stein.

Talk Radio News Segment: Victoria Jones, White House Correspondent.

Article: "Round one to Jim DeMint as Mitch McConnell flip-flops on earmark ban" by Greg Sargent.

Article: "Rangel Bails On Ethics Hearing" by Benny Martinez.

Article: "GOP is urged to avoid social issues" by Ben Smith & Byron Tau.

Coming up Tuesday on The Thom Hartmann Program

Hour One: The politics of illegal drugs, racism and incarceration - NYU Professor of Clinical Law and former public defender Anthony Thompson will be here.

Hour Two: "Decision Points" by George W. Bush - Former FEMA Director Michael Brown talks about the book and his old boss.

Hour Three: What the *$@*?! Too much profanity in prime time? - Hollywood Reporter columnist Lindsay Powers will be here.

And, the best of the rest of the news and your calls right here on...

The Thom Hartmann Program... your media support group for we the people.

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Thom and Louise Hartmann founded the New England Salem Children's Village in New Hampshire in 1979. With states delaying payment for the children they entrust to the village, they need help with cash flow urgently. Please help if you can.

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