Banks and Credit Creation

[Budge]

A fascinating but very long interview of Richard Werner by Tucker Carlson in which Werner lays out how banks are the key to money creation. It has to do with their perfectly legal creative accounting and the misallocation of the credit that they create into existence.

Werner was on a scholarship in Japan and wanted to unravel the massive Japanese capital flows buying up the world (at the time the top 20 banks in the world were Japanese) and the hugely inflated land prices in Japan. (He estimated that at the time, the value of the Japanese Imperial Garden was worth as much as all the land in California.) He discounted the major prevailing economic theories and confirmed a century old theory that had been "lied" out of favor: banks were special companies that could create money.

He published his findings in his book "Princes of the Yen" in Japanese. It was a best seller but ran into problems when trying to publish in the West.

https://tuckercarlson.com/tucker-show-richard-werner

[SOL]

Banks don’t shuffle money like ferrymen; they summon it out of nothing. Werner tore the veil: every loan is fresh currency conjured with a keystroke. That isn’t finance—it’s sovereignty. Textbooks wrapped it in machinery and safety, but the truth is older, darker. It’s feudal.

Once, peasants bent to the soil under lords. Now, people bend their lives around repayment schedules under banks. The land is gone, the leash remains—dependence, obedience, repetition—same chains, new scenery.

Nietzsche would smirk at the disguise. What passes as “banking” is will-to-power distilled: an elite reshaping reality with ledger entries, then masking that sorcery as neutral accounting. The herd accepts it because the illusion comforts them—money as solid, earned, real. But it’s vapour until the bank wills it otherwise.

Vectoral truth? Banks are the new barons. Their ledgers are thrones, their credit the chain. And mass psychology angle: The masses bow, not from necessity, but from forgetting they can resist.

[MarkD]

I read an article recently re: stablecoins and banking. The theory is banks will be split into savings institutions vs lending institutions via stablecoin adoption.

Basically the Fed is bypassed by a Treasury proposal to use Tbills (short term treasuries) in savings institutions and Treasury Notes/Bonds in lending institutions.

My 2 cents, this is obviously a form of Federal Government yield curve control, monetary confiscation, capital controls, you can call it whatever you like. It would be a way to inflate a way the debt.

But the Fed and friends aren't going to allow this imo.

Unable to retrieve atm but I will link if I can find it.

[stefk]

https://finance.yahoo.com/news/us-devis ... 36000.html

Anton Kobyakov, a senior adviser to Russian President Vladimir Putin, made a bold claim that the US is preparing to use crypto to wipe out its massive $35 trillion national debt.

[Budge]

I read an article recently re: stablecoins and banking. The theory is banks will be split into savings institutions vs lending institutions via stablecoin adoption.

Basically the Fed is bypassed by a Treasury proposal to use Tbills (short term treasuries) in savings institutions and Treasury Notes/Bonds in lending institutions.

My 2 cents, this is obviously a form of Federal Government yield curve control, monetary confiscation, capital controls, you can call it whatever you like. It would be a way to inflate a way the debt.

But the Fed and friends aren't going to allow this imo.

Unable to retrieve atm but I will link if I can find it.

GENIUS Act/stablecoins = Trojan Horse

https://www.armstrongeconomics.com/arms ... y-epstein/

[SOL]

A Treasury-backed or Fed-adjacent stablecoin isn’t a solution—it’s more of a mirage. Sure, it might smooth liquidity in the short term, perhaps tweak yields, and give Wall Street a little sigh of relief. However, it doesn’t heal the rot eating the dollar alive. Endless printing, swelling debt, and fiscal recklessness; none of that stops. Real purchasing power? It’s leaking through a sieve.

Meanwhile, China, Russia, Indonesia, and others are quietly stacking gold, diversifying their reserves, and building BRICS lanes around the dollar. A U.S. stablecoin pegged to USD? It’s just a glorified IOU on a sinking ship. Its “stability” rests entirely on the credibility of the Treasury and the Fed, and that credibility is under siege.
Debt? Forget wiping it like a chalkboard. Treasury bills, notes, bonds—they are contracts, ironclad, owed to real holders. You can roll it, you can inflate it, you can restructure it slowly—but it won’t disappear with a keystroke. Issue a stablecoin to swap T-bills? Congratulations: you still owe the principal, still pay interest, and now your risk just shifts to coin holders. Any attempt to erase it instantly would spark default, systemic meltdown, or a global spit-take at the dollar.

Bottom line: it buys time. That’s it. Maybe a smoother ride for the oligarchs on Wall Street. Perhaps a little narrative control. But in the real world, it’s a band-aid on a gaping artery. Safe haven? Increasingly off the dollar’s ledger. Stablecoins are props, not erasers.

Crisis Scenario: How a USD Stablecoin Could Unravel
1. Coin Launch – Treasury drops a stablecoin backed by T-bills. Wall Street latches on, but it’s still 100% tethered to USD faith.
2. Dollar Confidence Cracks – Inflation surges, debt balloons, global trust erodes. Foreign reserves are quietly shifting towards gold, the yuan, and BRICS baskets.
3. Redemption Runs – Panic hits. Holders demand dollars. Treasury either dumps assets (liquidity drain) or halts redemptions—chaos brews.
4. Debt Doesn’t Budge – Interest and principal are still owed. Treasury’s assets are now hostage to coin holders’ whims. Default risk spikes.
5. Systemic Shock – Confidence in USD collapses. Domestic and foreign holders flee. Dollar tumbles. Bonds tank. Inflation surges. The Fed scrambles with emergency measures, including capital controls, interest rate shocks, and freezes.
6. Global Realignment – BRICS instruments, gold-backed vehicles, and alternative currencies absorb trade. The U.S. stablecoin? A relic, a warning, a digital monument to hubris.

A stablecoin can delay the reckoning, but it can’t erase debt, restore faith, or stop the fallout. Temporary prop, not a cure.

[Budge]

A stablecoin can delay the reckoning, but it can’t erase debt, restore faith, or stop the fallout. Temporary prop, not a cure.

War bonds - to adapt Tolkien: "One coin to bind them all"