Thursday, February 21, 2013

Virginia’s Central Bank


Somewhat to our surprise, the campaign to get Virginia Delegate Bob Marshall to talk to CESJ president Norman Kurland has received expressions of interest not only from across the political spectrum in the Commonwealth, but from different countries.  The general feeling seems to be that the U.S. economy, while rather rocky at present, is still — relative to the rest of the world — founded on a slightly more solid grade of quicksand than most.

Consequently, people around the globe still view the U.S. economy as something of a bellwether for the global economy.  If it continues to go downhill or be operated almost exclusively for the benefit of the federal government and Wall Street, the only possible outcome is disaster.  That is why we continue to push Delegate Marshall to talk to Norman Kurland.

It is, after all, difficult to see how it could possibly hurt anyone, and it might do some — or a lot of — good.  Consider adding your two cents by sending Bob a brief e-mail at delegatebobmarshall [at] Hotmail [dot] com, urging him to talk to Norm at his earliest convenience.  It is, after all, why we keep sending him e-mails such as the following:

February 18, 2013

Dear Mr. Marshall:

Thanks to your proposal to reform the currency for Virginia, the Commonwealth has a unique opportunity to provide an example for the rest of the country.  The Old Dominion can lead the way to the restoration of a stable, asset-backed and elastic currency for the United States.  This will only happen, however, if you take full advantage of the resources available to you in the form of the advice and counsel of people like Dr. Norman Bailey and Norman Kurland.

Dr. Bailey is, in fact, taking a very flattering interest in your proposal.  He has, furthermore, suggested a number of improvements that could be made to make the proposal effective as a vehicle for restoring the economy.  As he said in an e-mail I received this morning, “Encourage Marshall to think of the Richmond Federal Reserve as ‘Virginia's central bank’ (although its district covers more than Virginia).”

This would be a very astute political move.  Since the 1930s, the regional Federal Reserve Banks have seen their power eroded and concentrated in the Federal Reserve Bank of New York and the Board of Governors in Washington, DC.  The New York Fed and the Board of Governors are, as you know, more interested in financing government to benefit politicians and Wall Street than in private sector development to benefit all citizens.

Virtually the only function the regional Feds retain is research.  Presenting any one of them with the opportunity to become relevant again by acting as the “central bank” of a region — as Alexander Hamilton originally proposed — would build a powerful constituency not only in Virginia, but throughout the country.  The statesman (or woman) who spearheaded such an initiative would very quickly become nationally prominent with a credibility not seen since President Reagan.

Again, I urge you to call Norman Kurland at your earliest convenience to discuss the potential these ideas have to achieve your stated goals.

Yours, etc.

#30#

No comments: