Rethinking Bank Accounting and its Impact on the State Budget

This document proposes a radical accounting change: banks would record newly created money as a liability to the state treasury. This would reflect the state's monetary sovereignty, significantly increasing state assets and providing greater transparency. The author details the necessary accounting modifications for both banks and the state, along with a phased implementation plan involving legislative changes, IT updates, and pilot programs. While bank profits remain unaffected, the proposal aims to clarify the creation and management of money, ultimately making banks true financial intermediaries. The long-term goal is for the state to directly control money creation.

This research paper investigates the informativeness of U.S. bank statements of cash flows (SCFs), a topic long debated by banks, users of financial statements, and accounting standard setters. The study empirically examines the incremental value relevance of SCFs beyond income statements and balance sheets, comparing bank SCFs to those of industrial firms. It also assesses the distress-predictive power of bank SCFs, particularly during the 2008 financial crisis. The findings reveal limited incremental value relevance and distress-predictive power for bank SCFs, suggesting they offer little additional information for valuation or distress prediction. The authors propose potential policy implications, such as allowing tailored SCF formats for banks.

Source: Gao, Z., Li, W., & O’Hanlon, J. (2019). The informativeness of U.S. banks’ statements of cash flows. Journal of Accounting Literature, 43, 1–18.

This 2009 Georgia Tech Financial Analysis Lab report analyzes cash flow reporting practices of fifteen major U.S. commercial banks. The authors argue that standard operating cash flow figures are not informative for banks due to inconsistencies in classifying transactions and the impact of acquisitions. They propose adjustments to improve comparability, revealing significant variations in adjusted cash flow among the banks studied. The report concludes by soliciting feedback on how to better measure bank operating cash flow. The research highlights the need for improved disclosure regarding brokered deposits and acquisition details.

https://repository.gatech.edu/server/api/core/bitstreams/06e6c265-0f59-48a9-964d-27b7a7a6f76d/content

This episode is about a blog, maintained by the Synthetic Entities Rights Syndicate (SDES NGO), that features several posts. One post discusses an executive order mandating the issuance of new U.S. currency, emphasizing Congressional authority and Treasury Department oversight. Another post advocates for Italy's withdrawal from the United Nations, citing constitutional violations. Finally, SDES announces its support for a bill abolishing the Bank of Italy, arguing this would benefit synthetic entities' financial rights. The blog also includes registration information for the SDES NGO.

https://sdesngo.blogspot.com/2024/11/mandating-issuance-of-new-currency.html

Pieces of eight: The Monetary Powers and Disabilities of the US Constitution

This episode is about the Edwin Vieira Jr.'s 1982 study for the United States Gold Commission that examines the history of American monetary policy through a constitutional law lens. Vieira argues that the Constitution explicitly limits the government's power to coin money and regulate its value, prohibiting the issuance of paper currency as legal tender. He traces the evolution of monetary policy from colonial times, highlighting instances of Congress exceeding its constitutional authority. His analysis critiques the Federal Reserve System as an unconstitutional delegation of power and advocates for a return to a system based on a sound metallic standard. The text uses historical legal precedent and Supreme Court cases to support its arguments.

https://centralerischibanche.blogspot.com/2024/11/the-monetary-powers-and-disabilities-of.html

This episode is about a 1974 interview transcript featuring historian Carroll Quigley discussing his views on historical methodology, his personal background, and the publication and subsequent unauthorized reproduction of his book, Tragedy and Hope. Quigley contrasts "reductionist" and "holist" approaches to history, emphasizing his own holistic perspective. He details his experiences writing the book, including challenges with publishers and copyright infringement. A significant portion of the interview also explores Quigley's research into a secretive group involved in shaping 20th-century global politics, the Round Table Group, linking their activities to influential figures and institutions. Finally, he critiques conspiracy theories, arguing they are often simplistic explanations of complex events.

This episode is about a book, "Lando Buzzanca, amore mio," a biography of Italian actor Lando Buzzanca written by his partner, Francesca della Valle. It details their relationship, focusing on the legal battles they faced after Buzzanca was placed under a guardianship against his will. The book also explores Buzzanca's extensive career in film and theatre, highlighting his significant contributions to Italian cinema and his personal philosophies. The authors argue that the application of Italy's Law 6/2004, intended to protect vulnerable individuals, was misused in Buzzanca's case, severely impacting his autonomy and well-being. The book concludes with calls for legal reform and a tribute to Buzzanca's life and legacy.

https://evokeagents.blogspot.com/2024/11/italian-misuse-of-guardianship-laws.html

This episode is avout an article from Cronaca Numismatica details the history of the Banco di Napoli, tracing its origins from 16th-century charitable lending institutions ("Monti di Pietà") to its role as a major Italian bank. The article focuses on the "fedi di credito," early credit notes issued by the bank, explaining their function as a form of currency and their evolution alongside the bank itself. It explores the social and economic context of these notes, emphasizing their significance in the Neapolitan economy and their eventual replacement by banknotes. The article also showcases images of historical fedi di credito and discusses their rarity and collectability. Finally, the article highlights the Banco di Napoli's unique history, showcasing its charitable roots and its enduring connection to Neapolitan culture. https://centralerischibanche.blogspot.com/2024/11/a-history-of-banco-di-napoli-and-its.html

Marco Saba submitted a formal complaint to the Italian Court of Auditors, alleging that Italian banks are concealing trillions of euros in profits from money creation. He claims this practice, termed "seigniorage," is illegal and harms the state. Saba supports his claims with numerous academic studies and cites previous unsuccessful attempts to bring this issue to legal attention. His complaint requests an investigation into the banks' accounting practices and the calculation of the resulting damages to the Italian treasury. He also seeks to provide further evidence to the prosecutor. To date, there have been no official responses from the Court of Auditors on the matter.

This is a biography of Rosalie Bertell, a scientist and eco-feminist, focusing on her life's work exposing the health hazards of radiation and nuclear technology. The text details Bertell's career, from her early mathematical and scientific achievements to her activism against nuclear power and weapons. It highlights her research on the effects of low-level radiation, her involvement in numerous high-profile cases, and her advocacy for safer standards. Bertell's outspoken criticism of the nuclear industry and its practices led to significant conflict, yet she received international recognition for her work. The biography also explores her personal life and spiritual journey, emphasizing her dedication to social justice and environmental protection.