Marilyn Writes

Marilyn MacGruder Barnewall began her career as a journalist with the Wyoming Eagle in Cheyenne. During her 20 year banking career, she wrote extensively for The American Banker, Bank Marketing Magazine, Trust Marketing Magazine, and other major industry publications. The American Bankers Association (ABA) published Barnewall’s Profitable Private Banking: the Complete Blueprint, in 1987. She taught private banking at Colorado University for the ABA and trained private bankers in Singapore.

Saturday, April 23, 2016


By Marilyn MacGruder Barnewall
April 24, 2016

One of the biggest problems we have in our society today is thinking because we “know” something that it is “knowledge.” That is what makes it possible for so many psychopaths to publish a plethora of lies on the Internet that is believed by so many people.

This is the information age. Never have people had access to so much information – and it can be accessed while sitting in the comfort of your own living room... on your Smart TV or your laptop.

But information is not knowledge. It is just information... possibly true, possibly false; possibly meaningful, possibly not; possibly helpful, possibly destructive or otherwise worthless.

How does information become knowledge? Experience!

You only KNOW information is accurate when it has been tested. If people understood this there would be far fewer divorces and far fewer wars.

I often ask people for their definition of truth and most have to think before they give a response. They often reply “factual.” Here is my definition: Truth is that which does not change. There is only one thing that never changes. It is God, the only entity that is the same yesterday, today and tomorrow. Jesus Christ told us He is “the way, the truth and the life.”

There is a difference between factual and truthful. One can change; the other cannot. When truth changes it goes without saying that what we thought was the truth before it changed was, indeed, not the truth – so how reliable is updated “truth”? One thing you can always count on in worldly matters is change.

We understand when presented with a list of facts surrounding a specific topic that as we investigate we will find more facts and some will conflict with others. As we learn more, our understanding of the facts changes. To verify that statement, we can look at the numerous scientific opinions put forth about global warming – all based on scientific facts (or opinions about facts that are presented to the public as facts rather than opinions). When we get conflicting facts, those who seek knowledge dig more to determine which ones are accurate, which are not. Those who are satisfied with information -- those to whom knowledge is unimportant -- stop seeking when their comfort level is reached.

The point is, facts may change. Truth does not. We once thought the earth was flat, for example. Our facts were erroneous. Today we believe it to be round, but as we learn more about our universe who knows what facts we may find?

The lesson to be learned? Information is just information, not knowledge. It may or may not be factual. Before making important decisions in your life, it is important to understand that.

Knowledge is information with which you have experience. You have tested it. It, too, may not be factual, however. Look how many people sincerely believe that something for nothing is a good idea – for them, for society.

Bernie Sanders has generated a following of many millions of Americans who think free education and free medical care are really free. They do not understand that they are coveting – putting their hands in their neighbors’ pockets and stealing from them money their neighbors worked hard to earn. They are incapable of digging deeply enough to learn that socialism has failed everywhere it has been tried.

One reason socialism fails is because when the productive are told they must support those who choose to be non-productive they become less productive. Why? Maybe it’s because they have no motivation to pay for your education or that of your children. Perhaps they resent having the quality of their medical care go down so people who prefer to be unemployed rather than employed can get free care. Those who are truly unable to work need free medical care, but those who prefer the “freedom” of being unemployed? Please!

When people become less productive, government tax revenue goes down because fewer people are employed and fewer people can afford to buy things... from homes to clothing to cars. Taxes realized by government as a result of lost income tax from jobs and sales tax from purchases go down. Because college is free, more students attend and the quality of instructors goes down and so does the quality of education... college becomes (as it is today) advanced high school.

There are a lot of people who use information to escape rather than find reality.

Those seeking facts are totally different from security-motivated people who manipulate their life experiences so they hear what they want to hear, learn what they want to learn, and confirm the facts they want to confirm so they can keep their heads firmly buried in the sand – or wherever. You may ask: “If they are confirming facts, aren’t they seeking reality?”

Many people stop seeking facts when they reach a point that confirms what they want to believe. They seek no additional facts that may take them into areas of discomfort. That is what we call cognitive dissonance.

Let’s look at the sources we use to gain information today. Let me begin with this quote from Proverbs 26 (24-25): “A malicious man disguises himself with his lips, but in his heart he harbors deceit! Though his speech is charming, believe him not, for seven abominations fill his heart.”

First we have the media. It is hard to believe that people who consider themselves intelligent rely on the mainstream media for information, but they do.

How do we know the mainstream media is not reliable? We know because there is no bigger purveyor of political correctness. We know the primary victim of political correctness is facts.

When an entity that portrays itself to be the provider of news embraces political correctness, you often get opinions rather than facts and the facts that are presented are very selectively chosen. The people instinctively understand this (which accounts for the popularity of presidential candidate Donald Trump who consistently makes politically incorrect statements; people may dislike his personality but like him for the facts he provides).

We know people who believe political correctness has value are those who have an agenda. Often, they are being paid for pushing a particular agenda... the Food and Drug Administration is a good example of that as are politicians. These people think in terms of “the collective good,” a socialist concept. Or perhaps they think of payoffs. Their agendas cannot be supported with facts.

Second, we have social media.

While in college, a computer programmer, Mark Zuckerberg, decided people needed a computer program that would enable them to communicate with others, stay in touch with family and friends, and create new friends via a Web page reflective of their opinions. In 2016, Facebook, Zuckerberg’s creation, has 1.1 billion unique visitors monthly. That is close to 1/6th of the world's population every month.

Born May 14, 1984, Zuckerberg’s Facebook has created him a net worth estimated by Forbes to be $46 billion.
Twitter has 310 million unique visitors monthly and LinkedIn has 255 million. There are many social media outlets. These three merely provide insight into how heavily the social media is used in modern life.

What has social media contributed to our society?

Unfortunately, the result has been to de-personalize communication with family and friends. Rather than a phone call or a personal visit with Mom and Dad on a Sunday afternoon, kids today tell their parents to visit their Facebook page for the latest pictures of the grandkids. We have an entire generation of people who while walking down the street or driving a car are Tweeting others and reading messages (both of which are dangerous). It has placed libelous material in the marketplace, put there by people who get their jollies by misleading others.

Though the large majority of postings to Facebook are made by normal, healthy and happy people, the social media also provides a reflection of human arrogance and stupidity... the posting of offensive and ugly parts of society including confessions of personal behavior that will stay with the person who posted it for a lifetime... or with a person about whom someone posted libelous information.

Facebook and other imitative social media have become heaven on earth for psychopaths. These mal-wired, usually angry people can say anything they want about anyone, including themselves.

Because mentally ill people often get their jollies by lying, their postings are often designed to be destructive to someone they either envy or hate. ISIS uses social media to attract young men to join their cause and blow themselves and others up. They recruit young women to become wives to ISIS warriors. Old men who portray themselves as young, dynamic young men entrap girls into relationships which have morphed into personal (and destructive) meetings.

I had an interesting experience last week with one of these degenerates.

This sick person’s Facebook identity will remain anonymous. I try to direct people to factual data and avoid promoting those with sick ideas.

Thanks to Mark Zuckerberg’s creative energy, this man told the world that I was being paid a fee whenever a child is sold to a child trafficking ring. I was appalled to see those words publicly stated in writing. Could there be any worse thing to say about a person?

Does Mr. Zuckerberg monitor Facebook for accuracy or give innocent victims who avoid taking part in his social media experiment a place to complain about this kind of abuse? How can I find out who this person is so I can take him to court? Do I have the opportunity to say “this is a lie and this person is sick and should not have access to the public marketplace of ideas”? Evidently Mr. Zuckerberg overlooked the need for such an alternative.

Understand that I realize anyone who knows me is as shocked by hearing it as I am. I also realize there are far more people in the world who do not know me than who do. It is a comment for which I have absolutely no responsibility and about which I can do nothing. If I had a Facebook account, I could “un-friend” this sick-o.

The Bible tells us there is one unforgivable sin: to blaspheme the Holy Spirit. I believe that anyone who abuses a child blasphemes that child’s Holy Spirit. I believe pedophilia to be a more serious crime than murder because by traumatizing their spirit it kills in childhood the person God intended someone to become. They are forced to live with the outcome... a fate far worse than death. I know people who were sexually abused as children and they carry the scar of that trauma with them throughout their lives.

Those are just a few of the dangers of Facebook and other social media. The people who read the madness pass it on... it gives them a sense of empowerment. They think they know something no one else does and that makes them appear better informed than they are. In fairness to Facebook, this happens as a result of telephone conversations, too. People read or hear something, don’t check it out, and pass it on as if it’s a fact... and that’s called gossip, not information – and certainly not knowledge.

When you pass on information about someone with no corroborating evidence (evidence goes beyond “I know this person well and he/she would never lie to me”) you may be defaming someone and may be libeling them. If we don’t take time to verify what’s being said about another person we have no business passing it on.

We as Americans need to ask ourselves some questions. One of them is: Has the quality of life gone up or down since the technology revolution? I also think when we give ourselves an honest answer to that question we need to understand it is what we have done with technology that creates problems rather than the technology, itself.

As for Facebook, please consider yourself “un-friended” (what a stupid expression!).

© 2016 Marilyn M. Barnewall - All Rights Reserved

Tuesday, April 12, 2016


By Marilyn MacGruder Barnewall
April 10, 2016

... Maybe It’s Just Beginning

Though the Republican National Committee may think it is going to survive the nightmare of what Donald Trump could do to the established power base of both political parties if he became President of the United States, the nightmare may be just beginning.

With the shortsightedness for which politicians and bureaucrats are known, Reince Priebus and the rest of the power-based Republican establishment have only begun to feel the anger from abused constituents they were either elected or appointed to serve. Rather than serving, they have ruled... or tried.

What might the future hold?

If Donald Trump loses the Republican presidential nomination because of rules changes at the 2016 convention, the Republicans will lose the election. Period. Zero chance of it being otherwise. Why? Because voters around the country who, as good citizens voted in primaries and caucuses, have learned that their votes are meaningless. They have now been told by the Republican Party that it, not the people, chooses the Republican candidate for President.

Keep this in mind in the future. We don’t have to take our valuable time to let the RNC and DNC continue their soap opera scripting designed to gain political contributions and voter support for “the big November election” wherein a company owned by George Soros counts the votes. The RNC and DNC control who will be their nominees and do not need our votes.

I just watched a Sean Hannity Fox News segment. Two women were discussing how the rules that govern the Republican presidential nomination will be determined at the 2016 Convention and they will be determined by the delegates. One woman repeated at least twice that a majority of the delegates voting on the rules for the 2016 Convention will be Trump and Cruz delegates because they have the largest percentage of votes via the caucus and primary process. She is wrong... she probably knew she was wrong as the words passed her lips.

Delegates are chosen by state and national Republican committees and those selected will very likely support a candidate favored by the party – and that is not Trump or Cruz. Their first ballot votes taken at the Cleveland Convention must reflect the number of delegates earned by each of the candidates in each state via primaries and caucuses. I wrote an article two months ago explaining how the party puts the fix in to achieve whatever candidate result the party wants.

That’s why there were 17 candidates when the race began: Fiorina to pull the woman’s vote away from any populist candidate (which the RNC thought would be Ted Cruz, not Donald Trump). Dr. Ben Carson was there to attract the Black vote (and the vote of the faithful – Carson is known as a strong Christian and was a much stronger candidate than the RNC thought he would be). Governor Mike Huckabee is a former Pastor and has a television following (and would make the best vice president). Former Senator Rick Santorum was supposed to attract the Catholic vote; Kasich who positions himself as part of the Reagan team is in reality part of the Bush neo-conservative cabal (according the news articles during April’s first week, perhaps Kasich appeals to gay voters, too – he lived with an openly gay man for over a year when he was a Congressman and his campaign manager is openly gay... which is a plus for him in NYC and California).

The delegates selected by various Republican committees (county and state) are committed to vote on the first ballot for the candidate who won a specific number of delegates in a particular primary or caucus election, but the delegates are hand-picked by the State Republican parties (which is dependent for financial support on the RNC). They may be selected because they oppose either Trump or Cruz. Some delegates will have to vote for Trump and Cruz on the first ballot because they won the right to those delegate votes. But if no candidate gains the required 1,237 votes on the first ballot, delegates can vote for anyone they (or the RNC) choose.

Without the conservative vote, the Republicans cannot win any election against any Democrat. The Party really doesn’t care because the elitist political establishment from both parties has only one objective: Power. They could care less about political philosophy and principles that flow from the philosophy. As you read the rest of this article, keep that in mind.

Should there be shenanigans at the Cleveland Convention that deprive Trump and/or Cruz from becoming the nominee, we will likely have a Democrat President. When we know the Republicans will lose the Presidency to Democrats, it becomes critically important for conservatives not voting for the Republican nominee for President to vote for Republican Senators and Congressmen.

No, Republicans are not much better than Democrats when it comes to budgeting or passing common sense legislation that benefits the people and a sovereign nation. But a Republican Congress would have never passed Obamacare. They will maintain some control over whom gets seated on the Supreme Court... and four or five Justices will likely be named by the 2016-2020 President. The Republican establishment intends to hold those very important Supreme Court appointments over the heads of conservative voters to keep them from withholding their votes from the Republican candidate if it isn’t Donald Trump or Ted Cruz. In the RNC view, pending appointments to the Supreme Court will force conservatives to vote for their presidential choice. It is their trump card... or, better said, their non-Trump card.

It is extremely important that conservatives vote this year. Eliminate voting for President if you want. If Trump gets “unliked” by the RNC at the Convention, I will. But make sure Republican Senators and Congressman are elected so there is a wall of protection built between a Democrat President and the Congress. It won’t be much of a wall, but it will be a wall.

Most conservatives will throw yet another surprise to Priebus and his elitist Sheriff of Nottingham associates. Conservatives realize that our nation has already been sold out and that Donald Trump represents the only chance the people have to restore our Republic. Many of us don’t like his personality but we understand he is the only candidate who can save our nation. We the People know the Republican Party is as firmly committed to a New World Order – a world government – as the Democrats. It was, after all, neo-conservative Republican President George H.W. Bush who first used the words “new world order.”

Thus, it really doesn’t matter who appoints Supreme Court Justices. It was George W. Bush who gave us Chief Justice Roberts, the guy whose vote forced Obamacare on the nation.

While the RNC has Trump nightmares, I have dreams. My dream of what will happen is this:

Donald Trump does not run as a third party candidate. It would tear the nation apart and after seven years of Obama we are already pretty badly damaged. And, it would harm his status as a Patriot, too. Instead, Trump behaves like the Patriot he is and he waits until after the election to do what his wife Melania says he does when he is hit unfairly by an opponent: He hits back ten times harder than he was hit.

Donald Trump, if a brokered convention removes him from the top spot he’s earned and he is not chosen to be the Republican nominee, will on the day after the November election make an announcement that he is establishing a third political party... let’s call it the Politically Incorrect Common Sense Party (PICS) for the moment. He will publish a list of cities he will visit in each state and the dates he will be there for a Town Hall Meeting to enroll members into PICS. He will have to rent football stadiums to hold the numbers of people who will want to attend. In a full page newspaper ad in papers across the nation, he will particularly invite Libertarians and Independents and Democrats who oppose socialism to join with Conservatives to make our nation great again.

All it will take to fill the stadiums will be a full-page ad inviting people to attend. All of those tweet and email addresses will also be available to receive invitations. Press releases should be sent to every newspaper in the nation. It is news, after all.

In Colorado, he would visit Denver, Colorado Springs and, on the West Slope, Grand Junction., all on the same day. Attendees will receive an Elections Commission form to fill out so it can be filed with their local authorities. Zap! A new political party is born.

What that effectively does is destroy the establishment Republican Party. It will cost them at least one-third of registered voters. Reince Priebus and his establishment pack rat elitists will be a thing of the past. That, in and of itself, will fulfill Melania’s prediction that when unfairly attacked Donald Trump hits back ten times harder than he was hit.

After all 50 states have established a solid base for the PICS political party the party must immediately identify good, solid, honest candidates to run for Congress and the State Legislatures must quickly be identified. All candidates agree to attend a PICS school that teaches a course on the Constitution. Experts like Michael Badrnarik, Krisanne Hall and Michael Gaddy, known for their writings and classes on constitutional law, will teach the classes. Members of the media will be invited to attend the classes free of charge. New members of the new political party can attend, too.

The objective will be to get enough pro-constitution PICS candidates elected to office that they will provide a back-up to the few truly conservative members of Congress in getting legislation either passed or defeated. That can be achieved by the 2018 elections.

By 2020, there should be a sufficient number of New Republic Political Party members relative to the Republican and Democrat parties to put forth a presidential candidate... Donald J. Trump. And this time he would be treated fairly as a legitimate presidential candidate.

That is the nightmare the Republican Party should be planning to avoid... but they are not. They are too arrogant to even perceive such a catastrophe might overtake them. I can only pray for it and ask you to join with me. It's just a dream at the moment, but who knows what the future holds?

If you would volunteer to help plan and coordinate PICS Town Hall meetings in your state, drop me an email (address at bottom of article) and should such a miracle occur I will make sure your name is given to Mr. Trump. Send me your suggestions for a good name for the party, too – but first make sure there is currently no political party by the same name already in existence.

Has Mr. Trump given any indication that such plans for a third party are in the hopper? Not that I know of but surely the thought of a third party has occurred to him. I will volunteer to write the PICS Party platform and philosophy statement. It will begin with a statement opposing the existence of any government corporations and a return to constitutional law in our courts.

Truthfully, this would give the nation an even better chance to beat the socialists and communists who are shoving one world government down our throats than electing Donald Trump to be President in 2016. If elected this year, he will be standing alone in a pit of vipers and corrupt puppets who ask “how high?” when George Soros and the other new world order minions say “jump!”

If Donald Trump truly wants to save a capitalist nation called America, I think this may be an even better way to achieve it than becoming President in 2016.

© 2016 Marilyn M. Barnewall - All Rights Reserved

Sunday, April 03, 2016



By Marilyn MacGruder Barnewall
April 3, 2016

When I was 11 years old – that would be 1948 – it was an election year. In those days, caucuses were held in private residences.

I lived on South Sherman Street in Denver and a house across the street was the polling place for the Democrat caucus. I was curious and asked my Mother what a “polling place” for the District number shown on the sign outside of the house meant. I asked if she and my Father would be attending. I was one of those kids who constantly asked questions.

I didn’t know Democrats from Republicans in those days. I must admit, I don’t see much difference between the two parties today, either. They are both run by the same globalists who manipulate power back and forth for their own benefit and to the detriment of the people of America. In my view, both political parties are totally corrupt.

Back to 1948: My Mother informed me that I had to be in the house by dark and that I could not go outside that night... we usually played hide and go seek, Simon Says, or kick the can after dinner. “None of that tonight,” she told me. When I asked why, she informed me that there would be numerous strangers coming and going from my neighbor’s house that evening and Democrats were people whose moral standards were “different from ours.” When I asked what that meant she explained that Democrats were the kind of people who might abuse little girls.

We didn’t say the word sex in the good old days and so Mom’s explanation was lacking in details, but she said enough to give me the idea that I might be stolen by someone who was part of a political party different from that of my parents and they might be inclined to do things that would ruin a child’s life.

My Mother was raised on a small farm that bordered the city limits of Indianapolis, IN. There were many times during her childhood when there was insufficient food for her and her five brothers and sisters. She was born in 1909 and was a child when the Great Depression began. They grew much of their own food. She told my brother, sister and I about cooking turnips in a large pot over the fireplace. One night someone shouted that the water in which the turnips were being cooked was gone and they would burn. Her brother, Paul, jumped up and spit in the pot to keep the turnips from burning... they didn’t have indoor water, and had to get it from a pump outside the kitchen door which took a couple of minutes.

How Mom ended up a Republican, I’ll never know. She came from a poverty-based background which today would automatically make her a Democrat... or a socialist or a communist.

I remember when, during WWII, FDR went to meet with Stalin and Winston Churchill at Yalta, Mom said “That old bastard gave America away at Yalta!” I didn’t know Yalta from Malta and so didn’t pay much attention but she was so vehement when she made the statement, it stayed with me. When I became politically aware, I found she was right. Mom had to quit school after the 8th grade which, from personal observation, is about the same as an undergraduate degree from colleges and universities these days. I do not believe most teachers or professors could pass the test she had to take to graduate 8th grade.

Over the years, there have been many things to remember about both political parties. Interestingly, the thing that stands out most in my mind is the $200,000 in valued property that was stolen from the White House in 2000 by Bill and Hillary Clinton when they moved out and George W. Bush moved in. They were forced to return the stolen goods and unless I’m mistaken had to pay for some of the damages their White House staffers did.

I remember how those who worked for them destroyed the computer room, stole laptops, etc. In my mind, that somehow was a far worse offense – stealing from the people of the country who paid their salary and gave them respect neither was due – than all of the other things attributed to the Clintons.

It totally puzzles me that anyone would vote for someone who has stolen from them... or, who attempted to steal from them and would have had they not been caught in the act. To vote to put them in a position where they can steal you blind is, in my outdated view, unthinkable.

Mother’s assessment of Democrat moral values, it seems, was as accurate in the 1940s as it is in 2016. Here’s a reminder of the days we all enjoyed when the Clintons last called the White House home:

President Clinton gave Hillary authority to handle health care reform. The program she created was so messed up that even a Democrat-controlled Congress wouldn’t vote for it.

President Clinton gave Hillary authority to select a female attorney general and she submitted the names of Zoe Baird and Kimba Wood. Both were forced to withdraw their names because of their backgrounds. Hillary next recommended what Bill Clinton later called his “biggest mistake:” Janet Reno. Those who remember the Koresh killings in Waco, TX and Vicki Weaver/FBI sniper at Ruby Ridge, ID will quickly see the kind of people Mrs. Clinton tends to respect and appoint to office.

President Clinton then requested Hillary to recommend the new head of the Civil Rights Commission. She put forth the name of Lani Guanier – whose radical views forced a withdrawal of her name.

President Clinton asked Hillary for more recommendations. She provided these names: Web Hubbel (of Whitewater fame) for the Justice Department, Vince Foster for White House staff, and William Kennedy for Treasury. As you probably know, Hubbel went to prison, Foster committed suicide (then drove himself to Ft. Marcy Park to hide his body), and Kennedy was forced to resign.

Then we had “Travelgate.” Hillary wanted her friend, Harry Thomason, to provide travel tickets, circumventing the White House Travel Office. The Travel Office refused to comply and it cost them their jobs when Hillary made false charges against them to the FBI and got them fired. A guy named Billy Dale was charged with mixing personal and White House funds and it took a jury less than two hours to find him innocent.

Hillary recommended her friend Craig Livingstone to be Director of White House security. Remember the 900 missing FBI files – the files that provided classified information on enemies of the Clintons? The material also dealt with widespread use of drugs by White House staff... at which point, both Hillary and Bill denied even knowing Livingstone. As a result, the FBI closed its White House Liaison Office (which had served seven Presidents). It was during this time frame Republican elected officials stopped representing the interests of the people who elected them and began doing the bidding of the Democrat Party. Do you see a possible connection to those stolen FBI files... stolen by a Clinton appointee recommended by Hillary?

When the allegations of Bill’s sexual appetite came to the fore, Hillary was put in charge of the “Bimbo Eruption” team. In case you’ve forgotten, Hillary recommended non-settlement in the Paula Jones lawsuit – which, after the Ken Starr investigation, was quietly settled (costing American taxpayers millions of dollars). Anyone who thinks it is pro-feminist to be an enabler for a male abuser of women (even if the abuser is your husband) has a different definition of pro-feminism than most thinking women. Women who support this woman for President are not feminists. They are traitors to women and to women’s causes.

Hillary refused to release the Whitewater documents. As a result, Ken Starr was appointed Special Prosecutor. It cost taxpayers $80 million to find out about Bill Clinton’s sperm on Monica Lewinski’s blue dress. Bill was caught lying about his affairs which he later admitted to... but lost his license to practice law (thank you, Lord) for lying under oath to a grand jury.

Hillary avoided being indicted for perjury and obstruction of justice by using the words “I do not recall,” or “I have no recollection” and “I don’t know” 56 times during her interrogation.

And then we have Benghazi, destroying Department of State emails and using a personal server which threatened and still threatens our national security and the lives of intelligence agents (plus the possible trading of government favors for contributions to the Clinton Foundation).

How can the Democrats make their candidate for the Presidency someone who doesn’t appear to be the brightest candle on the cake (she flunked her Bar exam at least once or twice and passed it only after Bill was in office in Arkansas), whose associates haven’t heard of a law they didn’t want to break, who has a record of dishonesty, has bad judgment, and, according to the Secret Service, has an absolutely foul mouth?

None of the above includes the list of dead bodies which are linked to the Clintons or the drugs and laundered CIA drug money at Mena Airport while Bill Clinton was Governor of Arkansas.

Still, being forced to return an estimated $200,000 in White House furniture, china, and artwork that was listed as “stolen” defines Hillary Clinton’s character to me... or, more accurately stated, defines her complete lack of character and moral values. It’s not that the other things don’t disgust me... they disgust me beyond belief.

Then there is her record as Secretary of State. What record, you may ask? And there, as Mr. Shakespeare might say, “is the rub.” Even those who support her cannot think of anything she actually accomplished.

Only one Democrat, Hillary Clinton, did all of those things listed above, but all Democrats appear to accept them. See how insightful my Mother was in 1948? Clinton, a woman who supports women's causes she says, supports late-term abortion and crunching unborn baby parts while in the womb so a healthy liver or pancreas can be harvested from a helpless unborn body so it can be sold; she’s the one who did the lying about the email server and Benghazi but is supported by a majority of Democrats and will win that party’s nomination to be the President of the United States (if the FBI doesn't get her first). That should tell you something about your Democrat friends and businesses you support.

And we wonder why the world has no respect for our country?

There is no cure for stupid.

© 2016 Marilyn M. Barnewall - All Rights Reserved

Marilyn MacGruder Barnewall began her career in 1956 as a journalist with the Wyoming Eagle in Cheyenne. During her 20 years (plus) as a banker and bank consultant, she wrote extensively for The American Banker, Bank Marketing Magazine, Trust Marketing Magazine, was U.S. Consulting Editor for Private Banker International (London/Dublin), and other major banking industry publications. She has written seven non-fiction books about banking and taught private banking at Colorado University for the American Bankers Association. She has authored seven banking books, one dog book, and two works of fiction (about banking, of course). She has served on numerous Boards in her community.

Barnewall is the former editor of The National Peace Officer Magazine and as a journalist has written guest editorials for the Denver Post, Rocky Mountain News and Newsweek, among others. On the Internet, she has written for, World Net Daily, Christian Business Daily, Business Reform, and others. She has been quoted in Time, Forbes, Wall Street Journal and other national and international publications. She can be found in Who's Who in America, Who's Who of American Women, Who's Who in Finance and Business, and Who's Who in the World.


Sunday, March 27, 2016


By Marilyn MacGruder Barnewall
March 27, 2016

It is Easter... the day of the Resurrection of Jesus Christ. Easter proves that love is stronger than hate, good triumphs over evil, and that truth sets us free. The cobwebs of ignorance are removed by shining the light of truth on them. Slimy secrets exposed no longer withhold truth from people who seek it.

It doesn’t always happen on our time schedule, but it always happens.

That is why we are told to seek... why we are promised that if we seek we will find answers to our questions. People, it seems, are lazy. We stopped seeking and began saying prayers asking Jesus to seek and provide the answers for us... or we relied on our Parson or Priest or a television personality to do our seeking – to find truth for us. We must find our own truths.

We stopped seeking answers to worldly matters, too. We turned everything over to politicians so we would have more time for ourselves... our personal needs. And that’s how we got in our current mess... overtaken by corruption in the hands of power seekers.

How could a greater contrast between two philosophies of life be made clearer during this Easter Week? Those who follow Islam gave us Brussels. Jesus Christ gave His life for Christians.

How did our lives, our sovereignty as a nation, our peaceful world get lost so quickly? How did our world change so fast? It did not. What we are seeing today is the result of plans that were put in place long ago and have been implemented one small step at a time. For example, Thomas Jefferson was the first President to declare war against radical Islamists.

It is reminiscent of what happened to the Catholic Church when it got caught up in the evil of pedophile priests abusing young boys. It is the worst kind of abuse of power. It is a puzzle that took years to figure out and Rome is still working to resolve it. Rome thought evil could be swept under a rug... but the light of truth always surprises evil doers.

Before Catholic haters jump to conclusions and before Catholics become defensive, what follows is a true story. It explains how the communists plotted the downfall of the Catholic Church – and have come a long way toward achieving their objectives. It is a story that is difficult to believe... but it is the absolute truth and is exemplary of just how far diseased minds go to achieve the objectives of world dominance.

The book School of Darkness was published in 1954. It was written by Bella Dodd, from 1932 - 1948 an organizer for the Communist Party USA (CPUSA). For four years, she sat on the CPUSA’s National Council. Bella Dodd says: “In the 1930s we put eleven hundred men into the priesthood in order to destroy the Church from within.” In a Fordham University lecture, in 1950, she said: “Right now they are in the highest places in the Church.”

This may help some people understand the socialist/communist messages that periodically emerge from priestly commentary at Sunday Mass – or from the Pope in Rome. Just as America today is the result of policies put quietly in place in the late 1800s to turn our Republic into a corporation, the Church today faces the problems caused by those eleven hundred communists placed in the Catholic Church by CPUSA way back in the 1930s and 40s.

Today, we count the ways in which people can abuse power and impose the cruelest of life-changing experiences on others while, simultaneously, holding themselves and their association with the abuse above it all—because of position. Politicians do it, teachers do it, policemen and judges do it—and priests do it. All are human.

It is important to realize that those who abuse the power of position are those who suffer from the greatest sense of personal powerlessness. They are the weakest, most insecure among us. When asked why they abuse others, many respond “Because I can.” Their power over others makes it possible. Not all politicians, teachers, policemen, judges — or priests or presidents — gain a sense of personal power from their occupations. Most seek to serve. Too many, however, do not.

 Emotion can carry us into the darkness of half-truths, but there is a greater point to be made. All believers suffer persistent attacks against Christianity, family, and everyday goodness and we must not allow them to overcome us! Be aware of the attacks and why they are occurring. They want to take your faith, your family, and your goodness from you. It is the only way they can bring down this Great Nation.

To prove my point, between 2001 and 2005 the Associated Press investigated sexual misconduct in our public schools.  They found 1,801 educators were guilty of sexual misconduct with youths.  We don't hear about this sexual abuse in government's public schools... but the mainstream media makes sure we hear about any deviance within any religious organization.  Ask yourself why.

In a 2004 report for the U.S. Department of Education titled “Educator Sexual Misconduct: A Synthesis of Existing Literature” done for the “No Child Left Behind” program, Dr. Carol Shakeshaft said that a study she did of complaints against Catholic priests versus public school abuse over a 50-year period proved “the physical sexual abuse of students in public schools is likely more than 100 times the abuse by priests.” Still, parents appear to have no time for School Board meetings. When did you last attend a Board meeting?

When the first Catholic priest abused his power to sexually assault a child and was protected by the Church rather than reported to the police, a Holy obligation to “let the little children come unto Me” was violated. That command was given by the highest possible authority within any Christian Church.

The Vatican has said that sinful and criminal abuse of minors by members of the Church must be condemned. They agree there is a need for justice and amends. I say the Church needs to clearly define at what point it’s time to dial 911 and let law enforcement handle unlawful behavior. All humans must be held accountable to the same standard before the law. An Oath to God and the designation as a “Man of God” does not change that simple rule of the most basic definition of civilization. Too, it’s pretty clear that a “Man of God” doesn’t sexually assault children.

All of the above takes me back to Bella Dodd’s book, School of Darkness. A graduate of Hunter College and New York University’s School of Law, Mrs. Dodd was a school teacher and lawyer by profession. Reading Bella Dodd’s book made me realize the Church has been fighting a communist recruitment program put in place in the 1930s by CPUSA. All Christians have been fighting this battle and the Communist Party is still up to its old and very dirty tricks in our fight against radical Islam.

It is for this reason I draw the analogy between what Bella Dodd reports about the CPUSA and our President's inability to accurately define our current Middle East enemy in the war on terror. Until Mrs. Dodd wrote her book and explained what happened in the 1930s and 40s, the Catholic Church couldn’t define its enemy. And, I would point out the communists are as anti-Christian today as they were in 1940.

Specifically, Mrs. Dodd said: “In the 1930s we (CPUSA) put eleven hundred men into the priesthood in order to destroy the Church from within.” The idea was for these men to be ordained and progress to positions of influence and authority as Monsignors and Bishops. Just 12 years before Vatican II, held in 1962, she said: “Right now they are in the highest places in the Church.” The plan was to weaken the church’s effectiveness against Communism. She stated that these changes would be so drastic, “you will not recognize the Catholic Church.”

During her Fordham University lecture in 1950, Dodd talked of the chaos planned. A monk who attended the lecture is quoted from Christian Order:

“I listened to that woman for four hours and she had my hair standing on end. Everything she said has been fulfilled to the letter. You would think she was the world’s greatest prophet, but she was no prophet. She was merely exposing the step-by-step battle plan of Communist subversion of the Catholic Church. She explained that of all the world’s religions, the Catholic Church was the only one feared by the Communists… The whole idea was to destroy, not the institution of the Church, but rather the Faith of the people, and even use the institution of the Church, if possible, to destroy the Faith through the promotion of a pseudo-religion: something that resembled Catholicism but was not the real thing.

“Once the Faith was destroyed,” the Monk continued, “she explained that there would be a guilt complex introduced into the Church... to label the ‘Church of the past’ as being oppressive, authoritarian, full of prejudices, arrogant in claiming to be the sole possessor of truth, and responsible for the divisions of religious bodies throughout the centuries. This would be necessary to shame Church leaders into an ‘openness to the world,’ and to a more flexible attitude toward all religions and philosophies. The Communists would then exploit this openness in order to undermine the Church.”

Has anyone listened to the recent comments of Pope Francis lately?  They ring with "openness."

In New York, the CPUSA got into trouble and Dodd was a featured part of the problem in the New York Times reports. Dodd, who parted ways with CPUSA, went to Washington to argue an immigration appeal and met with a friend from the old East Bronx area of her childhood. He talked with her about testifying against the Communist Party in front of the House UnAmerican Activities Committee and asked if she wanted FBI protection. He then asked if she would like to see a priest. She was startled by the question, but was amazed at the intensity of her own answer as she said she would.

“Perhaps we can reach Monsignor Sheen at Catholic University,” he said, and an appointment was made for her late that evening.

From School of Darkness, Chapter 16:

“A thousand fears assailed me. Would he insist that I talk to the FBI? Would he insist that I testify? Would he make me write articles? Would he see me at all?

“...By what right, I thought, was I seeking the help of someone I had helped revile, even if only by my silence? ...I rang the doorbell and was ushered into a small room. While I waited, the struggle within me began again. Had there been an easy exit I would have run out, but in the midst of my turmoil Monsignor Fulton Sheen walked into the room, his silver cross gleaming, a warm smile in his eyes.

“He held out his hand as he crossed the room. ‘Doctor, I’m glad you’ve come,’ he said. His voice and his eyes had a welcome which I had not expected, and it caught me unaware. Monsignor Sheen put his hand on my shoulder to comfort me. ‘Don’t worry,’ he said. ‘This thing will pass,’ and he led me gently to a little chapel. We both knelt before a statue of Our Lady. I don’t remember praying, but I do remember that the battle within me ceased, my tears were dried, and I was conscious of stillness and peace.”

Archbishop Fulton J. Sheen (as he was at the end of his life) never hesitated to point out the evils of communism on his popular television broadcasts of the 1960s. He was an exceptional man. He counseled Bella Dodd as disease sent her to her death. He is the reason she wrote her book.

The impact of Archbishop Sheen’s counseling is apparent in Bella Dodd’s words:

“On my way to the airport I thought how much he understood. He knew that a nominal Christian with a memory of the Cross can easily be twisted to the purposes of evil by men who masquerade as saviors. I thought how communist leaders achieve their greatest strength and cleverest snare when they use the will to goodness of their members. They stir the emotions with phrases which are only a blurred picture of eternal truths.”

There is no doubt the current crisis and liberal attitudes within the Catholic Church have hurt many people. The headlines achieve the objectives set by CPUSA over 80 years ago. This, then, established the battleground of the Catholic Church from 1950 until—today. It is also the battleground of our schools, families and all other character-building tools used by humanity to keep evil in its cage and civilization moving forward and not “progressing” back into the cave.

As Bella Dodd said, “I thought how communist leaders achieve their greatest strength and cleverest snare when they use the will to goodness of their members.”

That is a danger all Christians face. Goodness misdirected can deter us all from its very purpose. We must keep a clear line of delineation between how faith and religion are defined. Our First Amendment rights to freedom of religion do not carry with them the right of Islam to establish a separate government with its Sharia statutes and laws as part of its religion.

What is “Goodness?” It is best defined by the reason we celebrate this day: Easter and the Resurrection of Jesus Christ who sacrificed His life so that we might have eternal life.

Compare that with the tyrannical taking of other lives so radical egos can celebrate its power over the powerless... whether it is done via violence in Brussels or non-violence in Washington, D.C.

Happy Easter!

© 2016 Marilyn M. Barnewall - All Rights Reserved

Saturday, March 12, 2016


By Marilyn MacGruder Barnewall
President, The MacGruder Agency, Inc. (Retired)


A state bank is owned by the public and is not a private corporation.  It is, thus, a public bank. There is only one state bank in the United States, the Bank of North Dakota.  A state bank is quite different from state-chartered banks which are present in most of the other 49 states.

The banks on the street that do business with the public are owned by private investors, just as they are now.  They are not owned by the state.  A system of state-owned banks on Main Street would be a socialist or communist system and state banks represent quite the opposite.

A state bank is an administrator.  It grants charters to banks and acts as a correspondent bank for them.

At the current time, money center banks act as correspondent banks for the independently owned banks on Main Street.  A correspondent bank receives loan requests from smaller banks – banks too small to make a large loan when a client or prospective client requests one.  This “loan sharing” concept is good… until the large banks become endangered by marketplace forces and their own greed or stupidity.   

Under the current correspondent banking system, if one bank at the top fails, it has a spin-off effect on all of those banks for which it has acted as a correspondent bank and participated in loans with independent banks.  In a failure situation, the big bank must call its loans… including those loan participations it has made jointly with smaller banks while acting in a correspondent – or, a joint lending – capacity. Thus, it puts the smaller banks at risk of failure too… it puts the entire system at risk of failure.  That is why such banks are called “too big to fail” – or, “too big to jail.”

In a state that has its own state bank, nationally-chartered banks (banks chartered by the Comptroller of the Currency) are still invited to do business.  The primary difference for them in the new environment is that the state bank now acts as the correspondent bank, not the nationally-chartered bank... not Chase Manhattan or Wells Fargo or Bank of America, etc.


1.               Implement a state bank similar to the system in place for 93 years in the State of North Dakota.

2.               The State of North Dakota:

A.         Has enjoyed an unemployment rate as of July 2011 of 3.3%.

National                                  9.1%
North Dakota                         3.1%
B.         With a population of about 650,000, the Bank of North Dakota has, during the past ten years, paid the State Treasurer more than $325 million from bank profits.

C.         In 2010, the worse economy in recent history, North Dakota had its largest financial surplus in history.

D.         North Dakota tops the list of state economies, year after year.

E.         In 2011, North Dakotans will see almost $500 million of their money returned to them in the form of income and property tax cuts.  Combined 2009 and 2011 tax reductions, the average North Dakotan will enjoy a 30 drop in percent tax liability.  The Legislature also funded $342 million in property tax relief.  The owner of a $150,000 home will enjoy a tax reduction of $506.

             $341.79 million in property tax relief;
             $120 million reduction in income tax rates (17.9%)
             $25 million reduction, corporation taxes (19.5%)
             $2.125 million tax reduction, financial institutions (a drop from 7              percent to 6.5 percent).

F.         Enjoys population growth of 6% per year;

G.        No bank failures during the past ten years; the lowest home foreclosure rate in the nation; the lowest credit card default rate, too.
Specifically, what does a state bank do that causes such immediate and positive results for a state’s economy?

In states other than North Dakota, the billions of dollars received from taxes and fees are deposited in large commercial banks – just like those that are borrowing trillions of dollars from the Federal Reserve System… from taxpayers.  In North Dakota, these deposits become “captive.”  They stay in the state.   The corporate headquarters of Chase Manhattan (New York City), Bank of America (Charlotte, NC), Citigroup (New York City), Wells Fargo (San Francisco) decide what they will do with those deposits.  They are famous for… what?  Their history says they invest in mortgage-backed derivatives, for one thing.  Or, the too big to fail/jail banks lend your tax dollars that your state deposits in them to businesses in their home states, not in your state.  Or the Federal Reserve secretly lends the money to Wall Street or foreign banks and businesses.  Your tax dollars leave the state, in other words.  In North Dakota – or in any state with a state bank – the tax dollars paid by the citizens of the state remain in the state.

Every state takes in taxes and fees every year.  In North Dakota, these revenues are deposited in the state bank which, in turn, makes sure a large percentage of the money gets invested in the state’s economy.  And, the state bank gives a portion of its earnings back to the State Treasury. 

North Dakota is the only state that has had a continuous budget surplus since before the financial crisis.  They have had no bank failures in the past ten years.  Their mortgage foreclosure rate and credit card default is the lowest in the country.

A July 18, 2011 Associated Press newspaper article reports jobs in North Dakota increased by 61,000 since 2000.  That doesn’t sound like a lot of jobs, but remember, this state has a population of less than 700,000.   Of those jobs, 17,000 were created between 2008 and 2010 – a time when most states were bleeding jobs. 


The Federal Reserve System, a non-government private corporation has since 1913 been determining monetary policy for the United States.  A good case has been made by highly recognized, eminent economists around the world who say America’s monetary policy is destroying our economy.  A recent partial audit of the Federal Reserve shows this private corporation loaned $16 trillion in near zero interest secret loans to American and foreign banks AND businesses.

The usual culprits – Citigroup received $2.5 trillion; Morgan Stanley received $2.04 trillion, Merrill Lynch got $1.9 trillion and Bank of America got $1.3 trillion (since Bank of America and Merrill Lynch are the same corporation, B of A Inc. got the most money:  $3.2 trillion).

But it wasn’t just American bankers that got nearly interest-free loans.  About $3.08 trillion went to foreign financial institutions all over Europe and Asia.

The point is, while the Fed was making the low interest rate secret loans (for which U.S. taxpayers are on the line), 6.5 million American homeowners were suffering through delinquent and foreclosed mortgages.  Why are they in foreclosure?  Because the monetary policies of the Federal Reserve System caused a real estate bubble that resulted in the loss of hundreds of billions – perhaps more than a trillion – dollars in primary residential real estate values.  They are in foreclosure or behind in house payments because Federal Reserve monetary policies have resulted in a rotten economy.

Citizens in all states question the wisdom of the Fed’s monetary policies and the taxation of future generations of American children required to pay for the monetization of United States debt.  Citizens of the states have expressed concern that the Federal Reserve System is using their tax dollars to prevent the failure of banks in foreign countries while their American financial services system is being compromised by what Congress has chosen to call “too big to fail” banks.  They complain that they are being “fed to the wolves” or “thrown to the four winds of fate” by the policies of the Federal Reserve System.

Because the Federal Reserve System refuses to allow a complete audit of the trillions of American taxpayer dollars it uses for debt monetization purposes, it is impossible to evaluate precisely how that private corporation is spending America into debt.  The Federal Reserve System is a private corporation, not a part of the United States Government, and is referred to by many banking experts as a “cartel,” (as OPEC is a cartel).  The Federal Reserve System generates private corporate profits by collecting interest on the debt it is also responsible for generating… a clear “conflict of interest” because when the nation is in debt, the Federal Reserve earns profits on the interest paid on that debt.  The Federal Reserve System profits when America’s debt is high.  When debt is low, it does not.

In response to citizen concerns about what the people perceive as a federal financial system run amok, the State of Texas has approved that state’s right to print its own currency.  The State of Utah has approved the use of gold and silver coins in everyday commerce and business.  The State of Georgia has approved the right of bank clients to open deposit accounts using gold and silver coins.  In South Carolina, State Senator Lee Bright has introduced legislation that backs the creation of a new state currency to “protect the financial stability of the Palmetto State in the event of a breakdown of the Federal Reserve System.”

"If folks lose faith in the dollar, we need to have some kind of backup," North Carolina State Sen. Bright told the Spartanburg Herald Journal's Stephen Largen.

As of March 2010, there were twelve new declarations of State Sovereignty in progress in state legislatures around America.  They include Alabama, Nebraska, Rhode Island, Wyoming, Washington, Indiana, Kentucky, Georgia, Kansas, Missouri, Mississippi and Maryland.  Obviously, state legislators see potential problems.

Legislators responsible for the reforms required to best protect the citizens they are sworn to serve must choose carefully from a broad range of reforms.  Among those reforms must be a means by which bank lending to independent businesses can be stimulated.  A vast majority of taxpayers are employed by independent businesses which have been the hardest hit by the credit freeze caused by the reckless behavior of Wall Street banks and Federal Reserve policies.

As of March 2011, there were state-owned banking bills pending in eight states to either form or do feasibility studies to assist in forming legislation.  This year, bills have been introduced in Oregon, Washington, Massachusetts, and Maryland.  Bills from 2010 are pending in Illinois, Virginia, Hawaii, and Louisiana.  The Center for State Innovation in Madison, Wisconsin, was commissioned by Washington and Oregon to analyze the impact of a state bank in those two states.  The conclusion:  State-owned banks in Washington and Oregon would, CSI said, have a positive impact of substance on employment, new lending, and state and local government revenues.  In September 2011, the California State legislature passed state banking legislation and it is awaiting Governor Brown’s signature.

I began writing in my columns two years ago about how a simpler, more direct and less confrontational alternative than declaring sovereignty or legislating the state’s right to create its own currency exists for state legislators to take appropriate and immediate action to protect the citizens of their state from the clearly potential failure of the federal monetary system. 

I was the first banker and journalist to write about the need for state banks.  When I was a consultant (1979-1993), my daily rate was $2,000.  I was paid for my opinion.  In 2011 dollars, that amount would probably have increased to somewhere between $5,000 and $10,000 per day.  This is a no cost opinion:  I believe the establishment of a state bank offers the most important alternative state legislators can find.  It is a way to protect a state’s sovereignty without declaring it, and a state bank makes it possible for a state to issue its own currency (should it become necessary) without actually issuing it.  A state currency without a state monetary distribution system (state bank) is like an impotent bull:  Unable to perform.  More important, legislation declaring state sovereignty or the need for a state currency may further debilitate what little confidence remains in the federal system whereas the establishment of a state bank does not.

For example, currently the only way to clear checks written on deposits in federally-chartered (or state-chartered) banks is to utilize the check clearing system at the Federal Reserve System.  The Bank of North Dakota clears its own checks.  If a state declares sovereignty (as several have said is their right), it must be done both de jure ("according to law") and de facto – or, "in reality."  A state may say it is sovereign, but sovereignty must also be accepted by other nations and states.  For said declarations to hold legal weight and to be taken seriously nationally and internationally, the declaring (de jure) state must, according to international law, have a definable territory, it must have a governing body, and it must be able to exercise and control its own monetary power (de facto).  Any state can comply with the first two requirements (definable territory and and governing body).  Logic dictates that no state can exercise monetary power when tied to a failing federal system of finance and Federal Reserve Notes that may – or may not – maintain value.

That is the basis of the people’s concern for their economic well being.

One thing is absolutely certain.  Without a state bank, states have no alternatives should the federal system collapse.  The state system will collapse with the federal system.  We all hope that doesn’t happen, but the economy is not improving.  It gets consistently worse.  With a state bank, both state sovereignty and currency creation are possible.  What legislators need to think about is this:  Without a currency distribution system independent of the federal system currently in place, states have no alternatives but financial chaos available to them – and that is what they will get should the system fail.

In one of my editorials in News With Views (an Internet news service with a million weekly readers), I said:  “As of June 30, 2009, the Federal Reserve Bank of St. Louis said there were 6,898 commercial banks in the United States – but as of June 30, 1984, there were 14,369 commercial banks? In 1994, that number was pared down to 10,623. Now we have less than 6,898.”

Since local banks are a key to the ongoing economic stability and are often the sole source of independent business growth for communities, statistics indicate it is time for our legislators to look at lawful alternatives available to the state that can stimulate economic growth and taxpayer confidence.  Historic results over a period of 93 years at the Bank of North Dakota proves the value of state banks.

Of all the alternatives available, one fact stands out as identifiable truth:  States must be prepared to quickly come to the economic rescue of their citizens should the need arise.  The financial services industry currently creates an unsafe economic environment in which all alternatives must be kept open to states that want to serve the people they represent.  As it relates to the economic well-being of any state’s citizens, a state bank offers the least offensive alternative to the dangers of what may be a failing federal financial system while concurrently supporting all potential alternatives required to save citizens from extremely painful economic failure at the federal level.

As long as a State is tied to the federal system of finance, it is impossible to declare sovereignty or create a state currency because no monetary distribution system is available.

The United States is $15 trillion in debt.  We are spending $1.50 for every $1 in revenue we take in.  That is unsustainable.  Before any new dollar or Federal Reserve Note is printed, it is 46 cents in debt – and thus, it is not “a dollar” nor what the Federal Reserve purports a Federal Reserve Note worth $1.00.   I’m not a lawyer and don’t know the lawful implications of that, but I do know that if I turned a piece of paper into something and represented it has having the value of $1.00 and it was only worth 46 cents, I’d be arrested for counterfeiting.

Our problem in America today is too much centralized power.  The best way to solve that problem in the economic sector is to implement state banks… a system that decentralizes the power of the Federal Reserve System.

In short, without access to a state-owned system of banking similar to the only such system in the country – North Dakota – it is impossible to be properly prepared to protect any state’s citizens against the devastation that can result from a failure of the federal financial system.  Equally, at this time there is no legal reason barring any state from implementing a state bank similar to that 93-year old system in the state of North Dakota.


A state bank is owned by the public and is not a private corporation.  The banks that do business with the public are privately owned, just as they are now.  The state bank acts as an administrator, granting charters to banks and acting as a correspondent bank for them.

Banks doing business with loan, deposit and trust customers in any state would, under a properly-structured state bank system, continue to be privately owned.  The banks are privately owned but are chartered by the state rather than the Comptroller of the Currency in Washington, D.C.  That is the primary change that occurs when a state owns its own banking system:  The state, rather than the federal government, charters the state banks doing business in the state and the state establishes the qualifications private investor banks must meet to provide banking and other financial services to citizens.  The state establishes and/or approves acceptable loan policies at banks it charters.  The state bank becomes the correspondent bank for independently owned banks it charters.

Some states may try to structure a state bank for political or other purposes.  If a state bank is structured like a political toy rather than as a state bank, it will fail.  The mistakes made at the federal level that caused systemic failure must be eliminated from the state system.  They include:

1.           Fractional-reserve banking has played a huge role in creating too much currency from thin air; that, in turn, results in the inflation that has debased our currency. The only logical outcome to fractional-reserve banking is inflation.

              Inflation is not the result of an increase in the cost of good as much as it reflects a decrease in the value of the currency.  

I recommend a return to the lending policies in place during the 1970s and 1980s.  In the good old days, bank growth was dependent on bringing new deposits into the bank.  A bank could lend a percentage of its deposit base.  That percentage was sometimes determined by bank regulators… usually up to 70 percent of the deposit base, depending upon overall bank loan quality.  Banks make money on loans (loan interest) and lose money on deposits (they pay interest to depositors).  Forcing bank growth to occur on the basis of deposit growth is good… it means there is business development and new jobs in the community.  If those things aren’t there, bank growth through new deposits is not possible because new deposit accounts don’t appear when jobs aren’t being created.

Fractional-reserve banking makes bank growth dependent upon the extension of credit.  If a bank makes a million dollar loan, the Federal Reserve System makes it possible for the bank to lend $900,000; ten percent of the million dollar loan goes into the Federal Reserve System.  Thus, the name “fractional-reserve” banking.   In other words, because the bank made a million dollar loan, $900,000 of new currency has been created by the Federal Reserve fractional-reserve policies.  Creating money out of thin air results in reduced currency value and that, in turn, causes prices to rise… purchasing products with a currency that’s losing value requires more of the failing currency to purchase it.

The system of fractional-reserve banking must be kept out of the state bank system.  It is a major reason for the failure of the federal system and should not be brought to the state level.  It will, in the long run, cause them to fail, too.

A state bank administers the granting of state bank charters on the basis of the requirements established by the Advisory Boards created by the state legislature. 

A state bank is not, as many people think when they hear the words “state bank,” equivalent to “state-chartered banks” (which have been in existence for many years in most states but which are tied to the federal system of banking).

A state owned bank operates its own system of banking.  It grants member charters to independent banks (much like the Comptroller of the Currency grants national banking charters to national banks).  Though a state bank must comply with federal banking laws, the state bank, not the Federal Reserve System, establishes monetary policy for the financial institutions it charters.  A state bank may perform all functions currently performed for member banks of the Federal Reserve (such as check clearing) and the Federal Deposit Insurance Corporation (such as insuring customer deposits).  The Bank of North Dakota does both things for the state bank but its member banks must currently clear checks through the Federal Reserve Banks and deposits must be insured by the Federal Deposit Insurance Corporation (FDIC).  Should the federal system fail, both check clearing and deposit insurance could be included in the state system. 

A state bank can (and does, in North Dakota) function as a correspondent bank for its member banks.  It can write mortgages… and, in the current real estate market, a state bank can help establish a floor under the ongoing, downward spiral of real estate values.  There have been no bank foreclosures in North Dakota for the past ten years.  I recommend that state banks be prevented from selling real estate mortgages to Freddie Mac and Fannie Mae both of which sell mortgages to Wall Street banks where they are still, even after all of the trouble, included in mortgage-backed derivatives (which I term “worthless pieces of paper”).


A state bank is NOT the owner of state-chartered banks.  If it were, such a system of state-owned banks could be accurately called a “socialist banking system.” 

Properly structured state banks are not operated by politicians.  Rather, with a well-written legislative Act, the state requires the bank to be run by professional bankers under a well-controlled environment of positive regulation.  Since state bank employees are public servants, and since they are not directly involved in making loans to the public – that is done by the privately-owned independent banks serving the public – no bonuses, commissions or fees for loan generation are paid to state bank employees – or, to executive management of the bank.

State-owned banks, properly structured, do not compete with community banks.  Rather, they support them.  A state bank uses state funds (now kept in the state rather than being sent out-of-state to a “too big to fail” bank) to provide credit for local growth-based projects.  Currently, funds from state taxpayers leave the state and are leveraged for international investments.  This creates no jobs for state residents.

Neither does a properly structured state bank compete for consumer or commercial deposits.  The independently-owned banks chartered by the state handle those items – as they do now.  In North Dakota, less than 2 percent of BND deposits come from consumers.  Community banks have available to them municipal government deposits and can use the funds to create jobs locally because the BND provides letters of credit guaranteeing such loans.  As a properly-stated state bank Act reads:  “All state revenues must be deposited in the state bank.”

The Bank of North Dakota is a member of the Federal Reserve System.  It is a member because it chooses to use the convenience of Federal Reserve services available to it… not because it has no other alternative (like the other 49 states).  A state bank Act insures state bank deposits – the tax and fee dollars of the state’s taxpayers.

The Bank of North Dakota is run in a very fiscally conservative manner… it is not subject to outside interference by politicians with a special project they want to fund.  Credit policies chartered by state banks must be approved by a state bank advisory board.  Bank of North Dakota is not involved in speculative loans or derivatives and other risky ventures… nor should any state bank be.

State funds and tax monies are kept safe by a well-structured state bank.  Such banks should be self-funded.  Bank of North Dakota manages VA, FHA, and other federally-guaranteed loans that would otherwise go to large, out-of-state banks.

When local communities partner with a state bank, it allows independent banks to fund local projects which sustain economic development within the community.  The “too big to fail” banks have no interest in local communities.  Studies show that from 30 to 50 percent of public project costs are composed of loan interest paid.  Thus, the reduced cost of borrowing from a state bank can help fund infrastructure projects.

An interesting article from the Honolulu newspaper appeared on June 27, 2011.  It was a story about how the Hawaiian Bankers Association (the state association) opposes legislation being considered by that state’s legislature to implement a state bank.  The new banking system does bring down certain power structures – like the ties that exist between state banking associations and the American Bankers Association – and legislators need to be prepared for such resistance.  In North Dakota, their Bankers Association endorses the Bank of North Dakota.

It should be noted that North Dakota has the most local banks per capita and enjoys the lowest default rate on loans of any state in the nation.  Of the 93 banks doing business in North Dakota, 87 are state-chartered banks who have opted to become part of the new system – and who have prospered while other banks around the nation suffer lost profits of substance.  The other six banks are nationally chartered.

That is the ball on which everyone needs to stay focused:  The win-win situation that results from implementing a state bank – which is well worth the headaches of getting the job done (and done right).