Marilyn Barnewall – You Say Sovereign, I Say Maybe NotPage 2 of 4
A State Bank (exemplified by Bank of North Dakota) is the official depository institution forall State collections and fees. It’s very beneficial to local economies. Such a controlled sourceof funds is called a ‘captive deposit base’. The State Bank pays the State Treasurer acompetitive rate of deposit interest that can be used to reduce local tax burdens. In states thatare part of the federal system, funds collected by the State leave the State. When a State ownsa State Bank, loan policies are determined by the State, not the federal government or the banking cartel known as the Federal Reserve System.State Banks determine loan policies that can support State assets. In North Dakota, loanpolicy supports agriculture and energy. In Alaska, Texas and Oklahoma, it can support oil. InColorado, loan policy can support uranium, natural gas, or oil shale production; in Utah, itcan support coal. States rich in other things can create loan policies supportive of them. Another thing State Banks make possible is getting away from a fiat currency system (papermoney with nothing backing it) dependent upon consumer and business indebtedness tosurvive. That system has bankrupted our nation. A Sovereign State needs its own currency.The currency must be backed by something other than a Governor’s signature. And, withoutsomething (like gold, silver, oil, uranium, etc.) backing a State currency, the citizens have thesame problem that caused the federal system to fail: a worthless fiat currency. When a State legislatively declares the right to create its own currency, it needs a State banking system or there is no way to exercise power – a required element of “sovereignty.” A State may print as much of its own money as it chooses, but without a distribution system and without a State-owned asset of value backing it, it’s worthless. You thought your State coulddeclare its sovereignty and still trade in the U.S. dollar? You might want to re-think that.Federal governments whose power bases are threatened by State governments declaringsovereignty usually don’t view the State fondly. They usually don’t offer the use of theircurrency. A State that declares itself sovereign must function independently of the federal government– or it is not sovereign. States that have declared (or will declare) State Sovereignty need tofulfill international standards of sovereignty. A State Bank helps achieve that objective. Inother words, legislation declaring a State to be “Sovereign” doesn’t make sovereignty a reality.There is the issue of de jure versus de facto sovereignty. The experts say neither declaring nor being proclaimed sovereign or exercising sovereignty is sufficient. To be sovereign requires both de jure (proclaiming) and de facto (being proclaimed). Proclaiming sovereignty (“I’msovereign”) doesn’t get the job done. Being proclaimed sovereign (by a legislature or by citizen vote or by another State) doesn’t either. It is generally accepted that both de jure and de factoare required. The ability to exercise sovereign power is also required. That’s a major part of how international law defines “sovereignty.”State sovereignty, then, must be based on de jure and de facto proclamations. It must exhibitevidence of exercised power. The most recognized exercise of power in the world is monetary. As long as states are tied to the Federal Reserve System, monetary power is vested in thefederal, not the State, government.