Start Your Own Bank.

D

Dr. Howard

Peacock
Gold Member
We live in a time where we see digital unpersoning, both financially and socially. The wave is growing larger, and thankfully it is also waking people up to their dependence on multiple systems as well as the feasibility of alternatives.

Today I was thinking about "its a private company, if you don't like it, start your own X" specifically the "start your own bank"

Start your own bank is usually used as a joke, especially as a response to what seems like the 'most shocking' of all deplatforming, which is closing business accounts. It's viewed as horrible because "how will a person live without bank of america etc."

I have had the blessing from God to be able to work with entrepreneurs that on a regular basis throw the veil of of what seems like "the impossible". Complex companies, making lots of money, with shiny exteriors that really under the hood are just a few guys at computers employing a few other people that are mostly expendable. I don't work with any bank insiders so I decided to start googling...how hard is it really to start your own bank?
  1. Filter 1 was immediately changing the idea of bank, to credit union. Credit unions seem to be smaller time operations and also seem to be able to restrict their membership.
The preliminary results are pretty interesting as in:
  1. A credit union actually has to filter its membership. It has to serve a specific geographic area, or group of people. For example, there used to be hundreds of catholic credit unions in america that served their local memberships exclusively
  2. You can operate at a very small scale. There is a black baptist church in Milwaukee that has a credit union that has less than 200 members and under $200,000 in assets under management. It's run out of the church basement and only offers savings accounts.
  3. You can have very few members. The minimum number of members to charter a federal credit union is 7 people.
  4. There is special credit/help for credit unions that serve low income depositors and/or minorities (I shouldn't have been surprised at that one)
  5. You can have a federal or state charter. A state charter was especially interesting if balkanization gets worse. That is a Florida chartered christian credit union would probably get less grief than one with a federal charter.
I'm going to continue to read up on it as it seems like a really interesting project especially as a welcoming institution for Christians, Crypto holders and firearms enthusiasts that have been kicked out of other banks. Does anyone have any banking experience or insight into the process or operations? Has anyone researched or seen anything like this before? I'm in the USA specifically but I know Canadians also have a credit union system.
 
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Tactician

Tactician

Kingfisher
Gold Member
Hey, in addition to local credit union/small banks, regional currencies are worth a look at. The Chiemgauer, BerkShares, & Lewes Pound are examples.

Don't mind me, gonna rant a little.

Really, the whole idea of money is to be an expedient to barter. If there's a market for 100 items, using barter we'd have to remember 4950 exchange rates o_O too many! Using money, we just see 1 price for each item. In a barter system, people store their wealth in actual goods. In our financial system, people store a lot of wealth in cash & financial assets.

This is all well & good, but when an authority controls the supply of money they can:
1. Inflate the value of your labour away (& it's not even for good stuff, it's for stupid crap like studying the menstrual cycles of Albanian frogs).
1.a. First dibs to buy assets before the inflation is repriced into the market (Cantillon Effect).
1.b. What's that? Your house is worth more now? Guess you'll be paying more property tax (for no increased standard of living). Not a huge deal, but it adds up.

2. Expand & contract the credit supply to inflate bubbles & then collects real collateral as defaults occur during credit contraction.
2.a. Lending for financial speculation is way more bubbly than lending for enterprise or even consumption.
2.b. Leveraged buyouts to chop up a company & put regular people out of work. A big destruction of value.

3. Charge interest on money created out of thin air.
3.a. Create mal-investment by distorting interest rate signals (interest rates signals the willingness of savers to lend money).

4. Decide that some gender-studies "officer" etc. will receive a completely arbitrary salary of $x,xxx absolutely devoid of a free-market rate. Basically, the money authority can issue fiat-backed (i.e. your labour) comforts to some of the worst people, thereby buying their loyalty & building an army of annoying bureaucrats who will fight to keep the system in place. By arbitrarily creating a high salary, these would-be dregs get to live off the sweat of productive people in the real economy.
4.a. Influence culture by promoting what they want, i.e. gay stuff.

All of the above is horsepoo & it makes the economy more of a financial illusion vs people actually building stuff. All the inflation & speculation games also make it way harder than it should be for the average guy to actually accumulate something. Still very doable, but it could be much better. Depends a lot on geography.

The best thing people can do is barter* or use local currencies to avoid these problems & probably pay way less tax as well. E.g. When a wife cooks a meal for her husband, she provides a barter service & wealth is gained, but it isn't transacted in USD so it isn't taxed.

This gets real complicated when trying to work on a large or international scale because large or overseas companies want payment in specific currencies, but thinking local is a great start.

*Some places have barter laws that try to tax the market value of the barter, but these are hard to enforce & no one cares about small transactions e.g. swapping stuff on craigslist.
 
W

wayfaringstranger

Kingfisher
Dr. Howard said:
I'm going to continue to read up on it as it seems like a really interesting project especially as a welcoming institution for Christians, Crypto holders and firearms enthusiasts that have been kicked out of other banks. Does anyone have any banking experience or insight into the process or operations? Has anyone researched or seen anything like this before? I'm in the USA specifically but I know Canadians also have a credit union system.
Click to expand...
Any US bank will somehow be plugged into the Fed. So a completely crypto non US dollar solution is probably best.
 
Handsome Creepy Eel

Handsome Creepy Eel

Owl
Gold Member
Dr. Howard said:
We live in a time where we see digital unpersoning, both financially and socially. The wave is growing larger, and thankfully it is also waking people up to their dependence on multiple systems as well as the feasibility of alternatives.

Today I was thinking about "its a private company, if you don't like it, start your own X" specifically the "start your own bank"

Start your own bank is usually used as a joke, especially as a response to what seems like the 'most shocking' of all deplatforming, which is closing business accounts. It's viewed as horrible because "how will a person live without bank of america etc."

I have had the blessing from God to be able to work with entrepreneurs that on a regular basis throw the veil of of what seems like "the impossible". Complex companies, making lots of money, with shiny exteriors that really under the hood are just a few guys at computers employing a few other people that are mostly expendable. I don't work with any bank insiders so I decided to start googling...how hard is it really to start your own bank?
  1. Filter 1 was immediately changing the idea of bank, to credit union. Credit unions seem to be smaller time operations and also seem to be able to restrict their membership.
The preliminary results are pretty interesting as in:
  1. A credit union actually has to filter its membership. It has to serve a specific geographic area, or group of people. For example, there used to be hundreds of catholic credit unions in america that served their local memberships exclusively
  2. You can operate at a very small scale. There is a black baptist church in Milwaukee that has a credit union that has less than 200 members and under $200,000 in assets under management. It's run out of the church basement and only offers savings accounts.
  3. You can have very few members. The minimum number of members to charter a federal credit union is 7 people.
  4. There is special credit/help for credit unions that serve low income depositors and/or minorities (I shouldn't have been surprised at that one)
  5. You can have a federal or state charter. A state charter was especially interesting if balkanization gets worse. That is a Florida chartered christian credit union would probably get less grief than one with a federal charter.
I'm going to continue to read up on it as it seems like a really interesting project especially as a welcoming institution for Christians, Crypto holders and firearms enthusiasts that have been kicked out of other banks. Does anyone have any banking experience or insight into the process or operations? Has anyone researched or seen anything like this before? I'm in the USA specifically but I know Canadians also have a credit union system.
Click to expand...
Post of the day. This is an amazing bit of info. I never knew that institutions that small were allowed to participate in the financial system.

What about transactions? Can credit unions process payments or perform transfers for anyone?
 
H

Hootie

Kingfisher
This is a looney idea but I wonder if you could make a case for a mental geography that isn’t limited by meat space.

Credit Union of Deplatformed Persons.

It’s specific and quantifiable. There’s a lawyer who’d love to cut their teeth on it.

Great thread and overall concept. Just remember, regardless of your aims, do as the woke do and make your sure couch your aims in the genesis of “equality and helping others.”
 
Eusebius Erasmus

Eusebius Erasmus

Kingfisher
Any bank you form should be against usury.

Charging interest on loans is a sin that is still condemned by Catholic and Orthodox churches. Christian nations used to execute people for usury.

A Christian banking system can work if a few conditions apply:

1. The bank does not lend out its demand deposits. The bank will charge a nominal fee for the management of these deposits -- enough to cover costs, but cannot actually touch its clients' money.

2. The bank should only be able to use savings deposits for financial intermediation, with the understanding that there is a risk involved. This should never be usurious, but should rather be in the form of venture capitalism. Banks can take equity stakes in small businesses and firms.

3. In the case of a mortgage, the bank would provide the loan without interest. If the house is sold in the future, then the bank would take a cut of the profit. No usury, the bank still makes a profit. and more Skin in the Game.

4. 100% of the bank's notes are covered by a tangible asset like gold or silver. There is no fractional system.

5. A proscription on credit cards. Only credit-debit cards are permitted, which prevent the charging of interest.
 
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D

Dr. Howard

Peacock
Gold Member
Follow up for questions and other posts.

1. Yes I hear the "crypto" arguments but that isn't going to happen over night. You are still going to need some way to interact with a US fiat system until your local farmers market is accepting crypto payments, same for your tax authority. If you are choosing to go the route of a tax protestor and/or zero interaction with the government your priorities should be renouncing your US citizenship and getting out of the country...not finding a bank.

2. Bank vs. Credit union. Banks are very hard to set up.

3. @Handsome Creepy Eel yes a credit union can plug into the payment processing networks. ACH and wires via prebuilt software systems. Essentially there are larger software and technical service providers that provide fee based plug and play software for credit unions for everything from payments to compliance.

4. @Hootie yes you can go with a 'non meat space charter' that is your area of coverage can be federal but restricted to some other kind of membership like "practicing christian" which is what a credit union on the west coast has in place already.

5. @Eusebius Erasmus I agree, a christian credit union in my mind would not be a money making machine. If it was just a deposit holder then it would likely even need to charge fees to its members to operate. There is no need for it to be involved in markets, or shady loans etc. The people that would be joining such a bank would be looking for responsible and transaprent management, not woke and money chasing...those options provided by many institutions already. If you are looking for a model, there are already islamic no interest credit unions operating in the United States https://www.americanbanker.com/news/newly-chartered-islamic-credit-union-to-offer-no-interest-loans

If you have time to read the article linked above ^ it actually has an appealing structure to borrow from. The fact that they have received their charter also means that all of their methods have been approved for use.

Their website is here http://jafaricu.com/ and their stats are astounding. They only have 255 members and $36,000/year in operating expenses. They have 1.1 million in assets under management. That is a very low bar to achievement for anyone looking to start a credit union.

edit: remember, I'm just a guy using a search engine. I'm not an expert in this besides any clues that my tax background gives me. Any of you are equally or better equipped to learn more than i am.
 
Hypno

Hypno

Crow
E.E. is correct historically about usury. It only changed after the Reformation. :hmm: Curiously, the Protestant countries which allowed usury became more wealthy.

But usury as EE defines it not worth getting worked up over. The real fraud is fractional-reserve banking. Fractional reserve banking is simply the practice of making loans in excess of your reserves, so that a bank's reserves are only a fraction of its outstanding loans. That sounds bad but its really worse than you think.

Lets say an entire economy has $100, all owned by A. A comes into a bank and deposits $100. Bank then lends $75 to B and $75 to C. How is that possible? Well, the banking laws say its legal. But that doesn't really explain how it possible. Its possible because its just a ledger entry in favor of B and C; its not like new dollar bills are printed up and handed to B and C. So with those ledger entries (credit), B and C can each buy things worth $75, and A still owns a deposit worth $100, which shows that the bank has created money out of thin air. (Money in our system is debt, if you have the right connections like a bank charter.) In contrast, B and C are going to have to repay Bank with real dollars, with interest to boot.

One could charge usurious rates and still be less fraudulent than fractional reserve bankers. The current system almost requires fractional reserve banking because banks, and even Christian credit unions, are basically franchises of the central bank, itself a fractional bank. The whole system is a fractional reserve system. If you study this, its traced to the fact that we use central bank notes as money (federal reserve notes rather than U.S. Treasury notes) and these central bank notes are not fully backed by gold. Money in every country is defined by law (fiat tender) as the notes (debt) of the central bank. (EE, if it comforts you, the Federal Reserve doesn't pay you interest on your Federal Reserve Notes.)

As bad as this sounds, there actually is good news. You can actually opt out of the system to a large degree. Once you have some wealth, pay down your debt. To the extent you have wealth in excess of this, hold it outside the financial system in things like gold, real estate, bitcoin, a business, or other productive assets. Sure, you need to play their game a bit in order to buy groceries and pay taxes, but render unto Caeser as the Gospel says.
 
Troller

Troller

Pelican
I´ve been looking into banking for some time. As a way to fund real estate deals. A high person told me investment banks are essentially tax dodgers. In structuring investments they advise tax fraud. When I asked him about creating commercial banks he asked me if I wanted to go to jail.

Anyway there´s a site with banks for sale more and less legit:

dealstream.com

DealStream.com: USA

dealstream.com dealstream.com

I think the biggest problem . You would have to create a SWIFT system. If you have money in a bank you need to transfer it. Banks have no law. They are mostly lawless. They follow private instructions created by themselves.
Anyway I´m no expert. I´ve once read a couple bought a bank for 500k in US. In Europe except Swiss, etc, banks are expensive.

In old days in Britain a bank was a box. It didn´t had all this communist bullshit.

Creating a bank is difficul. But buying one might be easier.
 
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D

Dr. Howard

Peacock
Gold Member
@Hypno You've got the general idea down. A small, politically friendly credit union will give you a way to interact with the fiat system, especially if you choose to keep most of your other assets out of it.

Two existing Christian credit unions that already exist, but I have no idea with regards to their policies are

  1. https://www.mycccu.com/ located in California of all places, they started as a way to fund loans to churches for building projects that banks denied them. They are also the cusdotial bank for samaritan ministries health sharing. They have 1 or two branches but are otherwise online
  2. https://www.thriventcu.com/ This is the credit union arm of Thrivent investments, which is a successful investment operation started by Minnesota Lutherans. @The Beast1 may know more about the upper midwest Lutherans vs. other states but my knowledge of the churches in MN and WI are that they are attached to the cucked evangelical movement in these states. You're no better off with them than a bank.
There are a number of search results for Catholic credit unions, but only one comes up easily for Orthodox, and its a ukranian orthodox one in NY https://www.ukrnatfcu.org/about

Essentially, I see a small credit union as a way to start a 'bank' that will not be afraid of doing business with people who are 'cancelled' and have firm Christian opinions. Furthermore, having a place that will not cuck and close immediately because of some mask mandate. Last, I don't see the utility of having a credit union that serves only one denomination, but I understand their origins.

Either way, the research continues, please add on your opinions, findings or research, and maybe search out a religious credit union in your area that you can support instead of a globohomo bank.
 
D

Dr. Howard

Peacock
Gold Member
Troller said:
I´ve been looking into banking for some time. As a way to fund real estate deals. A high person told me investment banks are essentially tax dodgers. In structuring investments they advise tax fraud. Rothschild used a company called red shield for this shit. And Edmond Rothschild is dirty as hell. Btw hell is where he is right now. When I asked him about creating commercial banks he asked me if I wanted to go to jail.

Anyway there´s a site with banks for sale more and less legit:

dealstream.com

DealStream.com: USA

dealstream.com dealstream.com

I think the biggest problem . You would have to create a SWIFT system. If you have money in a bank you need to transfer it. Banks have no law. They are mostly lawless. They follow private instructions created by themselves.
Anyway I´m no expert. I´ve once read a couple bought a bank for 500k in US. In Europe except Swiss, etc, banks are expensive.

In old days in Britain a bank was a box. It didn´t had all this communist bullshit.

Creating a bank is difficul. But buying one might be easier.
Click to expand...

Agree, banks seem difficult to make. Chartering a credit union seems very easy.

Credit Unions are legitimate tax avoidance vehicles as well as they are under a non profit umbrella and pay no tax. The Wisconsin banking association has lobbied that they have an unfair competitive advantage as a result.
 
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