Jeffrey Epstein

What if we just banned banks?

PNRJ critique of neoclassical economics, ethics, financial fraud, inequality, market failure, public policy , , , , , , , , , ,

Feb 22 JDN 2461094

I got a mailer from Wells Fargo today offering me a new credit card. The offer seemed decent, but the first thing that came to my mind was: Why is this company still allowed to exist?

In case you didn’t know, Wells Fargo was caught in 2016 creating millions of fraudulent accounts. They paid a fine of $185 million—which likely was less than the revenue they earned via this massive fraud scheme. How am I supposed to trust them ever again? How is anyone?

It’s hardly just them, of course. Almost every major bank has been implicated in some heinous crime.

JP Morgan Chase helped Jeffrey Epstein conceal assets, rigged municipal bonds transactions, and of course misrepresented thousands of mortgages in a way that directly contributed to the 2008 crisis.

Bank of America also committed mass fraud that contributed to the 2008 crisis.

A case against Citi is currently being tried for failing to protect its customers against fraud.

Capital One is being sued for failing to pay the interest rates it promised on savings accounts.

And let’s not forget HSBC, which laundered money for terrorists.

If these were individuals committing these crimes, they would be in prison, probably for the rest of their lives. But because they are corporations, they get slapped with a fine, or pay a settlement—typically less than what they made in the criminal activity—and then they get to go right back to work as if nothing had happened.

I think it’s time to do something much more radical.

Let’s ban banks.

This might sound crazy at first: Don’t we need banks? Doesn’t our whole financial system rest upon them?

But in fact, we do not need banks at all. We need loans, we need deposits, we need mortgages. But we already have a fully-functional alternative system for providing those services which is not implicated in crime after crime after heinous crime:

They are called credit unions.

Credit unions already provide almost all the services currently provided by banks—and most of the ones they don’t provide, we probably didn’t actually need anyway. There are already nearly 5,000 credit unions in the US with over 130 million customers.

Credit unions almost always fare better in financial crises, because they don’t overleverage themselves. They are far less likely to be involved in fraud. They don’t get involved in high-risk speculation. They offer higher yields on savings and lower rates on loans and credit cards. Basically they are better than banks in every way.

Why are credit unions so much better-behaved?

Because they are co-ops instead of for-profit corporations.

Customers of credit unions are also owners of credit unions, so there are no extra profits being siphoned off somewhere to greedy shareholders whose only goal in life is number go up.

Free markets are genuinely more efficient than centrally-planned systems. But there’s nothing about free markets that requires the owners of capital to be their own class of people who aren’t workers or customers and make their money by buying, selling, and owning things. That’s what’s wrong with capitalism—not too little central planning, but too concentrated ownership.

As I’ve written about before, co-ops are just as efficient as corporations, and produce much lower inequality.

For many industries, transitioning to co-ops would be a major change, and require lots of new organization that isn’t there. But for banking, the co-ops already exist. All we need to do is ban the alternative and force everyone to use the better, safer system. Come up with some way to transfer all the accounts fairly to credit unions, and—very intentionally—leave the shareholders of these criminal enterprises with absolutely nothing.

In fact, since credit unions are more likely to support other co-ops, forcing the financial system to transition to credit unions might actually make the process of transitioning our entire economy to co-ops easier.

It may seem extreme, but please, take a look again at all those crimes that all these major, highly-successful, market-dominating banks have committed. They’ve had their chance to prove that they can be honest and law-abiding, and they have failed.

Get rid of them.

How are this many people in the Epstein files?

PNRJ current events, ethics, science and academia , , , , , , , , , , , , , , , , , , , , , , ,

Feb 8 JDN 2461080

It’s been obvious from the start that Donald Trump had something to hide in the Epstein files, but the list of famous people mentioned in the Epstein files absolutely staggers me.

Just listing people I had previously heard of, even aside from Donald and Melania Trump:

Woody Allen, Steve Bannon, Ehud Barak, Richard Branson, William Burns, Noam Chomsky, Deepak Chopra, Bill Clinton, David Copperfield, Bill Gates, Stephen Hawking, Michael Jackson, Thorbjørn Jagland, Lawrence Krauss, Elon Musk, Mehmet Oz, Brett Ratner, Ariane de Rothschild, Kevin Spacey, Lawrence H. Summers, Peter Thiel, Robert Trivers, and Michael Wolff.

There are of course more people who are famous for various things that I simply wasn’t familiar with, such as Anil Ambani, Peter Attia, Todd Boehly, Andrew Farkas, Brad S. Karp, and Brian Vickers. And more names may yet come out as the saga continues.

Now, some of these connections are more damning than others: At the milder end, we have Bill Gates, who doesn’t appear to have actually received (let alone responded to) the emails addressed to him, and Thorbjørn Jagland, who was planning to visit the island but apparently never actually did so. At the worse end, we have Richard Branson, who introduced Epstein to his “harem” (Branson’s word), Noam Chomsky, who had extensive exchanges and received $270,000 from a mysterious account (he claims Epstein had nothing to do with it), Lawrence Krauss and Robert Trivers, who both continued to publicly defend Epstein even after Epstein was convicted of sex crimes against children in 2008, Peter Thiel, who received $40 million from Epstein, and of course Donald Trump himself, who is mentioned in the Epstein files some 38,000 times. (That we know of.)

Even the damning ones are largely not conclusive; the documents that have been released don’t appear to be sufficient to prove anyone guilty of crimes in a court of law. But given that Donald Trump is President and is probably doing everything he can to suppress and redact any such evidence that does exist (at the very least against himself), this absence of evidence is not particularly strong evidence of absence. The best we can really say at this juncture is that it looks very suspicious about an awful lot of famous people.

I guess it’s honestly possible that some of these people knew Epstein well but really didn’t know about his secret life sexually abusing children. Sometimes monsters can hide in plain sight. But several of these people have been credibly accused of sex crimes of their own, and many of them circled the wagons to defend each other whenever new accusations came out. And once someone pleads guilty and is convicted (as Epstein was in 2008), you really should stop defending him.

It honestly seems like QAnon wasn’t entirely wrong after all! There was a secret cabal of famous, powerful people sexually abusing children! They just got some (okay, nearly all) of the details wrong, and for some reason thought that Donald Trump was going to bring that cabal down, rather than do everything in his power to suppress and redact all files related to it and still end up being mentioned in said files over 38,000 times. But honestly, the whole idea sounded crazy to me, and apparently it was basically correct! (Even at least one Rothschild seems to have been involved!)

I am particularly disturbed by the academics on this list: Chomsky, Hawking, Krauss, Summers, and Trivers. These men are (or were) taking up scarce tenure slots at highly prestigious universities, while at best being guilty of very bad judgment, and quite likely actually guilty of serious sex crimes. Even if they aren’t actually criminals themselves, keeping them on at prestigious institutions—as several top universities did, for years, after much was already known—besmirches the reputation of those institutions and is a disservice to the many qualified academics with better reputations who would happily replace them.

To that list I might add Chopra, who has also taught at extremely prestigious universities, but doesn’t actually do much credible research, preferring instead to peddle pseudoscientific nonsense. I don’t understand why universities ever let him teach at all—frankly it’s an insult to every other applicant they haven’t hired. (Having applied to many of these institutions myself, I take it quite personally, as a matter of fact. You think he’s better than me?) Chopra’s associations with Epstein are just one more reason to cut ties with him, when they never had any reason to make ties with him in the first place.

I am not optimistic that releasing these files will accomplish very much. Like I said, none of it seems to be conclusive. Even if evidence of crimes did emerge, they’d likely be beyond the statute of limitations. All the secrecy surrounding Epstein and his cohorts actually seems to have been pretty effective at protecting them from facing punishment for their actions.

But please, please, I’m begging here, for the sake of all that is good in the world, could this at least make people stop supporting Donald Trump!?

Hope for the new year

PNRJ current events, personal, politics , , , , , ,

Jan 4 JDN 2461045

We have just entered 2026. I remember that around this time last year I felt a deep, visceral despair: Trump had just been elected and was about to be inaugurated, and I could only dread what the next year would bring. For the next several weeks I posted sections of my book The Logic of Kindness (at this point, it is probably never actually going to be published?), partly because I felt—and still feel—that these ideas do deserve to be out in the world, but also partly because I had no creative energy to write anything else.

Well, the first year of Trump’s second term was just about as bad as we thought it would be. He has torn apart global institutions that took decades to forge; he has caused thousands if not millions of unnecessary deaths; he has alienated our closest allies—seriously, CANADA!?—and cozied up to corrupt, authoritarian dictators around the world, because that is exactly what he aspires to be.

It’s true, he hasn’t collapsed the economy (yet). Inflation has been about as bad as it was before, despite the ludicrous tariffs. (He promised to bring prices down, but we all knew he wouldn’t. I honestly expected them to go up more than this.) He also hasn’t started any wars, though he looks damn close to it in Venezuela. And as he continues to make a mockery of our whole government, the checks and balances that are supposed to be reining him have languished unused, because the Republicans control all three branches.

Trump is still in office, and poised to be for three more years.

Yet, at last, there is some glimmer of hope on the horizon.

Other Republicans are starting to turn against him, in part because of his obvious and undeniable connections to Jeffrey Epstein and his ring of serial rapists. (Let’s be clear about that, by the way: They’re not just pedophiles. “Pedophile” merely means you are sexually attracted to children. Some pedophiles seek treatment. These men were rapists who sexually assaulted actual teenagers. And at this point it strains credulity to imagine that Donald Trump himself wasn’t an active participant on multiple occasions—no amount of incompetent redactions will change that.)

Trump’s net approval is now negative on almost every major issue, especially on inflation. It is now a statistical certainty that more Americans disapprove of him than approve of him.

Both of these things should have happened more than a year ago, if not a decade ago; but hey, better late than never.

Democrats—even very left-wing democrats, like Mamdani—have done very well in elections lately, and seem poised to continue doing well in the 2026 midterm election. If we can actually secure a majority in both houses of Congress, we might finally be able to start undoing some of the damage Trump has done—or at least stop him from doing even more.

I’m sure there will be plenty of bad things that continue to happen this year, and that many of them will be Donald Trump’s fault. But I no longer feel the deep despair I felt last year; it seems like things might finally be turning around for America—and thus for the world.