Month: June 2010

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No Reserve Banking

It’s suggested that the banks have had a stern warning from the Toronto G20. I say that’s nonsense. What would really upset the banks is the re-introduction of narrow banking, and I see no signs of that, or genuine competition like encouragement of public bank ownership and I see no signs of that either. I think that FRB is outmoded, any kind of reserve is outmoded and unecessary for a public bank as business needs what it needs and an enlightened culture will understand that it can be funded by the printing press without limit so long as money is created to support sound business in appropriate amounts. Any inflation would be technical not functional, and transient. Anyway, the banks have survived the G20 with their government guarantees intact, have they not? They can still take customers’ money, put it on the financial equivalent of the 3.30 at Kempton, award themselves huge bonuses if they win and apply for the taxpayer to bail them out if they lose. Banks uber alles! This is anti-social nonsense and it needs to end.

BB

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Economics Game-Changer

The phrase ‘fractional reserve banking’, together with a reference to banks lending more money than they actually have, has finally appeared in a UK mainstream paper. Edmun Conway in the Telegraph recently penned the following:”Capitalist societies chose some decades ago to have a “fractional reserve banking” system – where banks lend out more cash than they have in their vaults – because this helps provide money for companies and households to invest.”

http://tinyurl.com/3yr6za3

Well. that does change things, doesn’t it…. its a first so far as I know. Good stuff – the more these things are bought out into the open and properly discussed, the sooner we can end the banking oligarchy and get community banking set up and bring wealth back to the people who earn it. More please!

BB

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Myners Gets The Bird

Here’s former financial services minister Paul Myners in the house recently, attacking the government of which he was a part;

“There is nothing progressive about a government that consistently spends more than it can raise in taxation…” he says and goes on to criticise Labour’s economic policies as “flawed economic thinking”. 

Um. Would consistently spending money created out of nothing either by quantitative easing or fractional reserve banking and using it to fund business endeavours, the kind large and small that at the moment are either never getting past the conceptual stage or being starved of funds into administration, that would be regarded then by the great Lord Myners as nothing progressive? I think that for a time at least it’s exactly what this country needs, an alternative money supply to the private banks, one readily available and quite prepared to lend cheaply to foster business creation and support until businesses are bringing in enough mony (and so taxation) for the stimulus to be withdrawn or reconsidered… bring it on, I say, and the sooner the better. Such a shame there’s no discussion of this in the House… 

http://www.politics.co.uk/news/legal-and-constitutional/myners-attacks-his-former-colleagues-$21379502.htm

BB

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Government Loans

I’m watching David ‘Dave’ Cameron live on TV at this moment, earnestly (and quite rightly) explaining how the interest we pay on loans to the government are overwhelming us. True enough, and the subject deserves an airing. However, I note he isn’t pointing out that much of the National Debt is to banks, banks who haven’t actually loaned money they already had to the government but instead have loaned money created out of thin air using their authority to do so granted to them by that same government. This doesn’t get a mention, where the National Debt actually comes from. The banks conjure money from the air under license from the government, loan it to the government at interest and we, the taxpayers, have to find real money out of our pockets to pay it back with. Nice work for the banks, you might think, and it is – but what about us the electorate – aren’t our politicians supposed to be working for our interests, and not the banks? Shouldn’t all debts created under this Alice In Wonderland system be voided in full? Where’s the discussion about why we, or any nation, should have such a thing as a national debt in the first place???

BB