Tag: banks

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The Black Heart Of Banking

Banks don’t actually need any capital base at all, they can make money up from the thin air at will (setting aside the dictates of the BIS which is biased on the side of the banks) and gift it or loan it at .01% interest to deserving business and so promote the creation of wealth. It’s the natural way of doing things. We’ve been bought up with a set of beliefs themselves entirely artificial and wholly against our interests so that an artificial economic elite may be created and sustained. This is what’s causing the the current poverty and this is what’s going to have to end. We are witnessing a global banking dynasty, its very existence unsuspected by the majority, in its death throes. I don’t know what the immediate future might hold but I’m sure of one thing; it ain’t gonna be pretty 🙁

BB

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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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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

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The ‘real’ elephant in the room is…

I was just watching the Jeff Randall show on Sky, on the subject of new post-crisis bank regulations one of the guest suits opined that the real elephant in the room, the aspect no-one was discussing, was the Glass-Steagall Act.

This was passed after the last depression – way back – and essentially determined the investment arm of a bank received no inside info (which might have given them unfair marketplace advantage) from their commercial arm.

The act was repealed in recent years and that in all probability has a great deal to do with the economy being in the perceived mess (dead as a doornail, in my view) that it is.

Point is, the elephant referred to is there’s no suggestion offered that this act be re-instigated, nor anything similar.

Meaning, in essence, obscured behind all the huffing and puffing lies the hard-to-deny suggestion that nothing being offered will work to regulate the banks.

Further, anything that might genuinely regulate the banks isn’t even on the table.

Hmmm.

Lots of hot air from the politicos, then, and nothing of substance behind it.

The banks go on their merry way to the casino. When they win, they award themselves huge bonuses, and when they lose again they award themselves huge bonuses and we’re asked to bail them out.

Some might feel justified in asking at this point, “Who really runs this country, the government, or the banks?”

But I digress… Glass-Steagall was the elephant in the room according to Jeff Randall’s guest suit, but I suggest that the real elephant might be, “If the banks are so broke they are having to be bailed out by the government (that’s the taxpayer, don’t forget), and to get the money to bail out the banks the government (on behalf of the taxpayer) is having to borrow money from the banks… at interest… where do the banks get the money to lend to the government to give to the banks?”

And that’s not all, because another unasked question, another elephant, might be along the lines of, “If the banks know they’ll be bailed out by the taxpayer anytime they gamble and lose, what’s to stop them gambling over and over?” and yet another might be, “If the government prints bonds and banks lend the government money on the strength of those bonds, money that the banks have created out of thin air, literally, because in law they’re allowed to do this, why doesn’t the government simply print money itself at no interest and cut out the banks who are in many ways entirely superfluous and purely parasitic?”

That’s a lot of elephants.

BB