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 🙁
Bad times behind and ahead for Greece and the rest of Europe too, us in the UK particularly. Predictably enough to everyone except politicians, apparently, the austerity neasures adopted first in Greece and then here in the UK have resulted not in Greece leaping like Prometheus unbound from the depths of the recession but finding themselves in even worse straits instead.
All this is inevitable as austerity measures are a two-edged sword; not only do they reduce public spending on the one hand but they also reduce private spending as its implementation means people simply haven’t got the money to spend. The one thing it does do is make the rich richer by comparison by making the poor even worse off than they were previously. It’s difficult not to think that the motley crew of public schoolboys and old Etonians in government aren’t fully aware of this even if the broader public aren’t.
Vince Cable is in the news again for criticising the banks. Is he raging against the whole idea that only the privately-owned banks and government itself can create legal tender, highlighting how hopelessly unfair this system is to the rest of us and offering a fistful of credible alternatives?
Well, no – he’s moaning about banker’s bonuses again.
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.
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???
American soldiers are being dischraged as having personality disorders, this after several campaigns in some cases. The reason would seem to be it saves the military a fortune as it counts as a pre-existing condition and so soldiers retired this way don’t get benefits. Read more…
Hmmm… you’d think the testing they undergo before they’re accepted into the military would reveal any psychological flaws, wouldn’t you? So this appears to be a heartless exercise in economics. Couldn’t happen here… could it?
The problem with the banks is not bonuses or their pricing, it’s that they and they alone are allowed to create money. This gives them a unique advantage over the rest of the population, seeing as we all need it and no-one else is allowed to create it (save, of course, our government, who choose not to supply the electorate with money where it’s needed, either at interest or for free, but instead pack people off to the banks where they’re encouraged to borrow it at interest).
This very much needs to change. Tax the banks, rail against the banks, and they simply won’t care. The only thing that will hurt them is to supply the population with an alternative and cheap supply of money. That’ll be the end of three hundred years of effective rule by the banking community. Are we hearing anything at all about any of this from our proposed leaders? Not a word. Irrelevant, all of them. Client politicians who will nicely provide the banks with client government in the same way when the Romans invaded the then Britons were provided with client kings. Punch and Judy politics? Not even that – just a puppet show.
Taxing the banks, something both Cameron and Clegg are keen on, won’t work to impress the banks in any way because they’ll immediately pass any costs on to the public.
Also Prime Ministers, in case you were in any doubt, do not have the authority to order private companies to operate in a manner against the interests of their shareholders, despite assurances to the contrary from all the major parties. None of them can order the banks to lend to anyone the banks don’t want to. They could if they were in China, but they’re not. In China, the banks are owned by the government, so when the government commands, they obey. It’s known as a command economy. I suspect the leaders of our major political parties are hoping that few of the electorate will know or understand this. A vain hope, perhaps, in this – the information age.
There’s actually no inflation when the money supply is increased if there’s a corresponding increase in goods and services, that’s with a fiat economy of course. I think some get confused between a gold-backed currency and a fiat one, where the value of the currency is determined by the wealth (goods and services) it represents. On that subject, it recently saddened me greatly to see a picture of a disused airfield absolutely crammed with perfectly serviceable cars, many with several years of useful life in them, waiting to be drained of fluids and so forth before being crushed. They represent wealth, our wealth, and they’re being crushed as part of a political exercise where we’re given our own money in order to buy foreign cars and wipe out our secondhand car trade in the near future and our new car trade in the longer term. Very sad so many people fell for this. Economic literacy is an essential for the next civilisation.
Ho hum. I didn’t hear a word about creating an alternative money supply, one where the government exercises its prerogative to create money debt-free and distribute it appropriately to business as it’s needed. I didn’t hear anything about ending the three-hundred-year tyranny of the banking orders. All I can gather is that we’re going to go on borrowing money from banks that create it out of thin air under license from the government as none of the candidates for future government seem keen on discussion of this arrangement, let alone changing it in favour of the electorate that elects them. Vince Cable, Alastair Darling and George Osborne are all of them proposing that as a nation we simply carry on being wholly dependent upon the banks alone for our money supply, thus all of last night’s so-called debating was simply empty theatrical posturing. The most important issue was never addressed.