This is not our economy – The Rainbow Blog

The Black Heart Of Banking

Bill Kruse — Sat, 21 Aug 2010 09:19:45 +0000

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. …

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Economics Game-Changer

Bill Kruse — Fri, 11 Jun 2010 10:55:18 +0000

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 …

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Myners Gets The Bird

Bill Kruse — Wed, 09 Jun 2010 13:31:54 +0000

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 …

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Government Loans

Bill Kruse — Mon, 07 Jun 2010 20:14:57 +0000

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 …

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Stupormarkets

Bill Kruse — Thu, 13 May 2010 09:31:22 +0000

Sainsbury the supermarket are in the news boasting Huge Stonking Great Profits today, and their spokesman is stoutly proclaiming that even in these straightened times Sainsbury are creating jobs! Their workers are paying taxes! This is presented as if it were some kind of laudable effort where in reality it illustrates how badly Britain’s doing. …

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Investment Capital Punishment

Bill Kruse — Fri, 26 Mar 2010 05:04:56 +0000

On investing, I’d just like to add that venture capitalists, mutual funds et al only have money that’s in circulation because someone, somewhere borrowed it from a privately-owned bank. If the private banks withdrew all their loans, our current civilisation would have no money in its accounts or its pockets. In fact, all the private …

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Greed Is Good

Bill Kruse — Tue, 29 Dec 2009 00:27:46 +0000

The point of encouraging greed is, as the Roman invaders here knew and understood, if you create an aspirational society and you control the money supply by monopoly, you bring into being a machine that makes you wealthy. If you have a society where everyone wants to “get on” and you define what “getting on” …

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Bad Banks!

Bill Kruse — Sat, 05 Dec 2009 14:52:03 +0000

Banks or their equivalent can’t be allowed to make a profit at the expense of the rest of the community. This has been recognised for thousands of years. Old-time religions are recorded as being against it. I suspect there was wisdom behind this thinking, it was better understood then that within a community you cannot …

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The Ascent Of Not Getting It

Bill Kruse — Sun, 15 Nov 2009 14:46:46 +0000

I’m reading The Ascent Of Money by Niall Ferguson. A few pages in he makes the mistake of referring to what we live in as, ahem, civilisation. Has he not read Roman historian Tacitus; “In their ignorance they call this civilisation, when in reality it’s but part of their servitude”? Ferguson refers to the Medicis …

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Narrow Banking, Narrow Thinking

Bill Kruse — Sat, 31 Oct 2009 09:37:43 +0000

OK, I got it. You have investment banks (casino banks) and you have the kind of banks we typically associate with the High Street where you make deposits and withdrawals and so on. Narrow banking means the two remain separate, see Glass-Steagal, an act bought in after the Great Depression to separate the two banking …

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