economics – The Rainbow Blog

Toothless Watchdog

Bill Kruse — Wed, 29 Sep 2010 06:10:03 +0000

The International Monetary Fund, the IMF, has described the chancellor’s plans to make draconian cuts as, quoting from the Daily Mail here, “strong, credible and essential”. This is being trumpeted in some quarters as being a ringing endorsement of Osborne’s policies – but from whom does it come exactly? Many would suggest the IMF themselves …

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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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Greece Circles The Drain

Bill Kruse — Thu, 19 Aug 2010 07:32:41 +0000

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 …

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Same Old Cable Service

Bill Kruse — Mon, 19 Jul 2010 14:17:32 +0000

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 …

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No Reserve Banking

Bill Kruse — Mon, 28 Jun 2010 06:23:44 +0000

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 …

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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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Goldman Sachs

Bill Kruse — Tue, 27 Apr 2010 09:00:30 +0000

the damage is done… if you make serious money and it’s in a way that most people would disapprove of, perhaps violently, and if it’s handled by someone on your behalf at any stage, you want to keep your head well below the parapet and also you want your brokers (or whoever) to be keeping …

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Taxing The Banks…

Bill Kruse — Fri, 23 Apr 2010 05:16:39 +0000

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 …

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