Tuesday 28th April 2015

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Editorial
PARADIGM SHIFT-BANKING & FINANCE PDF Print E-mail
Wednesday, 15 April 2015 06:17

In the coming months we will try to highlight trends that are relentlessly impacting on the main pillars of the existing world system. These tendencies, in their essence, are foundational, hence, not easily amenable to tinkering around the edges. We will start with the global banking/financial system, which has become the supreme arbiter between capital and collective humanity, to say nothing about its direct/indirect bearing on nature itself. Modern finance’s esoteric pretensions, particularly as pontificated by its imbecile functionaries, aka, ‘masters of the universe’, is neither interesting nor productively challenging to immerse oneself into its nitty-gritty operational features. Suffice is to deal with its main footings. The art of creating money out of thin air is the corner stone of the currently collapsing global financial system. This refined, but thoroughly fraudulent art is called ‘fractional reserve banking’!
If an individual tries to print money (currencies-dollars, birr, shillings, etc.) at home, it will be considered an outright crime. But when organized Mafiosi, aka, banks, create money out of thin air, via the creation of credit/loan {ultimately un-payable debt that will be promptly transferred on the back of the sheeple, (human mass), through taxation, inflation, etc.} and disperse this (newly created) money to cronies to access the real economy (without hardly raising a finger and rather negatively, by encouraging mal-investment & waste of resources); it is praised as the fountain head of all goods in this increasingly polarizing world system. The gullible are indoctrinated to celebrate all hangers-on (of the banking system), particularly the bank-preneurs and oligarchs, as if they were modern day entrepreneurs forging growth & development worldwide! This whole massive fraud, which has been perfectly legalized, thanks to the paid politicos of the world system (under the payroll of the global banksters), is now coming apart at the seams. At the end of the day, money printing dilutes honest money, such as wages/salaries, etc., which are earnestly earned by the working stiff. At the same time, money printing allows parasites that cling to the money faucets to benefit without much efforts; just look at the oligarchs and their parasitic ways! In the words of the famous industrialist: ‘If people really knew what the banks are doing, there will be a revolution tomorrow!’ Henry Ford.
The ‘fractional reserve banking’ is backstopped by the globally prevailing ‘central banking system’, the authorities that are allowed to print money as if there is no tomorrow. It is because of this unlimited capacity to print money, central banks are called ‘banks of last resort.’ During the whole of the last century, besides the central banking system, the moneyed men also set up institutions to hoodwink the gullible sheeple into thinking that all is well. Amongst these, we can mention the paid media (both private & state), higher education/think tanks, institutions of global economic governance (IMF, etc.) etc., etc. Higher education, particularly in banking/finance/economics have been actively propagating and propagandizing modern finance’s undeserving status throughout the world. Bankers have even managed to concoct a ‘Nobel Price in economics’, which was not stipulated by the original founder Alfred Noble. ‘Nobel Price’ in economics is the creation of the Bank of Sweden in 1968 and was made to coincide with the awarding of the real Nobel price, so that it looks prestigious. What bankers do to deceive!
In an interesting new development, the ruling party in Iceland tabled a bill in parliament to abolish ‘fractional reserve banking’, at least as practiced by commercial/private banks. The proposal is to make the act of creating money a government monopoly, initially under the central bank but ultimately under the parliament. Such a scheme is what we have been proposing ever since we started scribbling on this page. Our motto still remains the same; ‘to help (in whatever little capacity we have) make our world a fair and peaceful one.’ This might not be palatable to many who continue to benefit from the lopsided nature of our world, but that, at least is our firm stand. We believe ‘fractional reserve banking’ by private entities must be abolished, because, money is a public common and it should remain under the custody of the public (to be administered by people’s government.) In fact this is the old idea of the Chicago School, proposed by Irving Fisher, et al, way back in the 1930s. (Irving fisher was one of the most prominent economists of the 20th century.) One can fairly argue about the efficacy, fairness, etc., of the distribution of credit under the strict jurisdiction of the state, but that is essentially a second-phase problem, which can be addressed via various checks and balances, so long as genuine democracy prevails. The most important thing in all these is; the state must be committed to the long-term welfare of the populous. Therefore, the above schemes might not be feasible in places where plutocracies (with their embedded ‘deep states’) obtain. 
We share the old economist’s point of view to a large extent: “I react pragmatically. Where the market works, I’m for that. Where the government is necessary, I’m for that. I’m deeply suspicious of somebody who says, “I’m in favor of privatization,” or, “I’m deeply in favor of public ownership.” I’m in favor of whatever works in the particular case.” J. K. Galbraith. Good Day!

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