Australian Banks Win Behind the Curtain?
The Australian Government is extremely left wing even among the Conservatives. Nevertheless, the Australian budget for 2015 has been leaking out little by little and the reaction to taxing savings was now well received publicly or behind the curtain. This time the Australian banks rose up and warned they would lose all standing in world commerce. The proposal to raise $400 billion by taxing savings may have died for now but after 2015.75, we may see this mutate into the nationalization of banks.
This time the banks are on the side of the people for they are not stupid. What is on the horizon is the usurpation of banks by government or in other words – their nationalization. The battle cry that is raging behind the curtain worldwide is using this conspiracy theory that touts fractional banking as evil and thus all credit decisions should reside with government for that is the creation of money. Then we have a secret meeting in London to discuss eliminating paper money. The banks may find their days numbered. Governments are at war with the private sector for this is now all about retaining power and the banks may become the fall guy.
I have been trying to explain to audiences in Europe that is its not fractional banking, but transactional banking that has caused the problems. When Goldman Sachs led the charge to eliminate Glass Steagall in 1999 so they could trade, they undermined the entire banking system structure. No longer would a bank retain a loan on its books and maintain a relationship with a borrower that created small businesses and 70% of all employment. Transactional banking converted banks into brokers writing the loan and then sell it to someone else removing the relationship and thus reducing loans to small business resulting in rising unemployment on a systemic basis.
This new transactional banking has led to government arguments to take credit decisions away from banks when it was all about trading with other people’s money, not lending them. Now the banks are at risk of being nationalized and this is being driven faster from Europe since the reserves of the banks is all the sovereign debt of all member states. Then the governments fail and then in turn blame the banks. The Medici were correct – never lend to the princes of Europe for they never pay. If the banks do not wake up and realize that following the path of transactional banking will lead to their own destruction, then we may not have much to look forward to in the years ahead.
Gordon Brown Adopts Marx’s Theory – Eliminate Cash Will Eliminate the Boom Bust Cycle
James Gordon Brown is a British politician who was the Prime Minister from June 2007 to May 2010 of the United Kingdom of Great Britain and Northern Ireland. Gordon has floated theMarxist Balloon for all we hear about now is eliminating physical money. Those who have ever worked in government NEVER see themselves as the problem – it is always us. So what is the Marxist Balloon? People not immediately in power float an idea so the government can gauge how the press and the people take it. If it goes badly, they say he is speaking personally. If it is not attacked, they float the policy. This is what Gordon Brown has just done.
Brown is now advocating the ultimate communist state for as Chairman of the Labour Party, he now advocates eliminating cash which will allow the government to control all money and therefore ELIMINATE the boom & bust cycle. This is what I have been deeply afraid of. We are headed into a dark age of authoritarianism from which Western Civilization will come to an end as we know it.
There is ABSOLUTELY zero historical precedent whatsoever to claim eliminating money will eliminate the boom bust cycle for that isPRECISELY the theory of Karl Marx. Marx was proven dead wrong, but only after his theory resulted in wars, revolutions, and millions upon millions of people dead. Communism failed to end the business cycle, which Brown is advocating once again. Government should control all money and credit, which is precisely the foundation of Marxism.
Those whose career is government NEVER see the problem as themselves – it is always the people. This very idea led to the deaths of so many millions of people. No idea has EVER been more destructive in history than this very theory. We are staring into the abyss and if these people get their way, there will be nothing left for our society. This is the dark side of 2017. This idea could led to massive civil unrest and revolutions no less international war. These people are incapable of reform. It is always only about them clinging to power. They know socialism is collapsing and the only way to stop the collapse of the banking system is to seize all assets and eliminate cash so there can be no bank runs. This is the ultimate crisis in democracy. We are losing all freedom – everything. They want it all.