Blog 53 Essentials on Banks.

Blog 53  Essentials on Banks

Point 5   Finally. Glass-Steagall deserves a note. What's Glass-Steagall? A set of regulations governing the banking industry, passed in the Great Depression.  Key point: it prevented banks from engaging in investment business, insurance business and stock brokerage business. Thus were the "four pillars" of the financial system kept separate. Good idea still, eight decades later. But bank lobbying has destroyed those regulations So banks can invest their depositors' money and their own debt-created incomes wherever they see the greatest profit . If that comes from bankrupting their brokerage or insurance businesses, they have the freedom to do it Ask what happens if an insurance company goes under, or what happens if, say, a bank's paper assets fail and drag the retail customers' savings down with it. It happened in 1930 and in Cyprus in 2013. (Just Google "bail-in").

If you don't know history, you are doomed to repeat it.

                                                                                                 
"Banking was conceived in iniquity and was born of sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits [money], and with a flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the fortunes like mine will disappear, and they ought to disappear, for this world would be a happier and better world to live in. But if you wish to remain 

slaves of the Bankers and pay for the cost of your own slavery, let them continue to create deposits." Sir Josiah Stamp, President of the Bank of England  in the 1920's.

How do the banks create money [deposits] in 2017 ?

Blog 15, Part 1 explains it, but be prepared. It is so simple, it is hard to believe.

Addendum: Point 6

 I have just read, and must recommend, a piece on the Trump perception of international trade, and the actual numbers. It is on a blog, Reports from the Economic Front written by Professor Emeritus of Economics, Martin Hart-Landsberg. It is quoted in  full in Economic Reform (ER), Vol 29, No. 1  Jan-Feb, 2017. Here's a sample.

Re: Apple iPhone4

In a widely cited study researchers found that Apple created most of the product's value through its product-design, software and marketing operations, most of which happen in the United States. Apple ended up keeping 58% of the iPhone's sale price. The gross profits of Korean companies LG and Samsung, which provided the phone's display and memory chips, captured another 5%. Less than 2% went to pay for Chinese labor.

Oh, yes, and the whole $250 for the phone was counted into the figures for US imports from China. So, where's the beef, Mr President?

Just a small sample of this rich article.

Que sera, sera,  unless somebody steps up to unmask and divert it.

Hope to be back in about three months.

Yer friendly old CogsBlogster.

                       MONEY

                              

                                                                             POWER

The law of money: "Money goes where money is."

See you in the comics.

Blog 52 Five Points Looking Back, and Forward -- Make it Six

Blog 52 Five Points Looking Back, and Forward - Make it Six 

Point 1   Mr. Putin is not a communist.

If your knee jerked with denial of that, it's time you got with history.

During the "Cold War" (roughly 1947-1987), Western CAPITALISTS  felt threatened by MARXIST IDEAS. Best illustration, Cuba.  Note we say IDEAS. not a military threat. US bombing squadrons could have  pulverized* the whole island in a matter of minutes. What was troubling was that IDEAS, flitting from a successful communist state nearby, could flit into the minds of ordinary American democrats. What ideas? Oh, ideas the ruling folk considered obsolete, like democracy, liberty, equality,- you know - what the World War II soldiers fought for. Those ideas were actually the root ideas of early communism. So the propaganda** was turned up, and a generation of decent common folk were trained at their mothers' knees that "communism" was a fatal disease for all, rich and poor, and particularly the middle class. And therefore Cuba must by boycotted.  *pulverized means "reduced to dust. Look up the origin of propaganda in your own  dictionary.

But Russia, today, is not a communist country. That went out with Josef Stalin, who was praised/condemned as a dictator, and took communism down with him.

"Communism" - that's another interesting word: the "com" .is Latin for "with" or "together" The "uni" means "one". Flip forward to 1776, when the national slogan of the newly united states claimed to be e pluribus unum, "out of many, one"" (Actually, the many were just 13, but now, with a pluribus of 50, it is struggling to be united again.) Sad?

Point 2   A word to Canadians.check out carefully what your government is covering up with its bafflegab about a Canada Infrastructure Bank. It is NOT about repairing the infrastructure deficit across the country - putting Canadians to work rebuilding bridges, canals, city subways, water treatment and sewage plants,  and provincial power plants and electricity grids. And using  Canadian materials.  Nope, not that. That would be a good policy. The BIG scheme seems to be to persuade the Canada Pension Plan Investment Board and the big Ontario Teachers Pension Board to invest their PUBLIC SAVINGS in grand, impressive new projects which may or may not be needed and may or may not be profitable, but will be built by the biggest construction companies in the world - WHICH ARE CERTAINLY  NOT GOING TO BE CANADIAN. Let's try that again: Canada Pension Plan and Ontario Teachers' Pension Plan money will buy into new airports, toll highways, electricity plants, high speed railways, large scale office towers to house government agencies, or, maybe,  a large harbour and tourist hotel in Nunavut***These projects may or may not be profitable. But heck, it's only the people's money being spent.
***Nunavut is a frosty Canadian territory on the Arctic Ocean.

Incidentally, a NAFTA clause prohibits Canada from making any stipulations that the projects be built by Canadian firms or employ Canadian workers, or use Canadian materials. President Trump will not be permitted to tinker with that clause. So sad, Canada. 

But you can get out of NAFTA totally by merely giving six months notice! Really. 
(See Nelson, Chapter 3 or The Cogs Blog 51 for more detail.)

Point 3 About money. Remember that most of the world's money is not created by governments anymore (including your money - think credit card, checking, and other electronic transfer methods) You don't use cash much anymore, do you? No, you use credit, created and loaned to you at interest and transferred for your convenience with "modest fees". 
Interest rates and fees can be made to fall or rise (Actually, current interest rates have nowhere to fall. So, likely, its UP she goes!) And soon you won't be able to use cash to avoid interest payments. Cash has one foot in the grave if Mr. Modi (India) and the Scandinavian countries' efforts spread as planned.

This suppression of cash is a crock of deceptions. The argument, relentlessly repeated, is that it will enable governments to track and apprehend criminals and tax-evaders. But the big criminals and  big tax-evaders no longer use cash to hide their money. They already know how to use banks and digital money to get away with it. It's only peasants who will suffer. But don't worry, unless you are, or may become, a peasant.

Point 4 Cui bono? Who benefits?  That's always the first thing to ask when a change to the monetary or political system is being touted. Who benefits?

Well, will this 800 word blog never end? Sure. Will you sign back in tomorrow for Blog 52b, with Points 5 and 6 and a farewell salute --and a thought-provoking cartoon?. 
Yep! A cartoon.