Friday, 21 January 2011
Banks are able to inflate the money supply
Because of the way the banking system is arranged, banks are able to inflate the money supply. The money supply is not subject to the constraint of the central bank and Government alone, it can be altered by banks.
Thursday, 20 January 2011
The Government is part of the banking industry even if it is not aware of the fact
The banks (and the Government) force citizens to pay deposit insurance and make good on their deposits, otherwise they will be thrown into prison, as with taxes. The Government are the banks. Politicians are politicians alone (and not bankers) if they do not enforce deposit insurance, until that point they are nothing more than an extension of the banking industry.
Monday, 17 January 2011
The boom and growth has been caused by bank credit creation
Bank licensing and deposit insurance has ruined the economy and the currency by the creation of an artificial boom caused by (bank) credit creation. The 'boom' was not (in the main) caused by a growth in the economy, it is mainly credit creation.
Wednesday, 12 January 2011
If bank deposits are guaranteed it doesn't make a difference to people how solvent the banks are
People don't care about the solvency, or otherwise, of the banks if the bank is licensed and has a Government guarantee.
Given the choice between having cash and holding bank deposits with Government deposit insurance, from licensed banks, people are indifferent. People don't care about any of the perceived advantages of cash, if they (such advantages) exist. If the Government has provided a guarantee this is enough and customers are not concerned as to the solvency of the banking system, and there is no reason for them to be concerned.
Given the choice between having cash and holding bank deposits with Government deposit insurance, from licensed banks, people are indifferent. People don't care about any of the perceived advantages of cash, if they (such advantages) exist. If the Government has provided a guarantee this is enough and customers are not concerned as to the solvency of the banking system, and there is no reason for them to be concerned.
The existence of deposit insurance means that each unit of cash is worth less
If the Government is to give the banks deposit insurance, from the taxpayer, this will cause inflation because if the deposits are good for the payment of taxes then they will have value from the same source as the rest of the money supply. It is easier for people to pay their taxes, with the inflation and so the tax rates (in absolute quantities) go up and the old money is worth less than it was. It's easier for the Government to charge more as more people are able to pay, employers are able to pay higher wages and the old money buys less. The price of goods and services can be altered (increased) with the introduction of deposit insurance, not only the supply of base money, to get deflation we can remove this guarantee and watch the banks collapse.
Monday, 10 January 2011
First Past the Post excludes minority parties
Minority parties are excluded if only one party is able to emerge as the winner under FPtP.
It's not Democracy if some votes count more than others, as with First Past the Post. Democracy requires proportionality which we don't have because there is only one winner in each Parliamentary seat. It would be better to take measures to encourage proportionality, otherwise it is difficult for minority parties and only mainstream parties can do well.
It's not Democracy if some votes count more than others, as with First Past the Post. Democracy requires proportionality which we don't have because there is only one winner in each Parliamentary seat. It would be better to take measures to encourage proportionality, otherwise it is difficult for minority parties and only mainstream parties can do well.
Repeated lending of base money increases the money supply because of deposit insurance
Debt would not be subsidised in a free market and it is because of deposit insurance that we see such high levels of debt in the economy.
Because of Fractional-reserve banking (FRB) we have a choice between selling our labour and getting into debt. We are artificially incentivised (subsidised) to get into debt. The levels of debt that we see in the economy are not the result of a free market, they result from deposit insurance.
Because of Fractional-reserve banking (FRB) we have a choice between selling our labour and getting into debt. We are artificially incentivised (subsidised) to get into debt. The levels of debt that we see in the economy are not the result of a free market, they result from deposit insurance.
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