Fractional Reserve Banking

Risks Of Loose Money - Exposing The Link Between Monetary Policy And Social Inequality

... what we are looking at is a flawed system that penalizes saving and encourages reckless spending and printing money. Although we all appear to be stuck in the same environment that combines negative interest rates and price inflation, we have the lower strata of society that is doomed to lose, as they end up spending more, discouraged by negative rates, and instead accumulate debt to keep up with the increasing prices. And then we have the “winners”, who know how to take advantage of the system and thrive in it...

The Chimera Of 'Stable' Money

'Stable' money was a chimera. It did not bring stability to the world economy. It did not counter the instability emanating from deposit banking. It actually added to the severity of booms and busts. To function efficiently, capitalism needs a foundation of sound money, not stable money.

Central Banks Are In A Lose-Lose Situation: Low-Rate-Policy "Has Rendered The System Profoundly Fragile"

"...abandoning the low interest rate policy would likely trigger a severe recession... but, continuing this policy would distort and corrode the economic structure even more, which would jeopardize the business model of pension funds, insurers and banks, and further inflate the real estate and stock market bubbles. The low interest rate policy has rendered the system profoundly fragile, with central banks virtually in a lose-lose situation."

The Real Reason The "Rich Get Richer"

The new money substitute, which we’ve lived with for 45 years, is a fraud. A dollar in 1971 is worth about 17 cents today. In other words, it has lost roughly 80% of its buying power. The phony dollar has misled an entire generation into spending money it didn’t really have... doubling or tripling its debt-to-earnings ratio, and shifting more and more of its real wealth to the least productive people – the Parasitocracy.

Why We're Ungovernable: Debt & The Sudden Outbreak Of Utter Insanity

Debt works the same way for countries as it does for individuals and families: When you borrow too much your life spins out of control. And civil unrest becomes the rule rather than the exception. This sudden outbreak of apparent insanity doesn’t seem closely tied to the recent change in our borrowing habits. But it is, in several ways...

Theory Of "Conspiracy Theorists"

It seems to have become one of the most popular ways of ridiculing somebody’s argument or position, calling into question someone’s sanity or even somebody’s right to their very own existence in recent years are "You’re a conspiracy theorist!","That sounds like a conspiracy theory to me!" The definition of conspiracy insists on the “evil, harmful, bad” side of things.  In other words; in the English language, it is impossible to conspire to do good. Here however are some alternative definitions of “conspiracy theorist”: someone who has seen through the bullshit; and/or someone who questions the statement of known liars.

 

"We Won't Be Lectured" - Italy's Renzi To Defy Brussels Over Banking Bailout

With all eyes distratcted by the post-Brexit euphoria, the last week has seen a far more existential crisis accelerating in Europe. Italy's banking system is in tatters (from a EUR40bn bailout 6 days ago, to EUR150 emergency support 3 days ago, to chatter of further support from pension funds Friday) but, in what seems like a clear admission that things are really bad, The FT reports that Italian prime minister Matteo Renzi is prepared to defy the EU and unilaterally pump billions of euros into its troubled banking system if it comes under severe systemic distress, a last-resort move that would smash through the bloc’s nascent regime for handling ailing banks.

Italy Just Bailed Out Another Failed Bank, May Use Pension Funds For Future Bank Rescues

Overnight, yet another failed Italian bank was bailed out. As the FT reports overnight, Atlante, Italy's privately backed €5bn bank bailout fund which was created in April to stem the threat of contagion from struggling lenders and whose assets turned out to be woefully inadequate, took control of Veneto Banca after a €1bn capital increase demanded by EU bank regulators attracted zero interest.

Rotten To The Core

Brexit and financial markets’ subsequent reactions expose the corruption at the heart of the world’s socio-political systems...

An Everyman's Guide To Understanding Cryptocurrencies

When an asset rises by almost 30% in a few weeks, it tends to attract attention. Recently, that asset was bitcoin (BTC). Are these cryptocurrencies mere fads? Or are they potentially game-changing alternatives to the conventional currencies such as the U.S. dollar, Chinese RMB, Japanese yen or European Union euro? There’s no lack of skeptics and critics of bitcoin and other cryptocurrencies; yet despite concerns about security, criminal use and volatility, cryptocurrencies have proliferated at a dizzying pace. So what are those who can't follow the technical arguments supposed to make of all this?

The Case For A Super Glass-Steagall

By embracing this kind of Super Glass-Steagall Trump would consolidate his base in the flyover zones and reel in some of the Bernie Sanders throng, too. The latter will never forgive Clinton for her Goldman Sachs speech whoring. And that’s to say nothing of her full-throated support for the 2008 bank bailouts and the Fed’s subsequent giant gifts of QE and ZIRP to the Wall Street gamblers.