Perhaps the rules of the game have always favored the bankers. Loaning out deposits at a higher interest rate than the yield paid is cornerstone to fractional reserve banking. However, the extreme maltreatment of individual depositors and borrowers that has persisted following the 2008 credit crisis is a downright disgrace.
Last week the Internet was ablaze with disgust after a man was physically dragged off a United Airlines flight. What’s amazing, though, is that there are countless cases of another industry abusing its customers in far, far worse ways than the airlines.
"Instead of taking our pain in the short-term, we have sold future generations as debt slaves... The best that our leaders can do for now is to keep the bubble alive for as long as possible, because what comes after the bubble is gone will be absolutely unthinkable."
"Our highly levered financial system is like a truckload of nitro glycerin on a bumpy road. One mistake can set off a credit implosion where holders of stocks, high yield bonds, and yes, subprime mortgages all rush to the bank to claim its one and only dollar in the vault."
Central banks and international financial institutions represent? - ?and work for? - ?creditors first and people second. That is why they can be serially wrong with so little direct consequence. This is the backdrop against which we are invited to trust the banking system with central bank-issued digital currency.
Marine Le Pen's threat to redenominate €1.7 billion in French debt infor francs has sparked panic among the establishment, with rating agencies, economist and central bankers all warning that this would amount to the largest sovereign default on record, threatening chaos to the world financial system on top of the collapse of the single currency.
"The War on Cash is a mortal threat to individual and economic liberty. I think its advocates are clearly sociopaths and enemies of the common man. Unfortunately, I don’t see the war slowing down. I see it heating up."
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust ...”
"The idea that paper money could replace intrinsically valuable gold and precious metals... was both revolutionary and immensely seductive. It was in fact financial alchemy - the creation of extraordinary financial powers that defy reality and common sense. Pursuit of this monetary elixir has brought a series of economic disasters - from hyperinflation to banking collapses."
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
It’s hard to overstate the threat posed by these two votes to the EU - the world’s largest economic entity - and by implication to the rest of the global financial system. Italy is the third biggest country in the EU, and France is the second. Let either pull out and the result might be dissolution and the end of the euro. So what does a fiat currency/fractional reserve banking Establishment do when confronted with such a looming catastrophe? What it always does of course: Cut interest rates and ramp up money creation in order to devalue the currency.