"At this late stage in the history of American capitalism I'm not sure I know how much testimony still needs to be presented to establish the relation between profit and theft."
-Lewis H. Lapham
No comment about the bank notice below is necessary for those who understand what this means. And if one does not understand it at this point, no comment is sufficient.
Paper currency held in a bank is not a 'risk free' asset. To the contrary, it is like walking around with a very large and willfully powerful counterparty with one hand in your pocket.
And in the case of 'digital money' they do not even have to have a hand in your pocket. They hold everything, all your savings, up front, and you have to apply for your money at a window, where they determine how much you may have. And that window can be closed anytime at will.
They take your wealth, pay you almost nothing for it, and then offer you protection, with limits, from themselves.
The deregulation of banks and the overturn of Glass-Steagall was intended to create a license to steal, by design. These were the protections that were given to us, and fought for by our fathers and grandfathers. And we squandered away that wisdom, having unlearned the lessons of the past.
This is predatory financial capitalism and modern monetary theory unrestrained by the rule of law and transparency. This is the lesson from Cyprus, and of MF Global. And it is no different in the US or UK, except in the matter of time and degree. None are safe.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
*Post courtesy of Jesse's Cafe Americain.
No comments:
Post a Comment