Kevvie reckons he’s doing us a favour guaranteeing our deposits. For starters he’s doing no such thing. I can guarantee my own deposit right now by going down to the bank and pulling my cash out. What he is doing instead is guaranteeing the banks ponzi-loans. Why doesn’t he guarantee my loan instead so I can borrow more for shares?
Not only is he going to guarantee their ponzi-loans but the government also shields these guys from competition and subsidises them by giving them loans at rates that none of us can ever get.
Why won’t he give ME loans at lower than market rates. That way I can refinance my house and immediately increase my disposable income and net wealth. As well as my borrowing capacity.
The point is that this can never be capitalism if the banks cannot stand on their own. Any banking bigshot is therefore just a welfare queen and these guys are stealing off us.
Its therefore priviledging these guys and therefore favouratism and nothing good can come of it.
Now there are some small banks and many foreign banks that actually have to work hard to entice us to save with them. Why would they need to do this if Kevvie will guarantee all their ponzi-loans? That means that we will have foreigners more able to steal off us as well in a coming orgy of money-creation.
It was always the case that these deposits were implicitly backed by the printing press but this was an indirect thing. Now if Kevvie guarantees these deposits, without putting a time-line on it, there is no disencentive to these guys creating new money and therefore stealing off us.
So why is he doing this? Well its because he does not know what he is doing. Can we get someone who actually knows about these matters to develop policy? Naturally banker (and therefore welfare queen) Malcolm Turnbull is enthusiastically supporting kevvie on this one.
So when will be free of the banking system stealing off us? I don’t think its an unreasonable requirement for this to stop.
All Kevvie is telling me is that we have decided, knowingly or not, to join a long-term INFLATIONARY-DEPRESSION along with the Americans, rather than go it alone and put up with a shorter-term deflationary-depression, if we had decided to go with rational and not irrational policy.
So all Kevvie is telling me is that I was right to buy the house afterall. And that I better jump back in the market sooner rather than later. Now thats nice to know on one level. But what would be nicer to know was Kevvie guaranteeing us that the banks will not be able to steal from us from here on in, and that we were going to have a functioning price system and loanable funds market…….. to help us through the energy and shortage crises that are descending upon us.