The international banker crime wave rolls on with that bitch Merkel, and that evil tawdry little frog, Sarkozy, fronting for their masters and doing the exact opposite of what they are supposed to be doing.
Its a debt crisis. The debt is owed (not morally, but legally) to the banks. If it is indeed a crisis then the debts need to be lower. Ergo the banks need to be DECAPITALISED. But instead every time this evil anti-democratic filth gets together they go and do the opposite, therefore making the problem worse.
Note how this could not now be happening were there no Eurozone, no Euro and no central banks. The central banks are the ultimate enabler to this international criminal enterprise.
“During their meeting on Saturday, EU finance ministers heard from the head of the European Banking Authority, who told them that if EU banks were to raise their core capital ratios to 9 percent, and if the bad government bonds on their books were accounted for at current prices, then between 100 and 110 billion euros ($138.9 and $152.8 billion) was needed to shore up the banking system.”
There is absolutely no rhyme nor reason to this. Its just the banks getting their gimps to steal for them, and they will turn around and give campaign contributions if these traitors comply. More importantly the banks will give massive contributions to their opponents, if this rolling thunder of criminal activity does not continue.
As of necessity, debt forgiveness would bring down the core capital ratios of the banks. Maybe down to 2 or 3% so they were running without much margin for error. Where the government could help is in providing much more cash and a far higher reserve asset ratio. The banks could even go into negative capital, if there was a 100% backing, and a lot of cash out there. If a lot of banks were going to be facing negative equity, because after all they are all fucking useless, then you could even bring the reserve asset ratio up to 105% to help cover sundry bad debts, and pump yet more actual paper currency into the economy.
Another helpful matter would be good tax loopholes for new entrants into banking, and particularly for the purpose of buying hard assets, like buildings and branches, off the old banks, who have all manifestly failed. Or excellent tax advantages for franchises, if the bankers want to turn their retail act into a franchising affair under the new 100% backed industry.
So its DECAPITALIZING of the old banks we are after for fucksakes. DECAPITALIZING. Re-liquifying the money supply. But decapitilizing the banks.
These fucking meetings that the Germans and Frogs keep going in for are only there to plan one heist rolling into another. Every last meeting that Merkel and Sarkozy have attended on this matter has been an elaborate fraud, where they are in no way meeting for the purpose of easing the alleged crisis at hand.
The crisis cannot end by way of this relentless stealing, except that it has to be recognized, that the rest of the public could possibly work so very hard and save so very much that they over-match the stealing rampage, thus solving the problem that way.
Everyone with any intuition knows vaguely that they are being scammed. Thats why there are protests all over the world right now. But the economists, monetary cranks, and bankers always step in to practice obscurantism, when it comes to explaining banking matters to the public. House-niggers of every shape, also get into the act, because house-niggers have intuition too….. more than most ….. and must on some level know who their real masters are and which way the wind is blowing.
Its the job of every actual MAN or WOMAN, (properly considered) to see to it that the wind eventually blows the other way. Such a cool change cannot happen except that the old bankers are on the way out and the new guys are entering the industry.
HOW CAN WE SOLVE THESE PROBLEMS QUICKLY.
Above I’ve given people some idea of how to reform banking in the problem economies. But how about getting economic growth going again? How ought Italy, the US, Ireland, Greece, et al, solve their problems and produce manufacturing-lead recoveries in all cases? Australia would be in a similar position, but we have put an APPARENT-disaster off …………….. by recourse to the ACTUAL-AND-REAL-disaster ………… of selling off the farm. We are getting along quite nicely, for similar (but more disgraceful) reasons, as to why the Nauruans used to get along quite nicely, back in the 70’s
So how would Australia revamp its manufacturing, leading to REAL economic health rather than the make-believe economic health that selling off the farm is producing?
Here is how they …. and we …. could make the decisive moves to effect the right sort of recovery. No one policy will do it. It takes a combination of policy measures to effect a lasting recovery, based on manufacturing expansion:
From the comments section below:
“Likewise, the reluctance on the part of banks to extend credit to manufacturers is not because they lack capital, but because they find it more profitable to invest in speculation, that is, in buying and selling of assets and/or securities such as bonds, stocks, commodities, real estate, currencies, and the like—destabilizing activities that tend to create asset price bubbles, inevitably followed by bursts.”
That part quite true. And you can see the problem in that only slow monetary growth would end these bubbles, and lead to the resources being allocated in the right areas. But the first thing that will happen, if monetary growth is slowed, is that the manufacturers, will have even LESS access to funds, will find their debts even HARDER to pay, and will probably find themselves in yet more adverse conditions vis a vis the price of their currency.
So it takes real sophistication to be able to unwind this scenario. Its almost impossible to see how a one-sided partial jubilee is not part of the recovery picture. I can say with great assurance that one-sided partial jubilee is part of a FAST RECOVERY. No fast recovery for manufacturing, leading to general economic health in the troubled economies (eg. Greece, The United States) is possible without it.
Supposing you have a onesided jubilee, to the disfavor of the banks, and this coupled with the move to “growth-deflation”, and as well the closure of many government departments, so as to run surpluses, then manufacturing gets a company tax exemption for maybe twenty years. Suppose you have this full-spectrum policy combination landed on manufacturing all at once.
Well in that case the speculation is cut off by the low monetary growth. The manufacturers get a break in terms of less debt, and are more viable long-term because of the lack of company tax. They have more REAL capital resources to borrow, (but not necessarily more funds in nominal terms.)
Its really only a combination of this sort that could lead to economic health being restored in a matter of months. Its only this multi-faceted approach that could get everything humming along again, without years of lots of pain.