Sunday, 8 July 2012

Corrupt capitalism: Banks are throttling Economic Recovery

Vince Cable

The Business Secretary, Vince Cable, today accused Britain's banks of "throttling" the economic recovery because of an anti-business culture which focuses on short-term profits. 

Speaking on the BBC1's Andrew Marr Show, the business secretary said: "The real problem at the moment is that the banks – because of their existing culture which is frankly anti-business, obsession with short-term trading profits, not focusing on the long term – are throttling the recovery of British industry."

The business secretary blamed the banks for undermining the multibillion-pound quantitative-easing programme by the Bank of England to inject liquidity into the economy.

He said: "There has been a breakdown in the mechanism, in the transmission. It just doesn't get through to companies. We are going to ensure that the new money that the chancellor and the governor of the Bank of England talked about at the mansion house does actually directly reach the companies.

"Given that our leading banks are, frankly, throttling recovery by not making business-lending available, particularly to small-scale companies, we now have to focus single mindedly on that task. How to make sure that the additional money gets through to business."

However talk is cheap ... as he/his party voted against a wide ranging judicial inquiry into the culture and practices of banks. His limited understanding of the level of corruption involved is also deeply worrying (n.b. the banks actually create/counterfeit over 90% of the money supply in the UK, not the Bank of England, and given this they are able to decide how they want to spend/gamble it).

We need to i) take back control of money supply (off the private banks), ii) separate casino banking and retail banking fully (i.e. not just 'ring-fencing') and iii) tax financial (casino bank) transactions just like any other form of gambling.

Only by doing these things will real businesses start to thrive and the UK economy start to flourish. Unfortunately Cable doesn't understand this, and the Labour party doesn't either (given their parallel announcements today)! 

No wonder Cameron and Osborne were desperate to stop a wide ranging judicial review ... as it would have started to expose/explain everything to them!

Corrupt Capitalism ... Triumphs over Democracy

When potential collusion/corruption became apparent within the media, police and government ... MP's were quick (and right) to conclude that the only course of action possible was a public judicial inquiry (Leveson) - with an independent judge able to go wherever the evidence takes them.

However when it came to corruption/fraud within banks (and possible collusion with politicians/regulators), Cameron and Osborne fought tooth and nail to avoid an independent public judicial inquiry.

Osborne, like a typical 'out of touch' posh boy, ignored any discussion/debate and chose to immediately go on the offensive ... with disgraceful and unprecedented personal attacks (targeted at the shadow chancellor) ... and amazingly trying to claim that those demanding the forensic inquiry were the ones trying to cover things up! ... you couldn't make this stuff up (again)!

... and why did Cameron and Osborne pull rank, and 'whip' their MP's to vote how THEY wanted ... because THEY wanted to cover things up!!!

If a full judicial inquiry had been instigated then they would have found it very difficult to control (in terms of its scope and level of scrutiny) ... and they would have quickly seen a full/frank exposure of how private banks control politicians - e.g. through vested interests, lobbying and party funding (i.e. Conservative party funding).

A judicial inquiry would have also exposed/questioned the mass counterfeiting of money by private banks, which the Government still allows because of the 'illusion of growth' it creates (e.g. inflated asset prices, artificial 'house price booms' and money for speculation).

The printing of 'paper money' is limited to the 'Bank of England', but 'electronic money' is not ... and private banks 'create' electronic money by simply placing a number in a spreadsheet ... and then demanding 'interest' on it (real 'money for nothing')!

Private banks also channel the money (i.e. and hence the 'means of production') to wherever they want it to go ... thus bankers control the economy, and the areas within the economy allowed to grow (i.e. this is not carried out by representatives of the people, for the people)!

Manufacturing collapsed, with little/no interest paid by politicians, as those in control of money supply (i.e. the private banks!) chose to channel all the money into 'money for nothing' schemes instead e.g. fuelling asset prices and gambling on currencies/derivatives/financial 'products', instead of supporting the creation of real assets (e.g. new houses, new/real products we could sell/export)!

Banks poured money into these 'schemes' in pursuit of short term profit and 'greater returns' - with investment in real businesses sidelined and/or frowned upon (as these require time, effort and resources). 

With the apparent 'illusion of growth' the Government (and the Bank of England) were not only complicit, they were more than happy to help! ... e.g. by agreeing to remove house prices from the inflation figures (which would have otherwise kept house prices in check)!

Politicians are currently controlled by the banks (e.g. lobbying, threats to growth and/or moving abroad) and/or in the pockets of banks (party funding, ex bankers, future bankers ... just look at Tony Blair who is now getting $2m+/year from J P Morgan) ... 

... and politicians such as Cameron and Osborne are the worst kind ... as they are not only controlled by the banks ... they are also in the pockets of them too (nb they bankroll the Conservative Party, and Cameron's family wealth, and Eton education, were a direct result of banking too).

Labour would be quite rightly accused of being controlled/ manipulated by the banks, but they would not be accused of being in the pockets of them (except for Tony Blair). One cannot say the same for the corrupt Conservatives however, who refused to give the British people a proper inquiry (and justice) by minimising its scope, independence and level of scrutiny (n.b. they now control the scope, chairmanship, and membership of the committee of MP's who will investigate them)!

Cameron and Osborne will go down in history for their abject failure to protect the British economy against corrupt bankers, and when the next crash happens (which it undoubtedly will, as they have still done nothing to fix it!) they should be arrested, have any/all their assets confiscated ... and they should then be tried for treason!

An independent forensic investigation would have uncovered the scale of corruption involved ... and would have resulted in the 'control of money supply' being taken away from private banks and returned to representatives of the people ... it would have also re-enforced the need for a full separation of casino banking from retail banking (i.e. a "Glass-Steagall" type act, and not just 'ring-fencing') ... as earlier reports recommended (but were subsequently watered down/ignored, due to heavy pressure and lobbying by the banks)!

Corrupt capitalism has triumphed over Democracy ... and made a mockery of our 'democracy' once again!

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
Napoleon Bonaparte, 1815