Playing hot potato game with a hand grenade

Posted: 06/19/2015 in Screwed
Tags: ,

It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.  (Henry Ford)

The idea that a country can, through the practice of austerity, scrimp their way out of debt has been laughed at by all the leading economists for some time now.  But the theory remains a favorite for Conservative thinkers, and, until recently, got enough press to keep the idea alive.  That’s changing now, however.  Last year the Bank of England (BoE) acknowledged that money has no intrinsic value of its own — it’s just an IOU, passing from one hand to the next.  Sort of a pyramid scheme in which we all agree to participate and hope nobody tells the truth.  Or maybe the child’s game of “hot potato” is more accurate, as the last one holding the IOU when the bottom falls out is the one that gets burned.  The BoE also stated that bank loans are not “backed” or offset by savings.  Instead, bank loans are simply instant money, created on the spot.  And that’s something that most banks don’t want the customers thinking about.

As long as the international banking community remains in just a few hands, it’s possible to keep the lid on this particular pressure cooker.  But there have been calls for opening up banking to more scrutiny and public oversight.  That’s something bankers do not want.  Which is part of the reason a big rush is on to pass the Trade in Services Agreement (TiSA) quickly and without public review.  Buried inside TiSA are sections that will kill attempts to implement public banking and similar monetary reforms.

All this explains why the language of TiSA is classified.  It has nothing to do with the military security of the countries involved, and everything to do with the pocketbooks of the people involved.  Which, when you think about it, is all most politicians care about anyway.


Be seeing you.

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