The banks royally screw things up so that banks and then countries end up in massive amounts of debt. We pour money into the banks, but it gets us nowhere and we see no benefit from it, and now the countries that are worst hit now look like they're having senior banking figures installed in charge of government.
Simply the banks fucked up and let everyone overstretch their finances, the banks did it as well, then when the shit hit the fan the banks and the countries became insolvent and now the big central banks are blackmailing the governments (i.e. do as we say or you won't get any bailout money) into installing bankers as government figureheads.
Am I being thick or is this a coup detat? It sure looks like one.
After all for these moves to have any democratic legitimacy, then the governments should be dissolved and then the new regime should fight for election by the people just like any political party.
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3 hours ago
It is very convenient for the political class to blame "the banks". The banks respond to the stimuli of their environment and the politicians (who control the central banks) control the money supply (or should do). If they had insisted on sound money policies, there would not have been the lending bubble because there would not have been sufficient money to fuel it.
ReplyDeleteWhen the dollar cut loose from the gold standard, it suited the pols to allow the banks to become the de facto issuers of micky mouse currency. £1 on deposit allowed the banks to lend £8 - money magicked out of thin air by writing a figure in a ledger. Then , when the £8 came back into the system, £64 could be lent - ad infinitem. This was something entirely within political control to regulate and restrict but they didn't bother.
Why? Well, who are the biggest and most feckless, reckless borrowers and spenders? The governments controlled by politicians, of course!
And the politicians find it convenient to blame it all on the "greed" of the bankers. They are just the other side of the same bad penny.
The way it looks to is there has been an ongoing fight for power between the banks and their owners and politicians.
ReplyDeleteIt looks to me like this generation of politicians got seduced into over-extending their respective countries financially and once there was no way back the bankers then sprung the trap.
The endgame is total unfettered power. Whether that was the plan ever since the federal/central banking system was used to seduce previous generations of politicians is anyone's guess.