Archive for February, 2015

The “Too Big To Fail” Have Stopped Being Banks. They have become Huge Criminal Enterprises Involved in Market Manipulation

Friday, February 27th, 2015

Apart from the above-described manipulation, virtually all of the big banks’ profits come from taxpayer bailouts and subsidies  (see thisthis and this).  Why don’t they need deposits? Because the taxpayers are showering them with money.

And they don’t need deposits because – as is now admitted by the mainstream – banks create money out of thin air.  In other words, banks don’t need deposits in order to make loans.

At the same time,  the big banks have sat on the money the government threw at them – with the encouragement of the Fed – instead of loaning it out to Main Street to kickstart the economy. As we noted in 2012, small banks are much more interested in making loans to the little guy than the TBTFs (Too Big To Fail):

USA Today points out:

Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn’t get aid, a USA TODAY/American University review found.

Dennis Santiago – CEO and Managing Director of Institutional Risk Analytics … notes:

The vast majority of this contraction of credit availability to American industry has been by the larger banks ….

Fortune reports that smaller banks are stepping in to fill the lending void left by the giant banks’ current hesitancy to make loans. Indeed, the article points out that the only reason that smaller banks haven’t been able to expand and thrive is that the too-big-to-fails have decreased competition ….

Business Week notes:

As big banks struggle, community banks are stepping in to offer loans and lines of credit to small business owners….

Fed Governor Daniel K. Tarullo said:

The importance of traditional financial intermediation services, and hence of the smaller banks that typically specialize in providing those services, tends to increase during times of financial stress. Indeed, the crisis has highlighted the important continuing role of community banks….

[Federal Reserve Bank of Kansas President] Thomas M. Hoenig pointed out in a speech at a U.S. Chamber of Commerce summit in Washington:

During the recent financial crisis, losses quickly depleted the capital of these large, over-leveraged companies. As expected, these firms were rescued using government funds from the Troubled Asset Relief Program (TARP). The result was an immediate reduction in lending to Main Street, as the financial institutions tried to rebuild their capital. Although these institutions have raised substantial amounts of new capital, much of it has been used to repay the TARP funds instead of supporting new lending.

On the other hand, Hoenig pointed out:

In 2009, 45 percent of banks with assets under $1 billion increased their business lending.

45% is about 45% more than the amount of increased lending by the too big to fails.

Indeed, some very smart people say that the big banks aren’t really focusing as much on the lending business as smaller banks.

Specifically since Glass-Steagall was repealed in 1999, the giant banks have made much of their money in trading assets, securities, derivatives and other speculative bets, the banks’ own paper and securities, and in other money-making activities which have nothing to do with traditional depository functions.

Indeed, the “Too Big To Fail” are doing everything they can to fight the availability of low-cost loans for Main Street and the little guy.

The bottom line is that we don’t need the big banks.   Indeed, top economists, financial experts and bankers say that the big banks are too large … and their very size is threatening the economy. They say we need to break up the big banks to stabilize the economy.

This is especially true since the monsters are growing larger and larger … and have mutated so much that they’re no longer even behaving like real banks.

The Public Banking Group is for brainstorming and discussing ideas for creating and implementing public banks, specifically state banks, county banks, city banks, and publicly-supported non-profit banks.

Global Research, February 22, 2015

Today—in Greece

Monday, February 23rd, 2015
A historic moment for the PEOPLE.
……….not just for the people of Greece  …..
This is the moment that matters  —the moment when a man stands,
                                                                            stands and speaks
This man shouts
                           he shouts from the “Acropolis”
Here is what he is saying to the money-changers in the temple :
OUT !   Get OUT from here !  This is a sacred place
                                                The people here are sacred
                                                 They are GOD’s creation
and, we will not allow you
                                          to continue your destruction
We will retain our holiness — our blood
We will not allow you to keep on removing our flesh.
That which belongs to Caesar will be given to Caesar
Nothing more
………for usury is a sin  — a “deadly” sin, a  transgression against God’s will
This rant is not confined to the Greek ‘temple’.
It is being echoed in Spain.
Hungary has kicked the IMF out of the country.
Ireland has appointed a citizen’s Inquiry.
Iceland has distinguished the illegitimate (odious) portion, has repudiated it
and is jailing some banksters.
Ecuador and Brazil have audited their debts.
They learned who lent what to whom, when, for what purpose..
A citizens’ audit of France’s public debt concluded that 60 % is illegitimate,
 — that the increase was not explained by an increase in public spending.
Eric Toussaint (Global , Jan27th) cites EU Regulation #472/2013 :
“The audit should show clearly that the measures dictated by the creditors
are in fact manifestly regressive in terms of fundamental human rights and
a clear violation of a series of treaties.
Considerable irregularities can be identified.
 Consequently, the commission in charge of the audit will be able to give
 a reasoned opinion as to the illegality, the illegitimacy, and even the nullity
of the debt contracted by Greece with the Troika. “
Godspeed,  Yanis Varoufakis !

Does CANADA POST have a profitable future ? —-as an easily accessed BANK ?

Saturday, February 21st, 2015
Ever wonder why Canada’s biggest city, with those huge TOWERS of GOLD huddled around
Bay Street,   doesn’t have its OWN Bank ?
Kristen Yong-Tam , a city councilor in Toronto , has stopping wondering.
 She is working  to organize a publicly owned bank there,
Does CANADA POST  have a profitable future ? —-as an easily accessed BANK ?
The 800 page REPORT certainly proved it possible and profitable—just like those
very profitable postal banks in Europe.
So, why was almost all of the report REDACTED ? Could  the new CEO from Pitney Bowes
explain ?
Mike Palacek  from the Union of Postal Workers is wondering about his own future, as well as
that of his fellow “mailmen”.
Let’s have a conversation with the constitutional lawyer that’s handling the COMER lawsuit
to force the government to USE OUR BANK interest-free.
What’s to happen, Rocco ?

An Interview with Ellen Brown

Monday, February 16th, 2015
Money creation : now that’s complex and mysterious , isn’t it ?
Well, NO. It’s so simple that it can baffle minds !  And, does it matter
how money gets created ? You bet it does. Why would a country
 that has its own bank where it can have interest-free loans,
 ever want to borrow from private banks and pay interest ?
That’s the huge and non-smart move that Canada has been doing
for the last  forty years !!!!  Victoria Grant understands money creation
and what we need to be doing…When  she explained this 3 years ago
to the Public Banking conference in Philadelphia (12 years old then)
she got a standing ovation, and her 6 minute speech went viral on
You Tube to over 3 million.
For this radio interview of Jerry Ackerman by Ellen Brown, Victoria chimes in,
while Jerry updates Ellen on the progress of the lawsuit that is aimed at
forcing the Canadian government to USE OUR BANK..