60th Birthday Speech Example

banks

of Matteo Rovati

The currency, the blood of every economy qualitatively superior to barter, give to those who govern the logic of an almost priestly power, often without the knowledge of the people who use that currency. To understand this, you must understand how money comes and especially the impact it has on our daily lives.

In the EU technocratic process of money creation can be roughly approximated in 5 stages:

1) The ECB (European Central Bank) press a certain amount (say one million euro), claiming the actual costs typography (we can assume that, for the figure assumed here, is circumventing the order of a few thousand euro);
2) A commercial bank, it needs money, you pay for (anticipate the capital) from the ECB via the coin, an equal amount in bonds. That is, the bank gives the ECB a million in government bonds in exchange for one million cash;
3) The million thus enters the financial system, in which due to fractional coverage of deposits, creates trust instruments of payment for multiple values \u200b\u200bin relation to 'issue paper. With a reserve of 2%, one million of bank deposits to generate € 50 million approximately;
4) Upon expiry of the securities, the bank (usually) buys them to pocket the interest, paying the ECB, in addition to the million, the rate Official discount, officially the only benefit of the ECB itself;
5) The ECB puts the liability of one million in the budget paper money created out of nothing at first, eliminating accounting that goes back a million, and creating a colossal work avoidance.

As the fifth point certainly presupposes an offense, as the banking system that controls the ECB makes it through the daily work of a cover-up capital (of which the writer ignores the objective), that's really on which press pause is the third point, concerning the fractional coverage of deposits, which makes the current banking system inherently pernicious from a macroeconomic perspective for at least 8 different reasons:

money multiplier

The vast majority of payment instruments used by the economic system are trustees, or scriptural, created by banks when granting a loan. A bank deposit with a liquid (in paper money or securities readily convertible into cash) of 1 million with the Central Bank, assuming a rate of 2% reserve, it can lend up to € 980,000 (then minus 2%). Assuming the full amount on account of that person ends up with a bank (the same or another, it does not matter), this will pay € 960,400, and so on, until the one million initial deposit not be created at the banking system for 50 million, generated from private decisions and the market situation.

potential instability of investment

When an investor opens an overnight deposit at your bank, it treats the same as immediately available, while the bank uses it to lend. Thus, as noted in the Nobel Maurice Allais (1911-2010), there is logically absurd and potentially destabilizing activities in a given maturity are financed with funds obtained from the lender (banks) with a maturity of less, o addirittura nulla (il deposito a vista può teoricamente essere estinto istantaneamente dal correntista). Se io deposito 1000 euro in banca, posso utilizzarli per le mie spese, più o meno arbitrariamente, ma la banca userà i medesimi come base per concedere un prestito. Il rischio, come si noterà, è più che concreto.

Instabilità fondiaria ed immobiliare

La dipendenza della massa monetaria complessiva da situazioni congiunturali è la responsabile principale della continua oscillazione dei valori del mercato immobiliare, che favoriscono la speculazione e l’accaparramento improduttivo.

Inflation permanent

The ongoing, irresponsible and uncontrolled expansion of the money, and the creation of trust instruments of payment denominated in Journal of banks tends to gradually devalue the unit of account , leading to uncontrolled increases in consumer prices of goods and services. Inflation occurs because there is too much money in circulation when compared to goods and services purchased on the market, then you will appreciate to offset the difference. It is true that the increases are not uniform - despite what the monetarists might think - but are greater in areas where demand is higher (especially food), and in any case where there are other pressures of inflation. Inflation, at least to the actual levels, is profoundly unjust because it affects both the efficiency of the internal market - by encouraging debt than those who do save, you see written down the hard-earned nest egg - that the optimal redistribution of wealth, as mainly affects the fixed income (wages and pensions), the assets and benefiting from those already established to be established.

Highest tax burden

What is hard to understand, even in the media, is that inflation has the same effect as an indirect tax (like VAT), and then, if it was caused from the issuance of currency by the sovereign State, it could - hopefully - lead to lower overall tax burden. In fact, if the State directly to issue 1 billion euro for its own costs, would need to tax their citizens-producers for a lower figure of one billion compared to the situation (now) in which the monetary sovereignty was in private hands. The deposing of the state by the process of creation of money, by contrast, forces governments to borrow and squeeze their citizens-producers to obtain the resources needed to sustain public expenditure, with devastating economic and social effects and the gradual separation of the institutions - seen as kleptocratic institutions - and the people.

mathematically inextinguishable debt

If all money is issued in due course, it follows that the total debt is mathematically unquenchable, as composed of the sum of loans granted and interest paid. The economic consequences are devastating: a system based on debt can only hold if the debt that may be funded (pagare gli interessi) possibilmente all’infinito. È ferma opinione di chi scrive che il consumismo derivi appunto dall’inderogabile necessità delle imprese di smaltire sempre più velocemente la produzione, allo scopo di poter andare avanti. Non più investimenti produttivi, ma tagli, delocalizzazioni, marketing, obsolescenza programmata, bisogni mediaticamente indotti, hanno trasformato il capitalismo imprenditoriale, puritano, quasi avventuriero nel turbocapitalismo improduttivo odierno.

Finanziamento della speculazione da parte del credito

L’economia (produzione di beni e servizi all’interno of a cycle of supply and demand) can not be inflated with impunity for a long time. For this, finance is responsible to absorb increasing share liquidity. Thus forming the regular financial bubbles - the explosion, each time, ruined millions of savers, if not entire nations, as in the case of the "Asian Tigers" - from buying because they increase the prices, and prices will increase because all buy . As you note, is a sort of evil that inflation does not lay it on thick bread or houses, but the titles listed on the stock, creating the illusion of a generalized enrichment, proof of the facts, it simply reveals a dangerous chimera inflated by banks.

Failure to control public credit

By virtue of its exceptional complexity, the credit system escapes the perception of public opinion, and therefore the policy (which is the first 'direct expression). The test has taken place with Italy's entry into the euro, with the witch-hunt unleashed by the media against the dealers, guilty of the insane price increases which have halved our actual purchasing power. Collectively, however, it is easy to show that these increases may be charged to other factors: la «Cura Prodi» per entrare nell’euro (i famosi sacrifici, che hanno pagato come sempre i redditi fissi), l’abbattimento inflattivo dei coefficienti di riserva obbligatori (che hanno consentito alle banche di espandere il credito a dismisura) ed il crollo delle esportazioni, dovuto ad un euro innaturalmente forte per una economia manifatturiera come la nostra, che ha bisogno che all’estero comprino i nostri beni, e per cui la lira, moneta debole, andava benissimo.

Da quello che si è visto, il sistema bancario necessita di riforme profonde dei suoi ordinamenti. Chi scrive, è convinto che le idee di Irving Fisher (1867-1947) e del già citato nobel Maurice Allais can be the basis for such reform, based on the separation of deposits and loans and the concept of reserves to 100%. Let's say that each trader is endowed with two accounts: a deposit account, which puts the money needed for monthly expenses, which the bank can not take money to lend, but that the bill all charges (physical custody of cash, payments, receipts ...). The second account will be lent, in which the investor can put their any surplus, spurred by the cost of the first account. It's the equivalent of a loan, the investor lends his money to the bank for a specified period, and the bank lends, in turn, to a shorter notice period (or limit equal to), making money on the spread between interest paid (which corresponds to savers) and active (that trap). Note that the investor until the expiry of the loan, will have no availability on their money: it is physically committed to finance some activities. All money required to operate the system must be created by the State, or at least spending by the state, without due . The "money- work 'theorized by Ezra Pound , as far transcends the scope of this article, is undoubtedly the long-term goal for a true revolution based on Monetary Sovereignty Or on a coin considered natural monopoly of the people.