In my last piece I postulated that when you get underneath the superficiality of our global financial systems it is the taxpayer who is the ‘lender of last resort’. http://www.globalmagnacarta.org/2016/taxpayers-are-the-global-bankers/
When country’s get into difficulties it is the IMF who comes to the (expensive) rescue, with suffocating ‘Austerity’ conditions as a part of the lending terms for that desperately needed money. And when it comes to global power plays, the new layer of governance the EU represents was brought into being with taxpayer money.
Both of these examples illustrate one thing . . . they have considerable risk attached to them. In the former case it is the questionability of whether a country can actually pay back, given its fragile state.
In the latter, who could say with any certainty that this ‘instant monolith’ would actually succeed. Indeed, time is now showing that it is failing miserably, both as a democracy and a viable trading area, given the bloated bureaucracy that has birthed from outset to create this new layer of global governance. Billions of taxpayer money have been irresponsibly wasted with no accountability in evidence.
No bank in its right mind would venture anywhere near such deals with their own money. The IMF however, gets its money from the 188 countries who contribute to being members and they use this (taxpayer) money to conduct their business.
It’s a sort of elephantine hedge fund, using other people’s money to finance its deals but unlike a hedge fund those ‘investors’ – the international taxpayer – have no say and get no rewards for the risk their money is put to, only constantly lowering living standards and employment opportunities.
At least with the ever reducing ‘legitimate uses’ their taxes are put to a good deal of the money is used to run public services for the benefit of Society, although gradually now being swallowed by private corporations who reduce services to provide necessary profits.
If the taxpayer is to be ‘lender of last resort’, I don’t necessarily have a problem with that provided there is something in it for them for the risks they are taking. Provide them with the same ‘risk and reward’ philosophy that is an intrinsic part of business and you have a complete micro Capitalist system!
Our own ‘Taxpayer Bank’ would have endless positive effects upon Society. It would provide the finance for public infrastructures such as a state of the art Health Service, superb travel infrastructures like roads and rail as well as caring support systems for young mothers and the elderly. All because there is no ‘middleman’ concerned only with profit.
If you look more closely at this concept, what we are talking about is virtually replacing our current (very unpopular) tax system with a means to raise funds in a much more acceptable fashion, from the interest earned on loans to finance Society’s needs.
A Taxpayer Bank would only be accountable to its shareholders and customers . . . the taxpayers . . . who taxes would be dramatically reduced through the workings of a public bank.
The fundamental significance of this type of public banking is that it circulates its profits back into the economy, rather than taking them out, as is the case with private banks. It is a fundamental law of ALL Life. . . that everything is recycled and not hoarded or taken away!
Nature is the most powerful and perfect example of this law. Trees shed their leaves, which then rot down and provide the nourishment for those trees and so much else. Birds circulate pollen to bring to life the plants that feed us, as well as the flowers that calm us. Even squirrels, who ‘hoard’ nuts for the winter, eat those nuts later. If left, they will rot down to nurture future growth or become new young trees. Nothing is taken away or hoarded.
Our current financial system is the ringing evidence of the need to recycle, as it hoards vast amounts of money that should be put to good use back in Society again. This hoarding is a part of the control mechanism that represses the majority. Our global money supply is never adequate for Society’s needs, deliberately so to restrain us.
What manages this supply is the needs of the bankers, not Society. It is here that we get to the very fundamentals of money issue by private banks. QE has cast a spotlight on this controlling practice as the trillions printed have been aimed at the already wealthy, deliberately widening the gap between rich and poor.
On the other hand, a Taxpayer Bank for the people working alongside private banks, as is the case in Switzerland, will be good for the whole economy. The private banks can service the needs of the global corporate world and public banking the private individual and small businesses . . . with the taxpayer earning into the bargain! It will also provide the essential competition so important to a healthy economy and Society.
In the US the Bank of North Dakota is run on such lines, funding local businesses and the community. Its financial structure is reassuringly sound, because it circulates its income back into the economy. When the global banks went bankrupt in 2008 and stole from the taxpayer to stay in business, this bank thrived with sound banking practices and continues to thrive today, whilst those same global banks remain bankrupt.
Why aren’t there more banks like this in the US . . . Ask the private banks!
There is not a single aspect of a properly accountable Taxpayer Bank that I can find detrimental to Society. The financial rewards are unquestionable. The psychological benefits of a tax system such as this would not only be positive and motivational to people but also bring a nation together.
I believe there would be a sense of a shared responsibility, through this type of open banking, as they watch their investment translate into their very own world beating social services, financed by a commercial operation. The perfect welding together of Socialism and Capitalism!
We just need a new breed of people going into politics with this sort of collective vision.
Until the next time.
Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes