Tag Archives: Banking

The Bank of Taxpayers . . . Why Not!!

Banking photo

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

The IMF . . . Uncloaked!

You must stick to your conviction but be

ready to abandon your assumptions. – Denis Waitley

In my quest to urge we all grow Society’s awareness of the current world order, I am indebted to the vlogger Lisa Haven for making me aware of the Articles of Agreement of the International Monetary Fund (IMF). This provides the perfect example for my case.

Through the secrecy of the current world order we are controlled by our ignorance . . . no more, no less . . . and so the following is a lengthy piece. It covers some frightening facts about the immunity from accountability the IMF have awarded themselves in order to exercise that control.

I hope it explains why they were able to impose unelected regulation upon the Greek people last year with such ferocity and without any come back whatsoever from any government. The Troika comprising the European Commission, The European Central Bank and the IMF are one and the same club!

As background the IMF was formed out of the Bretton Woods Conference in 1944 and its objectives are quoted in Wikipedia as follows (Remember this bit, it’s important later):

“The organization’s objectives stated in the Articles of Agreement are to promote international monetary cooperation, international trade, high employment, exchange-rate stability, sustainable economic growth, and making resources available to member countries in financial difficulty.”

188 countries are currently members and contribute funds into a pool which individual members can draw upon if they get into financial difficulties. That this organisation came into being at the end of World War II is, to my mind, very significant.

International financiers had funded ALL sides during this global warfare, as they have done for centuries. Global levels of indebtedness were at a peak and so, therefore, they could exert pressure to consolidate their position at the pinnacle of world power. (The morality of financing and therefore encouraging all aspects of violent conflict across our species, irrespective of race, colour or creed is for you to decide.)

I give full credit (no sarcasm intended here) to the IMF for making their Articles of Agreement so publicly available. I can only surmise that they could see their only application would be for the medical profession, who might apply them as a non-addictive cure for insomnia!

I have therefore restricted myself to what I think the reader will be most interested in . . . their unassailable power!

Under Article IX we find Status, Immunities and Privileges which place it above global laws and accountable to no one (the following I paraphrase where verbose):

Section 1 Purposes of Articles (Boring!!)

Section 2 The Fund shall have the capacity to make contracts, acquire and dispose of immovable and movable property and institute legal proceedings – nobody is immune!

Section 3 The Fund however, is immune

Its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract.

Section 4 More Immunity

Property and assets of the Fund, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation, or any other form of seizure by executive or legislative action.

Section 5 Even more Immunity

The archives of the Fund shall be inviolable

Section 6 Unaccountable freedoms

All properties and assets of the Fund are free from restrictions, regulations, controls and moratoria of any nature.

Section 7 (Boring!)

Section 8 Immunities and privileges of officers and employees

Anyone associated with the fund, it seems, is immune from legal process when doing the work of the Fund. They also appear to enjoy ambassadorial status (immunity) insofar as immigration and alien restrictions are concerned, as well as the same travel privileges of (more immunity).

Section 9 Immunities from taxation.

All moneys, property and financial transactions are immune from taxation and custom duties. Nor is the fund liable to collect or pay any tax or duty.

Employees, no matter what rank, are exempt from personal taxation – All 2400 of them!!!!!!

(And they berate the Greek people for not paying their taxes . . . DUH!!!!!!!)

Section 10 demands that each member state institute whatever legal procedures are necessary, in their own country, to ensure the terms of this Article may be adhered to and advise the Fund of the detailed action it has taken.

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The above is extracted from just 3 pages out of the 89 contained in the full document, which you can read at your leisure here https://www.imf.org/external/pubs/ft/aa/pdf/aa.pdf. As you will gather from my simple resume, it is quite mind numbing in the extent of the powers the financiers have awarded themselves and to which 188 governments have signed up to and keep in force.

The issues this raises for me are numerous. What first jumps off the page, to my simple mind is . . . If they cannot be prosecuted, because they have paced themselves beyond all global legal process, how is this document itself legally enforceable? After all it is governments who make their paper money legal tender!

If it is beyond the law then presumably it is ‘outlawed’ and with only limited rights, as is every other entity that is ‘beyond the law’? I am no lawyer and I am sure this has all been legalised, somehow or the other but it is a frightening precedent that has been kept in force and out of the media spotlight for 7 decades.

This causes another worry, as they do not convene with elected governments but only with the country’s financial institutions, such as the Fed in US and Bank of England in UK. Here I come back to Greece again. It now becomes clear how they were able to insert, without any resistance, unelected technocrats into the very heart of the country’s democratic process, something they appear to treat with contempt.

When I boil it all down, it seems as though the only loyalty and accountability this Fund recognises is to the application and maintenance of debt. It is the obligation to debt that gives it this unreachable power. Yet the funds it manages and which it uses to apply debt, to gather and exert this power, are provided by the 188 country members . . . from our taxes, as governments don’t have any money of their own!

If this is the case we have a situation where we, the taxpayers, are funding an unelected and unaccountable global body that declares its intention (and I quote here just one of the 6 purposes):

(ii). To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

The current state of world economics and employment can best be summed up by the Funds Managing Director Christine Lagarde (on over half a million “tax free” dollars remember!), in a speech about the then problems within Europe and given in Brussels on 10th December 2013:

“First and perhaps most important, growth rates and output levels still remain well below where they should be. With unemployment rates as high as they are, this gap between actual and potential growth rates is likely to remain large for the foreseeable future.”

Well, with all due respect lady and without your grasp of global finances, this humble taxpayer would like his money back please, together with an end to a body who seems to have successfully made themselves immune to the chaos and pain they are now inflicting upon the 99%.

Awareness breeds understanding and understanding breeds change

 

Until the next time

 

Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes