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Jpmorgan To Start Charging Some Big Clients Deposit Fees - Wsj

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JPMorgan Chase & Co (JPM.N) is set to charge large institutional customers for some deposits, citing new rules that make holding money for the clients too costly, the Wall Street Journal reported, citing people familiar with the matter.

The plan won't affect the bank's retail customers but will affect some corporate clients and financial firms, including hedge funds, private-equity firms and foreign banks, the Journal said, citing a memo. (on.wsj.com/1LxspCA)

Specifics of the plan are likely to be unveiled on Tuesday at the bank's annual strategy outlook with investors, the newspaper said.

Why have the costs suddenly gone up?

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Well it's been a process over a very long time. Since about 1971, if you want to put a date on it.

But we're at the stage where central banks are starting to charge for money deposited at themselves....which is what private banks do if they have a surplus of deposits over what they lend out. The reason central banks do this is in order to try and encourage banks to 'lend credit into the economy' to keep it going.

It is not surprising that we have the other alternative appearing which involves trying to discourage people depositing money at the bank by charging them. It is simply not possible to find an infintie number of good prospects to lend to, so it is inevitable.

At the end of the day the problem is a lack of demand due to inequality and levels of debts....not a lack of money/capital.

You mean when the wheels finally started coming off the Bretton Woods system. Wasn't it in 71 that the Germans allowed the Mark to float freely?

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Michael Hudson: definitions....


The point in bold about 'zero-sum activity' is well made and a pointed one about how contemporary economics, central bankers etc. consider debt...that it is unimportant because it is merely a matter of distribution. As with any WHOPPER LIE, there is a strong kernel of truth here, in that if the politicians got off their arses, this could be resolved. However, that is an IF we are yet to witness...and in the meantime, the economists' models should reflect the asymmetry of money and debts, the deleterious impact of growing debts and money in the economy because it's where we have been led for a very long time now.

It's a matter of circulation not distribution, just as the health of an animal is determined largely by the circulation of its blood. Quesnay (the greatest classical economist?) understood this 250 yrs ago when he published his Tableau economique.

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Yes. When the world did away with fixed currencies.

(some say it was the move of the dollar off gold which was the limiting factor)

In turn this freed up credit creation and allowed global capital flows.

(I know you know the below)

Even Hayek was against floating currencies, as he expected once the outflows of capital started more would follow destabilising the entire system.

However with making the dollar the reserve currency and linked to gold you have the Triffin dilemma, it's like Dexter White created a capitalist system designed to failed. Thank god he wasn't a Soviet spy, imagine the implications if he were and being instrumental in the creation of the Bretton Woods system.....

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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