Thursday, October 1, 2009
Pundits are getting it all wrong?
It seems that many pundits in the financial community, top experts like John Kay or Martin Wolf, top press like the FT, are unable to get their head around the fact that the current financial crisis was caused by a global pyramid scheme. As a result they debate the ideas like 100% reserve banking and take them seriously. Traditionally these ideas have been associated with alter-globalists, tree-huggers and loony-lefties. It seems that the world has gone rather mad. 100% reserve banking will take us centuries back, making credit very expensive and only because bankers committed a crime of building a pyramid scheme and "experts" are unable to understand it and the fundamentals of fractional reserve banking (and related concept). In the alternative it may also be a cover up strategy.