Wednesday, December 7, 2011

Banks versus People

It's Your Choice, Europe: Rebel Against the Banks or Accept Debt-Serfdom

Ok it's a blog, but cogent. Argues that Europeans have either to fight the vested interests in and stemming from the banking system or accept decades of debt slavery. There is no way that more debt can be heaped on the pile to bail out the Euro without economic and social rigor mortis. But that is what the Eurozone faces if debt writedown is not achieved. (I would add that it is not just the Eurozone countries, but the whole European Union, including Britain. That would mean lower house prices but also falling incomes and mass unemployment, so many of those who have saved patiently over the last couple of decades will still face a stark future.)

Posted by nickb @ 02:23 PM (1350 views)
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9 thoughts on “Banks versus People

  • Occupations are pointless, the financial system can and will, just ignore them.

    I’ve said this before, the only way that these barstewards will be brought to heel is by a well coordinated mass withdrawal of cash.

    I know that Cantona attempted something along these lines that failed but surely in the age of instant communication and information, this could and should, be organised.

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  • Mr g – I suspect you are correct along with Eric C – of course the sh!t will really hit the fan if the public finally wake up to the reality of a genuine run on the Banks

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  • general congreve says:

    @1 – I’m not sure that is the best move. Firstly, forget coordinating a bank run, everyone will lose out even if you manage to organise it. One thing you could do is be ahead of the pack and get your money out, so when a genuine run happens, you won’t be queueing round the corner in vain with everyone else.

    However, based on past performance, do you think the BoE and government will let a little thing like a run affect the monopoly of the banks? “You want you money Joe Public, there it is, withdraw the lot if you like, we’ve got plenty of fresh notes for everyone.”

    So, if and when a run happens they’ll just turn on the presses to satisfy demand, only problem is, the money you managed to successfully get out the bank (even if you acted in advance in case printing didn’t occur to bail the banks in the vent of a run) has been devalued by the operation of those self-same presses.

    You know what to do. But be careful, careless talk costs posts.

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  • >You know what to do. But be careful, careless talk costs posts.

    Er, stock up on baked beans and weapons?

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  • Unless there’s a massive U-turn by Merkel etc. there’ll be no need to withdraw cash. A wave of sovereign defaults and bank failures will be unavoidable, and public outrage, as in Greece etc., will prevent governments enforcing their current policies of austerity/depression and bank/bondholder bailouts by taxpayers (who won’t have the funds for that anyway).

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  • general congreve says:

    @5 – Not sure I follow, no bank failure means no savings, so at least if you have the cash you might be able to use it to exchange for tangible assets from suckers for a few days before everyone realises it’s useless, rather than having nothing. Of course, there are better options, but at least having some paper is better than none at all.

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  • @ Icarus

    So how do you see the scenario you describe playing out?

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  • @6 – two issues – (1) getting your money out before the bank collapses and (2) mr g’s “bringing the barstewards to heel”. I was addressing (2) in writing “no need to withdraw cash”. Current policies point towards sovereign defaults, bank failures and recession. The barstewards will be brought to heel by strikes and protests by populations who won’t put up with austerity as a means of seeing that banks-bondholders get paid.

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  • general congreve says:

    @8 – Oh ok, agreed, ultimately they’re on a hiding to nothing, but they’ll drag every savings account, pension fund and government promise to the voters down with them, so it’ll be baby with the bathwater for most. It’s every man for himself in that regard, while there’s still time.

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