I am in agreement with the author of this article. The system will collapse because governments along with their private banks are too heavily indebted. This is the reason why this global financial crisis does not go away. The banking system operates by lending money to governments and other financial institutions with interest rates attached to them. The flaw of the banking system is that the money is lent with interest and money is also used for speculative purposes or the financial casino in the over-the-counter derivatives market. Real bank reform would be something like the elimination of the over-the-counter derivatives market by financial institutions and the creation of public banks where tax money would be used to support the these public banks. The public banks would end up loaning money interest free to small businesses. Businesses would end up paying the money back interest free and the money will keep on being loaned out and strengthening the economy. This is true banking reform. The Bank of North Dakota is a perfect example of this because the money comes from the people themselves to help people and it does not come from private banks. Unfortunately, this will not happen The derivatives market will be what will destroy the global banking system and their governments. How sad but true.
Posted on: Fri, 05 Jul 2013 05:22:25 +0000
Trending Topics
Recently Viewed Topics
© 2015