What of more bank runs? And threats from debtors like GE and the Issa brothers?
I appreciate your kind words and the fact that you've read my book, "The Production of Money," a few years ago. Since then, I've continued to delve into the intricacies of the banking sector and it has remained a topic of great interest to me, sparking ongoing thoughts and discussions letmelivebetter wrote.
Hello . I searched "peace system" and it came up as you. I am JACK SILVERMAN (jacob's Newsletter, but don't ask me how I came up with such a clever name). I discovered a new "Economics" paradigm. Nobody is interested but who knows? It is a very major set of ideas and theories and it informs my thinking. I do not feel I should remain silent so I am writing on-line. I do not like the companies or the present iteration of capitalism. I questioned a trans activist, and somebody complained about me to "MEdium.com" and so they suspended my account. My evil crime was: I wrote into the "Medium" 'Reply' or comment box. "Wait. Is this a male or a female?" The next day I was canceled by Medium, with no explanation, only a page of the rules. "Gender" is a thing, who knew, huh? So then I just came to Substack. Here, I think the company just wipes the message they do not like. Then you see "comment deleted," it does not say by who. So these companies are all the same. Are you an independent? Well --- I guess now has come the time to read your work and find out. My work is social economics theory (how "capitalism" is not private after all) and not finance, so I will see how much I can read and/or understand. Hope you get this before the Substack Company deletes me for criticizing their venture.
Well. Okay, I read it. I notice you mention the low-income persons as well as the high-flying investors. And you end by saying "paralysis." And there is this monstrous thing you call "The System." Okay, good so far. Oh, b.t.w. I do not know how to get, earn, make $. I do not carry a debit card because I like to meet bank tellers in person and gossip at the window. And, I am Autistic. Right now, I need income, and cannot do the reverse (spend). Don't know where to get it (income) and I be concentrating on doing the Substack thing right. I.e. non-commercially. My newsletter, now with four recent posts on economics and gender and COVID, if free. So, without a debit card I cannot pay you - plus I don't know how to get income and I am Autistic. Plus, I was thrown out of "Medium" for asking whether a piece by a TRANS person was written by a male or female. That was my second "incident" on "M." over the gender issue. There are ONLY trans-affirming stories on "M." And they got rid of me. So I cannot link you to it. It is closed down. Only I can read my "M." posts. Well, lets see if Substack 'cancels' me. Or takes down this one. Getting too wordy now, so......
Thanks for this.
Since COVID I have become a self-taught amateur economist, with a Cassandra Complex.
Forgive me if my writing style is a bit rambling and poorly punctuated.
What I have learned, with shockingly relatively little effort, has shaken me, and though I have tried, on numerous occasions, through every channel I can think of, to raise public awareness and alert "authorities" and media outlets, it has become clear to me, as your piece here would suggest, that the whole situation is as it is, by design.
It is abundantly clear, by all the metrics that are flashing red, that the public are heading for disaster, however, strangely, none of these proven, tell-tale
(Bond yield curve inversion, record, but worryingly still unquantifiable, risk within the unregulated shadow bank system, banks buying massive amounts of precious metals and contracts for precious metals, the alarming number of bonds in Chinese real estate and infrastructure projects defaulting (yet still being used and continuing to be bought by institutions (using their clients pension contributions) to hold as collateral to borrow more money with, massive currency devaluations in emerging markets, the problem with defaults of debtors in the commercial real estate market, drying up of liquidity and record withdrawals from banks into MMFs, the little issue of the expansion of the amount of US dollars in existence by 40% in the last 2 years, and the stark risk posed, at just an obvious theoretical level, by changing from MMT (low interest, print money) environment to one in which interest rates are RAPIDLY rising [when we have seen in Autumn 2018, and on other occasions, that any attempts at minimal QT have de-railed the system overnight.])
are EVER brought to the public's attention by media.
One question to be asked is, why are the media, as your article presents so mindlessly optimistic?
The answer they would say, (feigning honesty to the more economically minded of the public) is that it is a confidence trick- if people knew the risks that the financial system has caused it would complete the self fulfilling prophecy- and while this is certainly a reality, they never point out AFTER THE FACT (eg GFC 2008) what the real causes were and the actual real cost- they still haven't. This exposes their true motivation in keeping the public in the dark; they NEVER want to inform the public about the true nature of how finance "works."
A quick lesson in schools even, at just the basic education level, of the fractional reserve banking system and how banks actually make their money, may cause some general debate about whether society thinks this is acceptable, don't you think?
To finish however, what your article could go on to say, (as Central Banks certainly are going to keep raising rates [as Larry Fink recently told us]) is WHY are they pursuing this course with the certainty of more and bigger disasters than the one you described, above?
I suspect you and your readers have their own opinions, mine is that they want to break the economy completely- disinflate everything drastically and then, in the wreckage, scoop up fire-sale assets and complete the usual, cyclical, transfer of wealth from the poor to the rich.
At this stage the introduction of Central Bank Digital Currency seems inevitable, and it's timeline to introduction will be accelerated, with promises, from Central Banks and their governments, that this is the only way to prevent future economic disasters, while in reality it offers them more control over the masses. I suspect they will increase acceptance of this by offering benefits, to alleviate the plight of normal people (that they have caused,) but only if these are taken in these digital forms.
Forgive me if this seems a ridiculously dystopian prediction of near future reality, but it is one, I believe, that needs to be seriously considered and prepared for.
I will go a prediction further;
Big problems will happen in June ( ISDA phase 6 nine month anniversary, LIBOR to SOFR and the introduction of FED NOW all happen then.)
Pass it on.
Thank you for the analysis. I read your book "The Production of Money" a few years back and been following you when I can ever since. It was a great read. I haven't stopped thinking and talking about the banking sector since then. Thank you Ann!