The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
The Forum - On Line Opinion's article discussion area



Syndicate
RSS/XML


RSS 2.0

Main Articles General

Sign In      Register

The Forum > Article Comments > Banking on the ATO > Comments

Banking on the ATO : Comments

By Nicholas Gruen, published 10/11/2008

When the market calms down and the guarantee is lifted in three years why shouldn’t we have somewhere for people to keep their money safe?

  1. Pages:
  2. Page 1
  3. 2
  4. All
Agood suggestion.
You're quite right in saying that the benefits of a government bank are largely dissipated if that bank behaves as other banks do.
However the profits of a government bank return to the government.
The government could also set an example by not paying its CEO an exorbitant salary.
Posted by nwick, Monday, 10 November 2008 10:12:46 AM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
All developed economies once had a secure guarantee for the customers of their banking system. It was known as a reserve or central banking system and as an American comedian once commented, "There have been three great inventions, fire the wheel and central banking."

I suspect that the principal benefit of that system was lost when governments abandoned their insistence on statutory deposits and loans and government security reserves and instead settled on capital adequacy ratios.

Capital adequacy ratios have led to the explosion of bank charges as banks sought excess profits (over and above dividend needs) which could be added to their capital base and allow a multiplier effect to increase their ability to expand the money supply. Australian banks invented new ways to borrow $US to increase their capital base. Those dollars had been newly minted by the USA to allow America to continue to buy oil and other imports and fight wars by doing no more than running substantial deficits.

Since the debacle of Westpac Australian banks have expanded the money supply by more than 12% compound per annum. This was certain to cause bubbles in the housing and share markets if, as happened under the Howard Government, the wages of the lower levels of the workforce could be held under control. Australia was subject to inflation but it was successfully hidden as the mirage of an "increase" in community wealth. Much of that mirage can now be seen for what it was.

With the Australian dollar now under 70cents to the $US the banks may have problems repaying any of those loans purchased when the dollar was worth 90+ cents but I suppose a way will be found so that the customers or taxpayers pay
Posted by Foyle, Monday, 10 November 2008 10:39:41 AM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
One way to limit the banks is to stop fractional reserve banking and go on to an objective currency standard (e.g. gold or silver)
But that would stop governments using inflation (i.e. printing money) to spend on projects that they believe will keep them in power.
I would certainly not like to put my money in the hands of the government - I don't trust them (left or right)
Posted by RobertG, Monday, 10 November 2008 7:49:46 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
The Reserve Bank should guarantee all the money it issues and that the money will retain its value.

It can be done if we take away the ability of banks to give loans without money on deposit. If people want to treat money like a commodity and buy and sell it then they can take a risk of it being stolen like any commodity but those of us who do not want to gamble with our money should be able to use it to transfer value and as a "store" of value without it being at risk.

A single clearing house is unnecessary if banks were required to transfer money instantly they were asked and if they only transferred money that was on deposit. We do need another government institution or to clutter up the creaking ATO.

I helped construct and design an instant money transfer system but the bank cartel would not allow the instant transfer of funds. The "excuse" that the banks give is that they cannot transfer money because they may not have money on deposit. We were unable to persuade the banks to give instant transfer of funds - even of low amounts and even when it is clear that the other bank has the money. The banks are not stupid and they know that the moment they open up instant transfer of funds then they will lose most of their payments business with its high fees.

I have now designed a system that will enable the Reserve Bank to take back control of the issuing of currency and to do it in a non inflationary way. The financial crisis gives us a chance to persuade the Reserve to try out an experiment to prove it works even with the inevitable opposition of the banks. The method can be implemented by the private sector, including the banks, leaving the Reserve Bank with many levers of control beyond the setting of a single interest rate. A side benefit will be the guaranteeing of money, zero general inflation, the instant transfer of funds and the flowering of innovation
Posted by Fickle Pickle, Tuesday, 11 November 2008 6:59:59 AM
Find out more about this user Visit this user's webpage Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
the exchanges of currency[ie,why the us has risen
share swaps are recorded as sales,currency swaps are playing with the real-value of fiat currency.

basiclly paper currency is like the leaves of a tree

the fed is a private bank,linked to other'fed's[also privatly owned banks]

that are best thought of as being like trees that make leaves[and currently the leaf shortage is because they have swapped their worthless leaves between each other,to make the dead fiat paper
feel like it has life[value].

they lend leaves[cash,credit,assets or paper]between each other
[it boils down to only less than 6 people controled entities controling the whole market,

each holds the others paper[despite never creating anything but their leaves[cash/credit]they have creating the pyramid sceme and bring it to a head[each hanging on to whatever leaves it holds as they expect the music to stop]

a previous suggestion to return to a gold standard SOUNDS sensable [but all this gold has been leased out by the fed-reserves to their masters[at 44$.44 cents an ounce]to its member-banks]

it may work by basing money on nickle[as the nickle seems to have a parity linked to real-value[that is yet far below that of the gold and silver the fed reserve held[but scince disspersed to its masters]

the fact remains legal-currency shall only be gold/silver coin[read the constitution ]to return to gold/silver currency some real link to real value must be re created

,but gold/silver has other uses[other than as a currency][and the simple fact is govt HOLDS no gold]

the private banking cartel does

re ursury or income tax[on wages]wages arnt'income'
our unit of exchange[legal tender]has become the main commondity[naturally this will in time bring down the real economy[that creates real things]

bsanking must be holding its REAL VALUE[this is only possable through govt controling its FIXED unit currency[not the bankers]

this means we pay a fee or charge for lending but must not pay ursury on it that causes its buying worth to deflate]

we need a bank that keeps the buying value subject only to suply
not speculation,proffiteering,or greed
Posted by one under god, Tuesday, 11 November 2008 8:42:41 AM
Find out more about this user Visit this user's webpage Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
http://www.infowars.com/?p=5853#comment-618199
explains some of the treason
Posted by one under god, Tuesday, 11 November 2008 9:20:03 AM
Find out more about this user Visit this user's webpage Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
  1. Pages:
  2. Page 1
  3. 2
  4. All

About Us :: Search :: Discuss :: Feedback :: Legals :: Privacy