Democritus,
I agree with much of what you say, however, one must weigh up the advantages against the dis-advantages in many cases.

I don't know if a TT will be better over all, but, what I do know is that if we keep going down the same line as we are it will all fall in a heap one day.

We must come up with something and fast!

demockratiseus<<Banking houses make a profit on the transactions by underwriting them.>>oh right just like govt underwriting the banks by giving them govt bonds is underwriting the banks to charge us more bankfees

<<However,the banks are making them more valuable by making them more secure.>>just a the govt guarentee is underwriting the banks[and the govt bonds are counted as assets[and securitised into the maRKET TO CAPITALISE THE CAPITALISTS

<<(ie.if the original debtor defaults you can claim from the bank) which is not a tax,but a value added component.>>RIGHT I THINK IM GETTING IT .../WHEN THE BANKS..that arnt written under[underwrote]..like smaller banks/societies default the big underwritten banks take them over

rationalisation of the market place..where the big underwritten/banks eat up the..functioning capitalised smaller/banks..[read the wa banks rationalised...nearly sun corp as well..lol they conduct runs on the little guys..[while govt protects the big boys]

<<Insurers can sell much more insurance than they have the financial backing for by re insuring with the likes of Lloyd's etc who buy the policies at a fixed actuarial determined rate.>>>..ah right like the fed selling govt underwriting bond's..securitising them into assets

<<There is no limit to how much they can sell if they are cheaper than anyone else>>..or are protected from consumers withdrawing their funds[that some how dont collect ursury/intrest from the bankers using their customers funds for free[or rather only allowing them acces for fee]

<<and charge a small premium to the actuarial rate.>>like the big boys can..with the govt bonds underwriting their exclusive franchise...more than offset..by the govt issued bonds underwriting them..that yet gain ursury payable to the bond holder's..[ie the banks securities holder the fed reserve]that converts bonds into cash

<<Thus big companies are forced to compete with the smaller resellers.>>or is it the big..banks..out-compete the little..by govt advantage..[underwriting]..

given to the multinational fed cartel allowed its exclusive fed bank cartel franchise..to create money from nothing..[and charge ursury on it]..offsetting the fee..[or passing it on..to the fee paying con-sume-er..not only to fleece govt but the tax payers...for banks its win win...govt bonds and ursury and bankfees too