This article is worth reading.http://www.globalresearch.ca/we-do-not-need-giant-banks-internet-technology-will-break-up-big-bank-monopoloy/5317628

The big banks got enormous bailout monies but their lending to the real economy has decreased. The big banks have used bailout money to shore up derivatives and buying real assets.

In the USA and Europe Community Banks and Credit Unions are on the rise.Via the internet there is also the possibility to have peer to peer money transactions as well as peer to peer lending.

Bitcoin is a peer to peer internet money facilitator that started a few years ago.In France, Bitcoin is now a bank,so it too can create new credit.Max Keiser on Russia Today is not optimistic that the Banking Cartels will allow this to happen but the Bitcoin Bank is already in existance.

Such a pessimist, Arjay.

>>Max Keiser on Russia Today is not optimistic that the Banking Cartels will allow this to happen<<

On the contrary, I think they will welcome Bitcoin with open arms.

http://blog.coinbase.com/post/34357253898/you-can-now-buy-and-sell-bitcoin-by-connecting-any-u-s

"Now you can buy or sell bitcoins, and the USD amount will be debited or credited to your bank within four business days."

Bitcoins - assuming they survive their internet-based vulnerabilities - will become just another traded commodity. You see, Banks don't really care that much, so long as they can make a buck out of it...

"Coinbase charges 1%, plus there is a $0.15 flat fee which goes to the bank. The fees are the same whether you are buying or selling bitcoin."

Switching an economy across to Bitcoin would have exactly the same impact switching to gold. There will always be a need to translate the unit into currency, since a) there is a physical limit to the amount of either commodity in circulation, and b) not everyone will be comfortable using ingots/Bitcoins on the buses.

But I do still worry at your understanding of some aspects of Finance. Actually, make that any aspect of Finance. Take this classic Arjayism:

>>The big banks got enormous bailout monies but their lending to the real economy has decreased.<<

Ahem.

It may have escaped your notice, but one of the key underlying causes of the GFC was excessive lending to the "real economy". Assuming that the "real economy" was the hundreds of thousands of average Joes who took out cheap mortgages, on the basis that "the only way is up".

The bail-out money was primarily to shore up their balance sheets, so that the system itself would not self-destruct. If they had all disappeared in a sea of debt, everyone would have suffered considerably greater hardship than they did. Handing out bail-out money to continue their "real economy" lending practices would be the equivalent of pumping gasoline onto a bushfire.

Spectacular, but ultimately counter-productive.

Having nothing better to do before the start of QI, Arjay, I thought I'd check out Max Keiser's website to see if we are on track towards $7000 an ounce for gold…

But I was distracted by the exciting offer – in partnership with something called the North West Territorial Mint – to purchase Max Keiser's "Global Insurrection Against Banker Occupation" Silver Round 1 ounce coins for a mere five dollars an ounce above the spot price (minimum purchase 60 coins), before I noticed – about half way down on the right hand column – the exciting opportunity to "Donate Bitcoins to Max's cigar fund"

So even if "Max Keiser on Russia Today is not optimistic that the Banking Cartels will allow this to happen but the Bitcoin Bank is already in existance" he is optimistic enough to accept them.

Then I ran out of time to search about the gold price stuff…

I'm not pessimistic Pericles,just curious and a bit susicious of this concept.It may be a good hedge against inflation if they don't create too much of it.

Other things we need to investigate is who owns Bitcoin? Is it a public company and who are the shareholders? The big bankers may already have bought controlling shares in it thus the cartels will continue.The downside to Credit Unions is that they cannot create new credit.It must come from the banks or depositors.

Wmtrevor,Keiser reckons that this will be the year hyper-inflation starts.China is hoarding gold but India has 18,000 tonnes.If Keiser is right about the price of precious metals then India will become another economic super power.

Look for the signs of inflation in the USA and Europe.Presently the money these banks are creating is not reaching the real economy.People are also reluctant to borrow thus there is not enough money in our economies because new money is created as debt.

Pericles might like to tell us who will buy derivaties when they eventually collapse.Who would buy them?

China holds 8% of US Debt and Japan a slightly smaller amount.I cannot see how this is such threat to China.True they have their own growing pains and corruption but do not suffer from our debt paralisis.

We should know this year if our economies will deepen into depression or rebound.Will Jamie Diamon be wearing Max Keiser's handcuffs?

Arjay, I suspect that bitcoin and any similar schemes, especially if
they rely on the internet have only a limited time ahead.
What seems to have a better future is local currencies an example of
which is the Totnes Pound in the UK. There are a number of these around
the world and their purpose is to keep the profits in the community.

As energy gets more expensive commerce will become more local.
This trend is more advanced in some countries than others but even here
in Sydney its start is visible.
An example is the Thursday Market in Hornsby. It has expanded from one
fruit and vegetable stand to three and various other bakery,
smallgoods, florists, apiarist etc to the extent that there is no
further room. All this in about two years.
Most appear to come from the agricultural areas to the NW of Hornsby.
They are well patronised by the public with customers a couple deep.

There are also a couple of small furniture makers in the area.

Bazz why does internet only have limited time. The Bendigo Bank is big enough for me, and they have branches in small towns run as community banks, where the profits go back to the community.