Comments on: Are bankers intermediaries between savers and investors?

By: lee

lee — Sun, 13 Sep 2009 15:34:47 +0000

Derivatives Collapse and the China Gold and Silver Markets

by Bob Chapman

Chris Cook — Sat, 05 Sep 2009 02:18:15 +0000

Banks are credit intermediaries.

They come between seller and buyer on credit

terms on the one hand, and between secured borrowers and lenders/depositors on the other.

In both cases the role of the bank is to provide

an implicit guarantee of the buyer and the borrower, respectively. It backs that guarantee with a pool of proprietary capital.

It is quite

straightforward for banks to be disintermediated. My article for the Carnegie Council covers this

also a recent presentation in relation to the next generation of money

Martin — Thu, 03 Sep 2009 12:09:22 +0000

I don’t understand the Marx quote. I thought that to issue credit is to issue money in parallel

with debt. So credit is usury in the same way as debt. Can you explain?

Also (this is not rhetorical) why can’t we nationalise the money

system so that we (the state) issue money (not credit) and the banks are prohibited from doing so? Then we resolve the inequality built into the

current, dysfunctional credit/debt-money system, with money supply increasing and debt decreasing (mathematical logic proves that issuing credit is

more inflationary than issuing money).

the.Duke.of.URL — Thu, 03 Sep 2009 10:51:54 +0000

‘On the money’ once again. All that has been proffered so far are reasons why some particular action can not be taken. Both here and

in the US. The only way that the financial system will respond to criticisms is to place its “managers” under siege. It seems that this may be the

only language they understand. The notion of a cooperative website as a reform or regulatory tool is silly. Power may corrupt, but used properly it

can also work.

Martyn — Thu, 03 Sep 2009 09:23:56 +0000

I only awoke to the nature of Bank money a year or so ago. That this appears to remain such an open secret is in itself

fascinating. The vast majority of people will just assume they have misunderstood what is meant.
The system of money is man-made and has more

in common with computer software and virtual reality than any natural system, and yet so called financial and economic experts persist with their

deluded explanations.
One idea, why doesn’t Government create all money for expenditure and simply use taxation to control money supply

inflation? The idea that money can only enter the system by debt just feeds the long-term ponzi scheme that is our banking system.

Jo Jordan — Thu, 03 Sep 2009 09:16:02 +0000

So what are the core principles of such regulation?

This is a genuine question. I am a

psychologist. If you could boil the arguments down to general principles, as you did here, I’d be grateful.