Posts Tagged ‘money’

The banks of the future will serve us better

Sunday, February 5th, 2012

The witch-hunting of bankers must stop – they say. That is right, and what is also right is that we must stop bankers from conducting their business the way they do now. Real and continous excessive profits, salaries, bonuses, surrealistic products, widespread speculation make it easy to cry wolf.

The bankers have largely been thinking of themselves and their own profits lately, being greedy bastards, and also having made a hefty contribution to the souring of the global financial system and the present crisis. The banks only purpose should be to serve the businesses of the world engaged  in the production of goods and services, facilitating it all – and being a low cost, innovative producer of such services. The sorting out and clarifying their of role should be commenced right away.

The big banks are doing all kinds of businesses the supermarket way, and they mix it all together – private, business, investment, financial products, speculation – in their accounts.

Too many banks are” too big to fail”, they are part of holding structures that are intertwined and interdependent and where risk is difficult to see and follow. They are also global, moving funds here and there, risking loosing track of what is going on.

Banks are also heavy lobbyists, turning the the tide their way, pressurizing politicians to their advantage. Maybe this kind of lobbying should pure and simple be forbidden?

So we need a new banking industry, and regulation of reserves is not enough, more radical changes must be implemented.

First the banks must be made smaller, definitely more local understanding local businesses, more understandable, more transparent, we must break banks up so that capitalistic competition becomes a reality, so that they are small enough to fail, they must take their risks as they have set themselves up to. Regulation must work and bite, competition must flourish. Now the markets don’t work any more, the players are too few and too big. Complete laissez-faire is not good in the long run, it leads – always – to excess.

The basis of it all is commercial and industrial enterprise and the banking system must support that. We must reduce the importance of  financial constructions and speculation, fancy unfathomable products, the complexity of the financial system must be reduced, banking and finance must be simplified.

Size and relations must be looked into as large also is risky and global is risky – the cost of failure is too big.

The parts of banking must be sectioned from each other – private, commercial, financial, speculation, investment – with separation of accounts.  The fractional reserve system should be looked into.

The political power must be reduced, independent central banks must be built and allowed to work in cooperation with regulators.

So this could be interesting – and better – more banks, good capital regulation, restrictions on activities, reoval of conflicts of interest, lobbying forbidden, competition overseers that are fit and well.

The weakness of global risk exposure must be controlled, risk should largely be local and understood locally. Understanding and transparency must be there always, or businesses and people may suffer undeservedly.

Investors that really are banks should be included in this regime.

Banks and investors must not be allowed to hurt the real economy, they must not be allowed to become crass speculators, even financial terrorist as some say.

A new era is dawning – real risk understanding, real competion, good servants for the business community.

We can always hope, and see to it that we elect politicians that know the interests of a good real economy.

What comes after communism/capitalism?

Tuesday, March 9th, 2010

We are in trouble – we need new ways.

The financial system is creaking (breaking up?), differences in well-being among nations and people are greater than ever – many people are down-right poor, nation-states are working hard to get their share and fighting the rest, the US have costly processes of empire that is causing havoc in many places, the state is becoming more and more part of people’s lives, the big corporations – mostly American – are getting bigger and bigger and exerting more and more control over resources and output, the many are controlled by elites with the money. There are large refugee-problems, the environment is not taken properly care of. The states and the big corporations have the money and they control it all, resulting in huge inequalities.

There are no longer democratic processes of substance in countries. State capitalism is combined with huge corporations and is controlling money. There are wars going on, military men have influence in many countries. The isms of capital and commun are long gone. The internal processes of many countries are becoming increasingly inefficient.

The processes of the world are not developed and controlled by good thinking, fairness and inclusion. We do not have the power to control our own lives because we have no money. Control from the top is increasing, and to survive and have a livelihood we have to sell our lives to state and corporations.

We need major changes to find a better balance.

The world is now increasingly connected in a global network making it possible for all to take part in the processes of activity, in real time. Place is no longer important – the world is there for you.  You can share and network with people all over the world. The aim is self-expression and real economic democracy. At the same time the divide between work and personal life will disappear – you will just live with a personal agenda and increased responsibility. We all will become self-conscious economic agents, based on self-reliance.

The system therefore must be changed so that we can have and make our own money and achieve economic justice for all. The resources of the world are for all – they must be shared and everybody are entitled to a share. This also means that the new practices must be environmentally sound and fully sustainable. The new money will be established as electronic money through the network.

Workers are not stuck in one place, their power and creativity will flow to where the activity is taking place – the supply will be fully flexible. Machines will communicate via the net and be part of the flexible resource pool.

New creativity must be found to realize this future. We must find a way to establish personalized internationalised money that initially will exist together with today’s money. National money will thus gradually disappear, and money management will be transferred to ordinary people. The value of the money will be determined  by the participants taking part.

State revenue, taxes and duties must also be considered as a fully electronic international system will create a new situation: Internet users paying taxes to whom?

The ethical side must also be brought into the development: What responsibilities do we have for each other, for the environment, for the long term? New thinking about social relations may also be needed, but rational thinking will take us a long way.

We need: Development of a viable procedure, initial small-scale tests, scientific procedure, interconnected networked machines and workers, electronic international money, net-systems to effect the money and resource operations, pooling of resources, personal creativity and reponsibility.

There is a long way to go – but thinkers like Keith Hart, Manuel Castells  are working on it (and John Locke would have approved).

More will follow!

See books: Keith Hart  Money in an unequal world, Manuel Castells The network society, and Jacque Fresco with the Venus Project