Our banking system depends on a class of primarily men who, like children, cannot leave the cookie jar. An economic system dependent on the pathological unreliability of the titans of finance fails.
Our economic system is a fraud.
Our banks prove our system is an unsustainable fraud.
Banks are a very important part of our economic system. It is hard to believe, but banks create and destroy money with their actions, and it is an important feature of the type of economic system we have.
Depositors put money in the bank for three purposes. They put it there for safekeeping. Often as well, they want to make a small return for giving that bank the ability to make some money on their money. And the third is for the services the bank provides for orderly payments and other similar services.
When you put your money in a bank, it is not just locked into a vault. After all, the bank has employees, rent, and interest for depositors to pay. So the bank lends out your money to those who need loans who themselves would pay a reasonable interest.
If the bank cannot find enough borrowers, it would normally invest those dollars in short-term government securities so it would make some money on its excess cash to pay its bills and garner a fair profit.
That is how a banking system in a sane society should work. A run on banks would be unlikely, but having a quasi-nationalized banking system where the government covers it would, in effect, make runs on banks unlikely.
This a simplistic view, but I am covering this in more detail on this Politics Done Right program. If you are listening live (03/20/2023 Noon-1:00 PM Central), call in and give me your thoughts @ (713)526-5738 or chat on YouTube @ http://youtube.com/egbertowillies/live.
Homelessness is a product of our economic system.
Every Monday, Wednesday, and Friday, I drive into Houston from the suburbs of Kingwood, Texas, to host my Politics Done Right program live on KPFT 90.1.FM in the Houston Metropolitan Area. As I get inside 610 Loop, I see large encampments of tent communities.
The radio station is in an area where gentrification is starting to take hold. The area has many unhoused people throughout. I keep change in my car, so I can give a dollar or see with the expectation that others are doing the same.
The thing is, in a wealthy society, this indicates not the failure of these people but a failure of the economic system that depends on the existence of these people. If you doubt me, you simply need to listen to Fed Chair Jerome Powell, who confirmed at a hearing with Elizabeth Warren that he is raising interest rates to increase unemployment by more than 2 million workers to reduce inflation. The fact is that corporate greed, as Congresswoman Katie Porter pointed out, is responsible for more than 50% of inflation. But let the workers suffer.
Jon Stewart recently interviewed economist Larry Summers. Everyone must watch it. Stewart cornered him, and he fessed up to the disdain this economic system has for the working class. We will covered that as well.