A 2013 tirade by British politician Godfrey Bloom is more relevant than
ever as central banks embark on new rounds of quantitative easing.
Ø “All the Banks Are Broke,” and they’ve only
got worse.
Ø Quantitative easing forever?
Ø The threat of cryptocurrencies will disrupt
the financial sector.
A video from 2013 depicting a European minister’s tirade against the
global banking system has recently re-emerged and gone viral. Gaining massive
traction within the crypto community, the speech is now more relevant than ever
— and central banks know it. You can watch Godfrey Bloom’s tirade against the financial sector by clicking:
Packing in as much vitriol as one can within a two minutes, Bloom
systematically tears the financial system apart. Aiming at the sector’s
penchant for fractional reserve banking, the former-MEP remarks that “banks
lending money that they don’t actually have” is tantamount to a “criminal
scandal.”
Financial institutions around the world have been operating fractional
reserve systems for many years. The practice entails using the vast majority of
customer deposits to generate profit via interest rates on loans. This results
in a mere fraction of bank deposits (10% for larger institutions) remaining
available for withdrawal.
Bloom also focused on the moral hazard within banking, alluding that
the government’s promise to bail out banks—as they have done time and time
again—encourages riskier behavior.
Most pertinent of all was Bloom’s take on quantitative
easing (QE):
We have counterfeiting, sometimes called ‘quantitative
easing,’ but counterfeiting by any other name—the artificial printing of
money—which, if any ordinary person did, they’d go to prison for a very long
time, and yet governments and central banks do it all the time.
Quantitative Easing Can’t Last Forever
In the decade since the
financial crisis, the world’s central banks have combated rising interest rates
by buying copious quantities of government debt—aka QE.
沒有留言:
張貼留言