Wednesday 4 February 2009

Let The Banks Fail

The solution to this Second Great Depression is simply this ;

1) Lets the banks fail

2) Set up a National Bank Of Britain to buy essential and strategic indutries and companies that fail and have the government run them whilst awarding stocks and shares to the workers to increase worker ownership schemes of their own companies

3) Increase workers wages by raising the minimum wage

4) Lower corporation tax for British businesses that employ British workers in Britain

The only way to recover will be by a consumer led recovery, not funding the banksters.

Let banks fail, says Nobel economist Joseph Stiglitz

The Government should allow every distressed bank to go bankrupt and set up a fresh banking system under temporary state control rather than cripple the country by propping up a corrupt edifice, according to Joseph Stiglitz, the Nobel Prize-winning economist.

By Ambrose Evans-Pritchard in Davos
Last Updated: 8:29AM GMT 02 Feb 2009

Comments 73 | Comment on this article

Let banks fail, says Nobel economist Joseph Stiglitz
Professor Stiglitz, the former chair of the White House Council of Economic Advisers, told The Daily Telegraph that Britain should let the banks default on their vast foreign operations and start afresh with new set of healthy banks.

"The UK has been hit hard because the banks took on enormously large liabilities in foreign currencies. Should the British taxpayers have to lower their standard of living for 20 years to pay off mistakes that benefited a small elite?" he said.

"There is an argument for letting the banks go bust. It may cause turmoil but it will be a cheaper way to deal with this in the end. The British Parliament never offered a blanket guarantee for all liabilities and derivative positions of these banks," he said.

Mr Stiglitz said the Government should underwrite all deposits to protect the UK's domestic credit system and safeguard money markets that lubricate lending. It should use the skeletons of the old banks to build a healthier structure.

"The new banks will be more credible once they no longer have these liabilities on their back."

Mr Stiglitz said the City of London would survive the shock of such a default because it would uphold the principle of free market responsibility. "Counter-parties entered into voluntary agreements with the banks and they must accept the consequences," he said.

Such a drastic course of action would be fraught with difficulties and risks, however. It would leave healthy banks in an untenable position since they would have to compete for funds in the markets with state-run entities.

Mr Stiglitz's radical proposal is a "Chapter 11" scheme for households to allow them to bring their debts under control without having to go into bankruptcy. "Families matter just as much as firms. The US government can borrow at 1pc so why can't it lend directly to poor people for mortgages at 4pc. ," he said.

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Bert Rustle said...


... "Government has coddled, accepted, and ignored white collar crime for too long.

It is time the nation woke up and realized that it's not the armed robbers or drug dealers who cause the most economic harm, it's the white collar criminals living in the most expensive homes who have the most impressive resumes who harm us the most.

They steal our pensions, bankrupt our companies, and destroy thousands of jobs, ruining countless lives."

Harry Markopolos in Congressional Testimony ...
and much more.

Anonymous said...

Mr Stiglitz's proposition that the banks should be allowed to fall is about as likely to be accepted by the ruling elite as a homosexual porn-star is to be accpeted into a Mosque.

The simply reason being that depsite the sense which Mr Stiglitz may espouse, the ruling elite simply have too much of their money invested in these corrupt banks to allow their money to just dissappear.

Of course they will continue to screw every last penny they can out of us with the bank bailouts which ultimately will be paid back by taxation. They would happily see civil unrest and complete social breakdown breakdown and not even bat an eyelid, so long as their coffers are kept brimming.

This is also why the global-captalist system will inevitabley fall because it is built upon the falter foundations of ever increasing returns - and the universe simply does not perform to such rules, just see the laws of thermodynamics. The system is finite, as much as they might dress it up and lie, the lie is finite, it cannot continue in perpetuity... and we are now at the dawn of a new age where the globalists fear to tread... they cannot accept that the system has failed, their massively malformed egos simply cannot accept they have been wrong all along, and operating simply in some delusional state.

The coming age of energy shortage will slowly strangle the globalists, like a noose slowly tightened by some macabre hangman. The first sign of this coming age is already here, that is the ending of endless credit. All financial markets are ultimately kept oiled by literally that... oil. And now that we have gone from abundant oil to scarcity, where we have crossed the threshold, in what is known as peak oil, the first part of the system to break is credit. This cannot be re-attained, for the system is beyond repair... this is a new paradigm.

Like all those short-sighted and self-serving people who infest the banks, politics, the media... they will continue to perpetuate that the system lives, of course they will, for they have lived royally off the back of the system for many years, screwing all and sundry for every penny, with never a thought for consequence. So, it is to be expected that they will continue like it is business as usual...

As unpleasant and disgusting as this situation is for those who have innocently gone about their business, unaware of the nefarious schemes of the powers that be, only to find themselves butt-fucked by the politicians, its not all doom and gloom... at least not from our perspective...

Fortunately for us nationalists the myopic greed of the establishment and its slaves means that the people will come to see that the system which has been enforced upon us does not actually care for us, i.e. the wildcat strikes... in a time of plenty the powers that be simply buy off opposition, but when it is a time of scarcity then its not quite so easy for them to buy their way out of trouble. What we will see more and more of is the widening of the chasm between them and us, between the politicians and the normalo folk. Because they will continue to peddle their globalist filth even though it will become increasingly irrelevent to the British people, this will make them obvious, this will draw people to the BNP as they realise just how shafted by the corrupt establishment they have been.

The truth stands in stark contrast to lies... a lie is more opbvious the more the truth is revealed. This is why the media, establishment, tarde unions, etc, etc, are all desperate, they are in a blind panic, trying to shore up their moribund globalist system against the coming tsunami... what utter futility. Us nationalists will watch from the cliff tops as these corrupt old-gang politicians and their media slaves are swept away into oblivion.

The day of the BNP is coming, it has been a long road... but each step is a step nearer.

The future belongs to the BNP.