As we always say, ‘fractional reserve banking/fiat currency is the worst non-violent crime of the millennium.’ As a dominant, dreaded and despised enterprise of the modern world system, banking must be continuously reexamined and reconstructed, given its tendency to devastate ordinary life within days. The so-called Great Financial Crisis (GFC) has thrown some light on the potential damage deep financial crisis can cause. Iceland, Ireland, Portugal, Spain, Cyprus, Greece, Italy, etc., of the OECD (rich countries) and the commodity exporting countries of Russia, Brazil, Venezuela, Argentina, South Africa, etc., are all facing difficulties, mostly because of protracted mispricing of goods and services, compliment of phony money based financial system. Even China is now in the thickest of this problem! African countries, once again, are looking at impending disasters!
Banks have always been core members of the ‘deep state’. For our purpose, we have defined the prevailing ‘deep state’ of the usually strong states (but not exclusively confined to them) as the military-intelligence-industrial-banking-media-complex, which run the show behind the elected formal state! As a result, it has become difficult to have democratic and enlightened debates on the existing global financial architecture, even in the universities. That is why we have chosen the phrase ‘indoctrination institutions’ to describe the current orientation/status of these once centers of learning, teaching and reflection. Nonetheless, because of the gross inequity of the global system, there is now a critical number of the global sheeple (human mass) willing to take matters in its own hand, particularly in regards to the fraudulent creation of phony money that is substantively funneled to the global oligarchs at the expense of the global masses. The rise of alternative currencies, (crypto-currencies, coupons, points, etc.) as means of exchange is just one option that is gaining traction. We sincerely advise the power that be (TPTB) to drastically change its ways before the [email protected]#$ starts hitting the fan!
May be it is wise to listen to more versed/prominent personalities than us when it comes to modern banking. Here is the former governor of the Bank of England and president of the Rothschild Bank. ‘The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and with a flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.” Sir Josiah Stamp, the second richest man in UK (1927). ‘The creation of fiat currency should be a government monopoly.’ Milton Friedman. J.P. Morgan’s words to Congress in 1912: “Gold is money. Everything else is credit.” ‘There can be few fields of human endeavor in which history counts for so little as in the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have insight to appreciate the incredible wonders of the present’. John Kenneth Galbraith. Let us contextualize the fraudulent system’s operation by referencing it to our own country.
Ethiopia’s working stiff (entrepreneurs and workers) are dropping out like flies from genuine economic activities opening up more space to the ascending feudal lords (rent seekers), mostly comprising of Ethiopia’s newly minted financial and landed aristocracy! This fused aristocracy is now at the forefront of Ethiopia’s fledging land lordism! We will look at one of the most ridiculous sector that is absolutely wallowing in pyramidal scheme. Ethiopia’s private banks now pay dividend, ranging from 20% to 90% per annum! Theoretically, banks are presumed to be intermediaries, i.e., they are supposed to mobilize finance capital to lend out to the productive sector. But Ethiopia’s productive sector that is supposed to utilize banks’ credit/loan cannot make a return of 20 to 90% on a yearly basis. Then how are banks to pay such incredible dividends, when their supposed profit largely comes from interests and other fees, which are regulated and modest, if not nominal? Most importantly, this sends a dangerous signal to a would be business operator. Why engage in difficult and risky productive activities when banking (which is protected by the state, at least to a large extent) is giving such a return? We can only say; ‘Eat your heart out Charles Ponzi’!
In a system that is overarched by greed, the desire to beat regulation can be overwhelming to many and overpowering to the chronically selfish. Ethiopia’s (current) lucrative banking sector is closed to outsiders, including the Ethiopian diaspora. Of course, given such returns, (which hardly exist in normal business operations anywhere) all and sundry are eager to get in the game. To this end, ‘next to kin’ or fronting lackeys are employed to access this lucrative business or financial rent, to use a more appropriate phrase. Such regulation beating arrangements are quite common in other sectors as well, supposedly restricted to the poor natives, including retail, hospitality (small hotels/motels/guesthouses, restaurants, etc.) land, real estate, import, etc. Phony money, imported or not, is systemically and aggressively disfranchising the settled from their homes, businesses, etc. Frightening disempowerment and unfair uprooting of citizens has become the order of the day. Don’t forget; ‘printing money out of thin air does not increase wealth, it only increases claims on existing wealth.’ (Charles Hugh Smith) This is exactly how Ethiopians are getting dispossessed, under various pretexts, like privatization, open tenders/competition, blah, blah. The ultimate objective behind these charades is to allow oligarchs (both domestic & foreign) secure long-term stream of income and real assets, by utilizing phony/bank money (only available to them, via cross shareholding of banks, etc.) before the jig is up. This is dispossession by stealth par excellence! See Ellen’s article next column, Whitney’s, Bonner’s and Smiths’ on page 38, 39 and 46.
Sooner than later, popular reaction against such fraud and injustice is bound to appear on the horizon, with a potential to undermine peace and stability in this diverse country (think Somalia, Libya, even Nigeria, etc.)! Unfortunately, a good portion of Ethiopia’s intellectual elite seems to have lost its honesty and professional integrity, all to the ‘good life’ facilitated by easy & unearned money. It is not inclined to critiquing the ongoing criminal accumulation and its potential consequences. In fact, it seems to have become part and parcel of the wholesome scheming; materially, morally, spiritually, emotionally and culturally. Under all sorts of ploys, the connected few (not excluding degenerate top officials) are looting as if there is no tomorrow! But we believe tomorrow, when it comes (coming days, months, years, etc.) might not be all that forgiving! As the young Spanish leader recently proved: “Populism Rises from Failures of the Elite.” Pablo Iglesias (PODEMOS.) Good Day!