In Costa Gavras's EXCELLENT movie "Capital", it is said : "Banks bleed people 3 times. First: the market wants blood, you relocate, workers lose their jobs. Second: you bleed them as customers. Third: via Europe's debts you zap countries and their citizens are bled. Worker, customer, citizen are the same guy, so you screw him 3 times.... We relocate and create unemployment, raise prices to enrich stockholders and break the social system to pay off debts...." Isn't it what is all about, after all? Your opinions?
We have our own version in the US. The banks lend at sub prime rates to those knowing they can't afford it. They default and the banks try to bundle and sell. Those that they can't sell they foreclose and create a loss the government bails them out on and they get the house back at a reduced price. Only in America.
I was referring to the fact that customers bring their money to the banks. Banks charge interest rates to use it through their services. Shouldn't it be the other way around? I charge the bank an interest rate for using my capital? What does really banks bring to the majority of people? Nickels and dimes in comparison to what they bring?
The market wants blood. Corporations relocating and it's the death of an economy. Detroit is a perfect example. Supermarkets now are developing self checkout, what does it mean? That in a short term cashiers will disappear. What is the result? Less costs. Unemployment and the automation of the economy. Everything comes down to the diminution of the cost and consequently more capital (but you know that).
Since you seem to have at least some economical knowledge, can you explain me why the consumer, the citizen needs inflation (without boring me with the so-called economists' views of the economy)?
Isn't the US citizenry paying for the Fed, Wall Street's conscious miscalculations? Isn't the US debt worth $16 trillion?http://www.usdebtclock.org/sources/transparent2.gif
Can't speak for you but I don't pay my bank one cent for the "privilege" of giving them my money. I DO have a loan with them, but totally at my discretion and not theirs.
Supermarkets do away with cashiers because consumers demand it. If you don't like it use a cashier line (still available in every store I know of); if enough people do it the self check out lines will disappear. But they won't because people are willing to exchange a small bit of their effort to reduce costs.
Consumers and citizens don't need inflation; what makes you think they do? Because they keep demanding more money for the same work load? The bottom line is that a very large percentage of the cost for almost every product in the world is labor - raising labor costs will inevitably drive inflation. Not the other way around.
I speak for the majority. Then since banks don't gain from their customers explain me their extravagant earnings. They invest lambda citizen's money taking unconscious risks, they create, produce NOTHING. They just speculate with people's money. Again if you bring to them more money monthly than they give you in return why is it that people are not asking for interest rates from the banks since they are using their money?
Consumers demand it. Really? When? I want quicker lines, I don't want people fired. I want more employees to serve me. More employees, more efficiency, quicker services... Why is it that people have to suffer the consequences of the greed of corporations? If it is your view of a prosperous economy it is not mine.
If you refer to Japan, economists/politicians are crying because the Japanese economy is experiencing deflation. Everybody agrees upon privileging inflation. Nowadays in mostly mainstream media experts fear deflation and parallelly support raising inflation, in what way again inflation is good for the consumer's purchasing power? It is good for the corporations. Since the corporative interests are antinomic with the public's don't I have the answer to my original question?
By the way if we follow your logic, we raise labor (meaning salary), we raise product costs but the problem everybody is experiencing is the rise of product cost is not followed by the rise of the salary. Again in what way inflation is good for the customer?
I cannot wait to get Tim Horton's coffee at my local Burger King in the good ol' U S of A.
Yes, I understand what makes an economy work and what does not. Watch the accelerating exodus of American corporations as those ignorant of how economics works attempt to crack down on the, all too reasonable, effort to reduce tax and regulatory burdens.
You are telling me that corporations if they could they would stay in the US? You are telling me that 10% in taxation strangles their outrageous turnovers? You are telling that they would still prefer to target an agonizing market (the US) versus a growing one (China, an example among others...)?
Since I don't understand why don't you try to explain it to me? I am all ears.
As always maxoxam41, you see the trees and the forest not. Banks process fiats, printed or e-printed by governmental agencies, in this day and age, which devalue faster than tissue paper or e-paper. The banks are required by law, in most countries, to use fiat monies in this manner. You argue banking issues, when the whole monetary system, for which it stands, is crumbling. Banks do not steal your fiats. You are perfectly welcome to stuff them into your socks or leave them on deposit. The risk the banks now take, is that the devaluation of your government credits tend to erode profits - how they pay the rent - faster than they can recoup said losses. Hence the low rates of interest. In a sound monetary system, not configured with rules ordained by Kings, imbuing government credits with vast non-wealth, one would have a choice to deposit intrinsically valuable assets or check/notes thereof, into one's bank or mattress of choice. Your regurgitation of some off beat documentary, lacking any credibility I'll posit, bespeaks your constant conspiratorial anti-Pollyanna bent.
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No, they are not. This statement equals a myth. Banks and corporations are necessary in maintaining a percolating economy in a (once) free society such as The United States.
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