SHITIBANK

THE CROMNIBUS OF LIBERTY

“Citigroup is a very large bank that has amassed a huge amount of political power. Its current and former executives consistently push laws and regulations in the direction of allowing Citi and other megabanks to take on more risk, particularly in the form of complex highly leveraged bets. Taking these risks allows the executives and traders to get a lot of upside compensation in the form of bonuses when things go well – while the downside losses, when they materialize, become the taxpayer’s problem.

Citigroup is also, collectively, stupid on a grand scale. The supposedly smart people at the helm of Citi in the mid-2000s ran them hard around – and to the edge of bankruptcy. A series of unprecedented massive government bailouts was required in 2000-09 – and still the collateral damage to the economy has proved enormous. Give enough clever people the wrong incentives and they will destroy anything.

Now the supposedly brilliant people who run Citigroup have, in the space of a single working week, made a series of serious political blunders with long-lasting implications.

Their greed has manifestly proved Elizabeth Warren exactly right about the excessive clout of Wall Street, their arrogance has greatly strengthened a growing left-center-right coalition concerned about the power of the megabanks, and their public exercise of raw power has helped this coalition understand what it needs focus on doing – break up Citigroup.”

Simon Johnson: Here

Via William Banzai

2
Leave a Reply

avatar
  Subscribe  
Notify of
Erasmus Le Dolt
Erasmus Le Dolt

The answer, and there is one, is to create individual state banks on the model of the Bank of North Dakota. The model has been hugely successful for a hundred years. Many State banks, if created, would be AAA because they’ed handle all the financial transactions of the individual state, take on local citizen deposits, which would support local citizen scrutiny of what goes on at the bank, and work with the local banks. They would be lender of last resort to the local banks…no need for the Fed. Fractional banking would no longer be an issue.

All this goes on on a daily basis in ND.

The model is there. All that needs to be done is copy it. Your deposits would be as safe as possible with no threat of ‘bail-ins’ which are definitely on the agenda now.

That said,, good luck getting it by the lobbies. And good luck with your deposits at Citi and BofA..guaranteed, because of last week’s legislation in D.C., they are as good as gone.

TE
TE

Erasmus, I may be wrong, but I do believe that the ND model was THE model from pre-Civil War all the way through Jekyll Island.

We were sold to the banksters in the decade or so following the great war. It wasn’t ratified until right before we started our century of worldwide conquest and butting in.

Oh well, what is done is done.

But, I firmly believe what is old will be new again. Let us pray that in this instance it will be true.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading