Date: 13 Mar 1999 17:51:00 +0200
From: I-AFD_2-AT-anarch.free.de (Nico MYOWNA)
Subject: Re: Banking, Banks and crisis...


Hi Ali,

> So, what a bank desires is an "inefficient" market. one where the spread
> betwix lending and borrowing is maximized. They have certain ways of doing
> this. First is government regulation. This creates barriers for entry into
> the banking industry and therefore decreases compitition.

First of all, banks use the guarantee of the state that all citizien only  
use currencies who was given out by banks of issue. The second point is  
government regulation who *try* to create barriers for entry into the  
banking industry....

I agree with your statement above for the past. It was the rule of banks  
and banking in the past before the global stock market and the Internet.  
Now nearly everybody could establish a offshore bank with and without  
money via Internet in various states and territories who use this right to  
have a lively economy (Jersey, Bermuda, Hungary, Luxemburg, Monaco, a few  
indian reservations etc....). Nearly everybody could hire via Internet an  
independent analysist or brocker to realise his maximum interest on his de- 
posit outside of the established banking industry.

There is a large funds structure outside of the banking industry who try  
to control more and more the stock market and try to break open the by es- 
tablished banks controlled "inefficient" market with rates of interest up  
to 550%. For example the US-funds have an raising from 2 Billion $ up to   
8 Billion $ in 8 years -- most with money of teachers, workers etc.....

See for example the last year attack of the British DFI on BIG Internatio- 
nal and his British office to illegalize this world lottery and investment- 
fund who offer together with an other group private loans free of interest  
and investments with high rates of interest. BIG International had just  
reconstructed his office in Austria and carry on with their activities via  
Internet. --  This show how limited the power of national government re- 
gulations are.

> Secondly is
> information. By controlling information - the encryption of the financial
> markets - through use of overly complicated instruments - and their
> mystification by the media, the depositor (whom the bank borrows from)
> cannot realize the maximum value of his money - get the maximum interest on
> his deposit.

Sorry, is Bloomberg or Reuters a bank institution? Bloomberg and Reuters  
mediate at this moment the most informations about the stock changes and  
the stock market. Everyone in Europe (and maybee in the States) could  
watch Bloomberg via sattelit on his TV. -- Banks haven't any more an mono- 
pol on information -- and there are more and more stock market curses on  
University extensions, at public schools and more and more workers stock  
market clubs.

The depositor cannot realize the maximum value of his money because he  
have to pay more rates of interest in prices as he got with his deposit.  
The enterprises doesn't pay their rates of interest for their indeptedness  
-- the consuments pay their rates of interest if they buy something. Up to  
50% of all prices are rates of interest of all enterprises, who have pro-  
duce, transport and re-sell this article.

The depositor can only build up capital and make money with his deposit if  
he got a higher rate of interest as he have to pay in the prices of his  
cost of living. Banks try to create barriers for entry into the high rate  
of interest market if they call for 250 000 $ minimum deposit; on the  
other hand are there now various enterprises who share this minimum with a  
large quantity of depositors, with that the single depositor could deposit  
a low sum of money for a high rate of interest (8% per month and more).

> Third - cartels - banks along with the financial arm of
> governments control the interest rates - leading to imperfection in the
> markets.

Sorry, banks along with the financial arm of governments *try* to control  
the interest rates.

More and more enterprises got their credits not with a bank, but on the  
stock market. At the stock market the enterprises could control the divi- 
dend on their own without indeptedness and the absolut need to pay off a  
fixed rate of interest. Therefore the importance of the stock market raise  
-- and with the stock market the power of the funds outside of the banking  
industry. The bank loan with the indeptedness of the industry does not  
have a future for the industry.

See for example the start of the Asian crisis and the rule of the Internet  
and the international stock market. More and more control the stock market  
and the various groups of investors the national industry and the national  
governments. If an fund with 200 000 000 $ try to resell partly his stock  
because the dividend is to low so this stock has gone fast down; therefore  
more and more funds try to be critical owners who fight against high mana- 
ger wages in spite of a low dividend and fire sometimes the hole managment  
-- see the TIAA-CREF (a pension-fund for teachers) and the coffee-house- 
chain Furr in the States.

There is in future a new class war possible -- not with strikes of workers  
in the industry, but with workers who own and try to control the industry  
by the power of their (pension- and rent-) funds.

Nico

## CrossPoint v3.11 ##