Tag Archive: environmentalism


voice of anti-capitalismThe truth is out: money is just an IOU, and the banks are rolling in it

David Graeber, theguardian.com
Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn’t know how banking really works, because if they did, “there’d be a revolution before tomorrow morning”.

Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called “Money Creation in the Modern Economy“, co-authored by three economists from the Bank’s Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window.– moneyTo get a sense of how radical the Bank’s new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. People put their money in banks. Banks then lend that money out at interest – either to consumers, or to entrepreneurs willing to invest it in some profitable enterprise. True, the fractional reserve system does allow banks to lend out considerably more than they hold in reserve, and true, if savings don’t suffice, private banks can seek to borrow more from the central bank.

The central bank can print as much money as it wishes. But it is also careful not to print too much. In fact, we are often told this is why independent central banks exist in the first place. If governments could print money themselves, they would surely put out too much of it, and the resulting inflation would throw the economy into chaos. Institutions such as the Bank of England or US Federal Reserve were created to carefully regulate the money supply to prevent inflation. This is why they are forbidden to directly fund the government, say, by buying treasury bonds, but instead fund private economic activity that the government merely taxes.

It’s this understanding that allows us to continue to talk about money as if it were a limited resource like bauxite or petroleum, to say “there’s just not enough money” to fund social programmes, to speak of the immorality of government debt or of public spending “crowding out” the private sector. What the Bank of England admitted this week is that none of this is really true. To quote from its own initial summary: “Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits” … “In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.”

In other words, everything we know is not just wrong – it’s backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There’s really no limit on how much banks could create, provided they can find someone willing to borrow it. They will never get caught short, for the simple reason that borrowers do not, generally speaking, take the cash and put it under their mattresses; ultimately, any money a bank loans out will just end up back in some bank again. So for the banking system as a whole, every loan just becomes another deposit. What’s more, insofar as banks do need to acquire funds from the central bank, they can borrow as much as they like; all the latter really does is set the rate of interest, the cost of money, not its quantity. Since the beginning of the recession, the US and British central banks have reduced that cost to almost nothing. In fact, with “quantitative easing” they’ve been effectively pumping as much money as they can into the banks, without producing any inflationary effects.

What this means is that the real limit on the amount of money in circulation is not how much the central bank is willing to lend, but how much government, firms, and ordinary citizens, are willing to borrow. Government spending is the main driver in all this (and the paper does admit, if you read it carefully, that the central bank does fund the government after all). So there’s no question of public spending “crowding out” private investment. It’s exactly the opposite.

Why did the Bank of England suddenly admit all this? Well, one reason is because it’s obviously true. The Bank’s job is to actually run the system, and of late, the system has not been running especially well. It’s possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.

But politically, this is taking an enormous risk. Just consider what might happen if mortgage holders realised the money the bank lent them is not, really, the life savings of some thrifty pensioner, but something the bank just whisked into existence through its possession of a magic wand which we, the public, handed over to it.

Historically, the Bank of England has tended to be a bellwether, staking out seeming radical positions that ultimately become new orthodoxies. If that’s what’s happening here, we might soon be in a position to learn if Henry Ford was right.Enemy Is Profit

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lionFrom Animal Rights UK
This is Millionaire Banker, Tory Advisor and member of the Countryside Alliance Sir David Scholey.

David Scholey is one of many wealthy individuals who are willing to spend in excess of £60,000 for the privilege of shooting a lion in South Africa. These lions are bred to be shot in so called canned hunting operations which have grown significantly in South Africa over the last decade.

They breed the lions from cubs often bringing in tourist to play and walk with them boasting on their conservation work. The young animals are then prepared to be released into shooting areas where they will be brought out via meat baits in front of the guns of so called trophy hunters. In many cases the shooters will have been drinking and will blast wounding the animal many times before its killed.

Some operations even allow the use of high powered bow and arrows to kill lions. To make matters worse the hunt operations will provide the head and skin of the lion for use as a rug and a wall trophy and keep the bones which they will then sell into the Asian medicine trade at great profit. This trade is leading to a huge increase in the poaching of wild lions across Africa (little over 200,000 left). None of this seems to worry Mr Scholey who seems very proud of his kill.

The Countryside Alliance and US National Rifle Associations are vey happy for their members to participate in these trophy hunts despite the obvious cruelty and its impact on the future of a threatened species. Next time the Countryside Alliance start attacking the RSPCA don’t forget to ask them when will they throw out African trophy hunters from their membership like David Scholey.

Note: there is now a petition to have his knighthood removed please sign here
http://www.change.org/en-GB/petitions/david-cameron-remove-sir-david-scholey-s-knighthoodenemy is at home

My Reaction to Osama bin Laden’s Death
By Noam Chomsky, May 6, 2011

We might ask ourselves how we would be reacting if Iraqi commandos landed at George W. Bush’s compound, assassinated him, and dumped his body in the Atlantic.

It’s increasingly clear that the operation was a planned assassination, multiply violating elementary norms of international law. There appears to have been no attempt to apprehend the unarmed victim, as presumably could have been done by 80 commandos facing virtually no opposition—except, they claim, from his wife, who lunged towards them. In societies that profess some respect for law, suspects are apprehended and brought to fair trial. I stress “suspects.” In April 2002, the head of the FBI, Robert Mueller, informed the press that after the most intensive investigation in history, the FBI could say no more than that it “believed” that the plot was hatched in Afghanistan, though implemented in the UAE and Germany. What they only believed in April 2002, they obviously didn’t know 8 months earlier, when Washington dismissed tentative offers by the Taliban (how serious, we do not know, because they were instantly dismissed) to extradite bin Laden if they were presented with evidence—which, as we soon learned, Washington didn’t have. Thus Obama was simply lying when he said, in his White House statement, that “we quickly learned that the 9/11 attacks were carried out by al Qaeda.”

Nothing serious has been provided since. There is much talk of bin Laden’s “confession,” but that is rather like my confession that I won the Boston Marathon. He boasted of what he regarded as a great achievement.

There is also much media discussion of Washington’s anger that Pakistan didn’t turn over bin Laden, though surely elements of the military and security forces were aware of his presence in Abbottabad. Less is said about Pakistani anger that the U.S. invaded their territory to carry out a political assassination. Anti-American fervor is already very high in Pakistan, and these events are likely to exacerbate it. The decision to dump the body at sea is already, predictably, provoking both anger and skepticism in much of the Muslim world.

It’s like naming our murder weapons after victims of our crimes: Apache, Tomahawk… It’s as if the Luftwaffe were to call its fighter planes “Jew” and “Gypsy.”

We might ask ourselves how we would be reacting if Iraqi commandos landed at George W. Bush’s compound, assassinated him, and dumped his body in the Atlantic. Uncontroversially, his crimes vastly exceed bin Laden’s, and he is not a “suspect” but uncontroversially the “decider” who gave the orders to commit the “supreme international crime differing only from other war crimes in that it contains within itself the accumulated evil of the whole” (quoting the Nuremberg Tribunal) for which Nazi criminals were hanged: the hundreds of thousands of deaths, millions of refugees, destruction of much of the country, the bitter sectarian conflict that has now spread to the rest of the region.

There’s more to say about [Cuban airline bomber Orlando] Bosch, who just died peacefully in Florida, including reference to the “Bush doctrine” that societies that harbor terrorists are as guilty as the terrorists themselves and should be treated accordingly. No one seemed to notice that Bush was calling for invasion and destruction of the U.S. and murder of its criminal president.

Same with the name, Operation Geronimo. The imperial mentality is so profound, throughout western society, that no one can perceive that they are glorifying bin Laden by identifying him with courageous resistance against genocidal invaders. It’s like naming our murder weapons after victims of our crimes: Apache, Tomahawk… It’s as if the Luftwaffe were to call its fighter planes “Jew” and “Gypsy.”

There is much more to say, but even the most obvious and elementary facts should provide us with a good deal to think about.

Copyright 2011 Noam Chomsky

Almost a year ago, during the G20 demonstration in central London. The police indiscriminately assaulted hundreds of people in an attempt to spark a riot. Hundreds were clubbed and assaulted. One person was murdered. Many others were attacked on their way home, up to half a mile from the demonstration. One, relatively tame incident, was caught on camara. The policeman involved was charged with assault. Today he was acquitted. Below is a Youtube video of the incident. Make your own mind up.- And when you’re at the next demonstration remember: Self defence is no offence. Fight Back!!!! 

 A riot squad officer who allegedly twice hit a female protester with a metal baton has been cleared of assaulting the woman.

http://www.youtube.com/watch?v=zUtoOsoDXRA

A riot squad officer who hit a G20 protester twice with a metal baton has been cleared of assault. Metropolitan Police Sergeant Delroy Smellie, 47, clashed with Nicola Fisher outside the Bank of England last April.

The officer, a member of the controversial territorial support group, went on trial accused of assault by beating last week. He was cleared at City of Westminster Magistrates’ Court. But he could still face misconduct proceedings over the incident. Smellie, who was standing in the dock for the verdict, smiled widely and gave two thumbs up to his supporters as he was cleared.

District Judge Daphne Wickham said there was no evidence that his use of the baton was not approved, correct or measured. She said the officer had a “mere seven seconds” to act and other witness also feared for his safety. She said: “It was for the prosecution to prove this defendant was not acting in lawful self-defence. I have found the prosecution has failed in this respect and the defendant has raised the issue of lawful self-defence and as such is entitled to be acquitted.”

Ms Fisher, 36, ran in front of Smellie hurling abuse during a vigil to mark the death of Ian Tomlinson the previous evening. District Judge Wickham, who heard the case without a jury, watched video footage of the incident and looked at dozens of photographs. Nicholas Paul, of the Crown Prosecution Service, said Smellie lost his self-control because of Ms Fisher’s irritating, aggressive and confrontational actions. He said the officer was justified when he shouted at her, pushed her back and struck her with the back of his hand, knocking off her sunglasses.

But Mr Paul said the officer went too far when he struck Ms Fisher across the thigh with the extendable metal weapon, known as an asp. The clash attracted attention worldwide when amateur video footage of it was posted on the YouTube website. Ms Fisher, of Brighton, failed to attend the trial claiming she was suffering depression and did not want to be in the public spotlight again.
http://www.youtube.com/watch?v=zUtoOsoDXRA
http://www.youtube.com/watch?v=HgE29rxR3ZA&feature=related