| How Can One Keep Leverage From Attacking One's Currency? 12-12-14 mpg Sergei Glaziev: Stupidity Is Worse Than Theft Must Read -- A quote...."Another increase in key interest rates on loans issued by the Bank of Russia, for the purpose of refinancing commercial banks, made loans completely inaccessible for the majority of enterprises of the real sector of the economy. When the average profitability of the manufacturing industry is 7.5-8%, credit issued at rates of 10% or higher cannot be used by most businesses, either for investment or for replenishing working capital. Such decisions cut off the real economy, with the exception of some sectors of the oil, gas, and chemical-metallurgical sector, from credit issued by the State." A fine critique on Banksterism as it applies to the Russian economy, There are some good ideas in this critique on how to shelter Russia's economy from the massive quantities of unearned leverage being generated by foreign speculators and foreign Banksters. Much of them, unpleasantly enough, involving monitoring transactions and the imposition of taxes. Which was also suggested by this website editor. Capital controls of any sort should never be implemented. But taxes on currencies and the securities based on those currencies that rise above and beyond a true bench mark, such as the PPP (Purchasing Power Parity) or any other bench marks based on measurable, tangible assets, might be an effective solution. However extreme caution must be exercised that such programs do not become overly complicated, onerous, and most importantly, don't distort what would be those actual aspects of a "free-market" in both its transactions and outcomes if these markets weren't already distorted by the Banksters' shenanigans. In other words the sole goal of these programs should be to produce a "free market" based on collateralized transactions and actual capital savings by eliminating the Banksters' advantage of their massive programs of unearned leverage..... ....Without these programs devolving into another way of distorting or taxing the "free market" by the government, its well connected oligarchs, or by any other soon-to-be vested interest groups who may benefit from such programs. A goal that anyone attempting this task should clearly understand might very well be impossible. In other words it's quite probable, even inevitable, that any "cure" might be worse than the "disease" especially if it does not have "sunset" provisions or other features that will automatically turn off such programs when "free-market" conditions finally hold sway. But SOMETHING should be done about the tens of trillions of faux-script and derivative leverage being created willy-nilly every single year (now by most calculus, way North of a quadrillion dollars) for the geo-political and financial advantage of just a few countries and their parasitical classes. - mpg |