mercoledì 26 maggio 2010

Banks are crap!

Thing is banks and politics lately are the same thing, a huge social parasite living on speculations of the economic system in each and every country, continent and maf! Yap maf, since each banking structure is interconected with their own backuppers in a maf system to protects their does. I don't speack here of the organised crime, but of the organised banking mafias.



The trouble is economy doesen't mean banking. Banking is just a small part of the economy, thus eceonomy without banks can grow, fall, and restart, but banks without echonomy do not exist.



And the problem is banks and politics, hand in hand, killed the economy.

So what is ecnonomy than?



Coinee, ancien grteek, stays at the origin of this word, Oikonomia (I think this spelling can be fairly enough pronounced as the original greek word) is a compound word, in which the Oikos is the house (also in the family sense), and Nomia, which is being able to manage your house.



Managing your house deeds means cleaning, building the fire, cooking, repairing the property, the cart, feeding the cattle, plowing, harvesting, receiving guests, dealing with suppliers and clients.



Let's split this:



Hard work



Production



Maintanance



Buying



Selling



Party and entertainment



But no banking. Right, no banks involved in basic Oikonomia.



People borrowed from eachother, if needed to do so. Than somebody thougt to intermediate this ofering his assets as a gurantee to the lender, fixed intereses to the borrower, a place where anybody could go to place investments or get some credit.



So what was the bank based on? Nothing, fresh air, words, even worse, other people's money.



And things went fine untill the politics jumped in, ghet purchased by the banks to issue laws in their favours, and even managed to create superbanks, national treasury, things like that.



And this grew, and provoked issues, wars, peace, brokers, credit cards, subprime credits, anything to show turnover, but...



The base is missing, (read above the base of economy please) We trade "values" that have no value, just papers, inshured, backed up, legally protected nothing! Yap, Nothing. Big times nothing! Gazillions.



And Banks know it, and Inshurances know it (they are sort of banks too) and stock exchange knows it, and politics knows it. There is no base, no fundaments, this is a castle, solid rock castle, but not build on sand, it would be a blessing, it is build on nothing!



So if a dude sneezes by mistake, the whole thingamajing comes down in a blink, as it is happening nowdays. Banks, nations, churches, all facing the depression in a weird manner, that is fighting to stay afloat of their own rules by sinking the real economy to save their own butts.



But is the real economy that needs to be saved from the banking system. Many banks going down killed sound rock businesses, with clients and contracts for decades to come.



Economy is production, stability, clients, real goods exchange, and as long as banks look up at the politics to know what to do or who to help, all they do is killing economy.



Banks, if they want to survive they must help out real economy, the little dude with a big idea that can make money by producing plus value, but has no chance since for them banking system is foreclosed by definition.



Smart banks should supply them not only with money, but also with finacial management, marketing professionals, and general management untill the credit is back in the banks pockets, than they can choose to keep the bank's supplied managers or return them to the bank and hire their own.



This is the future, banking not only money, but also management, otherwise we will drag this cancer called depression to the end of times.



Dixit!

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