By William K. Black
October 20, 2016 Kansas City, MO
Elite bankers and the pathetic economists who serve as apologists for their frauds specialize in proving our family saying that it is impossible to compete with unintentional self-parody. The subtitle of the WSJ article providing the latest proof is “Fines on banks translate into $5 trillion of ‘reduced lending capacity,’ bank says.” The “bank” referred to is the Bank of England, which is supposed to be the UK’s primary bank regulator. To be kind, the “study” by BOE is so embarrassing that a better descriptor of the BOE would be “fraud enabler.”
“The roughly $275 billion in legal costs for global banks since 2008 translates into more than $5 trillion of reduced lending capacity to the real economy,” Minouche Shafik, a deputy governor of the Bank of England, told a New York conference of regulators and bankers Thursday.
JD’s book was previewed here, on NEP, in sections as he was going through the writing process and many NEP contributors participated in comment threads which influenced aspects of the book. If you have not read it in its entirety, The Millennials’ Money is quite worthwhile in that it not only brings JD’s excellent diagrams, from his best-selling ebook Diagrams & Dollars, to a hardcopy format covering the basics of MMT but then goes beyond that with some genuinely interesting thinking on how the millennial (fourth turning) generation can best use MMT to solve some of the immense challenges they face.
Recently, I’ve been trying to zero in on a peculiar set of ingredients that seem to be baked into our economic pie―and which are depriving that pie of a sustenance we, as a collective society, need it to provide. The peculiar ingredients have to do with our monetary system. Specifically, the fact that we―whether intentionally or by happenstance―have put in place and operate a money system that seamlessly creates dollars, as necessary, for profit-making enterprise, but specifically does NOT create dollars for not-for-profit ventures.
In a recent piece, I introduced the concept of “soft climate denial”. In soft climate denial, people acknowledge that climate change is real and threatening and may even be panicked about it. However, in this cultural-political constellation with attendant states of mind, the solutions for climate change that are embraced are in no way commensurate to the acknowledged threats to human existence posed by anthropogenic global warming. Consequently, soft climate denial leads often to hand-wringing or other ineffectual actions but no decisive steps taken towards meeting the challenge of human-caused and human-accelerated global warming.
Posted onOctober 6, 2016|Comments Off on Fiscal Feminism: Pavlina R. Tcherneva
NEP’s Pavlina Tcherneva appears on the Laura Flanders Show. Pavlina says the current practice of gender-blind and race-blind fiscal policy lacks visions and helps no one. Congress, according to Pavlina is focusing on the wrong things. A self ascribed feminist economist, Pavlina says feminist fiscal policy is real, not simply ideological, and should be a central part of the American economy. We’ll encourage growth, she says, by creating employment — not the opposite. And employment begins with targeting women and racial minorities as the benefactors of policy.
NEP’s Bill Black recently appeared on [email protected]’s radio show discussing the issues related to the settlement the DOJ is pursuing from Deutsche Bank. It has also appeared on the website. You can view it here.
Nothing clarifies the mind of a bank board member than the loss of lucrative business deals. Wells Fargo’s CEO says he will pay a penalty for presiding over his bank’s fraud wave. Could stricter sanctions follow, perhaps even a criminal investigation?
We spoke with William K. Black Jr., economist and white-collar criminologist, about the implications of the Wells Fargo case and the laws that might have been broken.
Rest of the post is at Huffington Post. Read it here.
NEP’s Bill Black appears on The Real News Network. Topic of discussion is Deutsche Bank, the German bank that was at the center of the LIBOR scandal and is likely to face upwards of $5 billion in a settlement with the Justice Department. Video is below. If you would like to see with a transcript, it is here.
Let’s jump ahead to the day (surely it will come, right?) when we realize a general consensus has actually been established that, yes, it IS possible to sustainably pay for collective goods and services by the direct issuing of sovereign fiat dollars―that our federal government doesn’t have to collect taxes in order to have dollars to spend, that it doesn’t have to issue Treasury bonds to get the dollars it needs but imagines it doesn’t have.
Now that we’re here in this future moment, it’s clear we have an even BIGGER problem than we had before!