Archive for the Banks and Banking System Category

USA + FRN/PD – – > IMF + SDR – – > NDB + UMU? The “Universal Monetary Unit” . . . Coming To a Planet Near You (January 2, 2017)

Posted in AIIB, Banks and Banking System, Book Reference, BRICS, CFETS, CIPS, Dollar - World's Reserve Currency, Gold, Gold Standard, Hyperdive Economic Collapse, International Finance, International Monetary Fund, Money, Petrodollar, SDR - Special Drawing Rights, Special Drawing Rights (SDR), Trade, Universal Monetary Unit, World's Reserve Currency on January 2, 2017 by e-commentary.org

. . .

K          “Remember way back on October 1 when the International Monetary Fund (IMF) implemented the modified composition of the Special Drawing Rights (SDR) that includes for the first time the Chinese Renminbi (RMB) along with the United States Dollar (FRN/PD), the Euro (€), the British Pound Sterling (£) and the Japanese Yen (¥) in the Great Valuation Basket?”

J          “Couldn’t forget.  To celebrate the transition, we got the entire day off.”

K          “The Federal Reserve Note/PetroDollar maintained its percentage share of the portfolio with the Euro, Pound and Yen yielding room for the new kid on the block.  The way I see it, the evolution of the SDR may be too slow for Brazil, Russia, India, China and South Africa (the BRICS countries) and other countries (the BRICS+ countries) and still leaves the FRN/PD as the world’s reserve currency.”

J          “They say more countries are getting cranky that the FRN/PD remains the mandatory currency peg for trade on the global market.  Last Thursday, the China Foreign Exchange Trade System (CFETS), the foreign exchange trading platform operator, announced that it is adjusting the way it calculates the CFETS Yuan Index which is a critical measure of the Yuan against a basket of currencies, starting yesterday.”

K          “And you got the entire day off.” 

J          “And today, for good measure.  They say that the USA will not allow the IMF to revisit the composition of the SDRs again for years.  The problem for the BRICS+ countries is that the United States has veto power over the composition of the SDR and will block any attempt to accelerate the transition to incorporate other currencies.”

K          “Think about this possible scenario.  The BRICS+ countries may make an end run and expand the mandate and activities of what is now known as the New Development Bank (NDB) and create a Universal Monetary Unit (UMU) constituted of the Chinese RMB, Russian Ruble, Indian Rupee, South African Rand, Brazilian Real, good old gold (Alpha uniform) and a smorgasbord of other currencies.”     

J          “While they are at it, the South African Kruggerand could supplant the Rand and serve as the gold component or part of the gold component.”

K          “Who knows, when they do that, you may get the week off of work.”

J          “Count me in and count me off.  And to provide for a smoother transition, include in the new generation UMU the current currencies in the SDR in diluted amounts.  A measured and gradual approach is prudent.  Interdependent economies and unintended consequences, you know.”

K          “While they are at it, they could go full in.  The Cross-Border Inter-Bank Payment System sometimes known as the China Interbank Payment System (CIPS) could develop into a comparable transnational multilateral payment system as a complement to and to compete with the Society for Worldwide Interbank Financial Telecommunication (SWIFT).”

J          “That’s exactly what I was going to suggest.  An economy needs a ‘thing’ to serve as money/currency/chits/script/wampum and a means to reconcile payments.  The BRICS+ countries have no reason to wait another half decade when they can do it themselves.”

. . .

J          “Or the BRICS+ countries may force the issue at the IMF meeting in Rome, District of Columbia on April 21 – 23.”

K          “And you will get at least two days off of work.”

J          “Can’t forget.  Stay tuned.”

. . .

K          “Someone surely has thought and wondered about these possible developments.”

J          “You think?  I wonder if anyone cares.  What’s on tv?”

. . .

[See the e-commentary at “The Mandibles, FRNs, SDRs, IMF, G20, WTD! (September 5, 2016)” and “Dollar – World’s Reserve Currency”.]

Bumper stickers of the week:

The “Universal Monetary Unit” . . . Coming To a Planet Near You

Paper [Money] Is Patriotic

Fight the War on Cash

 

Musings On Silver (November 21, 2016)

Posted in Banks and Banking System, Gold, Gold Standard, Money, Silver, Silver Standard on November 21, 2016 by e-commentary.org

. . .

_          “First place among the losers?”

_          “Dismissed as the ‘also-ran’ of precious metals?”

_          “Chump change or chump’s change?”

. . .

_          “I view gold as the farm and silver as the crops and the animals.  You do not sell the farm.  You do buy, sell and exchange the crops and the animals.”  

_          “So gold is the store of value and silver is the medium of exchange.  But what is the unit of account – hectares or hogs . . . or flashy pretentious paper with no real underlying value other than faith that is often misplaced by the populace?”

. . .

_          “The historic price relationship between gold and silver is way out of kilter.  Gold should be priced lower or silver should be priced higher.  If you account for the cost of production, gold is not priced too low and cannot be priced much lower without impacting the supply which will . . . drive up the price and further distort the price and the historic price relationship.  Ergo, silver should be priced much higher.”

_          “Everything is out of kilter.  Like so many other ostensible markets, we are dealing with rigged rackets.  Both prices are held artificially low by the powers that control price and sell paper precious metals.  But the prices cannot be held low forever.”

_          “Mr. Supply and Ms. Demand are not in the game.”

_          “Except to the extent that if a miner cannot make any money from mining, the miner will not mine.”

. . .

_          “Gold is for kings and silver is for royalty.”

. . .

_          “And there are some pure silver mines, yet silver is usually a byproduct of other mining for gold and copper.  The economics are intertwined and interdependent.”

. . .

_          “Someone said that roughly seventy percent of gold is used in jewelry and roughly seventy percent of silver is used in electronics and other commercial uses.”  

_          “Silver was once used in large quantities for analog photography.”

_          “Many digital devices use a speck of silver.  Those specks add up to a peck.”

. . .

_          “She reported back to her students that during her field trip to China fifteen years earlier, some shopkeepers exchanged her pre-1965 Washington silver quarters for two dollars and fifty cents in credit for her purchases in the shop that day.  Think about it, on average, the Chinese shopkeepers offered the tenfold premium without even a prod or a prompting.  They are in the know and they know it.”

_          “The Chinese shop keepers’ take on the pre-1965 two bits is revealing.  They will take them in exchange for twenty bits worth of products.”  

. . .

_          “That Series 1935 A silver certificate framed in the den is from a Hong Kong shopkeeper who swiftly slipped the certificate with the lapis lazuli Treasury seal in among the other unpretentious camo-colored Federal Reserve Notes she dealt and dropped in front of me.  She appeared to be sloughing it off on someone who might not notice the outlier dealt to him.  I pulled it out of the stack, stared at it and could hear its story and feel its history.” 

. . .

_          “And silver is shinier than gold.”

_          “Describing a silver salmon as ‘dime bright’ invokes and evokes a clear image.”

. . .

[See the e-commentary at “The Silver Standard:  The Value Of (Sort Of) Real Money (July 15, 2013)”, “Is The Gold Standard Really The Gold Standard? (January 18, 2010)”, “The Gold Standard Revisited (August 15, 2015)”, “‘Fiat Gold’ / Fool’s Gold (May 2, 2011)”, and “The Mandibles, FRNs, SDRs, IMF, G20, WTD! (September 5, 2016).”]

[JFK – May 29, 1917 – November 22, 1963]

Bumper stickers of the week:

Silence is golden; gold is silent

What is the gold standard again?

First Annual Noble Prize In Eco-nomics (October 10, 2016)

Posted in Awards / Incentives, Banks and Banking System, Courage, Credit Unions, Crime/Punishment, Economics, Economics Nobel, FDIC, Journalism, Kleptocracy, Law, Newspapers, Nobel Prize, Noble Prize, Press/Media, Rule of Law, Song Reference on October 10, 2016 by e-commentary.org

. . .

K          “An award dedicated to acknowledging and celebrating the work of someone on the planet who really knows something about eco-nomics.”

J          “Novel.  Appropriate.  Necessary.  And unprecedented.”

K          “The recipient of the first annual Noble Prize In Eco-nomics is . . . Professor William Kurt Black, Esq. professor of law and economics with the University of Missouri at Kansas City.  With decades of substantial and substantive real world experience, Professor Black examines and explicates the workings of banks and the banking system in the United States and the world with insight and conviction.  In his classic, timely and timeless magnum opus The Best Way to Rob a Bank is to Own One, he advances the conservative notion that those in the banking industry who commit systematic and rampant fraud should be convicted.  In an inspiring TEDxUMKC presentation available at TED the national public forum, he notes that bankers deploy banks as weapons of mass destruction against the public.  Unlike so many other law professors and judges who explore the interface of law and economics, he contends that law and economics should serve more than the interests of the wealthy and the powerful.  A felicitous contributor to the public discourse and dialogue, Professor Black’s continuing academic and personal commitment to the common weal and greater good is a good thing.”

. . .

[“This is Walter Kingsbury Brinkley, XYZ News, New York.  Earlier today, the highly coveted Noble Prize In Eco-nomics was awarded to Professor William K. Black, Esq. of the University of Missouri at Kansas City.  In his most celebrated work, Professor Black contends among other observations that the adoption of the rule of law in America is a swell idea.  In a related development, the Swedish bankers convened and announced the 2016 Nobel Prize in E-con-omics given to the individual who has or individuals who have done the most during his, her or their career to advance the interests of the wealthy and powerful.  . . . “]

[See the e-commentary at “Announcing The First Annual Noble Prize In Eco-nomics (May 2, 2016)”, “Award Deadlines (Livelines?) (July 25, 2016)”, “From e-con-omics to eco-nomics? (August 1, 2011)” and “Skip the Nobel in Economics (Oct. 6, 2009).”]

Bumper stickers of the week:

“Yes, as through this world I’ve wandered I’ve seen lots of funny men; Some will rob you with a six-gun, and some with a fountain pen.”  “The Ballad of Pretty Boy Floyd” by Woody Guthrie (c) 1958 (renewed) Woody Guthrie Publications, Inc.

Give a man a gun and he can rob a bank; give a man a bank and he can rob the world.

A Second Party:  Trump or Sanders? (March 14, 2016)

Posted in Banks and Banking System, Democrats, Elections, Federal Courts, Freedom / Liberty, Republicans, Stock Market, Supreme Court, Tea Party, Voting, Wall Street, War, War and Wall Street Party on March 14, 2016 by e-commentary.org

. . .

J          “Do political ideas proceed along a line/continuum or around a circle?”

K          “The ACLU card-carrying citizen turns around and bumps into a ‘Who is John Galt?’ hat-wearing libertarian sporting an ‘Ayn Rand Paul’ button.  Each should wonder whether they have something in common.”

. . .

K          “Trump supporters yearn for someone who speaks his mind – right or wrong – rather than a politician who only lies and lies and lies and lies to them.”

J          “Can you blame them.  But it is still a message of hate and fear.  I can blame them.”

K          “Disturbing message and tone, I agree.  And then Sanders notes that socialism/crony capitalism has made the wealthy even wealthier and thus socialism without crony capitalism may offer some promise for the non-wealthy.”

J          “Two strains of populist messages at a strained time in the Republic.  Yet Trump’s authoritarian message is disturbing and threatening.  The message is no longer conveyed with dog whistles.”

. . .

J          “The two-ring circus to select the ‘D’ representative and the ‘R’ representative of the ‘War and Wall Street’ Party grinds forward.”

K          “Sanders is not the War candidate and not the Wall Street candidate, so he is doomed.”

J          “In the FIRE (‘Finance, Insurance, Real Estate’) World, Trump is more of a ‘Real Estate’ person than a Wall Street/‘Finance’ person, yet he is not interested in or even able to reign in the systematic criminal activities on Wall Street.  He is belligerent and he is bellicose, yet he does not fit in with the Neo-Cons who seek war everywhere all the time.”

K          “‘Belli’ means ‘war’.”

J          “Trump is mean and Trump means war on some groups.”

K          “So he is the Quasi-War and Quasi-Wall Street Party candidate.”

. . .

K          “The real war is over the Supreme Court.  In past years, the Democrats tended to appoint slightly less dishonest federal appellate and district court judges, although recent Democratic appointments are as dishonest as the Republican appointments.”

J          “They vitiated the last remaining tie breaker.  Now who do you vote for?”

. . .

J          “The Owners own Clinton, Cruz, Rubio, Bush, Romney and their ilk.  Sanders and Trump are speaking too freely.”

K          “Hillary Cruz, Ted Rubio, Marco Bush, Jeb Romney and Mittens Clinton.  No matter how you mix it up, it is all the same.”

. . .

[See the e-commentary at Tea Party And Innocence Project Form ‘Liberty Alliance’ (September 9, 2013) and The “War and Wall [Street] Party” On The War Path (February 1, 2016).]

Bumper sticker of the week:

Nihilism as a response to the deeply-entrenched Kleptocrary is not always irrational.

The “War and Wall [Street] Party” On The War Path (February 1, 2016)

Posted in Banks and Banking System, Elections, Politics, Voting, Wall Street, War on February 1, 2016 by e-commentary.org

. . .

K          “The two divisions of the ‘War and Wall [Street] Party’ are conducting the first of their many charades and parades today.  The WW Party is on the war and Wall Street path.”

J          “The ‘D’ division and the ‘R’ division of the ‘WW’ Party are picking their faces and their facades.  At least with the Buffoon on the loose, the process is a more entertaining farce this year.”

K          “Bernie Sanders is not really a war and Wall Street person nor for that matter is Rand Paul.”

J          “The Owners will veto the Bern’s candidacy.  The Paul is not gravitating toward the war and Wall Street crowd fast enough to endure.”

. . .

J          “The rest of them are all Tweedlededumb for the ‘D’ division and Tweedlededumb for the ‘R’ division.”

. . .

[See the e-commentary at The Choice:  Pro War And Pro-Wall Street Candidate v. Pro War And Pro-Wall Street Candidate (April 13, 2015) and The First Look At The “Second Political Party” (January 3, 2011).]

Bumper stickers of the week:

“If voting made any difference they wouldn’t let us do it.”  Mark Twain

Professor George Carlin was right (left?).

The bottom 1% are fighting wars for the top 1%.

Making the world unsafe for Wall Street.

On Empathy (December 28, 2015)

Posted in Banks and Banking System, On [Traits/Characteristics], Personal Stories Series, Personal Story on December 28, 2015 by e-commentary.org

. . .

9          “You go to bed at night and at times travel to foreign lands and then return and are born anew . . . in the same body . . . in the same place . . . and the hands of the clock are rearranged.”

3          “Boring.”

9          “When I wake up and discover that things seem to be the same as before the slumber, I vow to inhabit . . . another body . . . in another place . . . at another time.”

3          “Less boring.”

9          “And more promising.  Combine that new perspective with a conviction to search out the steepest learning curve before breakfast.”

3          “Not boring.  From my perspective, I want to pursue more than one life.”

. . .

9          “There are three ways to transport yourself from your current venue to a new venue – via reading or listening, via titrating your chemicals, and via travel to a new venue.”

3          “Liberating your imagination.”

9          “Travel is key.  Changing your locale introduces you to new locals.”

3          “Intriguing.”

. . .

Bumper stickers of the week:

Slip on someone else’s moccasins

“The world is a book and those who do not travel read only a page.”  Augustine of Hippo 

Teller Line Withdrawal Notice:  $3000 maximum cash withdrawal per day without advance notice.

 

Litigation:  “Recreational”, “Sport” And  “Diversionary” . . . And The “Department Of Just-Us” (December 21, 2015)

Posted in Banks and Banking System, Courts, Department of, Federal Reserve, Russia, Sports, Wall Street on December 21, 2015 by e-commentary.org

. . .

K          “The definition varies yet ‘Recreational Litigation’ is usually defined as an unfounded claim or defense advanced by someone with unlimited funds who uses bullying techniques to harass and often bankrupt a small and often defenseless person or entity for grins.”

J          “Or for some ulterior purpose.  I call it ‘Sport Litigation’ because it is so unsporting.  The ‘Department of Just-Us’ is the richest and most powerful player in the American Legal Game.”

K          “FIFA is corrupt to the core.  So is Wall Street.  The United States has no business investigating and prosecuting FIFA corruption.  The United States does have legitimate business investigating and prosecuting Wall Street corruption.”

J          “‘Sport Litigation’ is the felicitous term.”

K          “I may be wrong, yet I have this nagging suspicion that the government may be trying to pressure FIFA not to allow Russia to host the 2018 FIFA World Cup.”

J          “Prostituting the Beautiful Game.  Ugly.”

. . .

K          “The ‘Department of Just-Us’ as you call it long ago served notice that the banksters are above and beyond the law.  The FIFA case may be a way for the ‘Department of Just-Us’ to serve notice that anyone who gets out of line will get it.  And also to distract us from the real problems and the real danger.”

J          “The ‘Department of Offense’ is engaged in endless wars and fear generation to distract us from the inevitable consequences of the actions and inactions of their friends and comrades at the ‘Department of Treasure’ and the Federal Reserve.”    

K          “What about describing it as ‘Diversionary Litigation’ designed to make the public believe that evil foreigners are being prosecuted while actually diverting attention from the real problems and the real danger.”

. . .  

[See the e-commentary at Schooling The Apparatchiks For The Kleptocrats (December 7, 2015).]

Bumper stickers of the week:

“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”  H. L. Mencken

May the farce be with you.

Savor the solstice; Nature still sustains.