Opinion by Mathew Carr
Sept. 27, 2024 — In my half-century life (or so), I have never heard of a robbery that reached more than $1 trillion … before this week.
Now, in a single 5-day period, I’ve heard of two…maybe three.
The first one, published Monday, was an estimate of the amount of money US banks had effectively stolen from the American people.
Here’s a snip of the Financial Times article that reported it.
Kudos to the Financial Times for publishing it at all. The newspaper even flagged the story on its front page. It should have led Monday’s edition, especially the US edition.
As you can see above, the story was not framed as a robbery.
Indeed, if CarrZee.org relied on bank advertisements for a substantial portion of my miniscule revenue, I might not run it on my front page as the lead, framed in that way.
Yet, that’s what it is.
Since last summer, CarrZee Sustain readers might have noticed I’ve been calling for changes in the market structure to force banks to increase savings rates as official reserve-bank/central-bank rates increase.
It’s such a logical piece of law that should be implemented globally that I’ve seen no single person object.
If the world really did work for everyday people, that’s what the governors of market structure would do.
Yet, it has not happened, because of the tight grip that banks have on the media and governments of the world.
What the situation shows me is that both sides of American politics are deeply flawed, as is politics and economics generally around the world.
The Biden-Harris administration might have overseen the biggest theft in global history …and it was against the American people, who are already voting for their next president and will continue doing so through Nov. 5.
On the other side, Trump, who campaigns as a man of the people who is going to “drain the swamp”, actually in office oversaw the biggest worsening in global history of the gap between rich and poor (maybe this needs more research, but there is strong evidence for it).
The fact that there has been no public debate about forcing banks to increase savings rates as central banks increase official levels shows the political and media system is flawed to the point of corruption…globally.
(continues below)
Guardian, last week
Why should bankers get $1 trillion for doing nothing? The flaws in the banking system have been apparent since the 2008 global financial crisis and yet banks have recently successfully resisted stronger regulation. That is shocking given the unfair value they extract from the global economy every year. They are middle men, afterall.
It simply makes no sense in a world where governments are meant to be acting for the people. The lawmakers are not meant to boost the interests of the banks and corporations, yet they clearly are.
Why national governments are behaving in favor of companies rather than the people requires a little look into history. Both long term since the second world war (we could go back even further) and during recent history since the beginning of Russia’s DEFENSIVE invasion of Ukraine. (I’m not saying Mr Putin did nothing wrong)
This brings me to the second theft that reaches far above $1 trillion.
Today, I’m saying the interest rate and inflation/cost of living fuckery (forgive the swearing) of the past three years is the biggest ever theft in world history. I stand by that, despite what follows.
When I yesterday asked Elon Musk’s Grok AI to list the world’s biggest robberies, I was a little surprised by the answer:
$45 trillion was taken from India during Britain’s 89-year colonization, according to Grok. Another $45 trillion or so taken from Africa. These are the second and third massive robberies. Or perhaps first and second.
Those are cool robberies based on size, if you are into such things and can get away with it.
Until now the imperialists have gotten away with it.
While I’m not sure about the accuracy of those numbers, they ring at least a little-bit true. $45 trillion’s about half of current global yearly GDP.
Neither Kamala Harris nor Donald Trump is right now promising to start putting this shitty global market and political structure right.
Surely that HAS to change over the next few weeks. If they continue to promise no real change, they should be rejected by the electorate.
[More to come. Added Assange story link, below. I will seek to better join the dots over the next few days.]
NOTES
I will include below some snips and notes that show, circumstantially at least, that the cost-of-living crisis of the past three years was DELIBERATELY created to benefit the rich, if you follow the money. And it’s not just about NATO’s reckless expansion toward Russia.
While it began with war, the UK Tory government seems to have created a situation that hugely benefited the rich by starting a huge increase in interest rates and a crisis in the British financial system. At the very least, there was bad financial regulation.
Of course, they pretended it was accidental and a crisis not of their doing. But was it? Really?
Please other journalists, take up this story (unless you are cowed by your advertisers).
Emerging nations are in deep trouble because of the bad global market structure and high interest rates.
One of the keys to making the markets work better is to force them to look more long term. That is, futures contracts 10 years ahead eg 2034 futures in all sorts of commodity and financial markets, should be much more liquid than they are right now.
I think former UK PM Liz Truss has a point when she calls out the Bank of England and financial services regulators more generally for causing the inflation problem.
Britain boosted interest rates to deal with the crisis blamed on her and Mr Putin and the US followed … in a huge boom for the banks and the financial industry…as well as most consumer-facing businesses. Small business and those competing with massive corporations — ie competitive tension in markets — was eroded.
I’m not endorsing all of this:
The people’s climate –one of the most important aspects of a free life — is at huge risk…and it’s not new news that the big end of town is exploiting the situation.
From 2020
The persecution of Julian Assange, who blew the whistle on the bad and violent political and economic system globally, is relevant here.
UK tries to justify the bad treatment of Assange in a pathetic way:
Wow…the embassy is somehow worse than Belmarsh?
UK Tory operatives in 2022 visited their US matey mate mates ahead of the cost-of-living fuckery.
I’m perhaps unfairly pinpointing Zahawi and Bloomberg here …more to come: Zahawi also visited Janet Yellen (US Treasury) and Jamie Dimon (JPMorgan Chase).
Did he and his political party control it? No.
Press release
Chancellor Nadhim Zahawi sets out post-Brexit transformation of UK financial services
Plans to seize the benefits of Brexit by revoking EU retained law governing financial services have been set out by Chancellor of the Exchequer Nadhim Zahawi in his first speech as ChancellorFrom:HM Treasury
Published 20 July 2022
This was published under the 2019 to 2022 Johnson Conservative government
- In his first official speech as Chancellor, Nadhim Zahawi set out ambitious plans to capitalise on the benefits of Brexit and transform the UK financial services sector.
- At Mansion House this evening, Nadhim Zahawi confirmed that the government will introduce legislation tomorrow (20 July) to repeal hundreds of pieces of EU retained law governing the sector – so that it can be replaced with an agile and coherent regime fit for the UK.
- He also set out measures to boost consumer protection, embrace technological innovation, and further enhance the growth and competitiveness of UK financial services.
Plans to seize the benefits of Brexit by revoking EU retained law governing financial services were set out by Chancellor of the Exchequer Nadhim Zahawi in his first speech as Chancellor, at Mansion House this evening (19th July).
These will be replaced with a coherent, agile and internationally respected approach to regulation which is fit for the UK.
The Chancellor confirmed that the Financial Services and Markets Bill will be introduced tomorrow (20th July) – the most significant piece of financial services legislation for over a decade.
The Bill will implement the government’s vision for the sector to be open, green, technologically advanced and globally competitive – while maintaining high levels of consumer protection.
The Chancellor also used his first speech to set out his core three priorities for the coming months; first, delivering a coordinated, responsible approach to controlling inflation, secondly, delivering the government’s promise to create the conditions for a private sector recovery, and thirdly, delivering on our vision for financial services.
Chancellor of the Exchequer, Nadhim Zahawi said:
“The British people can rest assured that we are getting on and delivering the benefits of Brexit.
“The measures I have announced tonight will unleash growth across our financial services sector and will allow us to unlock tens of billions of pounds of investment into the UK economy.
“Consumers will remain protected, with legislation ensuring that victims of scams can be compensated while also acting to protect access to cash for the millions of people that rely on it.”
The Financial Services and Markets Bill will enable the reform of Solvency II, which could lead to a reduction in excessive capital buffers and give insurers more flexibility to invest in long-term assets like infrastructure. It will also increase the competitiveness of the UK’s wholesale capital markets, and reinforces our position as a leading centre for technology by supporting the safe adoption of certain types of stablecoins as a means of payment.
The financial regulators will also have greater responsibility for setting the rules that govern UK financial services, and for the first time, they will be given a new secondary objective to promote growth and competitiveness of the sector. This will complement their existing objectives ensuring the safety and soundness of firms, protecting and enhancing the integrity of the UK financial system, promoting competition in the interests of consumers, and ensuring that consumers receive an appropriate degree of protection .
The Chancellor set out that the Bill will include new measures to increase regulators accountability; and confirmed that any further powers to intervene in financial regulation in the public interest, so called “call-in” powers, are under consideration.
Following the publication of the Bill, the City of London and HM Treasury will also publish the first annual State of the Sector report. This publication brings the voices of industry and government together in one place, and affirms support for the government’s vision for the sector – with the UK’s approach to regulation being favoured by 31% of senior executives – more than anywhere in the world. The report also highlights the financial sectors’ importance to the UK economy, supporting 2.3 million jobs – with two thirds of those outside of London – and contributing £1 in every £10 to the UK’s economic output.
The Chancellor also set out steps to make the UK one of the most attractive places in the world for firms to list and access the finance they need to grow – accepting all of the recommendations for government from the independent Austin Review into Secondary Capital Raising – the process listed firms use to raise further capital.
As part of this, the Chancellor appointed Sir Douglas Flint to Chair the Digitisation Taskforce recommended by the Review, which will drive the modernisation of the UK shareholding framework and eliminate paper share certificates to improve efficiency. The government will also streamline the capital raising process by reforming the Companies Act to shorten rights issues and the processes around them.
To further embrace new technology and innovation, the Chancellor confirmed that the government will take forward work to understand the application of Distributed Ledger Technology to the lifecycle of a UK sovereign debt instrument, helping us to better understand the potential benefits of this technology while also supporting innovation in the wider financial services sector.
The Chancellor made clear that the government will always be on the side of consumers by confirming plans to legislate to safeguard access to cash for a generation, and enabling the Payments Systems regulator to reimburse victims of Authorised Push Payment fraud – which stood at almost £600 million in 2021.
- The Financial Services and Markets Bill will be introduced in the House of Commons tomorrow (Wednesday 20th July). More detail on measures in the Bill will be available then.
- The first State of the Sector report will be published by the City of London Corporation and HM Treasury following introduction of the Bill. This report delivers on a key recommendation from Lord Hill’s Listing Review.
- Link to Austin Review recommendations: https://www.gov.uk/government/publications/uk-secondary-capital-raising-review
- Link to Mansion House Speech: https://www.gov.uk/search/news-and-communications?organisations%5B%5D=hm-treasury&parent=hm-treasury
- Link to Flickr: https://www.flickr.com/photos/hmtreasury/
News story
Chancellor Kwasi Kwarteng sets out economic priorities in first meeting with market leaders
Chancellor Kwasi Kwarteng met market leaders this morning (Wednesday) to set out the government’s new, pro-growth economic approach From:HM Treasury
Published 7 September 2022
This was published under the 2022 Truss Conservative government
- Chancellor Kwasi Kwarteng met with market and city leaders this morning (Wednesday) and set out the Prime Minister’s new, pro-growth economic approach.
- This approach includes immediate support for families and businesses, supporting the economy to grow, and fiscal sustainability.
- The Chancellor also emphasised the importance of supporting the independent Bank of England’s mission to get inflation under control quickly.
Chancellor Kwasi Kwarteng met market leaders this morning (Wednesday) and set out the government’s new, pro-growth economic approach.
Kwasi Kwarteng began by acknowledging the extraordinary challenges that families and businesses across the UK are facing this Winter, exacerbated by Putin’s barbaric invasion of Ukraine. He stressed that the government will immediately focus on supporting families and businesses to navigate the gas crisis this winter and next, supporting the economy to grow, and committing to fiscal sustainability.
Speaking after the meeting, Chancellor Kwasi Kwarteng said:
“We face extraordinary economic challenges in the coming weeks and months and I know that families and businesses across the UK are worried.
“The Prime Minister and I are committed to taking decisive action to help the British people now, while pursuing an unashamedly pro-growth agenda.
“We need to be decisive and do things differently. That means relentlessly focusing on how we unlock business investment and grow the size of the British economy, rather than how we redistribute what’s left.
“With a strong and resilient economy, we deliver more jobs, higher wages, and raised living standards – all while reducing our debt-to-GDP ratio in a fiscally sustainable way.”
Due to the scale of the gas crisis, the government’s first priority will be to support families and businesses in the immediate term. The Chancellor was clear this will mean necessary higher borrowing in the short-term whilst ensuring monetary stability and fiscal discipline over the medium term. He committed to ensuring the economy grows faster than our debts and keeping debt as a proportion of our economy on a downward path.
The Chancellor also reiterated his full support for the independent Bank of England and their mission to control inflation, which is central to tacking cost of living challenges.
Mr Kwarteng stressed that the government will support the economy to grow. He recognised that the rate of growth has been too low and committed to a radical supply side agenda to deliver lasting economic growth. This will mean creating the right conditions for business investment and innovation, reducing burdensome regulation and taxes, which will in turn create jobs, wealth and drive economic growth.
The Chancellor reiterated his aim to get to 2.5% trend growth, delivering a stronger economy and a Britain that works for everyone.
Further information
Meeting attendees:
- Salman Ahmed, Global Head of Macro and Strategic Asset Allocation, Fidelity
- Lionel Assant, Senior Managing Director, Blackstone
- Amanda Blanc, CEO, Aviva –
- Stephen Cohen, Head of EMEA, Blackrock
- Constantin Cotzias, Director, Bloomberg Europe
- Richard Gnodde, CEO, Goldman Sachs International
- Beatriz Martin, CEO UK & Group Treasurer, UBS
- Charlie Nunn, Group CEO, Lloyds Banking Group
- Noel Quinn, Group CEO, HSBC
- Viswas Raghavan, CEO EMEA & Co-Head Global Investment Banking, JP Morgan
- Alison Rose, Group CEO, Natwest
- David Schwimmer, CEO, London Stock Exchange Group
- CS Venkatakrishnan, Group CEO, Barclays
- Nigel Wilson, CEO, Legal and General