Re: [Marxism] new proposal on the banks

[DW via Marxism]

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I will also echo Andy's support for people to look at this article.
Studying banking for Marxists is akin consuming some exotic food or
medicine made up of a gelatinous opaque slop with various forms of pond
life embedded in it. I'm glad someone finally came up with something of a
start a discussion about it. This is an excellent start. At first I
couldn't understand why the drafters of this program on banking simply
didn't *start" with re-instituting Glass-Steagall (the 1933 "Banking Act"
repealed by the Clinton Administration) , then I realized "Oh, they are
Europeans, that explains it!"

Glass-Steagall aside, I think this is a good attempt at reform of the
Banking system, and, in someways, represents a transitional program for it
as capitalism, that is Imperialism, can't actually exist under the
conditions laid out in this program, though they appear totally reasonable
to anyone who sees the banking crisis as I described in the paragraph above.

I would disagree with one thing: the idea of maintaining a "20% cash on
hand" reserve is silly. This would tie up way too much capital and would in
fact stymie investment. Of course in the UK the cash reserve requirement is
only 3%. Brazil on the other hand has a 45% one! The US "technically" is
10% for banks with deposits of over 100 million USD but that is most banks.
Interesting, and coming as no surprise to anyone on this list, the banks
open position on this is to due away with the reserve altogether, because
it amounts to hundreds of billions of USD "just sitting there". They have a
found away around it, however, there is no law preventing banks from
borrowing money from *other* banks the amount of money equivalent to their
actual reserves and speculating with that, using the reserves as an
'unstated' collateral. Gotta love capitalism. It's like the dirt that gets
into every pore and orifice in one's body and playing in the dirt all day.
It always finds a way into to mess with you. Anyway I say "silly" because
these reserves are in fact unnecessary if the the actions in the other part
of the program go into effect, it basically removes any reason for a large
cash reserve as banking crises would, in theory, end.

David
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Re: [Marxism] new proposal on the banks

[Andrew Pollack via Marxism]

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Now the statement is also up here:
https://socialistworker.org/2016/04/20/what-is-to-be-done-with-the-banks
Again, I hope comrades talk about how to push this forward.

On Thu, Apr 14, 2016 at 9:38 AM, Andrew Pollack 
wrote:

> I hope this will be widely used for purposes of education, agitation and
> organizing.
> http://internationalviewpoint.org/spip.php?article4441
> Probably a shorter version with graphics is worth developing.
>
>
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[Marxism] new proposal on the banks

[Andrew Pollack via Marxism]

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I hope this will be widely used for purposes of education, agitation and
organizing.
http://internationalviewpoint.org/spip.php?article4441
Probably a shorter version with graphics is worth developing.
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