Whats Booming? That would be Debt and Financial Speculation!


By Public banking Forum Ireland


Booming; almost 29%, $57 trillion increase in just 8 years alone, since 2007.

Global debt is now in the region of $200 trillion. That’s $27,200 of debt for every man, woman and child alive in the world today.

The McKinsey Global Institute report published in February, highlighting the unsustainable levels of debt that have been accumulated globally and the huge risks when interest rates begin to rise again.

The McKinsey report received little coverage. It concluded that total global debt of $199 trillion and a global population of 7.3 billion, works out at over $27,200 of debt for every man, woman and child alive in the world today.

Financial Speculation: 

Booming; financial speculation accounts for 98% of all the international financial transactions in the world.

The remaining 2% makes up all world trade including tourism.                               Prof. Dr. Margrit Kennedy

In fact, concluded Prof Kennedy, the world economic system has become uncontrollable. Speculation in money alone is now responsible for 98% of all money transactions of the world, while only 2% deals with financing world trade including tourism. Many leading economists now foresee a major global economic breakdown.

The main players:

Private institutions whose profits are privatise and losses are socialised:

Nice work, if you can get it!

Losses of systemically important financial institutions (SIFI), also known as too-big-to-fail, will be recouped by a bail-in. The bank depositors pay; the bank takes its customers deposits to save the failed bank and gives them shares in a broke bank in return. Bail-in is now the law, Michael Noonan signed it into EU law during our presidency.

We are restoring our too-big-to-fail banks to their former glory with even more protection, should they falter again from their antics.

 Gun to the head job!

The reason they are important is they control the money/credit supply of the country. In Ireland two banks control over 80% of the market. Even the credit unions funds €7bn, by law has to be kept with them.  Remember the only way the money/credit supply of the country is increased is by government borrowing or by loans with interest from these private institutions; it’s all debt for Joe Soap. They essentially control the economy by controlling the money supply.

 There still not safe:

The Guardian headline May 12th 2015

Some Eurozone banks ‘just as likely to fail’ as they were before 2008 crisis.

“Our findings indicate that despite all the efforts to improve the resilience of banking, some banks are as vulnerable today as they were before the last banking crisis, they are just as likely to fail,” said Nikos Paltalidis, of the University of Portsmouth business school.

 We can leave them to their mischief.

It’s time to end our reliance on their systems and introduce a system that works for us. Banking in the public interest!

 Back in time!

Ireland in 1826 had more than 50 local savings banks similar to the 200 years old German ‘Sparkassen’ Public Savings Banks.

Germany today has 417 independent public banks with 15,000 branches and 1,050 Co-op Banks. The private banks in Germany have only 16% of the market.

ISME Figures:

Q3 2014

Loan refusal Rates 42% – Requires Finance but didn’t apply 12%

69% of ISME members believe the Government is having negative or neutral effect on Bank lending to Small & Medium size Enterprises (SME’s)

SME’s provide 75%of all jobs in Ireland.

A banking system focused on SME lending is required as they have in Germany. The German ‘Sparkassen’ Public Savings Banks, with 42% of the overall German market have 75% of the SME start-up lending market. The German SMEs are the backbone of the German economy; 86% of them have a turnover of less than €1m.

 Back to basics! Financial Institutions that Serve the Real Economy.

Local Public Banks converting ‘local deposits into local loans’ and prioritising those loans for SMEs in their regions. Job creation locally and support for the competitiveness of their region.

No manufactured boom-bust cycles.

No private financial parasites.

No private shareholders.

No securitisation.

No speculation.

No bonuses.

No Bail-out

No Bail-in.

We’d be laughing all the way to the ‘Public Bank’.


Slán go fóill.