Deputy Bank of England Governor Paul Tucker has warned that the British banking sector faces ‘end of the world risks’ if it fails to have enough capital in reserve- “If we get a tidal wave, we may all be grateful that there are a few billion more in capital here and there in the banking industry,…” he also said, rather coyly, that “there is still a tangible probability – not a high probability – that the worst may still be ahead,”… He spoke in favour of forcing top bankers to take some of their bonus in the form of their bank’s debt, meaning they would take the risk on themselves and bear losses to help with any bailout of their bank, as opposed to being ‘rewarded for failure’ and still managing to accumulate huge amounts of cash (even though this is contrary to the ‘spirit of capitalism’, where the weak are supposed to go to the wall). Tucker also warned of a huge public backlash if banks, like the Royal Bank of Scotland and Lloyds which were rescued by taxpayers in 2008 – needed to be bailed out again, and that banks “must do whatever it takes for banks to win back their place in society,”…As if they ever really lost it. The worst is definitley still ahead with the insolvency of the world’s banks, the bankruptcy of european governments and a $16tn US federal deficit. The current strategy of printing money is only staving off the inevitable end-game, which will lead to a greater collapse of the global economy than was seen in 2008…
Meanwhile, it was revealed last month that Barclays had made about £500million over the past two years on food speculation. Barclays is one of three key global banks, along with Goldman Sachs and Morgan Stanley, speculating on food commodities, including staples such as maize and wheat, driving up prices globally, where, in developing nations up to 90% of income is spent on food. There are many other reasons for rising prices, including the weather and political developments, but food speculation is still a major contributing factor, with the activity of investment banks, hedge funds and other financial parasites in commodity markets leading to high and unstable prices. The increase of food prices leads to starvation, hunger, poverty, poor health and a lack of education as families have to spend more and more of their income on something to eat- but it does wonders for short-term profit taking. This is, in part, how the bank’s bosses make their bonuses -without any moral scruples whatsoever. So while on the one hand they are willing to starve people for profit, on the other they are willing to gamble their banks very existence, up to the point of ‘the end of the world’ and to then make us pay for their greed, once they have robbed and raped the planet’s poorest people. As we have seen over the last few years, food price rises can also lead to riots, social resistance and class conflict, just as banker-imposed austerity has done. It is these factors that the banker’s fear the most, fears which are only kept at bay by their sheer arrogance and their dependence on state violence to enforce compliance. This is their true ‘place in society’- parasitically living off others, regardless of the cost.
Banksters at the annual Square Mile party 2010
THE RICH ARE OUR MISFORTUNE.