The new capital requirements for financial institutions – known as Basel III – has been widely discussed lately. The plan is to raise the bank’s capital ratio, not to avoid another financial crises, but to lower the frequency of them. Isn’t there a better solution? Well, J.S. Kim at SmartknowledgeU think there is…
“In crisis, we turn to our governments and bankers to help us out, a very foolish response since it is bankers and governments that have created this crisis.”
“Today, there is not a single government in the world that has provided an adequate or sustainable solution to our global monetary crisis,” the founder of the independent research and investment firm SmartknowledeU, J.S.Kim, writes in his latest newsletter.
Here’s the rest:
The most prominent criticism from Keynesian apologists regarding our monetary crisis is that there is no better system than the one we are using and that supporters of Austrian economics always complain but offer no solutions.
This simply is not true.
Rather, our global leaders refuse to hear or consider the solutions we present.
Because our global leaders’ “solutions” to our present monetary crisis are false “solutions” predicated on the guidance of bankers, there is ZERO CHANCE that the world will not be plunged into another financial crisis that is deeper than the one we experienced in 2008 despite the denials of our political and banking leaders.
Today, citizens desire real change, not change disguised as maintenance of the status quo that politicians and bankers offer to us.
Today, we are unfortunately afflicted with a state of learned helplessness.
In crisis, we turn to our governments and bankers to help us out, a very foolish response since it is bankers and governments that have created this crisis.
How can we expect real change from the perpetrators of this crisis?
Any real positive change that has benefited citizens has always been sparked not by the State, but by individuals.
Today, the results of our dependence on bankers and governments to produce change will result in certain failure and more restrictions on our freedom.
In my book, “The Golden Gift,” is an idea that I believe can revolutionize the current monetary system and ensure that the current global economic catastrophe of massive unemployment and currency devaluation that plagues nations in the Americas, Asia and Europe will be unlikely to ever repeat itself in the future.
Not only is this idea a relatively simple idea to implement but it would also impact humanity in a massively positive manner, from helping to alleviate poverty, to restoring peace between warring nations, to destroying the conditions that give rise to terrorism.
It is a simple idea yet one that would have profoundly positive humanitarian implications in an indirect manner as well as a direct manner.
And most importantly, it is an idea that could be implemented despite the strong opposition it would assuredly receive from Western governments and bankers.
While far from a perfect solution, I hope that my idea will spark a discussion that will eventually create an implementable solution if the one I have presented currently contains too many flaws.
I strongly believe that one must have, at a minimum, a basic understanding of the artificial framework in which we live where those in power constantly sell propaganda to us as truth, if we are ever to break free of their mental and psychological constraints.
I believe that we must explore the reasons why society holds so many widespread beliefs to be true that are not, and why we often hold beliefs so tightly for no other reason than the fact that someone, somewhere, at some point in our lives, ordered us to believe it.
If we can understand this, then perhaps we can awaken from our century long slumber.
And at least that is a start.
By J.S. Kim
Managing Director & Chief Investment Strategist
Related by the Econotwist:
- It looks as if investment bankers are back to their old arrogant ways (telegraph.co.uk)
- The Fed, Innovation and the Next Recession (economix.blogs.nytimes.com)
- Factbox: Reaction to Basel III bank capital rules (reuters.com)
- Of Course, the Recession Wasn’t Engineered (lewrockwell.com)
- 5 Outright Illegal Scams That Should Put Wall St. Bankers Behind Bars (alternet.org)
- Basel III: Vince Cable warns bankers to unlock flow of credit (guardian.co.uk)