http://online.wsj.com/article/SB10001424052748703466704575489592929851132.html
I forget the name of the entity which is the umbrella for this group, but is this not a money cartel? Why shouldn’t banks compete among themselves to lend money? What would we think if the car manufacturers of the world got together, and fixed prices? What would we think if all the coal or gas producers got together, openly, and fixed prices?
Our financial system is sheer lunacy. It is a power elite using the rules of the system to accumulate money they don’t need, to the collective detriment of the rest of us.
And looking forward, the reality is that the world has an enormous amount of debt, which is growing. The money to cover that debt will be created. Yet, creating it will be harder with larger reserve requirements. It’s hard not to believe that a cliff is being created here, which they know full well we will fall of of in due time.
As I say constantly, what we need to do is not create more money, but increase the value of the money already in existence.