Corbyn vs bankers

Written By: - Date published: 6:15 am, December 3rd, 2017 - 20 comments
Categories: capitalism, Economy, Jeremy Corbyn - Tags: ,

20 comments on “Corbyn vs bankers”

  1. Sanctuary 1

    Those are fighting words!

    • Tony Veitch (not etc) 1.1

      Oh, how I wish our coalition government would echo them!

      • +111

        But they won’t. Too scared of the rich rather than realising that the rich don’t have any power that we don’t allow them.

        • Ed1

          So just what is it that you think our government should do? Corbyns statement is identifying that there is aproblem to be resolved – fair enough for an opposition, and if Corbyn was asked what he planned to do he may well decline to give details that would just give an opportunity to re-arrange businesses before law changes could be made. New Zealand is not the UK, we may have similar problems but they will not be identical to those of the UK, and our coalition government is currently busy fulfilling their 100 days programme. For all we know they may have already started getting work done on improving our financial system and banking in particular – but if so what advantage is their in the sort of rhetoric you are calling for?

          We may well have “a damaging and failed system that’s rigged for the few” – but if that is the case just what is it you want done?

          • weka

            It’s the messaging and framing. UK Labour are literally standing with the 99% and actively opposing the 1%. NZ Labour are still hedging their bets and while they are doing quite a lot of good things it remains to be seen if they will step over that line and make a stand.

            • Ed1

              So you’d like a bit opf activist rhetoric, but is there anything specific that you would actually like the government to do in relatoin to banking in New Zealand?

              • weka

                Not my field, I’m sure there are plenty of others that can point to some left wing rather than centre left solutions.

          • Draco T Bastard

            As far as banking goes we have the same problems because the banking system is the same. And all those problems stem from the fact that the private banks create money with no limits and choose where that money goes to. One of the main results of that is the massive house price inflation that we’ve seen.

            Decreasing immigration and restricting offshore owners will help there a bit but to really address it requires that private banks no longer create money on demand.

            People, especially the right-wing, go on about debt but they tend to limit themselves to complaining about government debt when the real problem is the private debt caused by the banks lending money into existence in such a way so that it can never be repaid, that it will cause a financial collapse at some point and that it will filter all real wealth in to the hands of the few.

            Stop the private banks creating money, have the government as the sole creator of money and have it so that that money can only enter the economy through productive investment by the government.

            Do that and the so called ‘business cycle’ will pretty much disappear and we’ll have a stable economy that benefits everyone and not just the banksters and speculators.

            • Ed1

              Our banking system is similar, but not the same. For a start Morgan Stnaley do not appear to have the influence referred to by Corbin. I am intrigued as to how you believe the government should stop banks (or other companies) “create money on demand”. Could you explain that a bit?

              Money enters our economy through the sale of prducts and services to overseas purchasers, from overseas owners of businesses and property using money from overseas to develop those companies and properties in New Zealand, and from borrowing, and from New Zealand owners of businesses and properties similarly borrowing money from overseas. Would you plans restrict all such money entering our economy? How would that plan be implemented?

              • solkta

                Most money enters our economy by people promising to pay when they take out a loan.

                • One Anonymous Bloke

                  Looking at the stats Figure 2 (pdf) it’s roughly an eighth of the pie.

                  A “plurality”, but manufacturing and tech can probably form a majority with support from financial services, health and education 😉

                  Edit…belatedly realising that figure 2 doesn’t say what I thought it said. Duh.

          • UncookedSelachimorpha

            “So just what is it that you think our government should do?”

            For starters, the 4 big banks in NZ extract profits of around $5b p.a.. They do this almost entirely via the exclusive powers given them by legislation – much less by virtue of services delivered.

            This profit should be nationalised, or taxed at 90+%, in recognition of the unique and privileged position that society gifts to the banks.

      • Woody 1.1.2


  2. mac1 2

    “Great men have dreams of power and position
    And it’s our job to back them to the hilt.
    For shrewd investment and advice they’ll pay our price-
    The bedrock on which banks are built.”

    Words from the Bank Chairman in “Mary Poppins”.

    The question which Corbyn raises is ‘the price’ alluded to which bankers may extract.

  3. Yes mac1 and co,

    Bankers are just corporate ‘leaches on our communities’ – and need to be put under control; – as we recall Robert Muldoon did one day in 1982, when the banks had creeping increases of 16-18% interest during that year.

    Sir Robert annouced and voiced publically in the press, that if they dont reduce their interest rates and behavour; – he wants them essembled in his office to setup contols on them as he had control ofthe reserve bank at that time but the banks set about to destroy him.

    In this we see that Roger Douglas ‘deliberately’ set the Reseve bank up after to be “future proof” from Government control, but now we need this reverted back to the former as we know we cant trust any bank today; – not even our own.

  4. Incognito 4

    The argument is that the banking & finance industry are essential for the running of the economy, the lubricant that makes all the (production & growth) machinery work well & efficiently. In recent times this industry has elevated itself to a major player that acts more like a throttle and even as a handbrake on the economy. In fact, it is has caused a few major accidents. Timid governments swing between hands-off and finger-light regulation – banks are major players in the free market and thus by default resist regulation in favour of self-regulation and status quo. And because they are so timid & fearful they are easily forced in acting as breakdown & rescue service when the so-called financiers have skidded off the road into a power pole by reckless driving and going too fast.

    Inevitably (AKA it’s part of life), a few bystanders will suffer damage & harm in the process but they get seen to last by the timid state & government who are soiling themselves that the disaster was ‘contained’ and no worse than it could have been – by sheer luck! – this time. The people from which the money & profits is extracted are the same people who have to bail out the wilful idiots who cause things to go off the road. The same people who elect these timid governments that do nothing but to cross their fingers that there won’t be a next accident (to happen) that won’t be as bad.

    It feels very much like dealing with the unacceptably high number of deaths on the roads here in NZ. Only tough measures and well-enforced laws & regulation will make a difference plus a huge change in the mentality of all road users but particularly of the few that have some really bad driving habits that put others at huge risk on a daily basis, 365 days a year. At this time of the year driving can be a hair-raising experience …

    It is not rocket surgery but it does take a bold approach. In other words, it ain’t gonna change any time soon here in NZ, either the stranglehold of the banking & finance industry on our economy and, by extension, on our politicians or the number of people dying on our roads each year.

  5. red-blooded 5

    Cleangreen, are you seriously setting up Rob Muldoon as a role model for managing financial systems? Rob Muldoon, who had to resort to a year-long (then renewed) “wage-price freeze” that definitely froze wages (except for the rich), but sure as hell didn’t freeze prices? The same Muldoon who had the country teetering on the edge of financial collapse when he was finally ejected from the seat of power?

    The extremes of Douglas et al wouldn’t have happened without the extremes of Muldoon.

    • Redblooded

      No I dont mean to say Muldoon was snow white.

      But we were talking about ‘no Government has had the guts to take on the banks’ now.

      But for the record then when Mulooon had the control on the reserve bank he could enact changes if the banks did not play ball then with lowering extremerly high interest rates then.

      My point was that if we revert the reserve bank act back to the 1964 model we can boss the banks around then.

      Douglas removed our right the bastard. It was not Muldoon that took away our Government ‘influence’ over banks.

  6. Angel Fish 6

    At least someone dare mentioned the banks and in a critical manner!
    What is frustrating about most socialists, commies, leftists etc is that they
    rarely ever mention the corrupt monetary system, or it’s primary benefactors,
    the banks. They always just mumble on about how corporations are evil and what
    not and rarely think to look at a major source of pressure for all businesses,
    their ever increasing loans.

    Governments should be forbidden from burrowing money full stop unless
    the public explicitly gives it consent. And practices like fractional reserve lending and interest rates should be banned as well.

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