Entries Tagged 'Banks' ↓

Book Review – Deutsche Bank & Trump Debts

Dark Towers: Deutsche Bank, Donald Trump and an Epic Trail of Destruction by David Enrich (2020)

This Wall Street Journal Bestseller and New York Times Bestseller deserves being a bestseller. Its author, David Enrich, has been a reporter for both papers.

This book does not start out to be about the Trump Family. It covers the entire history of the bank from March 10, 1870 in Berlin. That’s why the book is over 400 pages long, (the last 100 pages being endnotes).

The lens David Enrich uses to tell a really compelling story from the 19th century to the present year is shown through the stories of several top executives of Deutsche Bank.

In this book it is clear that the type of banker portrayed in the the American classic movie “A Wonderful LIfe” has been buried deep in their graves for centuries.

For those conspiracy lovers who have decided banks, and Deutsche Bank in particular are a run by Jewish cabal, this book will be a disappointment.

Dark Towers skims over the Nazi period and follows the all-German Board that runs the Bank its branches with secret meetings in the top of one of its Berlin buildings’ towers.

According to Wikipedia, Deutsche Bank dumped three of its Board members in 1993 and confiscated Jew’s belongings, provided funds for the Gestapo, and loaned the funds for building  Auschwitz.

From the start Deutsche Bank was run by a group of all German Bankers who met in secret in the top of one of the banks’ two towers and plotted to open branches all over the globe.

Throughout its long lifetime, outsiders were not let into this cabal until very recently when an Indian fellow was named CEO and an American added to the Board.

Incidently, these German bankers had a sense of whimsey. the two towers, that rose above the main bank Frankfurt were named “Credit” and Debit”.

And These Bankers are Not Boring

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Word of the Day – Helicopter Money

Definition of Helicopter Money

“Helicopter money is a proposed unconventional monetary policy, sometimes suggested as an alternative to quantitative easing when the economy is in a liquidity trap”. Wikipedia

This term, invented by Milton Friedman, conservative Economist at the University of Chicago in 1969 to explain how economic stimulus works works, means just what this image brings up. A whole lot of minted money dropped out a helicopter which blows it around to those on the ground.

But where is that ground and who is getting that money?

When we got out of the Financial Crises in 2007, the Fed had $3 to $4 trillion in debt on its books. Get ready for what it has on its balance sheet now—6.37 trillion dollars!

“Since March 11, the Fed created $1.77 trillion and handed it to Wall Street either by purchasing financial instruments or as loans. The sole purpose of this was to inflate asset prices and bail out asset holders.” (Wolf Street, “QE 4 Cut in Half….Fed’s Helicopter Money for Wall Street & the Wealthy Hits $1.8 Trillion in 4 Weeks” 4-9-2020)

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Six Ideas To Improve Our U.S. Economy

There are obvious things that no one running for President seems to be talking about these days. Here are six issues I think we should talk about.

(1) Talk about how we are going to improve our infrastructure 

From assertions that fossil fuels that would immediately be outlawed on election day, on one hand, to, on the other hand, the fact that fossil fuels are so far the only industries that our President supports wholeheartedly, we’re not talking about infrastructure. Why? A functional infrastructure is the foundation of good economics. We have no idea what needs fixing and how much it will cost. How can we be realistic in our expectations about updating our infrastructure. A recent documentary on TV lately showed that China is far ahead of us in building its infrastructure, and solving technical problems. We can’t afford to lose out in this race!

(2) Extending the time limit on unemployment insurance

So far, the only person I’ve seen argue for this idea is an economist who predicted the last financial crisis.Raghhuram G. Rajan (“Raj”) pointed out in his 2010 book, Fault Lines that European countries now allow their unemployment support to go on for two to three years. Given the need to retrain workers for jobs robots can’t do, I think unemployment and job training should be on the near horizon – especially since the Fed is feeding a low-interest-rate frenzy on Wall Street that may lead to stagflation and unemployment as soon as next year.

(3) Considering rotating teachers among schools rather than busing students or giving students vouchers to go to schools far away from home

Botswana in Africa (home of the Ladies #1 Detective Agency) rotates 20% of its teachers each year. Why? Because Botswana has a multitude of tribal groups. Rotating teachers has helped bring understanding among different tribes, and Botswana is an exceptionally peaceful country, having had no race wars. If any other country needs help with encouraging its racial/ethnic groups to understand and trust each other, it is the United States! We have the most diverse population in the world.

(4) In keeping with the above idea, how about restructuring the housing situation in this country?

Not just in terms of how to promote environmental justice for less-well-off people, or for controlling climate change, but also to encourage integration of neighborhoods. This would decrease gerrymandering and increase connections among the hundreds of racial/ethnic groups in the United States. The funding of housing is intimately connected with both Wall Street and our federal government. Government has looked the other way at redlining of whole neighborhoods, and banks have gotten burned profiting off sub-prime loans. How could we encourage government and banks to get involved in bringing Americans of all backgrounds together rather than segregating so many of our urban and suburban neighborhoods.

(5) Changing the way race is defined in this country.

The Census Bureau lists only a few categories of race. This country has over 500 Native American tribes along with successive inflows of immigrants from everywhere around the globe over many centuries. We are the most diverse country in the world. Our Census categories are completely inadequate for drawing any rational conclusions about how to serve all Americans. At best, using other sources, our government can only come up with percentages for 20 categories of Americans by race or ethnicity. This is a cornucopia of data with big holes in it.This kind of data promotes exclusion more than inclusion.

(6) Abandoning the view that corporations exist principally to serve shareholders

According to the Financial Times economist, Martin Wolf, The U.S. Business Roundtable, represented by 181 CEOs of the world’s largest companies has just issued a statement that their companies will “share a fundamental commitment to all of our stakeholders.” This is not a new idea. I worked for a non-profit in the 1990’s that was promoting the idea of serving long-term stakeholders in corporations, such as employees, clients, and communities. In fact, a Wall Street power broker named Marty Lipton put forth a call to abandon short-term profits for long-term commitments to stakeholders in his 1979 paper, “Takeover Bids in the The Target’s Boardroom” (Source: Financial Times Gillian Tett, “Does capitalism need saving from itself”). Isn’t it about time to discuss this idea!

If you have ideas that you think should be discussed by our Presidential candidates but aren’t, please comment (briefly as you can) and I’ll post comments (with or without your name if you prefer). Let’s hear your ideas about changing things for the better!