Bankers and Banking

I read this report from McKinsey and thought you would enjoy the perspectives.

https://www.mckinseyquarterly.com/The_search_for_a_sustainable_banking_model_3045

I take a slightly different view. In my view, the current banking model is fundamentally flawed. Few really look at the underlying causes, only deal with the symptoms. Now any company can be a bank...

These are plain facts. Banking:

a) promotes the use of fiat money and the "confidence game" surrounding it,
b) applies fractional banking which generates worthless dollars from thin air, thus decreasing the value of circulated dollars,
c) loans money through the magic of "compound interest" - the scourge of man's greed in action,
d) lowered monthly payments on unsecured loans from 4% to 2% in order to promote a debt increase in individuals. The net result is near financial servitude for life for most plain folks who don't live in your zip code.
e) has created systemic multilayer-ed financial instruments which defy explanation...like the financial WMD's called "derivatives"...all 645 trillion of them and counting.  

Those are the facts and this is an opinion.

Sure, I think service quality, risk management and banking products all matter, but if I was a banker, I would be more worried about the day when the dollar confidence game runs out...because if history is any tell, there just might be a lot of "heads on poles" when the people's wealth goes "poof."  When people lose their wealth, two groups will be blamed for sure once they recover from denial - the group that allowed it to happen (gov...republicans likely)...and the group behind why it happened, (bankers, large and small...you know, the people they see).  Not a good week to be a banker and there surely will be some unstable souls who go postal. Good time for a "bankers holiday."  

On timing to the collapse, did you read that India and China has/is switching oil international settlements to hard metal? They have tried it and it is now in play on some oil deals. Iran is a major oil supplier to China and also Russia. The imposed embargo is driving some OPEC countries and Iranian trading partners away from petrodollars.  Yes, dumping dollars would be a "Minsky Moment."  You can bet, with all the pressure to switch to a stable exchange currency like hard metal, the time remaining for the dollar is measured in a couple of years, not decades.

Then there's always the Amero...another currency which is both fiat and is certainly not sovereign. "Yes sir, we're offering you 1 red one for your 10 green ones...red ones have a real spendable value...Or we have this mark we can put on you (inject-able RFID) that allows you to buy and sell anything, anytime using your digital money we have readjusted for the problem."

Happy Sunday....All the best...