Ritchie\’s blast from the past

Man\’s a genius I tell\’ee.

The solution to our banking woes?

Candidly, we have to prepare now for the complete, even if temporary, nationalisation of banking.

How excellent, we\’ve now just bankrupted every sovereign in the world. For of course when the sovereign owns the banks then the banks\’ liabilities become liabilities of the sovereign.

This is what Ireland did, recall, in what has quite rightly been called the single most stupid and damaging action of the entire crisis.

And then what do we do?

I call my solution Network Banking. Think of it as a bit like Network Rail.

Network Rail as the model? Blimey, even we at the ASI who pushed for the whole thing agree now that it didn\’t turn out quite like we\’d hoped it would.

In every case however the depositor will know that a reasonable proportion (but not all, in the case of very high-value depositors) of their funds will be subject to guarantee, and all of those funds will be placed on deposit with the Bank of England each night to back that up.

Hmm, so all banking funds have to be deposited at the BoE overnight do they? Through CHAPs as that\’s the only way to do it. But aren\’t we going to have a Tobin Tax which charges a fee on every CHAPS transaction? Why, yes we are in fact, at least we are if Ritchie has his druthers.

Which means that annual interest rates to depositors will be around and about minus 12.5% (250 banking days, o.o5% tax) or 1.25% (0.005% tax). These are negative interest rates recall, not positive ones. This is what you will lose for the privilege of having a deposit account.

I suppose we could exempt such transactions from the tax: in which case the tax ain\’t gonna raise any money, is it?

Why is it that the man never bothers to piece things together?

13 thoughts on “Ritchie\’s blast from the past”

  1. It’s even better than that. He proposes a mass debt-forgiveness too, which means as well as assuming all bank liabilities, he then wants to devalue all their assets. All underwritten by the taxpayer!

  2. “Why is it that the man never bothers to piece things together?”

    Because he has the cognitive faculties of a whelk, perhaps?

  3. Every time I come to this site I’m getting a freeze up followed by an error message to say that a script has stopped responding. I assume its one of the adverts. Is there any chance of of getting this fixed?

  4. OT, but since you mention Network Rail, I’d be interested to know what you’re current thinking is on the railways.

    Tim adds: Fortunately, I don’t have to think about that one. I deal with the environment for the ASI, not transport.

  5. Hmm, Safari doesn’t seem to care. I’ll go check Firefox <back in a jiff>

    Christ, fucker made me do a 27 Meg update. Good thing I’ve got a fat pipe (I say that to all the girls). But it loads lickerty-split. OK, now for Exploder on the Very Annoying Laptop™ <be right with you>

    Same again – no glitches.

    Chrome/OS X? No hay problema.

    Opera/OS X? Works like a charm.

    This is the extent of Gillies Computer Diagnostics Service’s free consultancy. After that you’re on the meter. Velly cheap! I throw in feelthy picture of my seester, no?

    Conclusion: Eddy, your computer is haunted. You need an Old Priest and a Young Priest, and some de-ionised holy water.

  6. Speaking as a Network Rail employee I fully endorse this very sensible idea, in fact why not make NR the national bank ? I would be very happy to hold on to a billion or two for the good of the nation, I could even invest it for you in a few sure fire things, such as Thornavis Offshore Holdings, a guaranteed investment.

  7. I just block everything except text and pictures so things like that don’t affect me.

    Why does Richie want to protect deposits anyway? I thought all savers are evil?

  8. Tim: surely if it’s being sent to the BoE every night it has to be sent back again every morning, so it’s 0.05 x 250 x 2 = 25% or 0.005 x 250 x 2 = 2.5%?

  9. David Gillies:

    To quote you: “I’ve got a fat pipe. (I say that to all the girls).”

    And, then, “lickety-split.” (Now, THAT’s what I say to all the girls.)

    Whatever works—right?

  10. Tim,

    There are two reasons why banking nationalisation didn’t happen in the UK and won’t ever happen, and they have nothing to do with the prospect of the Queen having to pop down to the cashline to pay the national debt during the adverts in ‘Coronation Street’.

    The first is the Human Rights Act, which as we all know covers government bodies, no matter how they became part of the government. If the banks were nationalised, failure to extend credit to any borrower could be regarded as a breach of their human rights. That would be incompatible with those most basic laws of Anglo-Saxon capitalism that even I agree with.

    The second is the Freedom of Information Act. If the banks were nationalised, it is possible that the public would be able to access the paperwork generated by the negotiations between Fred ‘Shreddy Brek’ Goodwin and his erstwhile employers which led him to take such a massive drop in his pension. The reason for this is that instead of being their pensioner, he’d be ours instead – and we couldn’t actually have the plebs knowing about the terms he originally had, could we?

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