Financial Inclusion and the BIS

 

Interesting speech about financial inclusion.

https://www.bis.org/speeches/sp190425.htm

An excerpt: “My main thesis is that central banks and financial authorities can support and promote financial inclusion, first and foremost, by pursuing their core objectives. By watching over price stability, they ensure that money keeps its value. By ensuring financial stability, they prevent financial institutions from failing, and taking people’s savings with them. But most of all, central banks promote trust. By reinforcing trust in the financial system and its institutions, central banks bring ordinary people into the mainstream and help them reap its benefits. In this way, the central bank can help to catalyse a more inclusive and vibrant economy.”

And there is more: “Furthermore, financial inclusion fosters “social inclusion”. For example, by depositing savings in a current account, individuals are protected by property rights. If they put their savings into jewellery or just stash money under the mattress, they may fall victim to theft or devaluations. Moreover, financial inclusion can make the transfer of welfare benefits faster, cheaper and less prone to leakage. This benefits the state as well as the recipients. Overall, inclusion can help reduce poverty.”

Reaping benefits?

1. ZIRP- for fixed income retirees? https://www.mauldineconomics.com/frontlinethoughts/zirp-nirp-killing-retirement-as-we-know-it

2. ZIRP- housing bubble putting renters on the streets?  https://cfasocietyindia.com/2016/09/17/zirp-nirp-qe/

3. Higher employment with crashing wages?   https://www.fxstreet.com/analysis/nfp-recap-us-job-gains-accelerated-but-wages-stagnated-201905031416

4. Mining employees out of work to keep the dollar strong?

5. Gibson’s Paradox?   http://www.gata.org/files/gibson.pdf

Money that keeps its value?

6. A 98% decline in the dollar since the Fed was created? Wages are not keeping up.

Financial stability?

7. Does financial stability equate to main street profitability? Housing values and housing costs as a percent of wages?   https://20somethingfinance.com/housing-costs/

8. Raise rates to save pensions or lower rates to ward off a debt bomb? Service the debt? ZIRP forever to let pensions fail? Improved efficiency of welfare payments should help.   https://www.ft.com/content/e9294b96-5236-11e5-b029-b9d50a74fd14

9. Gold price suppression in the good name of Financial stability?  https://leveragedpromise.com/2018/01/21/hard-evidence-of-gold-price-suppression-in-the-good-name-of-financial-stability/

May fall victim to theft or devaluations?

10. Like the theft documented through interventions in the gold and FX markets?  https://leveragedpromise.files.wordpress.com/2015/11/proof.pdf

11. Like the theft of the middle class through ZIRP?

12. Like the theft of $16 trillion as loans and grants to foreign countries and individuals?   https://www.businessinsider.com/feds-16-trillion-dollar-secret-slush-fund-props-up-our-way-of-life-2011-7

Property rights?

13. Higher property taxes on the middle class to fill the void of lost revenue from lower wages?    https://www.illinoispolicy.org/story/home-is-where-the-hurt-is-how-property-taxes-are-crushing-illinois-middle-class/

14. Pensions going underwater from ZIRP?

15. Property rights as where upon a bank default, your savings account is bailed in as capital for the failed bank? The banks liability becomes its capital and the depositor has shares in a failed bank.     https://corpgov.law.harvard.edu/2013/01/09/fdic-and-bank-of-england-release-white-paper/

Promoting trust?

16. The same trust where even a FOIA- request to a central bank yields crickets?     http://www.gata.org/node/18588

17. Promoting trust? Where the CFTC axes 75% of promising silver manipulation cases before they are referred to the DOJ?   https://arcadiaeconomics.com/silver-manipulation/in-memory-of-bart-chilton/?fbclid=IwAR1trJbnMad4Q1L4mCXKh2KUhjoglp94RPKQ9x0oW9nDjeZAzoLeSutaVBU

18. Promoting trust? Where central banks make gold a Tier 1 asset for themselves while pushing the dollar on the populous as a store of value?   https://us-issues.com/2019/04/13/sprout-less-gold-now-tier-1-capital/

Meanwhile – Pet Rocks –   https://blogs.wsj.com/moneybeat/2015/07/17/lets-be-honest-about-gold-its-a-pet-rock/

19. Promoting trust? CFTC commissioners who delete taxpayer emails as a protocol? One of these commissioners is now over the ISDA.    https://arcadiaeconomics.com/silver-manipulation/in-memory-of-bart-chilton/?fbclid=IwAR1trJbnMad4Q1L4mCXKh2KUhjoglp94RPKQ9x0oW9nDjeZAzoLeSutaVBU

Social inclusion?

20. Transfer of welfare benefits will be more efficient? Is socialism more efficient?

The BIS- wants to help.

21. The BIS- wants to maintain control of the big club, and you’re not in the big club.   https://www.bis.org/speeches/sp190425.htm

“The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.” Alan Greenspan – 1966.

 

 

 

 

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