POOR RICHARD’S REPORT
Chapter 17
Big Banks Are Really Bad
One item that needs particular attention is that computers can work wonders only depending on who is programing and running them.
Banking has the same problem. Who is running the bank? It is not the computer running the bank.
When Bill Gates made Microsoft Windows for every computer worldwide that turned on the greed machine, wannabees wanted to make as much as he did or least become a billionaire. Today these wannabees are thinking short term instead of long term. Bill Gates had a goal. Improve the world of computing.
Timothy 6:10 states it very clearly in a single sentence for us humans. “For the love of money is the root of all kinds of evils.”(English Standard Version) It does not say “money is the root of all evil.” It is how one makes money – not how much- that counts.
Individuals who had huge egos and no morals abound in history. Men who waged war with
no regard for life like Genghis Kahn and Napoleon were mass murderers in reality. That is why Harry Truman, President of the United States after WWII, insisted on the Nuremberg Trials of Nazi Party Members to make sure that 100 years from now they did not become folk heroes. Money was not their primary focus in life.
Truman, Churchill, Eisenhower, Reagan, Mustafa Kemal Ataturk were world leaders who had goals to do well for the people during crucial times in the twentieth century to name a few. Money was not their primary goal.
J P Morgan was the most powerful banker. He set the standards and companies he backed are still powerful and remain leaders in their respective industries.
Sadly, his bank, one of the most powerful and most fined, has him spinning in his grave. They call him “pin wheel JP” in bankers heaven.
When banks become too large managers tend to inflate their figures to their superiors, just like communist countries. Then a “rogue” trader makes a mistake and the cover up begins, ending in apparent suicides maybe?
JP Morgan manipulates almost every market they are in. They are fined billions. This allows them to take part of the fine as a tax deduction. If they had to go to a real court, the Judge and Jury would probably break the bank up into five different businesses, or better yet merge their divisions with smaller banks.
They have been behind the manipulation of gold and silver markets since 2008 when they bought Bear Stearns. The monies from the Quantitative Easing (QE’s) done by the misguided Federal Reserve, has been hoarded by most banks because the velocity of Money as measured by the Federal Reserve is down – not up. With all that money supposedly being pumped into the economy, the velocity of money should be soaring. I believe, and I could be wrong, but JP Morgan Chase has been using these funds for shorting silver and gold contracts and then buying the low price metals in the Exchange Traded Funds and taking delivery to the metals. This is in direct violation of commodity rules of fair trading. They then deliver these precious metals to commodity brokers to whom they owe stock. They have actually sold high and bought low by breaking existing laws or operating in the very grey areas. JP Morgan is operating immorally and dishonestly for a world leading industry.
The US Government and the Federal Reserve have been frantically trying to get the economy moving and to fight deflation. All they have to do is stop the manipulation in Silver and watch the metal fly to the moon. Silver is used in practically everything beside coins.
The precious metals will stay down or go lower with minor blips up, until JP Morgan Chase is called before a Congressional Investigating Committee for Criminal Activities.
Moral: Governments and Central Bankers should tighten controls on their bankers or else the Bankers end up running the Government.
Libor
London Inter-Bank Offered Rate
Major banks and their traders have been rigging the overnight interest rates for years. This is what we have to pay for various services.
Each country has its own investigation and as the fines roll in and the cover ups are exposed it will get worse for the international banking industry. The public is supposed to be able to trust their bankers.
Where is all those billion dollars in fines actually going?
This is just the beginning for the international banks worldwide.