Banking on Politicians?

I have just read two books that should be read by anyone interested in the huge banking and financial problems that face us:

The Finance Curse by Nicholas Shaxson and John Christensen;

Just Money by Ann Pettifor

Both attack the finance industry and my brief comments on the two books are as follows:

The Finance Curse: Shaxson and Christensen compare the Finance Curse to the Resource Curse that afflicts so many resource-rich, economically-poor nations. The Finance Curse is a more complex story and as difficult to resolve. It is analysed well even if the suggestions about to solve the Finance Curse could have done with more time and resolve. This is a highly important subject that two knowledgeable writers focus on with passion. Clearly, one book will not solve the problem that has taken root over several hundred years but the world is waking up (slowly) to the issue and this book assists that wakening process.

Just Money: Focuses on how Keynes’ monetary policies have been overtaken and forgotten and how modern-day rogue banking is fleecing (as rentiers) business people and society at large.
It is a convincing account of the rentier landlords of money, the new robber barons who have put a cost to the trust that money was invented for.
If right, Ann Pettifor’s future is bleak as her need for political change is mired by the lack of ability of politicians and even business people to understand the problem – the same misunderstanding is apparent in economics. This suggests that, if she is right in her analysis and prescription, no-one will change anything – even after the terrors of the 2007 banking crash. Add to this the positions that bankers and ex-bankers hold in the Establishment and the likely future is more money being absorbed by the banking system and its “owners”.


The overt Financialisation of our economies have progressed to a degree that is now untenable. I wrote about this in my earlier posting in 2012: The Financialist-Political Complex where I likened the supremacy of the banking fraternity to the Military-Industrial Complex identified by Eisenhower after WWII as the key danger to society.

If that danger has been heeded and (maybe) reduced, the new danger to all of us that want to enrich society (and that includes real entrepreneurs) is banking and finance.

In my earlier posting I included the following quote from Tom Armistead:

Banks need to be returned to their primary purpose, which is to serve the real economy, as financial intermediaries between those who work, save and invest, and those who need funds to create new means of production, or to buy a home, or a car.

Yet, Ed Miliband today focuses on a break-up of ownership of bank branches as the answer – as if retail banking of this type was the problem. Ann Pettifor must be screaming at the wrong attack on the wrong enemy – it is the internationalism of banking and the rentier progress of the international banks; Nick Shaxson must be amazed at the simple-minded attitudes of politicians that go for quick sound bites rather than tackle the core issues – how massive banking centres like in the UK damage our economy.

We cannot bank on politicians clearly – they don’t understand. So, the question is who does? While I may not grasp all of the issues myself and while I may not agree with all the remedies that Messrs Pettifor, Shaxson and Christensen propose (and I propose different ones in my earlier post- like a Foreign Corrupt Practices Act for banking), I am sane enough (I think) to grasp the intensity of the problem and to see that our politicians seem either not to have a clue or to be in hock to the bankers (a point I made in that earlier post).

Either way, the two books show the problems starkly but maybe we need a bunch of NGO’s and radical economists (at least as radical as Keynes) to help understanding and an economic overturn of the new rentiers that are destabilising our economies and leading to vast wealth (in money terms) going to fewer people at the top and the destruction of the middle classes.

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