I think it is a form of economic warfare. Much of the change in the way that the global economy works over the last thirty years result from this debt, this thrid world debt, because it's given rich countries and banks and the financial sector, enormous amounts of power and control over the poorer bits of the world, where a lot of the resources are that we like using, and that's being used in a way that many people have compared to a form of colonialism.
So that's kind of high risk, compared to loaning your money to somebody with some collateral, with a house behind them, like a mortgage. So there's a simple incentive for banks to prefer putting money into housing than into a small business. Now that's a real problem if you widen that out across a whole economy, because it means there's an incentive to put money into speculative rather than productive investment. So again, we have to think about how we create a monetary system that is more balanced between those two kinds of speculative and productive investment.
If that belief changes, it can change very rapidly in a financial market, he process of financial contagion can take place in just minutes or seconds even. You can just move from being an apparently quite a stable robust economy, to being one that suddenly sentiment has turned against you, and you find that the markets are picking on you.
We want to help preference them over big trans-national corporations, because if they've got hold of their money and they can use it with each other, We want to help preference them over big trans-national corporations, because if they've got hold of their money and they can use it with each other, then it doesn't disappear up out of large management structures and go offshore and end up in an account in the Cayman Islands.
During the long phase of commodity money, because there is no defined commodity behind the reserve currency. During the long phase of commodity money, the exchange rate would depend on the amount of gold, silver or copper contained in the coins of each country.
The real difficulty there is just political: who on Earth is going to do this? Who is the force that is going to make this thing happen? Creating a monetary system: which is both fair and stable is possible and can be achieved. What are international organisations for if not for such a purpose? Banks are the most heavily subsidised businesses in the world, specially protected by governments. While the money runs out for the rest of us, the largest private banks still thrive. This is because they get the biggest subsidy of them all: the licence to print money.
Getting a low loan rate is a creative process. No one will provide you with clear algorithms, only statistics are at your disposal. Indirect signs of your income are starting to play a role here: real estate (the bigger and newer, the better), a car (the more expensive and newer, the better), the regularity of foreign trips (going abroad in the last six months will benefit), family (if you are married and have children, the chances increase, but not linearly: if you have more than two minor children, it will have the opposite effect), appearance (expensive clothes, accessories - everything will go to you plus).
Often, holders of salary project cards serviced by a bank have privileges when receiving a loan from it.
Unfortunately, all the bonuses received are offset by additional conditions of the bank, for example, an insistent request to insure life and health. The amount of the insurance premium can reach 20% of the amount of the loan itself. Formally, the bank does not have the right to impose this service, but it can fully change the terms of lending, depending on whether the client has insurance. Total: 11.5% rate + 20% insurance = the same 31%.