Little Red Blogger

This blog looks at radical politics(with a libertarian socialist slant), music and culture. Marx to Mises, Girls Aloud to Steve Reich...

Location: Wiltshire, United Kingdom

Friday, February 18, 2005

Tales of a 'complex monoply' or how to be a complete banker....

Never has the Mutualist/Austrian position on banking been so abley proven than by Cruickshank's report, with Cruickshank coming the conclusion that:

"Sustained [and] very high profitability is an indication that they are operating in a complex monopoly and that on balance this is bad for an economy"

Banks in our current corporatist economy are leeches on the government teat. It is not accident that there are no serious competitors to the current 'big five' UK banks as the current ownership structure of UK banking mitigates against any real Free Market competition. Banks are ependant on government control of the money supply for their priviliged position and then using this to extract unfair and unjust rates of interest from the general public, pricing capital beyond most peoples means.

In this way banks are in an analogous position to landlords in our current economy enforcing an artificial scarcity via an artificial monopoly.