Financiers can turn the world into a dirty and dangerous place

European Economic and Social Committee. Seminar on “Future energy and climate framework and civil society”. (EESC photographic library, 25/10/1013).

European Economic and Social Committee. Seminar on “Future energy and climate framework and civil society”. (EESC photographic library, 25/10/1013).

Despite the fact that the civil society is fed up with the absolute indifference of the financial sector about what happens in the real economy, the western political elites continue to nurture the insatiable appetite of the banking system for more book profits. In view of that, the European Economic and Social Committee issued yesterday a resolution proposing new ways out of the crisis. The EESC says that, “quick profits has corrupted our economies, leading many European countries into recession, where algorithms have replaced traders, performing micro-second transactions, and where a company’s share price no longer bears any relation to the actual situation”.

Hard working people have by now understood that the western financial system has disconnected itself from the real economy and has no more need for a hard-working population. Financiers can create wealth all over the world usurping other peoples’ sweat. The complete liberalisation of the banks’ built-in ability to create money and the abolishment of all rules protecting society against bankers during the last twenty years, has demolished any moral barrier on financial activities and has betrayed even Adam Smith’s trust, demanding strict controls on lenders. The prophet of free market economy, when it came to banks, ruled that financiers should be strictly controlled even on moral grounds.

EESC, representing authentically the civil society exclaimed as it follows: “The time has finally come to see that only substantive reforms can put us back on the path to a sustainable economy, with sufficient redistribution of wealth to be able to serve society as a whole”. To support this position employers and workers represented in the Committee looked around for intellectual backing, for their deep sentimental frustration of being ruthlessly exploited by investment banking. In their query they came upon another academic and businessman brought up in Scotland, Lord Adair Turner.

A philippic against bankers

EESC resolution goes like this: “Numerous intellects, less conventional than all the economists who failed to see the crisis coming, are reflecting on possible reforms which could put us back on the path towards a sustainable economy”. The Committee found that the most appropriate proposal came from Lord Adair, former chairman of the British Financial Services Authority.

The essence of his proposal is to clearly distinguish between socially useful and socially useless financial activities. So the EESC concluded that “It is, indeed, time to encourage those activities that finance sustainable projects and contribute to the real economy and – why not – to dare to prohibit those that harm it, which have already been the cause of so much sacrifice”.

For Lord Adair’s proposal to be applied all financial activities have to be strictly controlled. The target will be to distinguish those directly supporting the real economy in undertaking investments plans, which cannot be financed by business sector’s resources alone. Staying in this line of thinking, after distinguishing which are the ‘socially useful’ financial activities, “the money invested will be able to play its role of development lever, matching investment timing to the needs of industry”. This said the resulting obvious policy proposal is that, “Only with a policy that prioritises sustainable investment will Europe be able to reindustrialise; only tailored financing and innovation tools can encourage development of businesses in Europe”.

For sustainable economic growth

This is really a ground-breaking proposal to completely rethink and re-establish the financial sector in Europe. Understandably the EESC fears, that the enactment of the European Banking Union, on the premises of the current laissez-fair financial environment, will end up creating a new support mechanism for banks. In this respect lenders will continue functioning independently from Eurozone’s real economy, betting all over the world other peoples’ money. If their bets are won they keep the profits, if they go sour the Banking Union will undertake the losses.

This is a really a dreadful prospect for Eurozone. If the creation of the Single Resolution Mechanism for failing banks is not accompanied by very strict rules on lenders, the next crisis won’t be very far away. ECB’s supervision cannot change this. If the current regulatory environment of the financial sector is not drastically change, Eurozone’s Banking Union will be an exclusive playing field just for financiers. Only parts of the manufacturing industry will be able to survive, under the roof of European multinationals, which will create their own financial department, to support their real economic activities.

In such an environment the SMEs will be a species under extinction. Financiers and multinationals will become completely stateless entities and will tend to direct economic activities where profits are uncontrolled and uncontrollable. Environment, human rights and democratic rules will be the last things to bother them. In conclusion, if financiers and multinationals are left uncontrolled as they are now, the world may become and dirty and dangerous place.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

EU mobilises €9 million to tackle the food crisis in Haiti

How the inventor of the internet plans to make it safe and accessible for everyone

The sad plight of fledging doctors

Why businesses are nothing without strong human rights

Half of all mental illness begins by the age of 14

Insurer CEOs Reveal Marketing Strategies that Communicate the True Value of Insurance Products & Services to the Customer

This new way of understanding disease is changing medicine

World cannot be transformed without ‘ingenuity of the countries of the South’: UN Chief

How bad is the Eurozone economy? The ECB thinks too bad

“Decisions taken in the coming weeks will shape Europe’s experience of the internet”, Joe Mcnamee from EDRi says live from European Business Summit 2015

Plastic waste from Western countries is poisoning Indonesia

Civil society organisations disenchanted with “Youth Guarantee”

A Sting Exclusive: Paris Climate Change Summit, a defining moment for humanity, by Ulf Björnholm Head of UNEP Brussels

Tax reforms accelerating with push to lower corporate tax rates

How robotics can help humanitarians bridge the digital divide

EU accused of being too nice with Gazprom in the infamous antitrust case

Berlin and Paris pursue the financial fragmentation of Eurozone

How the Irish people were robbed by banks, the Commission and their own government

EU report: Implementation of reforms continues to bring EU and Ukraine closer together

Young? You should work out the entrepreneurial heart before the mind

Take medical use of cannabis seriously, say MEPs

Libyan authorities must shoulder the burden to support country’s ‘vulnerable’ south

Chart of the day: These countries have the highest share of electric vehicles

‘Refrain from violence’ UN chief urges, as presidential election result is announced in DR Congo

Aid teams respond to escalating southwest Syria conflict: 750,000 civilians are at risk

Island nations on climate crisis frontline ‘not sitting idly by’

How blockchain can manage the future electricity grid

EU–Canada Summit: strengthening the rules-based international order

UN ‘prioritizing needs’, ramping up aid, as Hurricane Dorian continues to batter the Bahamas

Venezuela: Parliament calls for urgent EU help for people fleeing the country

Amid ‘volatile’ environment, UN mission chief urges Iraqi leaders to ‘listen to the voice of the people’

‘Much more’ can be done to raise awareness about the plight of persons with albinism: UN chief

Syria war: executions condemned as violence continues ‘on both sides’ of border with Turkey

OECD Steel Committee concerned about excess capacity in steel sector

A day in the life of a Rohingya refugee

The EU learns about fishing and banking from tiny Iceland

ECB is about to lend trillions to banks

OECD, BSR and Danone launch 3-year initiative to strengthen inclusive growth through public-private collaboration

Quality Internships: Towards a Toolkit for Employers

Bosnia and Herzegovina: MEPs concerned by slow progress in EU-related reforms

Trump’s Syrian hit the softest option vis-a-vis Russia

Lagarde: Keep feeding the banks cut down wages and food subsidies

This is how Britain saved some of its most precious wildlife from the threat of extinction

IMF: All you want to know about Argentina

Sahel States need international support ‘now more than ever’– UN peacekeeping chief

ECB readies itself for extraordinary monetary measures defying Germany

Who is to pay the dearest price in a global slowdown?

The US banks drive the developing world to a catastrophe

No agreement in sight on EU budget

The Fourth Industrial Revolution is redefining the economy as we know it

Why financial services can kickstart Africa’s digital economy

At last Germany to negotiate the costs for a really cohesive Eurozone

EU: Huge surplus in the trade of services with the rest of the world

The succesful cooperation

It’s a frenzied clash between moderates and no-deal Brexiteers

LGBTQI+ and medicine

India can soar in the robot age. This is how

10th ASEM in Milan and the importance of being one: EU’s big challenge on the way to China

‘From farm to plate’, first-ever World Food Safety Day demonstrates the need to take unsafe food off the menu

Respond to ‘legitimate grievances’ of Sudanese people, UN human rights experts urge, following protests

More Stings?

Comments

  1. Excellent goods from you, man. I have understand your stuff previous to and you’re just too great.
    I really like what you have acquired here, really like what you’re stating and
    the way in which you say it. You make it entertaining and you still take care of to keep it wise.
    I can’t wait to read much more from you. This is actually a tremendous
    website.

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s