Problems of Index Fund Capitalism
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Breakfast with BlackRock & Co.
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Wall Street comes to Cambodia’s microcredit sector
By Milford Bateman. One microcredit institution in Cambodia has in recent years been highlighted not just as a best practice example of the microcredit model in action, but as a leading example of ‘inclusive capitalism’ composed of ‘social enterprises’ that aim to do good in the community. Now AMK had been acquired for a cool $US150 million by the Taiwan-based Shanghai Commercial and Savings Bank, one of Asia’s most aggressive financial institutions.What is making the former owners of AMK wealthy, is very bad news for its already suffering creditors.
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Bundesbank rejects 100%-money based on sophistry and false claims
In its April monthly report, Deutsche Bundesbank explains that banks create money ex-nihilo and rejects the proposal of 100%-money. The full English version is now online. The arguments employed to discredit 100%-money are a mix of sophistry and misleading or false statements.
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Bundesbank corrects textbook mistakes on money creation, rejects 100%-money
In the April-edition of their monthly report, the Bundesbank has belatedly joined the Bank of England in explicitly stating that the treatment of banks and money creation in most textbooks is wrong: banks are not intermediaries; they create money ex-nihilo. This helps the Bundesbank to reject criticism that central banks are currently “printing” too much money. At the same time, the Bundesbank rejects the proposal of 100%-money, i.e. bank deposits fully backed by central bank money.
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Central banks as part of the banking community: Whom they serve determines what they do
At a symposium of the GUE/NGL group in the European Parliament on “The ECB – Europe’s unelected government” (video from min. 22), I gave a presentation on the nature and motives of central banks in general and the European Central Bank in particular, characterizing it as an integral part of the banking community. Harald Schumann (from min. 47) presented a lot of juicy detail about highly questionable machinations of the ECB during the bank-“rescues” in Greece and Cyprus. The text of my intervention is below.