Posted tagged ‘banking’

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Reform the international financial system

May 5, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Reform the international financial system

 

Erle Frayne D. Argonza

 

The global financial system is indubitably a homestead of predatory financiers. Usury and global speculation, the masterpieces of financiers, are the enemies of nations. Usury in international finance is at an all-time high, raising questions about the legality and moral propriety of   current lending practices. Incidentally, the said financiers are the ones who exercise the clout within the International Monetary Fund and the World Bank, whose chiefs have always been CEOs from the bank headquarters of the financiers. The said banks have always acted out as the marketing agents of financial cartels, even as many nations that have followed the austere ‘structural adjustments’ imposed by them have been reduced to paupers.

 

It is high time for ‘white knights’ to appear in global finance, lending money accordingly for developmental and investment purposes at very low interest rates (lower than 1.5% annually) and at very long-term payments (25-50 years). Such institutions are now beginning to appear, but creditors remain cautious about their moves. Such institutions are autonomous from the power orbits of the Western financial cartels, are well niched in Asia (e.g. China), and appear to be creditor-friendly.

The reform though should go beyond the ‘white knight’ route. We must actively participate in Asia’s establishment of its own monetary fund and a single-currency regime, and take a leading role if opportunities allow. It may prove beneficial yet to re-institute a regime of gold reserve standard, which should back up the Asian currency. This same monetary fund will then serve as the regional ‘white knight’ that will provide credit to nations in need in the region and continent. The actions will also accelerate the economic cum political integration of the ASEAN and the economic integration for the entire East Asia, steps that will further stabilize the national economies and continuously sustain their respective growth. Meanwhile, a regional currency can stabilize soon enough upon its launching, that it would be a difficult job for criminal financiers to manipulate it, such as the success of the ‘Euro’ now exhibits to the globe.

 

Still another key intervention measure is the control of predatory speculation through a ‘Tobin tax’ on cross-border currency and related purchases (J. Tobin’s proposal in the early 70s). A tax of 0.75% alone on the current cross-border exchanges, which amounts to $300 Trillions annually, would generate $2.25 Trillions. The said money will then be used to fund the operations of international organizations such as the United Nations, UNDP and authentic international NGOs for social development purposes. The money can also be used by ‘white knight’ financing institutions of international scale. This set of actions will then induce reforms in the other institutions, with chain reaction effects leading to declining speculation in the long run, as the oligarchic bankers/financiers adjust their rates to more competitive rates in the face of challenges coming from global ‘white knights’.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

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NEO-NATIONALISM’S PREMISES & CONTENTIONS / Strengthen national banking and the monetary system

April 25, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Strengthen national banking and the monetary system

 

Erle Frayne D. Argonza

 

 

Economic stability at all levels demands the strengthening of a national banking system, and concomitantly the strengthening of monetary system with sovereignty-backed parameters and rules. First and foremost of monetary missions is the re-assertion of the powers of the Constitution of the Republic over the Bangko Sentral ng Pilipinas. Needless to say, the country today faces a weak national bank, and necessarily a weak monetary system engendered by it. Sovereignty questions impede the effective operations of national banking in the country, as indicated by the excessive meddling of the International Monetary Fund, acting as agent of the global financial cartels, in the Bangko Sentral’s operations. The first step should be a thorough investigation by the Congress of the Republic to determine precisely who owns and controls the Bangko Sentral, and conduct related oversight functions to assess the entire consolidated assets of the said bank inclusive of unaccounted precious metals.

Should there be a need to institute maximum monetary controls, the national bank should be mandated by the Congress precisely to exercise such controls through a regime of currency controls, where found warranted. In no way should our national currency be subjected to attacks by predatory financier speculators, as what the latter have been doing from the mid-1997 onwards. Money is the lifeblood of the economy, and rendering our money under a regime of free exchange rates and free trade leaves us extremely vulnerable to the machinations of such greedy forces, further weakening our national economy. Monetary controls are the best antidotes to the ailment of a weak currency. Were it possible to revive a system of gold reserve standard, then let such a strategy be studied and enforced, to ensure stability in monetary concerns and the currency markets.

The interest rate controls should likewise continue, but the state must see to it that the rate regimes are within the bounds of sovereignty parameters, representing thereof the national interest and the subsidiary interests of the various social sectors. And, should conditions warrant, our national bank should be among the key initiators for constituting new supra-national institutions, such as an Asian Monetary Fund, thus signaling our participation in reforming the entire financial & monetary system (see below). Our involvement in an Asian Monetary Fund could be a fitful strategy to finally exit from the International Monetary Fund, further strengthening our national banking and monetary system.

 

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

EMERGING MARKETS JOCKEY FOR IMF ECHELON, FRENCH OLIGARCHIC PUPPET GETS POST

July 3, 2011

EMERGING MARKETS JOCKEY FOR IMF ECHELON, FRENCH OLIGARCHIC PUPPET GETS POST

Erle Frayne D. Argonza

Emerging markets are currently contesting for top posts in the Jurassic IMF. The downfall of Strauss-Khan, former managing director of the said bank, highlighted the deep crisis that has beset the bank lately, a crisis that threatens its very own legitimacy.

My position about the IMF was clear since the middle of last decade yet: abolish the bank, and let the member nations concur a new global financial architecture. The IMF was used by Western financier oligarchs to bleed the 3rd world to bone dry misery, it is a thug bank that clobbered member nations in order to fatten the purse of select financier families, and it continues to make members such as Greece suffer via forced austerity programs.

At any rate, just recently the French finance minister, Madame Legard, was selected to replace Strauss-Khan. What do we expect, that the evil Western financiers will permit the ‘Mandingo nations’ to get that juicy post?

Below is an update from the DevEx regarding the debates and actions by member nations regarding the Jurassic thug bank.

[Philippines, 03 July 2011]

From: DevEx – http://www.devex.com
In IMF Leadership Debate, Emerging Countries Renew Push for Greater Representation in International Forums
Brazil, Russia, India, China and South Africa, the world’s top emerging economies, released on Wednesday (May 25) a joint statement where they dismissed as obsolete the existing convention of naming a European to the top job at the International Monetary Fund. The IMF directors from these countries stressed that the next IMF managing director should be the best candidate chosen through a merit-based and transparent process, not on the basis of nationality.
The joint statement is the latest, and perhaps most concrete and concerted, effort by emerging countries to assert their voice at IMF. Emerging and developing countries, particularly the so-called BRICS countries, have been pushing for more representation at IMF and a chance to have a candidate from their ranks lead the organization.
This push by emerging nations for a bigger say in IMF appears to be part of a broader campaign of middle-income countries for a more prominent role in the international community. China, for instance, continues to expand its assistance program in Africa, while India, Brazil and South Africa are also positioning themselves as “alternative” sources of development finance.
This campaign is not going unnoticed. The “traditional” donors, in particular, are beginning to recognize the changing global political and financial landscape: The United Kingdom recently indicated its intention to engage with emerging nations, while the United States has already entered into several partnerships with Brazil.
In IMF itself, emerging nations have been “victorious” in having European countries agree to cede some of their seats in the fund’s executive board in their favor. This deal, sealed in October 2010, increased the emerging countries’ influence and voting power in the board, but they are still less influential than industrial countries, particularly the United States. Whether this increased clout will contribute to their campaign to end Europe’s dominance of IMF remains to be seen.

PHILIPPINE BANKS HEALTHY FOR THE BIG CHALLENGES AHEAD

March 25, 2011

PHILIPPINE BANKS HEALTHY FOR THE BIG CHALLENGES AHEAD

Erle Frayne D. Argonza

Good day to you fellow global citizens!

The world reels anarchic over the geological ramblings in Japan-New Zealand-China and the tumult of the Arab peoples. These events cast veils on the clarity of the economic boom now going on in Asia, and so let me be among those who will project the boom side every now and then. Among such good news is the readiness of Asian banks for the bigger economic battles ahead, a trend that includes the Philippines’ banks.

Do recall that the Asian financial meltdown came in ’97, triggering recessions, mass lay-offs, manufacturing slumps, and heightened poverty. The policy environment then was one of free trade in the movements of finance and money across borders, which enticed portfolio capital to swamp Asia. Regulators were therefore caught off guard by the currency attacks fomented by the Anglo-European oligarchs fronted by the Quantum Group of George Soros.

Asia’s banks, monetary authorities, and financial stakeholders all learned precious lessons from that economic catastrophe. Short of establishing capital and monetary controls (such as what Mahathir did for Malaysia), Asian banks did institute quasi-regulatory reforms such as to raise banks’ reserve requirements, mop up excess liquidities when situation demands so, and finally fix caps on the asset requirements for banks.

The reforms instituted across the last fourteen (14) years since the meltdown paid off very handsomely for the commercial and universal banks in particular, as well as for strengthening central banks. It is important to ensure stabilization mechanisms in the said banks first of all, a pattern that will snowball in the thrift banks and rural banks.

As far as the Philippine republic is concerned, the latest situational reports do indicate very clearly the compass of a healthy banking overall. Total aggregate assets of commercial & universal banks exceeded P6 Trillions, deposits breached the P2.5 Trillions, and trust funds skyrocketed to past the P4 Trillion mark. Needless to say, our banks here are prepared for the big challenges, inclusive of financing big ticket Private-Public Partnership or PPP projects.

The same banks are very much prepared too for the latest regulatory requirements imposed by the BIS or Bank for International Settlements. The BIS adjustments are actually coming late in the day, as the said bank has been too Euro-centric for a long time. Were it not for the fiasco of the USA and European banks from 2007 through 2010, the BIS couldn’t have acted appropriately.

Western banks ought to admit it that they are learning the new adjustments from their Asian counterparts. And the lessons being shared by the Asian banks are the ones being considered strongly today by the BIS itself, which as one can see has been commending Asia’s central bank bosses for jobs well done in their respective backyards.

There are more reforms that must be instituted however, which means that the earlier reforms should only be the start of a series of long-term changes in the banking and monetary systems. I subscribe to a global effort to ban banks from participating in portfolio investments so as not to repeat the catastrophe that hit certain big US banks that disappeared overnight during the height of the recent Great Recession there.

The more efficacious management of bankruptcies should also be put into order. We are right now witnessing a bank run in the Bangko Filipino, which seems to repeat old patterns. More stringent regulations ought to be put into place, as it is getting tiresome now to see bank runs every now and then.

Essential corporate governance reforms are among those that need to be accelerated in the banking and monetary systems. Bank mismanagements and hostile take-over of smaller banks by bigger ones are spooky phenomena within the banking community, which pose as challenges to regulators.

Let the banks and regulators keep tab of the gaps in the system and address them accordingly. Meantime, with a healthy banking situation now in place, banks can clearly become stakeholders in creating the boom situation in the Philippines, ASEAN, and the whole of Asia.

[Philippines, 17 March 2011]

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FOOD PRICES UP, SPECULATORS ATTACK ANEW!

March 9, 2011

FOOD PRICES UP, SPECULATORS ATTACK ANEW!

Erle Frayne D. Argonza

Winds of change are blowing hard on the granite edifices of autocratic regimes in pan-Arabia. As this is happening, financier speculators cashed in on the conflict by playing it up in the petrol spot market, thus raising oil prices to scorching heat levels. More areas of the global economy are under attack by the financier speculators, food & beverage among them.

As gas price in Manila has been rising by the week, so have the prices of food been going up. We are today on a bounty season for fruits here at the tropics—near the equator—yet such commodities’ prices are also moving up abnormally like they were in a situation of scarcity. Grains, vegetables, meat, cooking oil, and other related prime commodities have been accompanying the spurious OPH (oil price hike).

Little do common folks realize the handiwork of greedy speculators in the present inflationary patterns in food on a worldwide range. But that’s the fact, and many times before was it proved beyond doubt that greedy speculators, fronted by dirty operators, have always been busying their hands in reaping mega-profits on food commodities during times of crises.

Fact is, even when there is no crisis—such as crisis in the supply line—the speculators create the situation of crisis by hoarding millions of tons of specific commodities, e.g. rice. The instantaneous effect is the sign given off to traders in the commodities markets to play it up on the trading engagements, and elevating the emotive facet of the matter to the level of panic and near-hysteria.

Remember that time three (3) years back or so when rice suddenly began to disappear in the retail end of the market in the Philippines. There was a bounty season at that juncture, which came as a shock to me upon knowing from insiders (ground-level traders) that gargantuan hoards of rice were hidden inside many warehouses. President Arroyo then announced to the world that the PH will buy rice from overseas no matter how much the price is.

Of course, the commodities traders (speculative investors) heard the signal well. And voila! Rice prices across continents skyrocketed almost overnight! I even went on to forecast that it the near future, a cartel of sorts will be organized by certain countries to protect themselves versus the attackers. To make my hair rise on ends, hardly a day passed when I published my blog article about the forecast, certain Southeast Asian countries announced the formation precisely of such a rice cartel.

As the conflict situation in pan-Arabia boils up for some time, mark it down that the same coterie of financier speculators will keep on pursuing speculative attacks on certain prime commodities. Let’s not be surprised at all if the major staples—wheat, rice, sorghum, barley, oat, potatoes, yam—will experience inflationary upsets on the retail end over the next forty-five (45) days or so.

I have to prepare myself psychologically for the hyper-criminal speculative attacks this time. During the global rice crisis mentioned, I experienced sudden hypertension attack, as my cardiac condition quickly reacted to the rapidity of the crisis up to the pronouncement of rice cartel formation, rendering my forecasts a 100% mark hit.

So you fellow global citizens better watch out for the unfolding events, so as to prepare yourselves psychologically and financially too.

[Philippines, 08 March 2011]

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OIL SPECULATORS CASH IN ON LIBYAN TURMOIL

March 8, 2011

OIL SPECULATORS CASH IN ON LIBYAN TURMOIL

Erle Frayne D. Argonza

A full-blown civil war is now brewing as I write this note. As the gloomy events unfold, greedy speculators are busy taking advantage of a conflict situation by playing it up nauseatingly on the petrol spot market. Wars and mini-hotspots surely have a way of making some greedy families make lots of money, so let me add more reflections about the Libyan hot fires’ impact on oil price.

The notorious financier speculators have been planning all along to cash in on a global conflagration that should have pitted the Sunni-Zion alliance versus Iran-led coalition. Such a planned catastrophe was suddenly derailed by the mass rousing of younger generations of Arabs who now desire for the overthrow of their respective tyrants or sovereigns.

With the world war III prospect now sorely diminished, the financiers had to find a quick fix to their addictive greed for easy profits. And that’s how their fixated eyes marveled at the conflict that suddenly unveiled in Libya which, as everybody knows, sits on huge reserves of oil from where the tyrant largely derives his income for country and family.

Nobody knows how long the conflict lasts in Libya, but it is getting clearer as of this writing that Kadhafy’s legitimacy before his own supporters is rapidly effacing. The situation is as fluid as petrol gushing out of Libya’s oil wells, so it pays to keenly observe the events on a day-to-day basis.

One thing though is certain about the conflict’s time frame: it will be short, and no protracted war will come from the forecast loser—tyrant Kadhafy and minions. So, given the short time frame, the speculators have to ride along with the waves of turmoil, and cash in quick on the hot events.

So the spot market is ablaze at this moment with a sort of hour-by-hour anaysis of the situation and superficial forecast of oil prices. Superficial, because insider trading is the in-thing among the dirty players in the same commodity market, with a coterie of financiers fronting for their invisible sponsors among the Anglo-European oligarchs. There is no science into the oil spot market, just plain mafia-type dirty speculations.

Already, retail oil prices are skyrocketing in countries that are dependent on oil imports. In the United States, oil prices get hiked on a daily basis. East Asian countries follow very closely not far behind from the USA in terms of constant rising of retail prices, or those that hurt the pockets of downstream end-users. Food prices are direly affected by the same OPH (oil price hikes), and so you could imagine the glee of another branch of the dirty speculators cashing in on the food commodities trading.

With the dizzying rapidity of the flow of conflict-induced events, we can only surmise that OPH will hover the $170-$200 per barrel of oil (‘sweet crude’ standard). As the events are happening, anti-OPH and anti-food price hikes are now raging across the globe, including the Philippines. These protest actions are complicating the mass panic that is generated by the rising prices of oil & food, with potential hysteria that could explode into food riots in the short run.

While billions of poor folks suffer from the rising prices, the greedy speculators’ pockets are satiated anew rendering them instantly happy over very fat profits. Commodities speculation is done without any compunction over their catastrophic effects on peoples, as they are done by conscienceless market players.

But never forget that the greed of the dirty speculators is insatiable, and so the said financiers’ eyes are again busy searching for some other hot fires in the event that the Libyan conflict ends soon. Those hot fires are no other than the socio-political turmoil that is now brewing across the Arab region.

[Philippines, 04 March 2011]

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PHILIPPINE STOCKS @4,200+ POINTS, WILL SURGE ANEW BY 2011

January 17, 2011

Erle Frayne D. Argonza

Asian bourses continue to perform excellently, and the Philippines is a contributor to this bullish trend. In the past year, there were some junctures when the bourses did dip a bit, but never too dip as not to be able to surge back ahead. The bourses reflect the optimal growth patterns in Asia and are bound to replicate the feat in 2011.

By the start of 2010, I was of the opinion that the Philippine stock exchange will trade very bullishly, that it will eventually breach the all-time best record of 3,600+ points achieved during the era of the Ramos presidency yet. True enough, it did breach the 3,600 points and ended up at 4,200+ points by end of December 2010.

To recap, 2,000 points is the bourse’s psychological break point in my beloved Philippines. Quite a barometer of the economy’s health, the stock index says that the economy here is faltering when the bourse crashes below the 2,000 point barrier and stay down there for many months. At some time in 2009, that incident happened, though fortunately for the country the stock index climbed back past the 2,000-point threshold quickly.

Being among the Asian countries that have learned to insulate themselves from global economic downturns and great recessions, the Philippines did bounce back right away and saw the index breach the 3,000-point level in the first semester of 2010. This trend alone is cause enough for great hope for the coming months and years in this country.

With ‘smart money’ leaving the North due to stagnation and recession, it wasn’t long before the Ph bourse soon felt such ‘manna from heaven’ getting invested into its stock options. With that happening, the stocks  meteorically ascended the 4,000-point level in the 2nd semester, and was optimistically forecast to reach 4,600+ points by certain quarters.

Witnessing the pattern of periodic decreases amid a general trend of sharp climb, I did raise eyebrows over the mega-optimistic forecast. I was already happy to see the 3,600+ points breached, but a 4,600 point conclusion is far from achievable in 2010. And so, true to my intuitive forecast, it settled at 4,200+ points, or just 200+ points beyond the new barrier of 4,000 points.

As big ticket projects are now on the pipeline for negotiations and implementation soon, we can expect investments to surge upwards more sharply this 2011. This will be reinforced further by the upgrading by Moody’s of the country’s investment grade from “stable” to “positive” just as soon as the new year commenced.

An offshoot of the optimism in the investment field will be entry of more players locally to purchasing stocks in the new IPO options opened to the public. Furthermore, ‘smart money’ from overseas will inflow into the local bourse and capital markets, thus ensuring another year of surge in the stock index.

This time around, I will be among those who will accept a forecast of the Philippine bourse breaching the 4,600+ points at the end of 2011. Granted that fairness in the stock trading and surety of regulatory mechanisms will be stronger this year, the Philippine bourse will perform excellently again this year and facilely breach that new forecast level.

[Philippines, 13 January 2011]

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