December 11th, 2022Transparency needed

From: Bernie Bourke, Balliang

There is a lot of discussion about rising interest rates and mortgage stress.
However there is no discussion about banks charging interest on loans they
create out of nothing.
For transparency, all bank loan agreements should have an origin of funds
declaration clause stating that “the sum of the loan was created out of nothing under
a capital adequacy ratio of ten to one”, for example,
People need to wake up to the lopsided terms of bank loans and not get caught
up in the make, break and take debt trap.
It is no surprise that there are record debt levels and record bank profits built
upon banks’ credit creation out of nothing and the manipulation of interest rates.
The licenses of the major banks should have been revoked years ago due to
breaches of fiduciary delegation. Former Australian Democrats senator Paul McLean
highlighted banking corruption and malpractice during his time in the senate.
Also the 2018 Banking Services Royal Commission heard from people who had
become victims of banks’ predatory practices.
Rather than have a bankers’ dictatorship that has closed hundreds of bank
branches in recent years there is a need for a people’s bank to restore some balance.
This can be achieved by having a people’s bank operating out of post offices
Australia-wide.
A post office people’s bank needs to be supported by thinking people and
politicians.

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