According to this:
Wall Street Banks Are Starting To Give Up On Lending To Farmers | ZeroHedge
The Wall Street banks decided to ignore the issues the farmers face. Possibly because they are a big part of Trump’s voter base.
Well, how do you solve this? First, I’ll have to remind people what banks really are, and I’ll quote BitMEX CEO:
“All a bank is relegated to is a dumb node that holds fiat currency in electronic form at a central bank,”
Even though some people think he might have his shortcomings( some argument with Roubini, a bitcoin skeptic brought a bit of controversy), the fact of the matter is, a bank is a node holding fiat currency in electronic form and representing a central bank.
Article here:
https://www.zerohedge.com/news/2019-07-10/paypal-fked-bitmex-ceo-says-facebook-libra-will-make-banks-dumb-nodes
So, now what?
Well, because we know what a bank is, we know that there is a way around it.
Why don’t we let the central bank give the loan directly if the commercial banks don’t want to help farmers? Let’s dis-intermediate the commercial banks! The only reason every single citizen is not holding an account at the central bank directly and holding accounts at commercial banks, is because the central bank’s existence was intended by those who don’t like sunlight, to not be noticed by the public in general. Because it would be bad if people would be mad at central banks directly instead of the commercial banks, and the central bank policies would serve then, the people and not the elite. But if central banks have no attention, and all people will see commercial banks with competing loans, they will buy the illusion of limited choice and competition between commercial banks, and the people would buy whatever loan rates are charged by the commercial banks, that are really charged by the central banks and those who run those bankers. So people would be easily skimmed by the whole central bank and commercial bank construct! And those ‘bankers’ would only need to file paperwork, live rich and get fed by all the producers of the economy, because in this economy, those who don’t get loans, can’t compete with those who do get loans, because those with loans get more capital and investment and scaling their business and in the long run, the one who didn’t take loans will grow way less or not at all, compared to the one who did. The fact is, the bankers themselves are in fact skimming off productive people and more often than not screwing the economy built by the productive people! It’s a sad truth, a sad state of affairs but it is what it is! Now what next? Well simple, one way would be to ban loans ( which doesn’t really work, there might be loan sharks etc.) or give loans at more or less zero interest rate, backed on the bank’s assets, also the currency backed by gold and the loans should be limited in size and it would really be a contest. Subsidies or loans would become synonyms, because both would be more or less limited. Well, some might say that because the whole ‘loan’ thing would be very limited, because you can’t loan much without fractional reserve banking, the businesses might grow a lot less. So there should be the following. If Gold held in reserves is 10000 tonnes, that would be around 450 billion dollars worth of currency at current prices. There could be a set percentage in regards to total amount of loaned us dollars reported to the money supply. I think the maximum allowed value for loans should not be more than 20% of the total money supply ( in this case 20% of the 450 billion $, that is 90 billion $). And it should never exceed 40% of the total money supply. Those billions in loans should be given directly by the central banks via loan agencies and thus dis-intermediate the commercial banks in the loaning process.
This would, as a result, make a very different and more transparent economy. It would be more safe and more robust. Gold standard, 0% interest rate and total loans given by central bank capped by the total money supply (ie. total amount of gold).
The solution here is, ‘threaten wall street banks with the following’:
“If they(commercial wall street banks) don’t want to help loan to the farmers, then plans would be set into motion to dis-intermediate these banks by setting up systems to loan to farmers directly from the central banks!” Because in reality, the commercial banks loan the money they have from the central banks! What happens if farmers don’t go to commercial banks anymore and directly to the central banks?
And farmers could possibly get, instead of 5% or 10% loans, a 2.5% interest rate, like the skimming commercial banks get!
Sure, there are other ways to help the farmers, not touching the wall street banks, like more subsidies, debt forgiveness, etc. But dis-intermediating the commercial banks and getting loans at fed’s interest rate would make a huge difference and a huge boost to the economy!