Ann Pettifor’s Bizarre Ideas On Banking

Ralph, I applaud your sustained efforts over many years to promote full-reserve banking. The next disagreements with what you say above are intended to support your valiant attempts by clarifying the argument. This is incorrect. It really is true that under a complete reserve banking system interest rare would no longer be set through by the discount rate for lender-of-last-resort support for banks (which would no longer be needed). Nor would interest paid on banks’ reserves at the Central Bank or investment company affect interest rates on private-sector loans. However, the ability of the Central Bank or investment company to buy and sell Treasury bills and bonds in the marketplaces would be unaffected.

The government’s ability to influence the overall level of rates of interest would therefore be similar under full reserve banking system to that under a fractional reserve system. 3. You appear to accept Pettifor’s claims that full-reserve banking would lead to raised interest levels. You try to defend this on the theoretical grounds that it would be “Pareto” optimal. Your argument regarding “Pareto optimality” is debateable.

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Better to steer clear of such theoretical obscurities and interruptions. Your argument appears to be inconsistent with your support for zero-interest rates proposed by some MMT writers elsewhere. Most importantly, there is NO REASON TO FEAR that full-reserve banking would cause a shortage of finance for investment or “usurious” interest levels. As stated in 1 above, the government would retain a similar control over the general level of rates of interest as today.

CB purchases of bonds would increase private sector liquidity dampening any tendency to higher interest levels. Moreover, since investment money can stream between countries and are highly elastic with respect to interest differentials, interest rates are generally similar in all countries. Any shortage of funds/ higher rates would be countered by capital inflows. Pettifor’s fears as well as your own arguments regarding scarcities of finance and high interest rates are therefore unfounded.

That’s a body, you simply can’t ignore. A couple of years ago, Goldman Sachs stated that lithium is the new gasoline boldly. Most insiders, though, would probably say that the vaunted financial firm is profiting from the apparent merely. Companies like Tesla (NASDAQ: TSLA) have long proven that lithium is definitely the next-gen fuel source.

But try telling that to the markets. Tesla stock is down almost 36% within the last yr, and the lone lithium-based exchange-traded fund, Global X Lithium ETF (NYSEARCA: LIT), year is down sharply earlier this. Fortunately, so too is domestic-lithium specialist Albemarle (NYSE: ALB). So what’s leading to this prolonged downfall? While lithium demand is higher, so too is supply. Indeed, as the lithium price soared, more producers wanted in on the action.

As an outcome, Argentina, Australia, and Chile have ramped up production to the true point where source greatly exceeds demand. From Economics 101, you know where that situation leads. But like any commodity, the ebb-and-flow is difficult to anticipate. Sure, oversupply exists today. Tomorrow, that situation can transform on a dime. Given that the broader technology industry factors toward increased lithium usage, not less, my money is on ALB rising. Consider this lull in Albemarle shares as a reduced opportunity on among the best long-term stocks to buy.

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Passive Income refers to income derived from the investment in tangible / intangible possessions eg. Immovable property, dividend, interest, royalties, capital increases, pensions etc. Active income is the income produced from carrying on energetic cross boundary business operations or by personal work and exertion in case there is employment eg. The Indian TAX Act, 1961 administrate the taxation of income accrued in India. As per Section 5 of the Income Tax Act, 1961 residents of India are prone to tax on their global income and non-residents are taxed only on income that has its source in India.

The Provisions of DTAA override the overall provisions of the taxing statute of a particular country. It is now well settled that in India the provisions of the DTAA override the procedures of the home statute. OECD (Organization for Economic Co-operation and Development) has blacklisted over 25 nations for tax relaxations they provide for parking money. Included in these are Mauritius, Cyprus, Switzerland, and Holland.