No. 36 September 26, 2020 - The Banking Sector of the Economy

The resolution of this contradiction requires the renewal of the democracy with equality for all members of the polity at the core, the development of friendly peaceful relations with all humanity, and the humanization of the social and natural environment. [...] The Banking and Credit System Must Become a Public Utility in the Service of the People and Under Their Control The contradiction in the economy between the state-sanctioned private aim for maximum profit and the need for social responsibility to serve the people and society is starkly evident in the banking system. [...] The SAPs that the WB imposes as a condition on those governments that are granted money, consist of adjusting the economic and political structure of the nations with the goal of adapting the country to the free market and to liberal macroeconomic policies, thus, facilitating the investment of transnational capital from the most powerful companies in the world. [...] We recall that at the first Summit of the Americas carried out in 1994 to form the Free Trade Area of the Americas (FTAA), the governments of the continent mandated that the IDA be in charge of returning more and more funds to the WB as regards financing of businesses and governments. [...] Just the opposite occurs when the Fed sells securities: The payment reduces the reserve account of the buyer's bank at the Federal Reserve Bank with no offsetting increase in the reserve account of any other bank, and the total reserves of the banking system decline (less money in the economy).