It took centuries for banks to earn the public’s trust. It took just a few hours to destroy it. After the recent “confiscatory reform” in Cyprus, trust in the banking system is expected to be lost for the foreseeable future. A bank can have a beautiful office and highly-qualified personnel, sure. Its activity, however, can be no different from street vendors in Manhattan. And who would trust those hucksters with valuables for safekeeping? No one, that's who.
Financial experts have convinced us that banks are the safest and most stable means of monetary protection. During World War II, banks positioned themselves as “knights without fear" that were "above reproach." Today, it’s obvious that banks were unknowingly used to plug holes in a sinking, pot-marked economy. The issuance of the Cyprus directive by the European Union was a public demonstration that the trouble is far from over. On the contrary – the crisis is worsening. And now, the reputation of the entire banking system is at stake.
Following the confiscatory reform in Cyprus, one thing is clear: bank deposits are no longer safe, long-term assets. That means we need to find an alternative source of investment. How about low-cost energy? Data supports the theory that in order to sustain wealth, one must have some sort of share in power production. After all - the demand for energy isn't expected to dwindle any time soon.
The on-going financial crisis threatens Western bankers who have grown their “armies” significantly over the past thirty years. Huge profits were made on new financial technology. Due to this market success, the number of bankers rose drastically. Their level of professionalism, however, did not. (If anything, it decreased!) The “sword of the crisis” will most likely slay a number of players in the banking industry, slashing the overall number of bankers. (5-10 for every 1,000 currently employed) These individuals can be old or young. Seasoned or inexperienced. When dealing with money, all types can be confiscated.
In the meantime, bankers refuse to offer any constructive solutions, save distancing themselves from everyone and ignoring council in order to plead ignorance. There’s a growing fear amidst the banking industry, and their only hope lies in keeping the capital secure. Not only is there mistrust in the current system, there’s also a prevailing, desperate desire to maintain the status quo. People are afraid of change. (Especially those who risk losing money, power, their reputation, or a combination of all three) Yet everyone pretends that NOTHING has changed. That the economy is fine. That the sky is green! But we're all being deceived. Meanwhile, the crisis continues to escalate and the threat of global economic collapse seems more and more real with each passing day. Will bankers be able to adapt and react to fluctuations in the market? It seems unlikely, since they view outside ideas as foreign and useless.
The portrait of the future is bleak. Irrational public optimism in the banking system only turns a blind eye, allowing the situation to worsen. The direr the straights, the more resistant banks become to admitting responsibility. The less open they are to change. One should expect the optimism from all the economic TV advisers to continue – up until the day the banks lose all of our money. Needless to say, when that day comes, the consequences will be tragic.
As American founding father and President Thomas Jefferson once said: “Absolute power corrupts absolutely.” It’s time to take the power back from the banks. Back from the bankers. It’s time for an alternative source of monetary investment. An alternative source of energy. Before it's too late...
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