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Katter introduces a bill to clean up the banks

from CEC

The federal Member for Kennedy Bob Katter on June 25 introduced a private member’s bill into the Australian Parliament to protect the economy and bank customers from dangerous financial speculation and predatory banking.

The Banking System Reform (Separation of Banks) Bill 2018 is based on the USA’s successful Glass-Steagall Act. It will separate Australia’s commercial banks, which hold deposits, from risky investment banking, as well as other financial services that Australia’s banks have acquired in recent decades, including insurance, superannuation, wealth management, and stock broking.

The ongoing Financial Services Royal Commission, which Bob Katter led the political fight to establish, has laid bare the predatory banking practices that the bill will end. The revelations from the royal commission have been so dramatic that it has attracted global attention, and kindled fear in the City of London that Australia’s inquiry could lead to a renewed push to break up Britain’s too-big-to-fail banks.

Katter excoriated Australian banking in a passionate speech introducing his bill. “The situation in Australia is ugly and it is evil”, he said, “and this legislation is needed to overcome those problems and what effectively it says is—‘Mr Banks you are no longer out there in the market, in the arena buying and selling. Your job is to loan to people that buy and sell, develop and invest. You don’t do that, you judge them.’”

The people’s campaigner to clean up the banking industry is Bob Katter, Federal Member for Kennedy, an electorate three times the size of Tasmania which runs much of Australia’s cattle and sheep herds.
Katter has introduced a bill into parliament to separate banks’ speculative activities.

Aside from the conflicts of interests in banking, Katter’s chief concern in moving Glass-Steagall is for the looming financial crisis arising from the banks’ speculation in real estate and derivatives. He identified the reckless speculation threatening the financial system today was also the cause of the 1929 crash, which led to the passage of the Glass-Steagall Act in 1933.

“What we’re talking about here is derivatives: when you don’t buy a loaf of bread; you buy a contract to buy a loaf of bread”, he said. “That is what we call a derivative.

“Glass-Steagall came in and it overcame the vast bulk of those problems so that the American economy ran fairly effectively, making it three, four, five times the size of any other economy on earth, until Mr Bill Clinton, ‘Mr Free Markets’ himself. … In 1999, he abolished the Glass-Steagall Act. Within two years, the dot-com collapse occurred, taking down trillions of dollars of savings, superannuation and retirement moneys of Americans and the rest of the world, and in 2008, as we’re all familiar with, came the GFC.

“Clearly, that timeline indicates the necessity for Glass-Steagall legislation in this place.”

The most immediate danger for Australia, Katter emphasised, is from the bubble in the real estate market.

“The housing boom in Australia today—does anyone seriously think that we are not sitting on the brink of disaster?” he warned. “A quarter of Australia’s population, maybe a third, live in Newcastle, Sydney and Wollongong. The average price of a house is over $800,000. That means that 50 per cent of the houses are over that value. Yet the average income for an Australian after tax is about 50 grand a year [$50,000]. So how are they going to make the repayments on a house? And yet they’re buying houses. The banks are financing them. The banks make money when you go broke and they sell the house out from under you. They don’t lose money; they make money out of what has occurred. They should be held responsible.

“I would love to be in a business that is guaranteed by the government”, he continued. “If I buy a corner store and I know that, if I go broke, the government’s going to give me the money, everyone will be buying corner stores in Australia. They are given this, but there is no responsibility placed upon their shoulders to act in a prudential manner.”

Katter singled out the team of people responsible for organising the bill, including Robert Barwick, Dr Wilson Sy, and Bob Butler. Sy is the former principal researcher at bank regulator APRA (Australian Prudential Regulation Authority). Barwick and Butler are representatives of the Citizens Electoral Council, which has led a nine-year campaign to get Glass-Steagall legislation enacted in Australia.

It is significant that on the same day as Bob Katter introduced his bill, Australia’s biggest bank CBA announced it was demerging from its wealth management businesses, as if to send the message that Glass-Steagall legislation is unnecessary because the banks are doing it voluntarily. On closer examination, however, CBA is not completely demerging from other services, and along with the other big banks it is continuing to speculate in dangerous derivatives and other forms of financial gambling. Only a strict Glass-Steagall law will end these practices, which is the intention of the Katter bill.

As a private member’s bill, Katter’s Separation of Banks Bill 2018 will only be debated if a majority of members of parliament agree to do so, which will require the support of one or the other major party. Ordinarily, the governing Liberal Party would be expected to protect the banks, but many Liberal politicians are shocked by the revelations of the royal commission and are concerned about a financial crash. And what about the Labor Party—will it block or delay Glass-Steagall the way it blocked the banking royal commission for six years, or return to its roots as champions of working people against the Money Power? It will be up to the Australian people to demand the major parties stop protecting the banks, and allow a debate and vote on Glass-Steagall.

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BUST THE BANKS

We will face the crisis with aggression and unity – KAP

Charters Towers Debt Summit August 31, 2015

With less than a week until the Charters Towers Rural Crisis Summit, Member for Dalrymple Shane Knuth said he has felt a groundswell of interest.

” Since we announced that a summit would be taking place I have been fielding calls from graziers and small business owners in drought effected areas all over the state,” Mr Knuth said

“The amount of people who are getting involved in this is encouraging, the rural crisis really is the issue of our time.

shane-knuthMr Knuth who will be chairman on the day with KAP member for Mount Isa Rob Katter said while the speakers at the summit will help bring context, it is a priority locals are given the opportunity to speak.

“The summit is important but the action that follows after is essential,” Mr Knuth said.

“The resolutions devised and agreed upon at the summit will form a blue print for action in rural Queensland.”

Member for Mt Isa Rob Katter who held a similar summit in Winton last year said the rural crisis committee which has since become the backbone for rural advocacy in the area.

“Less than a year on the committee has been instrumental in applying strong pressures to the government in face to face meetings, but we aren’t done yet,” Mr Katter said.

“There needs to be a stronger and more direct connection with between the cattle producers, business owners and the policy makers, we are trying to facilitate this.”

KAP Federal member for Kennedy Bob Katter who will also be part of the day has widely encouraged people from all walks of life to join to help find a solution.

Mr Katter said the current high price of cattle due to the lack of stock available isn’t a consolation for struggling farmers because they themselves have no cattle to sell.

“There are answers here, and we have got to go to those answers with aggression and unity,” he said.

“Wandering around blaming political parties quite frankly isn’t going to get us anywhere, there is a big system of power there and we must assail it on the political front, the economic front and through social media.”

Mr Katter drew reference to the story of Charlie Phillott (speaking at the summit) who’s story written by David Pascoe, went viral and became the most shared post in Australian History.

“The people of Australia are  behind us, but we have got to know clearly what we want,” Mr Katter said.

“We must fight for survival.”

AGENDA

Final Agenda Charters Towers Rural Crisis Summit

Chaired by Shane Knuth and Robbie Katter

9.30- CUPPA

9:50 – Take your seats for the morning

10:00- Opening Address and Welcome Shane Knuth MP Member for Dalrymple

10:10- Andrew Jensen chairman Charter Towers Rural Crisis Committee, Committee work and goals for the day/ House keeping

10:15- Charlie Phillott face of the crisis/ Winton

10:20 – Bill Byrne MP, Minister for Agriculture Queensland Government

10.35 – Open Questions to Minister Byrne

10:50 – MORNING TEA

11.30 – Brian Egan, Aussie Helpers

11.40 – Cate Stuart, Formerly of Mount Morris Station

12:00 – Ben Rees, Australian Agriculture, the Real Story 12:15 – Dr Mark McGovern, Summing Up

12:45 – Committee Resolutions/ Other resolutions

1:30 – Bob Katter Federal Member of Kennedy, Closing address

For more information on the day please call: 0466-7 11-527

 

Financial System Inquiry Recommends an urgent ROYAL COMMISSION into Australian Banks

Please join this campaign to stop the banks from stripping our personal assets including our homes!

https://www.change.org/p/mr-david-murray-chairman-of-the-financial-system-inquiry-recommend-an-urgent-royal-commission-into-australian-banks-australian-non-banks-collapsed-companies-the-regulators-asic-apra-and-all-subsidiaries-and-joint-partners?recruiter=29024752&utm_campaign=mailto_link&utm_medium=email&utm_source=share_petition

Commonwealth Bank fleeces the economy of $8.6b: any wonder we are broke

The Commonwealth Bank of Australia has announced the highest ever financial heist by any bank in the country of $8.6 billion, to the end of June 2014.

Today the ANZ Bank announced a nine month profit of $5 billion.

All of this without ever lending one cent in legal tender of their deposits.

While Queensland wallows in a sea of debt owed to foreign bankers thanks to the former Labor Government, the State Treasurer Tim Nicolls by his inaction, does not understand the basic tenets of the creation of money.

The Commonwealth Bank has in effect taken $8.6 billion out of the national economy, by creating a monetary deposit every time a loan is approved.

When struggling borrowers repay their loans with their wages or business income covering interest and redemption, the bank profits by the entire amount with money it did not originally possess.

The fractional reserve system enables banks to lend at least 18 times the value of their deposits without lending one cent in legal tender (notes and coins).

Has any bank customer ever been told by a teller, “ I am sorry I can’t cover your withdrawal because we lent your deposit to another customer.”

The CBA will pay a dividend of an average $3,500 to every shareholder.

Treasurer Tim Nichols legally can set up a State Bank lending to local authorities and for development projects without borrowing one cent from any bank.

State Banking once was National Party policy.

This bank can issue credit at low interest rates for projects against the collateral value of the mineral and agricultural resources of the State.

Infrastructure funding would be available for large projects such as new railways which are desperately needed to take the pressure off the State’s crumbling road network.

Treasurer Nicholls and his party could easily remain in power if he had the integrity and intestinal fortitude to buck the banks and help desperate farmers and businesses in the State to prosper.

Selling publicly owned assets is unlawful because the corporate ‘Queensland Government’ does not own them.