Banks of the Global Financial OligarchyThe working class should not overestimate the importance of the banking system and related institutions, as the financial oligarchy invariably does. Almost all produced goods and services within the imperialist economy must be sold before they can be used. The necessity to circulate all goods and services in the imperialist commodity economy as exchange-value before being used means that currency and electronic services to realize commodities are important. This places a high degree of importance on the financial institutions, which in reality are not productive and require value from the productive sectors to operate. A new direction for the economy where goods and services are produced according to a plan, are used directly as produced and needed and do not have to circulate would eliminate much of the current role of currency and other means to realize goods and services. Under imperialism the banks and other institutions of the financial oligarchy have extended their role into parasitic activities of the worst kind. These activities mostly deal with the re-division of already-produced value increasingly disconnected from the actual production and circulation of goods and services and should be viewed and denounced as criminal corruption. The primary role of banks is to act as a repository of the value the working class has produced through work. From this role the banks can serve as a clearinghouse for the circulation and exchange of goods and services in cash, cheques and electronically. As a holder of value, they also have a role as lender of already-produced value to individuals and businesses. Banks have long strayed from their primary role into speculation and other parasitic activities aided by governments through the proliferation of stock and commodity exchanges. Through an insider arrangement, the owners of the Toronto Stock Exchange some time ago were given the exclusive right to handle the sale of government securities greatly expanding their cartel now called TMX Group. Banks have been accorded the right to create money by lending in practice far more than they hold in deposits. The creation of money should be a public activity controlled exclusively by government, which should be completely transparent and for which the public authorities in charge are fully accountable. The creation of money through the private banks of the financial oligarchy is a practice that serves the narrow private interests of the rich and goes against the broad public interests of working people. The ruling elite have even put a target of creating yearly price inflation of at least 2 per cent for goods and services so that the price the working class receives for selling its capacity to work is constantly under downward pressure and workers are forced to play catch-up to maintain their standard of living. The working class should demand that all special rights accorded banks through legal regulations and charters be rescinded and that governments at all levels sever their relations with the private financial institutions. This includes the severing of any relation with private lenders and institutions with regard to government borrowing. Governments should borrow from themselves when necessary without any connection whatsoever with the private institutions of the financial oligarchy. The repayment of government debt to itself should be based on the working class creating new value from its work within the Canadian economy. Public government borrowing must be completely transparent and justified and for which the public authorities are accountable. All servicing of outstanding government debt must cease immediately. A public investigation should be conducted as to the legitimacy of the public debt, why and for what purpose governments sold securities to private institutions of the financial oligarchy, and how much has already been repaid in debt charges. The inquiry should decide how much of the principal should be paid. Absolutely no new interest should be paid under any circumstances for existing debt and absolutely no new securities should be sold to the private institutions of the financial oligarchy. Public service banks should be formed that serve their primary role as repositories of value, clearinghouses for the circulation of goods and services and to lend money to individuals and businesses. The working class and its collectives should withdraw their savings from all private institutions of the financial oligarchy and deal only with public banks or those financial institutions that the working class may organize itself. Banks should be viewed as providing a public service to the economy and people over which the people must exercise control and demand accountability. The working class provides banks with value as money through their individual savings and checking accounts and in other collective ways such as pension funds. The demand that banks operate in an open and aboveboard manner free of corrupt practices can be accomplished if workers themselves exercise control over their savings and financial institutions and public banks are created and forced to be transparent and accountable for their actions. Discussion should begin on how to mobilize the savings and pensions of the working class to serve the interests of working people and society and not the narrow private interests of the financial oligarchy. Discussion and actions on the front of banking forms part of the movement for a new pro-social direction for the economy outside and in opposition to the control of the financial oligarchy.
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