Citizenoftheworld
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Banks that loan out more than what they have available to loan out are in danger of succumbing to a bank run – when depositors, fearful that the bank may not have the funds to cover or return their deposits, get into a panic and try to withdraw their money which then brings about the very crisis they feared. Bank runs have occurred throughout the financial history of capitalism. A recent and prominent example is the Silicon Valley Bank in 2023, the third-largest bank failure in US history which resulted from a $42 billion bank run.
—————————————————————————————————————————————The Silicon Valley Bank case is well explained in this short article:
The capitalists and the capitalist state will give many explanations, but they will never show the weakness of their own economic system, they will never say that this a very unstable economic system.
SVB was taken over by the FDIC and then another bank partially purchased the bank because they did not have enough reserve to buy all the assets and liabilities and the FDIC kept the other portion of the failed bank . The first Citizen bank did not create money from the thin air
Also if Banks can create money at the stroke of a key board, why do they charge interest at all. If they could create money, they could create a £1,000 then offer a loan of £1,000 to a lender who was only required the lender to repay £500, which would mean the lender got a total £500 (very nice little earner), the bank would make an initial £500 profit and end up with an eventual £1,000?
All created from nowhere, what’s not to like?
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Peoples who own the title deed of a real estate property do not know that within 30 or 40 yers they would be paying about 20 or more times the amount of the principal that they borrowed . Why banks have to wait so long in order to make all that money ? They can create all that money by the stroke of a pen or a keyboard and continue lending money in other areas of the capitalist economy The 2008 was not a financial crisis, it was a crisis of over production and many homes and building were over produced. Marx theory of crisis is still valid
Conspiracy theory vs socialist logic. Conspiracy theories have been elaborated already, we do not have to do any personal elaborations
If the conspiracy theory which says that bank can make money from thin air is valid, why do most third world countries ( the south ) borrow money from the IMF ? If the central banks of those countries can issue money they can pay their loans, or they would not need to take loans, that theory goes along with the theory which says that US Reserve Bank is a private institution which is another false theory debunked by real economic conceptions
Money transfer, or money remittance make the same function as cashier check, money order, or officers check or certified check, to emit those instruments a customer deposit is required, the remittance companies that send money overseas the customer must give money to the clerk and a fee is also collected from the customer and the remittance can be delivered in different types of currencies. Real estate transactions the proceeds from both sides are made by electronic transfers, but a cash reserve is needed in order to make those transactions and the recording of both transactions is done immediately including the deed of trust, which would be the same as the old days when banks were issuing cashier checks
The US Postal Office also issues money order but the customer must first provide money or cash to the clerk in order to issue the instrument and a fee is also collected from the customer, and in some countries the Post Office had what it was called declared money value where a customer placed money inside an envelope and it was guaranteed by the post office and they collected a fee for the service, that type of service was replaced by electronically money transfer
The USA government in order to finance their operation is borrowing money from China and Japan, they do not issue money without any reserve, some countries accumulate dollars which are called divisas in order to finance their international operations, when the dollars was at par value with the currencies of several countries, banks customer used to obtain a cashier’s check in dollar by depositing their own currency or giving cash to a bank teller
In our time the labor theory of value is more actual than when Capital was written, and peoples who negate that theory are also negating the economical exploitation of the world working class, and the extraction of surplus value from the sweat of the working class, and negating that money is capital, and capital is unpaid labor, sadly some supporters of that theory, are called Marxists
The USA is losing its financial credibility because some countries and bank think that in the future they would not be able to pay their financial obligations due to the fact that they have a huge debt and would not have enough cash reserve, and part of the US budget is used in order to pay interests, why do they have to pay interests when they can emit money from thin air ?
When banks need to construct metropolitan branches, and towers for operations, or infrastructure they do not use their own cash reserve, they borrow money from others banks and they must submit a financial statement to the lenders in order to show that they are able to pay back the loans, and when a loan goes in bad debts banks create a contingency against those loans
If banks are able to produce money from the thin air, why do they fail and need state bail out ?
This is a list of most bank failures protected by the FDIC:https://www.fdic.gov/bank-failures/failed-bank-list?page=8–All these banks just need to issue money and comeback to their operations again. This is fairy tales vs reality . Anybody that does not know anything about economic, finance, business law or banking law will support that conspiracy theory .
Savings banks were separated institutions from commercial banks and they failed due to lack of depositors and money reserves and many customer withdrew their money from the savings banks and the commercial took over the savings banks, why they savings banks did not create money to recover their loss and financial insolvency ?
The pamphlet about money written by the SPGB is backed up by a very profound research and it was pretty well written and it debunks all the economic fairy tales
The attack on Russia warplanes were conducted by NATO-USA using Ukraine as the intermediary. They provided the logistic, it is a real provocation made by NATO and the USA. Peoples have been fooled again, believing that the capitalists are going to produce real peace for them
A participant in this forum wrote: Elon Musk vs Bill Gates
Now, it looks that it is Musk vs Trump or vice versa
https://www.politico.com/news/2025/06/05/elon-musk-donald-trump-fight-00389480
Contradictions between members of the capitalist class
Probably, Elon Musk invested money on the wrong political party and the wrong sector of the US capitalist class
When the shit hits the fan it spread all over. Elon Musk is part of the sector of the capitalist class that is promoting Trump and helped him to take control of the state apparatus, ( the workers are only pawns in the capitalist chess game ) and he is a powerful man, more powerful than Bezos and Gates, others capitalists, and he is already making public several state secrets, and he had access to the government personal files of many members of the US congress, judges and presidents. like the Italian mafias used to say: He is singing like a canary
There is a new concept that is being propagated by the right -wingers and the right wings populists known as corporate socialism/communism and corporate welfare, they do not have a clue of what socialism/communism really is, or they are trying to distort the minds of the workers
There was a Trotskyist group who wanted to nationalize the Budweiser corporation.
Several corporations in Argentina were taken under the control of the workers and they had to be run as business enterprises in order to produce profits, and many left-wingers groups were saying that it was a step toward socialism, and then the state passed several laws and they took those corporations from the workers.
In a socialist society warships, and aircraft carriers can be used to turn them into hospitals, or schools to serve the needs of the human beings
You seem to care that an artificial entity called “Ukraine” should continue to exist in a world alongside other artificial entities such as “Russia”. Socialists, on the other hand, have zero interest in the maintenance of nation states and national borders. These constitute the spatial expression of the organisation of political and economic power under our current system of global capitalism.
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The above statement does reflect what all nations are: Artificial entities, a myth, imaginary lines, imaginary borders, false creations of the bourgeois class which motivates human beings to kill each other defending imaginary lines, the so called socialist homeland, or socialist countries fall within the same definition.
It is the same case applicable to artificial entities known as Palestine and Israel
Practically, WW 1 was ended when the Russians workers decided not to fight and kill their class brothers .
Capitalism has adopted all kind of forms in order to save itself from its internal inherent crisis and all have failed and now they are promoting the so called economic nationalism, it is going to fail too.
Only the world working class will eliminate all wars and nationalist conflicts, we do not need any stupid leader to be followed, and they are not the main problem either, the main problem is capitalism
Engels also used the concept of Marxism along with Bakunin, and some of Marx collaborators also propagated the concept of Marxism. They should also cover the concept of Cultural Marxism which is a distortion created by the Frankfurt School
Some members of the socialist party also holds the traditional view and definition of fascism and nazism.
The only left-wing groups that do not hold a Leninist point of view are the anarchists, and they also hold the traditional definition of fascism and nazism and think that fascism is present in our time.
The socialist party has had public discussions with Nazis and fascists and Leftwingers groups
This is a Leninist group with a different view on fascism and anti fascism
What is wrong with publishing the point of view of other organizations in this forum? We do it all the time, and we publish our articles and point of view on the websites and forums of various organizations, including those of Leninists, Stalinists, Trotskyists, Maoists, and some right-wing groups as well.
We are not 100% correct either. and we do not have a monopoly of ideas and arguments
Through critiques, we can get the best part of any argument and reject the incorrect ones.
The Facebook page of the SP/WSM is getting a lot of articles from left-wing groups.
If George Bush writes a book saying that Iraq was for oil, are we going to reject that argument because it was written by Bush?
In that article, they have indicated that the European working class is going to experience many austerities due to the use of state resources for weapons
European capitalist class rearming. Pretty soon, the European working class is going to lose all their social benefits, such as medical services, education, vacations, unemployment benefits, pensions, etc, etc. All the false bourgeois illusions about reforms are going to collapse, and the reality will be shown that the bourgeois class is not a friend or companion of the working class. Class conciliation only produces defeats for the working class
Libraries cleared.
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Nationalism and patriotism is like rat poison
The Nazis are not the only ones that destroyed books, the thing is that peoples are not going to libraries or reading books, why are they removing or burning them ?
I read all kind of books I do not care if the authors are from Mars. or from different political organizations or political tendencies
Peoples are worshipping presidents, state ministers, and wars heroes.
Universities and scientific research are a new target of the capitalist class
If the working class does not wake up from their bourgeois fantasies and nationalist populists illusions, they are going to be confronting another killings probably bigger than WW 2, and those Europeans leaders are playing with a power that is stronger and more powerful than them. It is not the old Russia, or the old Soviet Union any more. Moving troops closer to the border with Russia is a millitary provocation
Germany deploys troops to Lithuania
