Banking, Foreign Aid and Pensions.

OK you grubby little Englanders. It is Saturday night. Let us put the world to rights. Or at least, let us think about how to fix a few things that desperately need attention. So tonight....

Putting the world to rights involves doing three things:

1. Screwing over the disgustingly greedy bankers.
2. Ensuring foreign aid actually goes to decent people not tyrants and despots
3. Making sure that those who invest in a pension actually get one.

Here is a short discourse on the way it is, what needs fixing, and the way it could be.

The way it is:

Banking
The obscenity of the banking scandal continues. The banking wide boys reward themselves with outrageous bonuses while waving two fingers to the rest of us. The banks charge loan shark rates to borrowers while rewarding savers with a pittance. Businesses needing working capital can go to hell.

Foreign Aid
The governement grotesquely announces that it wants to be an aid "super-power". It shovels more and more money abroad in a grandiose attempt buy itself friends and importance on the world stage.  Massive amounts of the aid money ends up supporting the tyrants and bigots who brutalise much of the third world. The decent people of the third world who need a hand up (not a hand out) get the table scrapings, if they are lucky.

Pensions
The self same banks, also peddle dodgy pensions. Though they make their financial advisors and associates millions, they leave the suckers drawn into their schemes on a sure course to a poverty ridden old age.

So how can this be fixed?

Basically, as stated at the start, we need to:

1. Screw over the bankers.
2. Ensure that foreign aid goes to decent people not tyrants.
3. Ensure that people who invest in a pension actually get a decent return.

So here is a suggestion. Naive it may be. Even unworkable - maybe.

But I hope you find it interesting,

The way it could be.

Instead of trusting the untrustwothy bankers, pension savers would commit (say) a portion of their pension to micro-finance initiatives. This could include foreign aid initiatives like those run by Kiva. Through organisations like  Kiva, this money gets lent out directly to the ordinary decent people in the third world. Of course lending like this, although relatively safe, gives a poor or nil financial return.

This is where the foreign aid budget comes in. Instead of just funding ugly despots, the foreign aid budget could provide a return to the pension saver for the loan. This would amount to perhaps 5% of the loaned amount. It would ensure that foreign aid actually supported decent people rather than the ugly despots. It would mean individuals would take responsibility for helping the poor of the world, not some government quango. Meanwhile their government would take responsibility for ensuring that pension funds, honestly saved, get a decent return, At the same time, they could massively reduce the corrupt foreign aid budget.

But there are losers:

1. The ugly despots who find they cannot now affords a new golden 500 series Mercedes every six months. Or some new electric whips for their secret police.

2. The bankers who suddenly find out that their slush funds have vanished and their bonuses are in jeopardy.

Anyone grieving for the losers?

...Thought not.

p.s. If you are wondering "What about investing in UK industry?" ... see one of my next posts

The Bankers Achilles Heel

Billothewisp has been watching the unfolding farce surrounding bankers bonuses with probably as
much disbelief and disgust as the rest of you grubby little Englanders.

I suppose it really was too much to expect the arrogant ignorant and greedy to put anyone else before themselves. Even when we are all up to our bottom lips in their debt.

The bankers feel invincible. They can ignore the shrill cries about fair play and  responsibility. They can sneer at the common hard working folk while gloating over their own growing mountain of gold.

This travesty will continue year in, year out. Until, out of nowhere, "something" will happen that turns them from an arrogant elite into a flock of foolish redundant dinosaurs.

And maybe that "something" had already happened.

Maybe an event has already taken place that spells doom for out extremely well fed friends. Perhaps they have been so busy swindling the rest of us that they did not notice the high tide of banking excess has reached a turning point.

Revolutions, even against the most despicable tyrants, never happen unless there is someone, or something of a revolutionary nature that sparks the gunpowder.

Billothewisp reckons (or at least hopes)the today that spark has arrived and has the name of Peer to Peer banking.

Currently the most popular manifestation is a company called ZOPA but there other infant companies like Funding Circle. The concept has even expanded into the charity field with an organisation called KIVA.

Currently all of these companies simply deal with arranging and financing loans. But all revolutions have to start somewhere.

Peer to Peer banking works in a completely different way to normal banking.

With a bank you borrow off the bank. They decide the rate. You get what you are given. The money they take in from savers gathers derisory interest. The bankers pocket almost all the profit.

Companies like ZOPA work in a completely different way. They are an arranger. They do not own the loans, but they take a commission for sorting things out.

A loan for £500 will have 50 lenders, each lending £10. Each lender, lending in total £500 will lend £10 to 50 different borrowers. All borrowers are credit checked as for a normal loan, and the risk of bad debt is reduced by the spread of the lenders money over many borrowers.

The best part is that the interest rate is determined by what the lenders is prepared to lend it for - and what the borrower is prepared to pay. Hence the name ZOPA (Zone Of Possible Agreement). Borrowers pay less and lenders gain more. This would have been impossible before modern computers.

It is revolutionary. The cobwebbed ossified banks have no answer.

I hope it works.

I hope ZOPA, its clones and competitors continue to grow exponentially. I really hope the greedy banking elite come to rue the day the scorned and swindled the British public. Maybe with a real revolutionary alternative to the big banks we will avoid ever getting in this mess again.

I'm having a go with ZOPA (you want to try lending through them, you can start with £50.00), also Funding Circle and soon KIVA. It's worth a punt.

I'll tell you how it goes.

A Christmas Wish

In the new year, may all of our lives be enriched by honesty.

May our politicians tell the truth and look out for those who elect them rather than just themselves.

May our bankers guard the money entrusted to them and fairly treat those indebted to them, rather than just lining their own pockets.

May our environmentalists devote themselves to facts and people rather than just fashion statements and wishful thinking.

Happy Xmas.

Love and Kisses.
Billothewisp

p.s. Yes. I know. Fat Chance.

A Cruise for England's Finest.

Billothewisp is not a great fan of cruise liners. To be fair he has never been on one, but they look far too posh for a citizen covered in excess body hair.

However he has come up with a great scheme involving just one Ocean liner. This scheme may solve ALL of the nations tribulations and woes.

It will require the full participation of the Great Good and Extremely Well Fed. Especially those who rule over our cruel little non-nation of England. These magnifico's will simply have to do what they do best. In other words get their noses fully into the trough.

Billothewisp envisages an all expenses paid extravaganza on the high seas. All the duck house recipients, those flip-flopping their second homes or making an honest expense claim for some porno films should be invited.

If there is any space spare, perhaps we could invite some no-win no-fee lawyers and of course, we must not leave out those poor underfed bankers whose selfless denial and patriotic zeal surely bring a tear to the eye.

Finally, perhaps we could pack on some of the Islamic extremists who so reasonably expect us to change our laws to accommodate their modern and forward thinking ideas.

We could all wave them off, cheering from the quayside as they sail on their pleasure excursion to the more exotic parts of the Pacific Ocean.

Particularly Billothewisp envisages our fine collective example of humanity sailing over the Pacific Ocean's Mariana Trench (depth 36,201 feet). Just to show how wonderful and important they all are, we could arrange a small rendezvous with one of Her Majesties submarines.

We all know how careless sailors can be. It would be no surprise to anyone if they were to accidentally fire a torpedo salvo into the liner. Of course, as they are the Royal Navy, one would expect them to reload immediately and “Oh darn, done it again”. Well, what do you expect?

The crew would, of course, get a serious telling off. That is, after they got back from ticker-tape parade through the streets of London.

So, I hear you ask. How would this solve ALL of the nations problems?

Well, regrettably it won't.

But it would be a bloody good start.