News Report (from SafeHaven): Professor Antal E. Fekete of the Gold Standard University Live (also Professor Emeritus, Memorial University of Newfoundland) writes the following in the article “The way to resolve the credit crisis: Recapitalize the banks with gold”: …paper assets are subject to annihilation (e.g., when the bank is consolidated with its counterparts holding the liability side of that asset). Suppose we consolidate the balance sheets of the global banking system. Then all assets will be wiped out with the sole exception of gold. But since the global banking system as it is presently constituted has no gold assets, under any consolidation the banks will be denuded of assets while note and deposit liabilities to the public remain. This is why the regime of irredeemable currency is susceptible to collapse that could be violent, taking place with lightening speed. It can also be seen that trying to save banks from collapsing through consolidation, mergers, takeovers, and shotgun marriages is pouring oil on the fire: it accelerates the meltdown of bank capital, rather than retarding it.
My Comment: The salvation lies in universal and equal unity, in creating a single civilization where every person gives and receives according to the law of a confined system – for the system’s common good. If the banks will unite with this purpose, it will save them from the destruction of the entire banking system.