What is Socialism?

[wutang]

The successful capitalism of countries like Sweden comes from fucking over the poorer parts of the planet

Complete bollox
No-one is forcing you to buy flat-packed furniture or ABBA cd's

Yeah cos thats all Swedens economy is based on

As for Ikea

However, despite Ikea’s current claims, low prices always incur a high social cost. Between 1994 and 1997 three documentaries screened by German and Swedish television accused the firm of using child labor under degrading conditions in Pakistan, India, Vietnam and the Philippines (7).

In 1998, after the discovery of wretched working conditions in Romania, the International Federation of Building and Wood Workers threatened to boycott Ikea, leading to an agreement between the union and the retailer (see tomorrow’s CounterPunch instalment, “The sins of the founder found out”). The Iway, as Ikea’s code of conduct on the environment and working conditions is known, establishes as a basic requirement for any business relationship that there should be no forced or child labour. Item seven of the guidelines, on worker health and safety, describes working conditions for employees, who must be provided with appropriate protective equipment.

In 2003 the Dutch trade union federation asked the Centre for Research on Multinational Corporations (Somo) to investigate Ikea suppliers in three countries: India, Bulgaria and Vietnam. In each case investigators met workers from three or four companies and conducted interviews outside the workplace. They visited the factories and talked to the management...

The most common concerned freedom of association and collective bargaining for wages and overtime. In the worst case there was no trade union, employees worked a seven-day week and the minimum wage was not honored. No one was “aware” of Ikea’s code of conduct.

It is precisely because of low labour costs that the firm sources products in India. To make things worse its subcontractors contract work out to cope with fluctuating demand. At this point the Iway code of conduct becomes completely theoretical, with no control over anything but the deadline for delivery.

https://www.counterpunch.org/2006/12/29 ... -s-closet/

[MungoBrush]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

[Cannydc]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

NO HE ISN'T

[MungoBrush]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

NO HE ISN'T

Dont be a moron
He said he was
And Corbyn backed him up
It was also discussed in parliament

It's all in the public record.

Read and Learn.

[Cannydc]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

NO HE ISN'T

Dont be a moron
He said he was
And Corbyn backed him up
It was also discussed in parliament

It's all in the public record.

Read and Learn.

NO, HE REALLY DIDN'T SAY THAT HE IS "PLANNING TO CRASH THE CURRENCY

You were dreaming again. What he may have said, quite correctly, was that Labour would have contingency plans in place IF THE FINANCIAL MARKETS THREW A HISSY FIT WHEN LABOUR WINS. A completely different thing, and you know it.

Honestly, Mungbean old chap, you should give up your ridiculous spinning. People are laughing.

[Maddog]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

I don't know what the optimum reserve ratio is for banks. Maybe its 16.3 or 8.5 percent.

In any event, even the socialist I quoted isn't talking about 100 percent as was claimed earlier on the thread. Deposits will be loaned thereby increasing the money supply several times over.

[Guest]

Something low calibre/lazy/feckless people fantasize about as a means to get more 'free stuff' for less contribution to society.

Entirely flawed and failed in every itterance.

[MungoBrush]

I don't know what the optimum reserve ratio is for banks.

That's quite obvious

FYI, it's called "capital adequacy reserve" and it's calculated using risk models to provide both safety for banks and liquidity in financial markets

The "optimum" ratio is different for every financial institution (not just Banks) and it is based of the risk profile of their portfolio of assets
In simple terms, the higher risk portfolio that an institution has, the higher will be it's capital adequacy reserve requirement
Financial Institutions are required to report their positions daily to the relevat regulatory authority in their respective country.

If you are really interested, you can read up on how this is calculated under the BASEL II Accord
Every bank in the world uses the same principles
I have implemented BASEL II processes in Banks on 3 continents, including a Chinese Bank in mainland China
There's nothing socialist or capitalist about it
It's like gravity
It works the same for everyone.

[Maddog]

I don't know what the optimum reserve ratio is for banks.

That's quite obvious

FYI, it's called "capital adequacy reserve" and it's calculated using risk models to provide both safety for banks and liquidity in financial markets

The "optimum" ratio is different for every financial institution (not just Banks) and it is based of the risk profile of their portfolio of assets
In simple terms, the higher risk portfolio that an institution has, the higher will be it's capital adequacy reserve requirement
Financial Institutions are required to report their positions daily to the relevat regulatory authority in their respective country.

If you are really interested, you can read up on how this is calculated under the BASEL II Accord
Every bank in the world uses the same principles
I have implemented BASEL II processes in Banks on 3 continents, including a Chinese Bank in mainland China
There's nothing socialist or capitalist about it
It's like gravity
It works the same for everyone.

We use the term reserve ratio or reserve rates in the US. They are set by the Fed. If a bank ends the day with too little in reserve, it borrows to make up the difference. If it ends with more than is needed, it contributes to the overnight funds and becomes a lender to other banks.

I know how the system works.


You are missing the point entirely. My point was, that even in a socialist system, the vast majority of deposits will not be held in reserve, but loaned out. That is contrary to people on this thread who are saying you can't have socialism with out 100% reserve ratios.

And again, whether it's 5, 10 or 20 percent in reserve isn't the point. The point is, that it's no where near 100 percent.

[MungoBrush]

We use the term reserve ratio or reserve rates in the US. They are set by the Fed. If a bank ends the day with too little in reserve, it borrows to make up the difference. If it ends with more than is needed, it contributes to the overnight funds and becomes a lender to other banks.

I know how the system works.


You are missing the point entirely. My point was, that even in a socialist system, the vast majority of deposits will not be held in reserve, but loaned out. That is contrary to people on this thread who are saying you can't have socialism with out 100% reserve ratios.

And again, whether it's 5, 10 or 20 percent in reserve isn't the point. The point is, that it's no where near 100 percent.

Maybe some people here would like to go back to the gold standard.

[Cannydc]

We use the term reserve ratio or reserve rates in the US. They are set by the Fed. If a bank ends the day with too little in reserve, it borrows to make up the difference. If it ends with more than is needed, it contributes to the overnight funds and becomes a lender to other banks.

I know how the system works.


You are missing the point entirely. My point was, that even in a socialist system, the vast majority of deposits will not be held in reserve, but loaned out. That is contrary to people on this thread who are saying you can't have socialism with out 100% reserve ratios.

And again, whether it's 5, 10 or 20 percent in reserve isn't the point. The point is, that it's no where near 100 percent.

Maybe some people here would like to go back to the gold standard.

Still here, Mungbean ?

[MungoBrush]

Still here, Mungbean ?

You appeared to have learned something.
Well done
Your earlier post indicated that you now know the difference between a Socialist State and a Capitalist State that has implemented some welfare state policies

But you still don't know what Corbyn's Labour stands for do you?

Is is Marxism - as advocated by John McDonnell?
Or 21st Century Socialism - as advocated by Jon Lansman?
You seem to be blindly following what you are told.

Still, no worries, soon you'll be living in Thailand under a military dictatorship.
Anything to escape Corbyn.
Good luck with that.

[Fletch]

Yes I did. I simply quoted the relevant part that stated that reserves will be kept around 20%.

Not sure why 20% is the magic number, but I'm cool with that I guess.

Brilliant
So you want to reduce the money supply by 15% do you?
And John McDonnell is planning to crash the currency

Did you 2 both go to the Hogwarts school for economic idiots where everything can be fixed by magic?

I don't know what the optimum reserve ratio is for banks. Maybe its 16.3 or 8.5 percent.

In any event, even the socialist I quoted isn't talking about 100 percent as was claimed earlier on the thread. Deposits will be loaned thereby increasing the money supply several times over.

You should have read my earlier post mads.

That article outlined the process, finishing with "granting a monopoly of banking activities to the public sector"

That is the government having the power to create money rather than private banks.

Capital reserves under fractional reserve banking don't mean what you think it means either. As no deposits actually leave the bank in the process of making a loan, how could it?

[MungoBrush]

That article outlined the process, finishing with "granting a monopoly of banking activities to the public sector"

That is the government having the power to create money rather than private banks.

Capital reserves under fractional reserve banking don't mean what you think it means either. As no deposits actually leave the bank in the process of making a loan, how could it?

You obviously do not have the faintest clue as to how the banking system operates
Banks are under the continual governance and supervision of the sovereign bank
They can only make loans up to the limits approved by the central bank

You do not understand the difference between the manufacturing process and the governance process.
It's no different to Apple contracting out it's chip manufacturng to a Chinese company.

[Cannydc]

Still here, Mungbean ?

You appeared to have learned something.
Well done
Your earlier post indicated that you now know the difference between a Socialist State and a Capitalist State that has implemented some welfare state policies

But you still don't know what Corbyn's Labour stands for do you?

Is is Marxism - as advocated by John McDonnell?
Or 21st Century Socialism - as advocated by Jon Lansman?
You seem to be blindly following what you are told.

Still, no worries, soon you'll be living in Thailand under a military dictatorship.
Anything to escape Corbyn.
Good luck with that.

Try not to lecture on stuff you patently know nowt about, old chap. And misquoting people is poor form - you look more of an idiot each time you do it.

FTI, I would actually prefer in many ways to live under generally benevolent military rule compared to the shambles we have here - however, just to keep you in the loop, Prayuth Chan-ocha, has announced that his military government will shortly begin discussions with political parties about restoring democracy.

So hey, good luck strikes again. Just need to concentrate on shielding my money from Treeza's Brexit no-deal catastrophe.... happy days.

p.s. What is 21st Century Socialism that you seem to know so much about ?