I did a whole chapter on how money will evolve into social media platforms in the future.
Thought I would share this interesting take with you here as it features a few of my friends…
Facebook ad revenue is growing fast, but its currency system, called “Credits,” is growing even faster.
Facebook will collect revenue of $470 million this year from Credits alone, according to a new estimate from eMarketer, up from $140 million in 2010.
Facebook in July began requiring that all merchants in its ecosystem use the Credits currency. The social network takes 30% of all transactions.
While advertising remains Facebook’s biggest source of revenue, the Credits program now accounts for 11% of Facebook revenue
Anyway, thought it was worth sharing as it interested me, to keep you in the loop, the new book has just made it’s way to the publishers and is with the designers now. It will be called ‘Bank To The Future: Get Ready To Make Money In The Final Collapse’ and is meant as guide to your future as we transition to the socialism of money under banking reform.
Will update you shortly.
Simon Dixon
P.S. If you would like to be notified about the book launch leave your details at BankTo The Future.com here
So with the US credit rating downgrades, and speculation of more quantitative easing in the US and UK, I thought I would share my forecasts…
Here it is, as I see it…
1. The US credit rating downgrade is the first step towards a public opinion that people are not as willing to lend to government knowing that they will bailout banks during the next crash.
2. Quantitative easing will try to stimulate another false economy as we are seeing now, but as people take on more debt to stimulate the economy, they will remember that they can’t afford it again.
3. As the next round of regulations come into play and Banks need to have tighter reserves, banks will lay off their staff as they are now and use technology instead to cut costs to build reserves. So Basel III will essentially just create unemployment and make no difference on the stability of Banks.
4. As less people have jobs and more take on debt, we will have the credit card crisis next as people default on credit cards, sending the markets into turmoil again, followed by another housing crash, as people think housing is cheap right now and are leveraging up again.
5. Banks will stop lending to each other as they try to build reserves again and the government will freak out.
6. Governments will fail to raise money to bail out the banks as their credit ratings get downgraded further and banks will fold sending the economy into a depression by 2013.
7. Fed up with the depression we decide to stop the ponzi scheme and reform banking, opting for a system that will work as outlined on my blog.
I am very hopeful of the future at the other end, but we will have a depression to get there.
Love it or hate it, let me know what you think. I am finishing off my book on how to prevent this and would love to hear your comments for possible inclusion in the book.
Many have asked me about my new venture Bank To The Future, our mission is to create a social bank that operates of full reserves to create a working model of the sustainability of banking reform.
This way the government cannot say it wont work.
Winning this pitch gives us a massive opportunity to fulfil this goal.
So need a tiny bit of effort from you to login using Twitter on the link below and cast your vote.
If you dont have a Twitter account, it takes seconds to set one up.
But to lose banking reform to online curries to me is tragic.
Here is the link to vote. If you experience any problems as some have, just switch browsers and it will work from one of them.
So the ICB report is out and we can now say for sure that the Positive Money submission for real banking reform was not actioned in any way.
It is clear to me from the final report that it is really a game of trying to please banks and submit to their threats of crashing the UK economy and trying to please the public by showing some kind of action.
My verdict?
I like the fact that there is some banking reform, unfortunately it is an expensive experiment that will not prevent the upcoming crash I forecasted in my YouTube video “The Great Depression of 2013â€.
Here is a summary of the report:
- Ring-fencing is here and banks must separate domestic retail banking from global wholesale/investment banking.
- The commission is not clear whether banking for large companies should be in or outside the ring-fence
- The ring-fenced part of the bank should have its own board and be legally and operationally separate from the parent bank.
- Ring-fenced banks should have a capital cushion of up to 20% comprising equity of 10%, with an extra amount of other capital such as bonds.
- Capital could be moved from the ring-fenced bank to the investment bank, as long as the capital ratio of the ring-fenced bank did not fall below the 10% minimum.
- It should be easier to switch bank accounts and the ICB recommends “the early introduction” of a system that makes it easier to move accounts that is “free of risk and cost to customers”.
- The industry should be referred for a competition investigation in 2015.
In my upcoming book ‘Bank To The Future: How You Can Boom When Banks Go Bust & The One Investment Everybody Needs To Makeâ€, I recommended the three commandment of banking reform based on the Positive Money submission:
1. Thou shalt make the banks ask depositors permission before they lend.
2. Thou shalt make the banks disclose to the depositors how they use their money.
3. Thou shalt give the license to create money to a democratic power.
So how did the ICB Vickers Report do?
Ring fencing goes a tiny way to actioning the second commandment on disclosure, but only a tiny way.
And that is about it.
The bank still becomes the legal owner of your money when you deposit money with them, they can still use that money for whatever they wish and they can still use it as collateral to create money.
So my forecast for the banking crash still stands.
The problem with requiring banks to hold additional reserves is as follows:
Without an alternative monetary system, requiring banks to increase their reserves only results in a reduction in the economy’s money supply leading to a recession and further unemployment as they replace staff with technology to cut costs, but with no more stability.
We still have more debt than money in our economy, we still need to increase debt in order to move out of the recession and any increase in reserves still leads to a decrease in the money supply in our economy.
The funny thing is, these reforms will cost just as much as real reforms and the problem will still remain.
I like the recommendations to encourage competition, but I want that competition to come from a full reserve bank.
I have been providing lots of commentary in mainstream media, so feel free to contact me if you are from the media and would like some commentary.
In case you did not see it, here is my forecast ahead.
