New professions

A bank is useful for making money go round, lending to private individuals, to companies. If it’s not lending that’s because it doesn’t have it or because it doesn’t trust them. Right now both hypotheses are true. There’s little money and above all there’s no trust. Banks have become mattresses. They keep the money in-house and they don’t lend to anyone anymore, and particularly not to the other banks. If they were to fail then they would lose the cash. The banks are doing what they tell us off for, as current account holders (putting savings under the mattress). They are not giving overdrafts to anyone. They don’t trust anyone. It’s the politics of suspicion.
In turn the clients are becoming suspicious. And they are moving money from the banks to the State Bonds. This is why Tremonti can participate in the ownership of the banks with the “Save the banks” decree: with the capital in flight from the banks that’s transformed into BOT and CCT. Basically it’s a merry-go-round of accounts. More State and less market, more Berlusconi and Geronzi and less Profumo and Passera.
The companies are being economically throttled. The banks are no longer giving them credit and this, in Italy, means the end.
The businesses, especially the small ones, are obliged to support themselves on debt because of the State. Every time they issue an invoice they have to pay the sales tax up front. The invoices are paid, if all goes well, at 120 -160 days. If things don’t go well, never. And the sales tax is reimbursed by the State in biblical time frames. The businesses have to pay presumed taxes and in advance. The mafia is a hundred times more correct. If a society has a certain profit in a year, it has to pay taxes on the profit, in advance, even for the following year. And if the following year it has a loss?
The businesses get into debt because of the State and they have to turn to the banks. If these don’t give them credit, the businesses close down. It’s what is happening and that will happen in the next few months for hundreds of thousands of businesses. Large, medium small, and family-run. They will no longer pay taxes, they will have gone under.
The State can’t ask for money in advance for the sales tax, nor for tax on profits.
There’s tax when the citizen gets cash. They don’t have to pay before that. With what money? If Tremonti has problems, let him get money from the banks. Alternatively let him buy a mattress with springs. Permaflex, like those that Gelli sold to his boss, Tar Head.