In the last few days people have been asking me what I think of Eric Cantona’s call for a silent revolution against the banks — which has gone viral on the internet.
Presumably inspired by their shocking post-crisis behaviour and the pernicious grip they exert over governments, businesses and individuals, Cantona has proposed a bloodless revolution. He is basically urging people to withdraw all their cash from the banks on a set date — Tuesday, December 7th 2010.
In a video interview he gave to the Nantes-based newspaper Presse Ocean, a regional daily newspaper covering the Loire-Atlantique department, Cantona said:“What is the system? It revolves around the banks, the system is built on the power of the banks, so it can be destroyed through the banks. If instead of protesting, three million people go into the street, they go to the bank, they withdraw their money, and the banks collapse … That’s a real threat, there’s a real revolution… No weapons, no blood, nothing at all. It’s not complicated. Then we’ll be listened to in a different way.”
The plan has appeal, not least that it would teach recidivist, recalcitrant and out-of-touch bankers a lesson.
However to be all rational and boring about it, the ex-footballing actor’s plan has flaws. For a start, no bank physically holds enough cash (notes and coins) to repay all its depositors at once — some of the individuals seeking to fuel the global bank run would struggle to retrieve their cash.
And as Alea_ has just pointed out to me, many have a limit on the amount of cash individual customers can withdraw over the counter or by card.
And secondly, if the plan were to catch on big time, it would obviously spark another financial crisis, which would be likely to be more even extreme than that of September-October 2008 (as Peter Thal Larsen has pointed out this is probably Cantona’s intent).
Even though developed-world governments are much more indebted than they were two years ago, they would almost certainly feel obliged to step in and rescue the “gangrenous mess” (to quote Nouriel Roubini) of our financial system by throwing further billions of dollars its way.
And wouldn’t that actually have the perverse effect of impoverishing the very people who had been seeking topple the system — whilst further enriching the hated bankers?
Here is a more considered view of Cantona’s revolutionary plan written by Bill Sharon — founder and chief executive of New York-based risk advisory firm SORMS and fellow blogger on Qfinance:
Dubbed “King Eric” and wearing the famous number 7 for Manchester United, Cantona became an actor following his retirement from football. In recent days he has appeared in a YouTube video that is achieving viral status. In this short clip with English sub-titles Cantona makes some very clear and, in some quarters, very frightening statements.
First, he points out that public demonstrations are fundamentally a waste of time. Back in the days of the Nixon administration they had a dramatic effect. Now the only news item that is generated from them is a debate about the number of attendees. So he is certainly right on that account.
Second, he dismisses violence as an effective tool in changing the status quo. Again, he states what has become sadly obvious. The world has become inured to the savagery that occurs daily. Stalin, it seems was right – “One death is a tragedy; one million is a statistic”. Violence, for those who are not its immediate target, changes nothing.
But Cantona’s third point, while not a new idea, may be one whose impact could be profound. He encourages people to withdraw their money from banks on a specific date – December 7th. An organized run on the banks he believes will have the effect of causing them to collapse. What occurs when that happens is left to the imagination.
Whether or not this effort will be successful, it marks a distinct departure from the current conversations about the economic crisis. It is a tactic that comes from the traditions of Gandhi and Martin Luther King. It is an act of withdrawing (literally) from the system. It worked in the Salt March to Dandi and the Montgomery Bus Boycott. It is almost impossible to defend against.
But there are differences between what Cantona advocates and what Gandhi and King wanted to achieve.
The latter two had a goal; a vision of what the world could look like absent a clearly identified oppression. Cantona and others who wish the collapse of the banking system don’t seem to have articulated much of a vision aside from not wanting what currently exists. While that would be a very big concern in normal times we may want to consider the thinking of David Brooks, the conservative columnist from the New York Times. In his weekly appearance on the PBS News Hour several weeks ago Mr. Brooks suggested that change can come from two different areas – leaders and societies. While most of the time we look to leaders he thought this was a time when societies would actually be the source of new ways of thinking.
Societies are somewhat amorphous masses. It’s hard to figure out what is going on until something happens and then we go back and look for influences. Cantona and company may be one of those influences – or not. What does seem to be emerging is a wide range of ideas about what new economic models might look like. What finally emerges will likely be the result of different groups trying different things; that’s not a very sanguine thought for those who prize stability.
It is hard to find anyone (aside from the jabbering heads on cable news) who is optimistic about our global monetary system. It’s true that it ain’t over until the fat lady sings, but she is warming up her vocal chords backstage in her dressing room. We can hear her.
Bill Sharon’s original blog post, “The French and the Fat Lady” was published on Qfinance
This blog post was published on 24 November 2010