The Policy Taxonomy that governs the banking industry has been around for a very, very long time. Why is it in crisis now? I believe that the old banking taxonomy is obsolete and therefore no longer works in everyday practice. Just as the discovery of extrasolar planets changed the astronomical taxonomy and removed Pluto from the "planet club," so the evolution of electronic information management and interoperability is ultimately rendering the old banking taxonomy obsolete.
As I've discussed in my blog, and more directly in my workshops, when the taxonomy becomes unstable then the organization must necessarily become unstable. What might we expect if the taxonomy is changing in the banking industry?
1. Nationalization of the banking infrastructure. Banks will no longer be willing or able to advance money through the Federal Reserve. The Federal Reserve will become the clearing house for nnationalization of banking assets. In other words, it will be the way that the government slowly brings the banking industry under control.
2. International Banking "Firewalls." - I'm obviously not an economist but a computer scientist, so I think in terms of information systems. All the nations are going to agree to a kind of banking architecture that is based on some kind of virtualization taxonomy, just like the computer industry is doing right now.
3. Consolidation of banking networks and processes.
4. A central clearing house for transactions (either real or virtual) that uses a meta-currency in order to calculate the differences between currencies. Control of the meta-currency calculations will essentially influence the entire banking world.
5. We will see no obvious changes any time soon. If the banking industry maintains the same taxonomy, at least for talking purposes, then folks won't notice that huge changes are occurring. So, we can expect that the average citizen will not notice or recognize what will likely be a huge shift in control.
© 2008, Mark Ragar Schneider, All Rights Reserved
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