The "borrowing" that govts do by issuing bonds was an 18th century modification of the timeless tradition of rulers/nobility/gentry taxing the peasantry.
Yes, except that now they are taxing the future. And the future WILL pay the price, in one way or another.
Bearing in mind that since the great tension in our capitalist society is between creditors and borrowers, (as in who's winning and who's losing, and workers and small businesses are losing and big businesses are spectators), a low level of inflation seems a good idea to me:
Weakening the currency, which many hope will solve the problem, is just another form of default.
Really? Given that easily half of government borrowing is a racket to allow the rich not to pay for their protection against the poor, what's wrong with trimming the bastards' return?
Workers and non-financial businesses can easily overcome low level inflation if there's a 3 or 4% growth rate because they make real stuff and provide real services. And their rate of compounding is better than that of their creditors because they pay interest on declining balance.
All banks do is create money, which is fine. But despite the fine buildings and the rather religious mystique around money all they actually do to create it is make a couple of bookkeeping entries. And don't forget bankers always, always, always, I say it again, always screw up. They can't help themselves, especially money center banks.
After a financial crash financial company lobbying reaches frenetic proportions.
To protect their mystique and to keep the racket going financial folk invest lots of money in politicians. Remember $200,000 went to HRC for a twenty minute talk and there was the huge amount they laid on Clay in his fight against Jackson in 1828. I don't know how much was laid on the pols after the 1908 crash in the fight about establishing the Fed but I'm sure it was enormous.
It's a con shot that's been going on for two hundred years. Turn things upside down: Anytime someone starts laying huge $$$ on politicians it's because they're ultimately afraid of their power. The corollary is they want to buy the power.
Screw 'em. They're getting off easy with a bit of inflation and financial repression.
Gotta restart. Browsers acting up. |
