As I've been blogging for years now..... Give the consumer the money and this depression is over. Broke dicks, no matter who's at fault, can't spend what they don't have. Our fiat system needs consumers to spend so money can be created through our banking system and then destroyed through our FEDERAL taxation.
It's hard to understand but the U.S. government doesn't have any money (some gold yes, but gold is not money, only federal reserve notes are.) Our Treasury creates money (yes, out of thin air) as soon as authorized by Congress and the President through the authorization process by crediting our bank accounts with deposits in the Fed.
As we withdraw this money and spend it it's taxed back to the Treasury and destroyed into thin air. Which means the only money in our system is in our banks and our pockets THAT WE HAVEN'T SPENT and are used by banks as reserves (cash on hand in case their customers need the money back) not in any government accounts. No surplus or deficit is possible because the government doesn't have any money.
And yes, it's weird but that' why it's called a fiat system amongst economist.
The only real cure for this depression would be to send you and me a big check to pay off (JUBILEE) our debts and reset the system. This economist I'm talking about, Steve Keene, simply wants the government to credit our bank accounts with the stipulation that it be used for paying debts first and any left then be allowed to be spent.
Now, this is not a panacea because the gang that destroyed our system still owns it and you and I have no say. But, this works for me. (Hair splitting maybe but the IRS has my address and they could just send me a check and I'll take care of the debts.)
What if in a few more years we are still this shit?
Normally, history shows us that these people at the top are not going to change their strangle hold on our system and so, it must, one way or the other, be purged. Tar and feather, lynching, assasination .....take you pick. Hey I'm just reporting that these things can end badly because there are a COUPLE OF HUNDRED MILLION Guns out here.
Right?
Manifesto | Steve Keen's Debtwatch
Escaping from the debt trap we are now in will require either a “Lost Generation”, or policies that run counter to conventional economic thought and the short-term interests of the financial sector. Preventing a future crisis will require a redefinition of financial claims upon the real economy which eliminates the appeal of leveraged speculation. These three observations lead to the three primary objectives of Debtwatch: To develop a realistic, empirically based, dynamic monetary approach to economic theory and policy; To develop and promote a “modern Jubilee” by which private debt can be reduced while doing the minimum possible harm to aggregate demand and social equity; and To develop and promote new definitions of shares and property ownership that will minimize the destructive instabilities of capitalism and promote its creative instabilities. A realistic economics The economic and financial crisis has been caused by unenlightened self-interest and fraudulent behaviour on an unprecedented scale. But this behaviour could not have grown so large were it not for the cover given to this behaviour by the dominant theory of economics, which is known as “Neoclassical Economics”. Though many commentators call this theory “Keynesian”, one of Keynes’s objectives in the 1930s was to overthrow this theory, but instead, as the memory of the Great Depression receded, academic economists gradually constructed an even more extreme version of Neoclassical economics than that against which Keynes had fought. This began with Hicks’s “IS-LM” model, which is still accepted as representing “Keynesian” economics today, but which was in fact a Neoclassical model derived two years before the General Theory was published: The IS-LM diagram, which is widely,
Randy Wray: Why We’re Screwed « naked capitalism
As the Global Financial Crisis rumbles along in its fifth year, we read the latest revelations of bankster fraud, the LIBOR scandal. This follows the muni bond fixing scam detailed a couple of weeks ago, as well as the J.P. Morgan trading fiasco and the Corzine-MF Global collapse and any number of other scandals in recent months. In every case it was traders run amuck, fixing “markets” to make an easy buck at someone’s expense. In times like these, I always recall Robert Sherrill’s 1990 statement about the S&L crisis that “thievery is what unregulated capitalism is all about.” After 1990 we removed what was left of financial regulations following the flurry of deregulation of the early 1980s that had freed the thrifts so that they could self-destruct. And we are shocked, SHOCKED!, that thieves took over the financial system.
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