Journal zogger's Journal: "Of course, this was mostly an illusion" 6
A former head economist at the IMF, after having to deal with smaller nations with corrupt leadership and banks, has some stern warnings for the US. The rise of the financial "industry" to unprecedented levels as a percentage of the economy is the main reason for the economic downfall of the US, as it takes more and more of the profits out of the true wealth creation system built up over generations, and shifts this wealth into fewer hands. He has seen it so many times before, that he warns that we must deal with it ourselves, as no other outside force can make us deal with it, as they can sometimes do with smaller nations, to force the changes necessary. As Russia fell under the oligarchs depredations after the fall of the USSR, the US is also under similar oligarchs control. They have seized power, have undue crony influence in government, and nothing will be "fixed" by any of the efforts taken to date, except to "fix" more firmly in place these oligarchs in their positions of power and influence.
He is recommending, as a near emergency measure, nationalization of the big vampire banks, then orders and oversight to write down alleged assets to true worth, to just get it done now, then reorganization and sales back into the private sector with stricter controls on size, with no more "too big to fail" entities, and some regulations with teeth in them on the new emerged banks, one of which I hope is a near total ban on artificial derivatives bets. I can't parse this recommendation any other way than a regular and necessary bankruptcy and overseen reorganization, with changes in leadership, then accompanied by policies so that the changes in names at these leadership levels don't result in just more oligarchs. I do disagree with him on sales back into the private sector, I think private banking being able to create money, then charge for this as principle plus interest, is simply not fair, nor wise. I would rather this remained in the hands of government, risky as that is, we at least have some smidgen of control over it that way, with a banking system similar to the North Dakota state bank model, and then "we, the people" won't be held hostage by private for profit concerns with any further extortion attempts.
Besides that, he makes some sense. He doesn't see an FDR method of just government spending and bailouts and so on working to help us avoid the "greater" depression that could be immediately ahead, he says that risks global systemic collapse, with far worse consequences, so he recommends another Roosevelt's solution, Teddy, as in "trust busting".
As an example of an oligarch, although not directly stated in the article as such, I would say it is alluded to, he gives this example, a quote from Bernanke before the fall: ""The management of market risk and credit risk has become increasingly sophisticated.
Of course, again, he is genteel and a global economic diplomat. Not having to be burdened with such niceties, I'll call what was said by Helo Ben a bald faced lie, told by a professional confidence man, a bunco artist, and not an illusion as in they just didn't know, except as part of a misdirection to deceive, as any confidence trickster would use words. "They", and he, knew full well what was going on, because it was all part of the Great Heist these oligarchs have pulled off as part of their coup.
Solution from the ground up (Score:1)
IF PEOPLE STOPPED BUYING STUFF THAT THEY CANNOT AFFORD THE PROBLEM WOULD GO AWAY.
STOP buying everything on credit. 20% down payment or NO HOUSE.
Put savings in a local (or at least reputable) Credit Union. DO NOT buy every new gadget that comes along. Families DO NOT need multiple 47" TVs. Those 47" tvs are NOT creating value, and if the current generation had followed in the foot steps of previous generations and put that money in the bank, American banks would be the ones giving loans to foreign nation
Re: (Score:2)
Serious question. Everything in your post has been promised, advertised, marketed, discounted and sold to the American people as their God-given right for living in the most free, most prosperous nation the world has so far produced.
And yet you blame the people, and by extension the idiots they've voted into office to enable that dream.
Democracy sucks, don't it?
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We are not a democracy, we are a republic, specifically designed as such in an attempt to help avoid messes like this.
I thought the American Dream was working your rear end off, doing with not but the bare essentials, and saving every last penny until you could strike it rich on your own?
The problem is that everyone wants a shortcut to the American Dream.
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http://etext.lib.virginia.edu/jefferson/quotations/jeff1325.htm [virginia.edu]
"All the capital employed in paper speculation is barren and useless, producing, like that on a gaming table, no accession to itself, and is withdrawn from commerce and agriculture where it would have produced addition to the common mass... It nourishes in our citizens habits of vice and idleness instead of industry and morality... It has furnished effectual means of corrupting such a portion of the legislature as turns the balance between the h
Thanks for that. (Score:1)
I like "The Atlantic", but my free subscription from airline miles recently ran out.
I should go the their website.