Debt Rattle March 4 2016

[Raúl Ilargi Meijer]

Edward Meyer School victory garden on First Avenue New York 1944 • China’s Coming Mass Layoffs: Past as Prologue? (Diplomat) • Red Ink Rising (Economi
[See the full post at: Debt Rattle March 4 2016]

[Dr. Diablo]

“President Dilma Rousseff…used money from state-run banks to plug holes in the budget.”

This in contrast to “serious” nations like the United States, which use their budget money to plug holes in banks. Much better.

And Austerity for Brazil, still? Because that’s worked gangbusters in Spain, Portugal, Greece, Italy…

Wolf has it all going on, again: “running a surplus is not necessary to bring debt down as a share of national income” Um, yes, I think it is. You would have to spend less while creating more to move the dial on these numbers. In theory you could wildly increase GDP, but physics shows that never happens. In addition, if raised that high, it would be the surplus he denies.

“It is a myth that the UK’s crisis was due to a failure of the government to live within its means…The government did not have a fiscal crisis. The country had a financial crisis…”
So there was a crisis that was not a crisis? Are we talking the “Breaking the Bank of England” crisis, or some other crisis here? If there’s a crisis and there’s a hole in the ship, the people aren’t being particular about whether it’s in the bow or the stern. The Pound was rocked, the economy failed, and they lost jobs and standard-of-living.

His solution?
“It is more important to create a robust financial sector.”
Oi! This from a country whose housing market is highest in the world, and whose financial sector is 13% with a mind-blowing 900% debt/GDP ratio, most of which is financial. https://value4risk.com/wp-content/uploads/Screen-Shot-2015-02-09-at-1.45.10-PM.png
Yeah, clearly the UK financial sector isn’t large enough, and for the safety of the nation needs to be further expanded.

Continuing the world of stupid: “If everyone is working and producing goods and services, then people need to buy these goods and services. In order for people to buy these products they need to have enough money.”

No. If I make something and you use it, we don’t need money to make that happen. There’s not “enough” money or “too little” money. Money is a psychological fantasy: the only REALITY is our production and our need. Erase “money” from your economic thoughts and the equation becomes much simpler: we want stuff, so we make stuff, then we use stuff. I don’t want to make everything myself, so we trade our production. Money is only a chit, a token, that measures the value or difficulty of what you created vs how hard –or expensive– it was to create the goods. We get tokens for creating stuff, and call on the goods that were created with them. …That is, until the money system is attacked, hijacked, and the proxy of human effort is held hostage to create free calls on goods no one worked for, and were never created. …The rest of his article is classic Keynesian apologetics and claptrap which protects the monetary theft and extortion.

–Not to defend “Liberal Economics” which is another whole field of apologetic claptrap.

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