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QE Inventor: It’s EASY to Create a Full-Blown Recovery, But Central Banks Chose to Make Banksters Rich Instead ...
Richard Werner (economics professor at University of Southampton) is the inventor of quantitative easing (QE).
Werner previously said that QE has failed to help the economy. (Former long-time Fed chair Alan Greenspan agrees. Numerous academic studies confirm this. And see this.)
But Werner is now taking off the gloves …
He said recently:
- It’s easy for central banks to take steps which would quickly create “full-blown recovery” for the economy
- But the central bankers are instead choosing to act in a way which creates massive profits for the big banks, instead of stabilizing the economy. Werner blames the revolving door between central bankers and private bankers
- The central banks have twisted the whole concept of easing … pretending that they’re trying to help the economy, when they’re doing something else entirely
- Credit should be extended to the productive economy – businesses which create goods and services – and not to financial speculators or high levels of consumer debt. Extending credit to small businesses former creates prosperity; lending to financial speculators only leads to economic instability and soaring inequality; and when too high a percentage of lending goes to luxury consumer consumption, it’s bad for the economy
- Banks create money and credit out of thin air when they make loans (background)
- It’s a myth that interest rates drive the level of economic activity. The data shows that rates lag the economy
Indeed, economists also note that QE helps the rich … but hurts the little guy. QE is one of the main causes of inequality (and see this and this). And economists now admit that runaway inequality cripples the economy. So QE indirectly hurts the economy by fueling runaway inequality.
A high-level Federal Reserve official says QE is “the greatest backdoor Wall Street bailout of all time”. And the “Godfather” of Japan’s monetary policy admits that it “is a Ponzi game”.
And – as counter-intuitive as it sounds – QE actually hurts the economy and leads to deflation in the long-run.
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The article above is nice enough theory ... however, as several other comments have already pointed out it appears to me to quite naive not to perceive the degree to which the government and political economy of the USA (as well as most of the rest of world) is dominated by the best organized criminal gangs, which are preponderantly staffed by some particular cultural groups. It is difficult to publicly discuss these kinds of problems, because there are no generally understood labels for a political economy controlled by the best organized gangs of criminals, which have effectively captured control over the powers of governments.
Those groups were able to persistently apply the methods of organized crime through the political processes. Their main achievement was to create a system in which they CAN LEGALLY COUNTERFEIT THE PUBLIC "MONEY" SUPPLY. They were then able to ratchet that achievement up and UP, to reinvest the profits from fraud in more frauds, expanding their ability to dominate all political and social institutions through being able to dominate the funding of those institutions, which included the school systems and mass media.
That has resulted in the established systems being almost nothing but a core of organized crime, surrounded by layers of controlled opposition. The basic systems were debt slavery, backed by wars based on deceits, which automatically got worse, faster. The most important feature is that the frauds of privately controlled banks being able to make the public "money" supply out of nothing, as debts for everyone else, was enforced by governments, because those governments had become almost totally political puppets, performing for muppets, due to the long history of bribery, intimidation, and assassinations of those who could not be otherwise bribed or intimidated.
Those enforced frauds enabled the pattern of economic bubbles to be blown and pop, over and over again. That kind of bubble economics was driven by the power of the people who control the public "money" supply, by them being able to make that out of nothing, as a tiny group which could agree among themselves to create overall more money out of nothing, which blows up the economic bubbles, or agree to create less money out of nothing, which causes those bubbles to pop. Those insiders can routinely benefit from knowing when the bubbles will be blown, and when they will pop, because they control the public "supply," as government enforced banksters' frauds, or the legalized counterfeiting of that public "money" supply.
I REPEAT, the ability to make the public "money" supply out of nothing as debts was achieved by the best organized gangs of criminals, being able to apply the methods of organized crime to the political processes. the article above under the byline of George Washington is theoretically O.K., on its own level of analysis, but otherwise is naive to not face the social facts regarding how the established systems are actually operating around a core of organized crime, surrounded by controlled opposition groups.
Anyone who is able and willing to do enough research will discover the pattern of social facts regarding who were the best organized gangs of criminals. In that light, I recommend this video, for its recital of the historical facts. While I find its philosophical presumptions to be typically superficial bullshit, its statement of historical facts is worthwhile considering nonetheless:
https://www.youtube.com/watch?v=8TsYBuw6rko
Prepare-We are at the Verge of Collapse Says Jonathan Cahn Author of Mystery of the ShemitahJonathan Cahn discusses the extraordinary strong correlations between the American economic "business cycles," which is the euphemistical description of bubble economics, which were really due to the banksters being able to control the public "money" supply, as I outlined above. I believe that one can understand how and why the political economy of the USA has been closely following the patterns of the Hebrew calendar by facing the facts regarding which cultural groups have been able to seize control over the public "money" supply. Those patterns were self-fulfilling prophesies, due to who were the best organized gangs of criminals, that were able to control the American political economy, as well as most of the rest of the world. After one faces those central social facts, then the article above by George Washington, while superficially correct, does NOT address the deeper levels of the real problems.
That video, I linked above, starting at about its 18:23 minute mark, also mentions some interesting historical facts regarding the first official meetings of President George Washington, which are more of the historical facts that are worth reconsidering, in light of the symbolic significance of the events on 9/11/2001, which, so far, were the most spectacular symbol of how the actual American system is based on a core of organized crime, surrounded by controlled opposition groups.
In my view, it is NOT possible to understand the American economic problems if one does not face more of the radical 9/11 Truths. It is my opinion that the events on 9/11/2001 were an inside job, false flag attack, which were probably done by Zionists in order to blame on Muslims. It was possible to cover that up, and promote the huge lies about 9/11, because the same interconnected gangs of related organized criminals also were able to dominate the official investigations of those events, and to present the official story of those events through the mass media.
The American Dollar and American Military have become State Religions, manifesting as combined money/murder systems. The American monetary system is based on the maximum possible frauds, while the American national security system is based upon the maximum possible deceits. That is the REAL context that one should consider regarding what Quantitative Easing was supposed to do, versus what it actually did.
Furthermore, in my view, it is NOT possible to come up with any remotely close to realistic resolutions of those political problems unless one understands on a deeper level how and why civilization operates according to the principles and methods of organized crime. That issue goes far beyond the more superficial issues regarding who, or which particular cultural groups, happen to be the best organized gangs of criminals, that are able to dominate the governments, as the biggest form of organized crime, from time to time, in different places.
The article with the byline of George Washington above presents what I regard as a typical kind of superficiality, based on false fundamental dichotomies, and related impossible ideals, about how the political economy ought to be operated, compared to how it actually operates. That is naive on two different levels. First, it seems to me to be naive to not face the social facts about who has the power to create the public "money" supply out of nothing, and what that power enables them to do. Second, there is another level of being much more profoundly naive about how the political economy necessarily fits inside of the human ecology.
The basic facts are that money is measurement backed by murder. It is NOT possible for that to be changed. The existing monetary systems are controlled by the best organized gangs of criminals, which effectively control the powers of government, because they actually did the kinds of discrediting backed by destruction required to control the opposition, plus the bribery and other kinds of funding of those who would do what they were told to do, so that their established systems of organized crime would end up being surrounded by almost nothing else but controlled opposition groups.
By default, articles like the one published under the byline of George Washington end up being another manifestation of controlled opposition. Of course, I sympathize with that because the vast majority of readers could not understand anything else, because they would not want to understand anything else. However, that means that the established systems of organized crime, surrounded by controlled opposition, have become runaway criminal insanities, because there is practically no effective opposition to organize resistance against that.
In my view, those views, such as indicated in a fairly frequent rate of comments posted on Zero Hedge, who do recognize and state some of the social facts that I have stated above also continue to promote bogus "solutions" to those problems, which continue to be impossible to actually implement, since those bogus "solutions" also continue to stay within the same frame of reference of wanting to believe in false fundamental dichotomies and the related impossible ideals.
In my view, to more fully understand the role of Quantitative Easing in the American, and global, political economy, one has to address the deeper reasons how and why the biggest gangsters are the banksters, that were able to capture control over the powers of governments, through the persistent and prolonged application of the methods of organized crime. Such deeper levels of analyses of those problems leads to the recognition that the ONLY theoretically viable solutions MUST be better organized crime, which explicitly requires better death controls to back up better debt controls.
The current social situations are that our actual human ecology operates through the maximum possible deceits, while inside of that context the actual political economy operates through the maximum possible frauds. By and large, most of the controlled opposition groups, who somewhat reveal some of the levels of those social facts, continue to persist in thinking using DUALITIES, rather than UNITARY MECHANISMS, and therefore, continue to promote bogus "solutions" to those problems, within the same old-fashioned frame of references, based on presuming false fundamental dichotomies, and the related impossible ideals.
The deeper levels of truth are that civilization necessarily operates according to the principles and methods of organized crime, because human civilization necessarily operates as entropic pumping of energy flows, which is deliberately misunderstood in the maximum possible backward ways, due to the biggest bullies' bullshit social stories being able to promote the DUALITIES of false fundamental dichotomies, and the related impossible ideals. The actual realities are those of human beings and human civilizations operating as general energy systems, within the context of infinitely greater general energy systems, through UNITARY MECHANISMS. However, the dominant social stories about that are the biggest bullies' bullshit, which is, in the currently existing form of civilization, the banksters' bullshit.
Quantitative Easing is the manifestation of the banksters' bullshit. Of course, the dominate banksters are the best available professional liars and immaculate hypocrites, who actually do the opposite of what they say they are doing. That is normally the case, since civilization is operating as systems of organized crime, surrounded by controlled opposition groups. Tragically, that is automatically getting worse, faster, because there is practically no successful and surviving effective opposition, able to organize better resistance, because there is almost no opposition that is able and willing to go through enough paradigm shifting in their perceptions of politics to accept and address how and why civilization must necessarily operate according to the principles and methods of organized crime, in which the death control systems are the central, crucial controls, upon which everything else depends.
The degree to which the history of warfare was most socially successful when done through the maximum possible deceits and treacheries is how and why we ended up with a political economy based on the maximum possible enforced frauds, within which context the series of Quantitative Easings have been manifesting. By and large, one cannot expect any widely disseminated article to not be some form of controlled opposition. Articles written under the byline of George Washington tend to push the boundaries of envelope of that as much as possible, however, that is not very far, given that the vast majority of people do not understand any more radical truths, because they do not want to understand those.
The basic social system is that most people do not fully recognize the social facts that what actually exists is organized crime surrounded by controlled opposition. Furthermore, those few who do recognize the social facts regarding how the political economy is based on governments enforcing the frauds of private banks, as the expression of runaway triumphant organized crime, mostly continue to recommend bogus "solutions" which do not accept how and why those must necessarily be the social facts.
As long as not enough people go through enough of a paradigm shift to understand that better government must necessarily be better organized crime, then we will continue to have government deteriorate into worse criminal insanities, due to their final failures which result from too much success at controlling civilization through being able to enforce frauds, which overall drive that society as a whole to become too psychotic. The deeper levels of these problems are that there must necessarily be some death control systems, which are central to human ecology, within which exists any possible political economy, however, the existing systems are based on the history of tho most socially successful forms of that being done through the maximum possible deceits and treacheries.
Hence, the best organized gangsters, the banksters, are controlling the public "money" supply, which has more recently been manifesting as the series of events which have euphemistically be called Quantitative Easing, which have, of course, done the opposite in the real world to everything that the banksters' bullshit was saying about that. However, the level of the analysis of that situation presented by the vast majority of the material published on Zero Hedge continues to be relatively superficial, even including amongst those who more directly address the issues of which cultural groups make up the most dominant organized crime gangs.
so many questions really. the bernanke fed is the least independent fed ever, (and i say that because all manner of evidence is that the president treated the fed chief as another cabinet member) obama came by that through a legacy appointment. you can understand why one political party may favor economic inequality, (stereotype of the GOP) if that is the case why did obama accede to it. he represents equality. unless the fed really is independent, in that instance why did congress accede to a policy of income disparity (because the fed is independent?) it may be the public doesnt care if the 1% have most of the wealth, and more of it every day. it may be the public doesnt mind paying bills using EBT and section 8. maybe the public doesnt need more money, and since the fed is independent neither congress nor public opinion affects their position.
conclusion the current fed is really a non partisan politically appointed position which supports the encumbency. when there is no encumbent in the white house, (next year) the market crashes because of the vacuum in leadership. when the fed is truly independent, outgoing president and no new president yet, they lose their way, or their ability to govern, which sends the markets into a swoon. ergo the fed is not independent at all, just untouchable.
so many questions really. the bernanke fed is the least independent fed ever, (and i say that because all manner of evidence is that the president treated the fed chief as another cabinet member) obama came by that through a legacy appointment. you can understand why one political party may favor economic inequality, (stereotype of the GOP) if that is the case why did obama accede to it. he represents equality. unless the fed really is independent, in that instance why did congress accede to a policy of income disparity (because the fed is independent?) it may be the public doesnt care if the 1% have most of the wealth, and more of it every day. it may be the public doesnt mind paying bills using EBT and section 8. maybe the public doesnt need more money, and since the fed is independent neither congress nor public opinion affects their position.
conclusion the current fed is really a non partisan politically appointed position which supports the encumbency. when there is no encumbent in the white house, (next year) the market crashes because of the vacuum in leadership. when the fed is truly independent, outgoing president and no new president yet, they lose their way, or their ability to govern, which sends the markets into a swoon. ergo the fed is not independent at all, just untouchable.
"Credit should be extended to the productive economy – businesses which create goods and services – and not to financial speculators or high levels of consumer debt."
This is very similar to claims that socialism/communism works but it hasn't yet been implemented correctly.
The errors are:
1. People will abuse power to serve their own desires and
2. In a free market, productive entities will already have access to appropriate levels of spending power. Artificial credit will always cause economic distortions. It goes back to Say's Law and ABCT.
so many sell stops, so few sellers.
as long as inflation exceeds the borrowing rate, borrowing and financialisation actually profit the borrower. https://en.wikipedia.org/wiki/Real_interest_rate
The financial sector is one of the few sectors green on today's tape. Even though today's price action is showing declines, buying the dip is still the game. #rigged is an understatement.
.
..
Well, I'm shocked!...Shocked I tell you...
I was sure that all these politico's, bankers, and corporate's were as pure as the driven snow, as any normal person would expect...
...Are you telling me that they are all liars and thieves?
Jeeeeez!!!
...
“As goes GM, so goes America” Down the fucking drain!
I'm not sure I understand the point the professor is driving at. He says credit should go to "businesses which create goods and services" and recommends "Extending credit to small businesses". What I don't understand is what he wants the Federal Reserve to do. The Federal Reserve doesn't have branches on corners taking small business loans from small manufacturers. That's what private banks are for. Now perhaps they could impose mandates to guide lending to small businesses or small banks, but this isn't communist china where we can force banks to lend, and tell them what sectors and where. That's what the market is supposed to be for.
Just make the banks responsible for their losses -- no bailouts. Problem will disappear.
Sadly the banks would just make their depositors eat it. Those that manipulate bank risk and assets are untouched. That is why it is refered to as a crime rigged system.
Depositor is just another word for investor / lender. Of course when a bank fails its investors should eat it. Anything else would be moral hazard. Of course that is the polar opposite of any concept of quantitative easing.
it is a structural imbalance and
usurious arrangement by design, by
and for the banks at the expense of
most and all others. yet, some others are
richly rewarded for the licking
of the pole. apologies for the
crude, yet accurate, metaphor.
.
a mommy/daddy tongue thing for
the almost conscious human being?
guys full of shit even though he's one of my Alumni's. He invented the term dick, not money printing. They figured that thousands of years before he even existed.
any small business person who has run a successful business, could turn the USA economy around.
instead we get ph'ds from Ivy league schools, worthless degenerates like B Frank, and corrupt insiders (corzine)running the show.
the goal of the leadership is clear if you look at outcomes only:
1. out source productive business
2.debase currency
3.create .gov dependency
4. dilute population with third world that does not like the usa and comes here to destroy the country while sucking it dry.
5. make .gov a police state
6. move toward a NWO of unelected rulers.
7. constant war
you know them by what they do, not their words.
8. (The goal of it all) Concentration of power in the hands of the 0,01 %.
QE kept Obama/Musk out of soup kitchen line
GW
Philosophically it is the mentality of humans as a species.
1.) Monetary policy by elites is to enure they always have a fraction more of the economic pie therefore they always end up with more = INEQUALITY. Only possible because the economic policies are created by them to serve them there is no neutral arbitration in this. YOU WILL BE THE FINANCIAL SLAVE UNDER SUCH A MECHANISM SO GET USED TO IT.
2.) Now when the QE was used and ended up in the hands of elites and not the real economy the real economy went nowhere and they wonder why? The QE needed to go into the economy atg the lowest level AND THE BANKS MADE TO EARN IT THEREBY PROVIDING THE SERVICE THEY PRETEND TO SUPPLY. Not nickled and dimed neither through charges on this and that.
3.) The last bit and the real blinder and if people wake up the elites will become very nervous. Consider an economic pie no matter the size or how you change it the part that the population command is small and getting smaller so ordinary people can no longer effectively stimulate the economy. ELITES NOW NEED TO START HANDING DIRECTLY / INDIRECTLY TO THE ORDINARY PEOPLE TO BALANCE THIS ECONOMY effectively becoming poorer. Not going to happen so the deflation has to happen by how little ordinary people have just to keep ONLY THE LITTLE BIT THEY EFFECT GOING.
Conclusion of 3 points.
1.) So would an elite be prepsared to live in an more risky for them economic system? NO
2.) Is an elite prepared to earn their income for a change? NO
3.) As an elite are you prepared to give up some of what you obtained to keep the economy going? NO
Stagnant economy at best then as they will give some to attempt to preserve their position but never enough to really correct the economic imbalance between elite and poor AND IT DOES NOT NEED TO BE EVERYTHING thre gap needs closing is all. NOT GOING TO HAPPEN.
Delivery to the following recipient failed permanently:
hornstra@ie.philips.nl
Sadly to note, there is no running competition to make the people happy. The competition at work but looks to silly, psychopathic for to get believed.
Dumb design, that's what we have to deal with, in preeminent position. To spot in action when the guys in the room pat each other on the shoulder, celebrating the result of a more or less well plotted coup de force.
What next? Blythe coming clean?
https://www.youtube.com/watch?v=MvJWJR8iqa0
[KR727] Keiser Report: Financial Faith
Posted on March 5, 2015 by Stacy Herbert
Read more at http://www.maxkeiser.com/#scGQFiDxlDoHVkQq.99
Interest rates do lag the economy. Demand drives rates when the issue is borrowing instead of lending as few will borrow unless there is expectation of the benefit exceeding the cost. Sadly, a highly developed economy (absent true, not replacement innovation), requires 'sin' as China is currently demon-strating in reducing and Colorado is demon-strating in expanding.
GW
Your best posts are short and to the point. This is one.
"Richard Werner (economics professor at University of Southampton) is the inventor of quantitative easing (QE)." So why do we accept the use of made up terms that are meant to do just the opposite of what words are for? Quantative Easing means print money and buy debt. It is criminal. The whole stinking "money" system is criminal. it is perpetual debt slavery and the source of the majority of humanity's suffering. Other say that the system is an "inflationary fiat Ponzi" system . That is a misnomer. The system has elements of both inflation and deflation along with perpetual debt. Think deeper. If you really want to get pissed watch Arron Russo's documentary and pass it around if you think it is worthy. https://www.youtube.com/watch?v=O6ayb02bwp0
Best pro-helicopter article I've read in weeks.
"QE Inventor: It’s EASY to Create a Full-Blown Recovery"
BULLSHIT.
Whoever purports to be the inventor of QE is a fucking idiot , they may have coined 'QE' but they certainly did not invent it. That is the governments job.
And a Full Blown Recovery , fuck off , that is impossible. We have reached Peak Oil, That means Oil price peaks to unafordable = global economy slows down sp oil price drops then global economy picks up so oli price peaks again so global economy stalls again. It has reached a volatile inflection point that will eventually level. We are at the top of the energy bell curve. Get used to deflation , btchez , cos that's what is coming. Big-Time. Inflationary fiat ponzi currency is incompatible with Peak Oil.
The only solution is to dissolve the current inflationary fiat ponzi scheme and move over to a deflationary digital currency bitcoin which is compatible with peak oil / peak energy. Gold sucks as a world currency because of the rehypothecation and easy fraud there is no proof of reserve with tungsten !!
Neg me all you want you basement dwelling my-golds-in-the-lake-or-shoved-up-my-ass fools !!!!!!!!!
The ‘governments’ job right now is to bow their heads to their real masters needs (the 0,01 % who owns the whole circus). If they do QE (and by the way, it’s mostly private institutions QE’ing) it’s because they’re told to do so.
Second, you can’t rehypothecate physical bullion. All paper assets are manipulated/controlled and irrelevant as a mechanism of price discovery, savings, investment or data for analysis if you’re a part of the lower strata of the power pyramid. The insiders on the other hand are having a huge party (until it ends).
Bitcoin is a marvelous invention, but it’s not the full solution. You can’t have a monetary paradigm that’s fully dependent on the internet/access too. It’s a great supplement for the money of centuries (gold and silver).
PS. Take it easy - relax. We're on the same side in this shit-show...we might disagree on details...but still.
More than happy to down vote bitcoin.
Good, another fool keeping the price down so the smart young ones can continue to load up for the future. Please keep up the good work. We all honestly really appreciate and say a big thank you for your ignorance.
Make sure to thank the technician when they implant the RFID (or someother tech) in your arm cuz that is where bitcoin will go.
Make sure to thank TheReplacement when you end up broke because you did not move into the new paradigm.
"They" may want to implent you with Visa or Mastercard RFID chip, but not bitcoin. Bitcoin is something they don't control. Why would they want to popularize the technology that would rip the head off of entire banking industry?
lol
Tragedy and Hope A History of the World in Our Time by Carroll Quigley, 1966 Pg. 326-327:
"It must not be felt that these heads of the world's chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers (also called "international" or "merchant" bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks. This dominance of investment bankers was based on their control over the flows of credit and investment funds in their own countries and throughout the world. They could dominate the financial and industrial systems of their own countries by their influence over the flow of current funds through bank loans, the discount rate, and the re-discounting of commercial debts; they could dominate governments by their control over current government loans and the play of the international exchanges. Almost all of this power was exercised by the personal influence and prestige of men who had demonstrated their ability in the past to bring off successful financial coupe, to keep their word, to remain cool in a crisis, and to share their winning opportunities with their associates. In this system the Rothschilds had been preeminent during much of the nineteenth century, but, at the end of that century, they were being replaced by J. P. Morgan whose central office was in New York, although it was always operated as if it were in London (where it had, indeed, originated as George Peabody and Company in 1838)."
God bless all!
Would be nice if Richard Werner was more specific and detailed if he's convinced this will work.
Speak up Richard, let's hear it.
All well and good, but businesses still need to be able to pay off that additional debt. When businesses are already overly indebted, there's no point in taking on more. They have to go through the process of paying off the existing debt which includes the possibility of those same businesses going bust in the process. As they should. The surviving businesses will then beneift on the outside of the necessary correction process.
Which is what happens now, businesses apply for business loans to grow (or go to HFT infested markets ... aaaaaannd ... it's gone! ... forget that!).
If you borrow you just get more debt! But the whole problem is too much frickin debt, who is this a solution?
Has Richard ever run a small business?
I doubt it somehow, as I totally fail to see any sure-fire solution to economic malaise in offering more unaffordable loans.
However, if instead of paying business taxes to Govt, the QE payed their due tax for them, that would work! They just keep managing their private loans themselves in the usual manner.
Well, maybe not for Apple as they don't pay taxes anyway so it would stick it to all those pricks as well I'm OK with that!
The QE paying their taxes would in fact be next to no different from the recent monetizing of US budget short falls, except the businesses now don't have to pay tax at all.
But why stop there? You can eliminate income taxes as well then scale a GST / VAT in all goods and services, to control inflation from too much disposable cash and demand pushing prices up.
You would get recovery this way, but then you're pretty much into pure MMT, with govt buying its own bonds with QE.
Which seems to be what we're supposed to conclude is required.
The question is can it be sustained, and where are the abuses for the banks to rob everyone with?
The problem is he posit's that as the role of the central bank which still means a statist economy which means corruption will ensue and there will still not be an actual market based on honest price discovery.
Just another gov. advocate. His plans are no better. Free markets and honest money would put him out of work.
Honest money, yes.
”Free” markets is, however, an academic abstract. The reality is, that markets have always been enforced (especially the private property regime that it presupposes). And all “free” markets end up with the productive capital being owned by a minority (what we have today). That power – like all power – corrupts and is always used to create monopolies, manipulation, theft etc. (killing the so-called “free” market), that leads to more concentration of power (and so on).
There’s a third possible property-paradigm (not state/public or private): common property. This concept have been discredited by Garrett Hardin’s “Tragedy of the commons”. A book that’s force-fed all social science students in the US. They are never told, that Hardin refuted his own conclusions. Common property is not free for all (there's no tragedy - the tragedy is when the property is taken over by private or public/state entities) – the history of common property (the empirical evidence – I know, not something most economist consider) shows the opposite story. Common property have always been regulated by the people using it – the forests of medieval England (before the king took it – made it ‘public’), the oceans, the rainforests of East Asia (being inhabited by the so called ‘Hill-tribes’), the 'alle-mands-ret' in Sweden etc. All examples of resources being owned by the commons and with no central power dominating them (public or private). And all examples of resources that have been well-managed/sustained/evolved by the people using them.
Memedada, you are pointing to a few excellent if a bit radical and... heretic things, there, but are you sure you are not too fast with your conclusions?
whatever you want to call the system, whenever people are free to accumulate or squander, they end up in a "power law" curve of "private possession/ownership" that is being used everywhere by private bankers: the Pareto Curve
"It’s EASY to Create a Full-Blown Recovery, But Central Banks Chose to Make Banksters Rich Instead". Exactly:
... if more money were going to the market, then they would lose much of their value and we would lose profits because we are the ones who print money! That's why we invented inflation, to keep governments in fear and directing money back to us through the so-called Quantitative Easing Policies. [...] When money start to spread in the society "above acceptable limits", we create financial crises to take them back. We dictate governments to take measures and apply austerity policies directing money back to us. We keep money valuable to everyone and secure our profits.
Not exactly. The problem is having a central bank that controls an entire nation's economy. He is not saying we should have an honest market, he is saying the central banks are doing it wrong. Huge difference.
Power corrupts. Absolute power corrupts absolutely. The ability to steal a thousand dollars without penalty corrupts. The ability to give away a trillion dollars without penalty corrupts absolutely.
Trust of others with your money is for fools.
VOMIT story for today. (for me)..
http://www.breitbart.com/big-government/2015/03/05/gold-mine-hillary-clintons-brother-granted-super-rare-mining-permit-from-haiti-after-state-dept-sent-country-billions/
Lucky little mining company gets sweetheart deal for gold in Haiti. Hilary's brother. Boy oh boy this is way beyond arrogance.