Monday, June 20, 2016

“Creditism” & The Death of Capitalism
5* Please link & read the whole interview
"Capitalism was driven by investment, savings, capital accumulation, reinvestment, and capital accumulation. Hence the term, capitalism. Economic progress was more gradual, but the economic system in all likelihood would have been much more stable had traditional capitalism remained in place. We no longer have capitalism.
I really trace the breakdown of the capitalist system to World War I, when the European countries went to war with each other. They didn’t have enough gold to fight the war, so they went off the gold standard and printed money to finance government debt used to buy war materials. The Allies won the war. But all the government money that was created at that time, all the government debt, set off a worldwide credit bubble called the roaring ‘20’s. Then in 1930, the mountain of credit collapsed since it couldn’t be repaid. The international banking system collapsed. International trade collapsed. The Great Depression started. That went on for 10 years. There was no end in sight until World War II started, largely as a result of the depression. At that point, what was the U.S. going to do, let Germany and Japan take over the world? The Germans were already taking over all of Europe and Japan was expanding throughout the Pacific. U.S. government spending increased 900% in 1940 to prepare for the war. Then the U.S. was attacked by Japan in late 1941. The government then took over complete control of the economy to run the war effort. Manufacturing, production, distribution, pricing, labor, everything.
It’s important to realize that we never really went back to a capitalist system once the World War II ended.
The government was so terrified that reducing spending would lead us back into the Great Depression, which it probably would have, that they maintained high levels of spending. The economy has remained heavily government-directed ever since. So if you really want to know when creditism began in earnest, it was 1940."
- Richard Duncan
LINK HERE to the transcript


Anonymous said...

Robert Pringle (author The Money Trap)-Govts are imprisoned in a cage from which they see no way out?

Mr. Pringle wrote a book titled "The Money Trap" in which he lays out his thesis that central bank policies since the financial crisis in 2008 have met with limited success. The book argues that governments have been using the wrong policy weapons. On his blog, Mr. Pringle recently wrote this article which summarizes the problems he lays out in his book. Here are a few quotes:

"What is the money trap? How can we get out of it?
Let me try to reformulate the thesis of my book in the light of recent developments.
Since the 1970s we have been in a period of transition to a new paradigm of monetary policy. Governments have tried various approaches to the challenges of managing money: in the 1970s, they put full employment top, and used monetary policies to expand demand, taking risks with inflation; the result was high inflation, high debts, the Third World debt crisis, and, eventually, high unemployment. The 1980s saw a backlash as popular discontent with high inflation made policy makers give priority to price stability; this led the way to inflation targeting (IT) and central bank independence (CBI). After meeting with apparent success in The Great Moderation, the 2008 crash showed this policy model was also deficient. Since then reforms have focussed on strengthening bank capital but the basic framework of the system – IT + CBI with flexible exchange rates – continues.
This period has culminated in some of the biggest experiments ever – a massive expansion of central bank balance sheets, official interest rates held near zero for several years and in some cases deliberate currency depreciation in an effort to spur growth.
Results have been mixed. Banks remain under great pressure, lending remains sluggish, real capital investment disappointing while households and businesses pile up cash balances.
To quote William White: (former BIS)" . . . . .
. . . . .
"To recap: Governments are evidently imprisoned in a cage from which they can see no way out. Indeed, there is no way out while they remain under the illusion that they can achieve their objectives by fiddling with monetary levers. Whatever form the central bank doctrine takes, whether reinforced by regulatory powers or whatnot, and whatever rules or objectives central banks follow, make no essential difference: they fail to achieve their ends; economies remain unstable, financial systems fragile. Public trust is lacking. Popular discontent and anger rumbles on dangerously."

Anonymous said...

The Silver Ruble Coin for Russia


I. Russia: Leadership Through Better Ideas

II. The Silver Ruble Coin Revolution Strengthens Russia

III. The Silver Ruble Coin: True Wealth for Russians

IV. Economic Effects of the Russian Silver Ruble Coin

V. The Russian Silver Ruble Coin vis a vis the US Dollar

VI. Silver Ruble Coin and the Money Supply

VII. Central Bankers and Silver Money

VIII. The Failure of Mechanistic Economics

IX. Mexican Civic Pro Silver Association


I. Russia: Leadership Through Better Ideas