Steve Kurtz sent this over.    I think we either create work or we create
war to absorb the energy of the poor and kill them off for a smaller
population.    It's happened regularly from Kublai Kahn down the second
world war II.    We rarely make the claim that Hitler's war policy and
Jewish policy was really about full employment and national direction.
The point is always that he was a monster and not seeking a cold economic
goal.   We also have the stories about FDR refusing to stop Pearl Harbor
built on the same reasoning.   Creative Greed is one of the seven deadly
sins.   Now that religion is impotent before business and science,
immorality is free.

 

REH

 

PS I add this to Sally's Roubini discussion. 

 



http://www.globes.co.il/serveen/globes/docview.asp?did=1000675191
<http://www.globes.co.il/serveen/globes/docview.asp?did=1000675191&fid=1725>
&fid=1725 

 

News

Nouriel Roubini: Social unrest will spread

"Recent popular demonstrations, from the Middle East to Israel to the UK,
are all driven by the same issues and tensions."

21 August 11 14:12, Globes' correspondent

"Recent popular demonstrations, from the Middle East to Israel to the UK,
and rising popular anger in China - and soon enough in other advanced
economies and emerging markets - are all driven by the same issues and
tensions: growing inequality, poverty, unemployment, and hopelessness," says
Dr. Nouriel Roubini. "Even the world's middle classes are feeling the
squeeze of falling incomes and opportunities." 

Roubini, a professor of economics at New York University's School of
Business, was one of the few economists to predict the 2008 global financial
crisis, and he insists that recent social unrest sweeping the world, will
strengthen and spread. 

Roubini says that the current global economic system - capitalism - will
remain in a crisis - a crisis economist Karl Marx predicted more than a
century ago - until major systemic reforms are implemented. He says that
social unrest and demonstrations are all being driven by the same thing,
capitalism's most serious crisis since the Great Depression of the 1930s. It
stems from globalization, financial intermediation run amok, and a
destructive redistribution of income and wealth from labor to capital. 

Roubini's answer is to strike the correct balance by creating work partly
through more stimulus whose goal is "productive" infrastructure investment,
progressive taxation, debt reduction, "lender of last resort" support from
central banks, greater supervision of the financial system, and breaking up
banks deemed too big to fail. "That means moving away from both the
Anglo-Saxon model of laissez-faire and voodoo economics and the continental
European model of deficit-driven welfare states. Both are broken," he says. 

Published by Globes [online], Israel business news - www.globes-online.com -
on August 21, 2011 

C Copyright of Globes Publisher Itonut (1983) Ltd. 2011

 

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Friday, August 19, 2011 10:57 AM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, , EDUCATION; Ed Weick
Subject: Re: [Futurework] NYTimes.com: Economy Faces a Jolt as Benefit
ChecksRun Out

 

Ed,

We are both agreed, I think, that the world economy is passing through a
major transition phase. The following item "Is the World facing fundamental
changes?" on http://www.bbc.co.uk/news/business-14583201 will be of
interest.

Keith

At 14:05 18/08/2011, you wrote:



I don't know, Keith.  You say "what we have today is a mammoth version of
one of the normal sorts of trade cycles that always used to happen
throughout history..."  I think it's bigger than that.  And quite different.
It' a transition, much like when the world became transformed from an
agricultural base to an industrial one.  And we can't really see, as yet,
where the transition is taking us.  We can see some of the parts.
Globalization, the ability to produce goods and services anywhere in the
world and move them to market is part of it.  The overdependence on credit
and leveraging is also part of it.  That large numbers of people don't fit
in, the young even if they are educated for example, is another part.   The
growing reliance on a declining natural resource base is yet another.  Right
now, where the transition will have taken us when it is completed, if it
ever is, is not at all clear.  You are right in saying that Roubini has no
idea of what is actually going on.  I don't think anybody does.
 
Ed
 

----- Original Message ----- 

From: Keith Hudson <mailto:[email protected]>  

To: RE-DESIGNING WORK, INCOME DISTRIBUTION,EDUCATION
<mailto:[email protected]>  

Sent: Thursday, August 18, 2011 12:56 AM

Subject: Re: [Futurework] NYTimes.com: Economy Faces a Jolt as Benefit
ChecksRun Out

Ed,

Nouriel Roubini is good at diagnostics. He goes on eloquently, paragraph
after paragraph, in describing what's wrong (pretty well everything, one
infers) but then ends up at the end of his article with as lame a mixture of
platitudes and remedies as any of the current crop of economists and
politicians.

In short, he has no idea of what is actually going on -- or he is in
complete denial about it.  He doesn't realize that what we have today is a
mammoth version of one of the normal sorts of trade cycles that always used
to happen throughout history in this region or that caused by over- or
under-production, or surpluses or deficiencies of resources. They all caused
grief to this or that section of the market place and, when foolishness was
exposed and debts were purged, their economies revived soon enough.

In our case we are not suffering from a shortage or over-production of
goods, nor from a shortage or over-production of resources (not yet anyway)
but from an over-production of credit. In the past, credit has always acted
like oil in a machine -- a necessary but relatively minor part of the whole.
Today, private, corporate and public credit and its counterparts (private,
corporate and public debt), amounts to a very large part of the whole
'machinery' because governments themselves have been credit providers
increasingly all through the past century (by printing money), particularly
since crucial decisions in currency foolishness were taken, such as Bretton
Woods (1944) and Nixon releasing the dollar from the discipline of
gold-backing (1971). To continue the analogy, the real 'mechanical' parts of
today's machine (money that is saved and then invested) can hardly operate
because there's too much oil (credit and debt) sloshing around.

But, essentially, today's impasse is no different from the past.
Governmental foolishness must be acknowledged and credit and debt purged
from the system. It was partly done in the 2008/9 crisis, but evidently not
sufficiently so. There's a lot more to go yet. How long will the present
Great Recession last? Even some politicians and economists are talking in
terms of ten years. Probably more like a lifetime, unless America and the
Eurozone agree to China's proposal to establish a stable world trading
currency that can serve as the discipline to prevent more money-printing by
governments.

Keith




At 21:57 17/08/2011, you wrote:



Thanks for posting, Sally.  For another gloomy piece on the economy, global
this time, see what Roubini (Doctor Doom) has to say at:

 

http://www.project-syndicate.org/commentary/roubini41/English 

 

 

Ed

  

----- Original Message ----- 

From: [email protected] 

To: [email protected] 

Sent: Monday, July 11, 2011 4:25 AM 

Subject: [Futurework] NYTimes.com: Economy Faces a Jolt as Benefit ChecksRun
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