Agree that debt will eventually lead to inflation or some other monetary
problems.  But in a democracy the govt has little choice but to print money
in a crisis, even though it can lead to other crises.  

 

Who gets bailed out and how is the issue.  So far the banks, corporations
and the financial sector have been favored.  The unemployed and those who
can never be employed again are seen as some kind of collateral damage to be
acknowledged but more or less left to fend for themselves even as promises
of phantom job creation schemes are announced  by govts.

 

arthur

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Thursday, August 16, 2012 8:53 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION
Subject: [Futurework] Arthur's 6th belief

 

At 21:17 15/08/2012, Arthur wrote:



        6.  That governments will argue about debt this and deficit that but
when the crunch comes, new money will be found.


Yes -- and that's the problem. Ever since the 1930s, Western governments
have found new money by printing it. All told there has been a 40-fold
inflation (that is, depreciation) of national currencies. And, using the
latest euphemistic dodge -- Quantitative Easing -- it has been accelerating
since 2008. The latest bout has so far been accumulating in the banks which
still have massive debt problems and might have to continue for many years
yet until debts are paid off or written off. Or QE might suddenly spring
hyperinflation of the US dollar or the Euro (or both simultaneously) upon
us.

Unless America and Europe bring out a gold-backed currency (that is, beyond
government manipulation) then China might do it all by itself. It is already
buying gold mines wherever they might be available (Peru, Canada, Tanzania,
South Africa, East AFrica, Australia).

Keith





Keith Hudson, Saltford, England http://allisstatus.wordpress.com
<http://allisstatus.wordpress.com/> 
  

_______________________________________________
Futurework mailing list
[email protected]
https://lists.uwaterloo.ca/mailman/listinfo/futurework

Reply via email to