Wow, archytas; you're certainly passionately engaged with economic dysfunction. and you've got me intrigued by the "Koro" metaphor :)
I'm sympathetic to a lot of the powerful observations you make regarding the myopia of economic outcomes; you have to agree though, that much of economic theory is based on the "rational self interest" principle; so these logical outcomes should not be a major surprise or disappointment; does this not prove that financial oligopolies are the effect rather than the cause of dysfunctional economics? Much of the current global economic picture is/was perfectly predictable, IMO; production migrating to superior cost or expertise hubs, financial backfill leading to concentrated liquidity, leading to asset price inflation, leading to asset market bubbles and dislocation; energy price "erosion" leading to asset market corrections; the winners, production hubs and energy producers; the losers, financial hubs. No big mystery. The "rebalancing" (fine euphemism) will not be a walk in the park. Whatever else one might think of financial markets, one has to honestly acknowledge the invaluable contribution they make to economic growth through capital liberalisation, even as one might equally assert the inadequacy of systems to manage relatively free market extremes. Excess is the nature of the beast, i'm afraid. On Jun 20, 5:36 pm, archytas <[email protected]> wrote: > One thing we forget is that most of us might be much better off > without 'the economy'. Currencies are as 'real' as Bitcoin - which > slumped recently due to hackers at its USD exchange site. We can't > talk economics (I don't mean the subject I teach) without starting > where we ain't really. Most of us just want an exchange income in > order to trade what we can do for what we need. > My guess is that this is precisely what we are denied in order for > there to be 'the economy'. I've been looking at the 'disease' koro >s recently as a metaphor for the state we're in when we talk about 'the > economy'. Koro strikes in Asia and in slightly different form on west > Africa. A man becomes convinced his balls are going to suck up into > his body and kill him. The 'cure' is to have a close relative sit > with you for weeks, possibly clutching the apparatus, until it's > over. I think there are good reasons to suppose economics is as real > as this - or at least that economic cures from the IMF are as real as > those for koro. You could google up koro if you think I'm pulling > your dingaling. > > My own view is that we are on the road to serfdom because there is a > massive state that even the soviets couldn't dream up that we can't > control through votes and reason. This state is broadly a very rich > minority who have amassed what should be our means of exchange and > thus prevent a real link between effort and reward. I'd probably cite > Italy as the model to look at in Europe, not the PIGS (Portugal, > Ireland, Greece and Spain). Greece is a classic in another way - it > has spent 54% of its time in default and reconstruction since 1824 > (ish), but this only encouraged lending by France and German banks > (private loans) greedy to make money from money. This second model > seems connected with lending to cause collapse - in order to buy up > assets (real stuff) in firesales (as in British loans to New York > farmers in, say, 1890). Italy has a positively geriatric elite and a > young just wanting to leave (Berlusconi was dire, whether you put up > with dirty old men or not). > > We have exported manufacturing knowledge to China and India and thus > war capacity. We have remained intensely dumb whilst pretending > ejukation - to such an extent that we can't even establish the real > case on global warming and establishing safe food production. US > universities are buying up land from underneath African farmers and > evicting them as I write! > Most of us just want some quality basics, shelter and to have family, > friends and decent medicine and perhaps to help in creating a secure > future for such a way of life and maybe longer-term technology. That > we can't band together for this is a sure sign we are in the grip of > madness. > > Most European debt is owed between Europeans and would cancel out if > it were not for the interests of those lending (a tiny few). What's > gone wrong is that we have stopped borrowing against a future we are > creating - as say in building houses for people to live in > collectively in the belief their work would pay for the work done - > and instead started lending against the belief that the future always > expands to cope with debt burden and a wand of financial tricks > equates to real work. > What's been going on is no more than someone cheating as the banker in > Monopoly with her own secret second set of currency, somewhat > elaborated with insider betting. Except the cheats can buy your > actual home from under you with the Monopoly money. Everything we > might expand from a fair day's work for a fair day's pay is of nothing > in this, as the very payments made are under inflation threat. They > have made a bad pass from Rooney at £10K and bwanker bonuses "fair". > I'd go for a Jubilee on most debt between EU countries, against new > laws to prevent crooked bwanking, including transaction taxes to stop > markets making money internally with money rather than in facilitating > trade. If this means the EU trading with itself, then so be that. > > It was once very easy in history to pin many of these problems on 'the > Jews' or 'Ugandan Asians' - but who are the "bwankers" who make us > serfs who can't decide on hospitals, care for the elderly and so on > because we can't afford such public expenditure? > > On Jun 20, 2:50 pm, gabbydott <[email protected]> wrote: > > > > > Problem is, I would start with a discussion on worthability and value of > > things, actions and humans. > > > On Mon, Jun 20, 2011 at 1:33 PM, allan deheretic <[email protected]>wrote: > > > > I am looking at the European economic crisis, lots of jabber ,, I am > > > wondering what the views of how this groups members would solve > > > the financial crisis gripping the world. > > > > My personal thoughts along this line is that all monies or other forms of > > > currency exchange would be putting a mandatory 20%+ currency export tax to > > > prevent companies from not paying their share of social burden.. and all > > > income over 200,000 Euro face a minimum of 35% income tax no deductions > > > allowed. > > > > I now it would effect everyone with price rises but I am sure of one > > > thing > > > it would cover all taxes now paid and the people benefiting would be the > > > ones paying.. not being able to be the takers without responsibilities. > > > > I am looking forward to hearing your thoughts on how to solve > > > the financial crisis of the world > > > Your friend in minds eye > > > Allan > > > * > > > * > > > *--* > > > ( > > > ) > > > I_D Allan > > > > If you can bear to hear the truth you've spoken > > > Twisted by knaves to make a trap for fools,- Hide quoted text - > > - Show quoted text -
