Because the dominant narrative is that it is the financial world that makes the real economy possible rather than the other way round. In the long run, we're all dead. John Maynard Keynes
Because the dominant narrative is that it is the financial world that makes the real economy possible rather than the other way round.
Given current events I cannot imagine a better environment to change the narrative with ET leading the way. Please do not wait until people are too busy fighting each other for enough food to survive because they will then be too desperate to listen.
Is there an ET "working group" focusing on this? In the end, might makes right. Nothing has changed since the caveman.
A pleasure I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude
But IMHO they are not the same: assets are nationalised while creditors are bailed out. Of course, they can take place at the same time. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
The U.K. government may invest at least 45 billion pounds ($79 billion) in banks including Royal Bank of Scotland Group Plc and Barclays Plc to bolster capital depleted by mortgage-related losses, two people with knowledge of the situation said.
[The Twank's HOLY SHIT!™ Technology]
The endgame is fast approaching. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
Can you outline any parallels between the East Asian IMF response and the proposed bailouts in terms of:
European Tribune - Comments - In praise of bankruptcy
The propped-up exchange rate allowed wealth to flee the country in favourable terms,
i.e. Does propping up the banks allow wealth to flee the bank before the (what now looks inevitable) nationalisation happens anyway?
how do we write a proposal to tax the transactions?
First, new governments will have to be elected; second; the nature of election finance will have to be changed to remove the stranglehold now held by wealth over politics. Then a serious program of wealth redistribution, framed as "disgorging ill gotten gains," could be devised. This would need to be coordinated on an international level.
If the choice were between surrendering 80% of your personal wealth or having to move to Burma or the Central African Republic or some other such "haven" there might be many takers. How about million dollar bounties on fugitive billionaires? Dead or alive? Might not get back the money, but it could discourage flight. Might as well dream big! :-) As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
So if the banking system is so badly damaged, is it worthwhile fleeing anywhere? what are the strong places where it is worth running to? or is any strength in the current climate a chimera? Any idiot can face a crisis - it's day to day living that wears you out.
Bloomberg: Iceland Seeks Loan From Russia, Pegs Currency (October 7)
The central bank said it pegged the krona against a basket of currencies at a rate equivalent to 130 per euro. According to Nordea Bank AB, the krona traded at 200 to the euro as of 11:39 a.m. in Reykjavik. That's 53 percent weaker than the peg implies.
How's your Rysskräck doing today? A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
