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The flaws of the EU's asymmetric approach to imbalances | 132 comments (132 topical, editorial, 0 hidden)
Re: Self-censorship (4.00 / 4)
We must keep in mind that the purpose of "the present economic consensus" is to preserve and further the present wealth distribution, not to provide a nuanced understanding that would allow clear evaluation of trade-offs and alternative approaches or allow deep and fruitful insights into the meaning and consequences of that distribution, let alone undermine it. The present economic consensus is the consensus of those who have the vast majority of wealth and those who work for them. The holders of wealth probably are concerned that even this lame "present system" reveals too much and as to any concerns that its weaknesses lead to bad results and make everyday economic functioning hard to deal with, well, that is why they pay their retainers as well as they do.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 20th, 2011 at 04:00:01 PM EST
[ Parent ]
preserve and further the present wealth distrib. . (none / 0)
 RE:  "preserve and further the present wealth distribution"

  this is, for them,  99% of the ballgame.  

We should keep it in mind, but too often we forget to.  The "system", rather than being "broken", from the point of view of those who reap the greatest benefits, is doing what it's supposed to do.

   Asset-bubbles may be unavoidable no matter what form or counter-measures a capitalist system may devise and put in place.

  Migeru's piece points out things which are both essential in importance and also too rarely discussed in the mass public news media; so he deserves much credit for that.

   At the same time, asset-bubbles are great for those who have the resources to take advantage of them and then drop out at the most opportune moment.  Rather than give that up without a fight, I suspect that these same would put up fierce resistance to so reasonable and public-spirited a plan since it would undermine one of their most lucrative opportunities.

   Still, the understanding, which should be beyond doubt or question in its validity, that, within the E.U., surpluses for Germany, for example, imply corresponding deficits somewhere else--that insight is absolutely of key importance and for the supposedly "top people" (PiP) to miss it or refuse it is nothing short of scandalous.

 

"In such an environment it is not surprising that the ills of technology should seem curable only through the application of more technology..." John W Aldridge

by proximity1 on Thu Jul 21st, 2011 at 08:15:58 AM EST
[ Parent ]
Re: preserve the present wealth distrib. . (none / 1)
asset-bubbles are great for those who have the resources to take advantage of them and then drop out at the most opportune moment.

Asset bubbles are just a usually longer term variation of the old stock market "pump and dump". They are fueled by rentier profits and massively unequal income distribution. In the USA, since the 70s, serial bubbles have largely replaced, in fact, the old investment driven business cycle, even if this awkward fact is not acknowledged by "mainstream economics".

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jul 21st, 2011 at 08:51:25 AM EST
[ Parent ]

The flaws of the EU's asymmetric approach to imbalances | 132 comments (132 topical, 0 editorial, 0 hidden)
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