You cannot have an economic recovery without prices falling. The proof we will not have a recovery is all policies in USA are designed to keep prices from falling. So this will go on until our system crashes completely, and then war, etc. But that is for later.
Sweden is, and has been, on the right track. Sweden had a economic breakdown like our 2008 back in 1992. Sweden handled it exactly right, for a state:
Now, as an aside, under anarchy, they would never have had the problem to begin with. But notice here, this article is from 2008 when Bush was still president. A clear path was already known, but the capitalists went their own way, and we are still paying too much for gas, getting too little for our money and in economic doldrums, five years into the Obama administration. Clearly socialism is superior to capitalism in handling these problems.
Of course Sweden is a small homogenous country, and have a completely different idea of the role of government. Hear this Swedish official:
Urban Backstrom, a senior Swedish finance ministry official at the time, told The New York Times that putting taxpayers on the hook without anything in return could be a mistake because "the public will not support a plan if you leave the former shareholders with anything."
How mistaken can one be? To this day billions are shoveled daily to the malefactors in the last break down, assuring the next one coming will be far worse, and the bills laid onto the children unto the third and fourth generation. Maybe Swedes would not support such a plan, but Americans have their Fritos and Superbowl and simply cannot be bothered with the effects of fascism.
But wait, the very best thing is happening, Sweden now has deflation. With victories mounting, what do Swedish politicians do? Try to wreck it!
The Riksbank's target is to maintain inflation at a rate of 2 per cent when measured by CPI.
Targeting inflation at 2% is to steal from the people, passing the money onto the bankers. This is why I do not like socialism either. Both ism's pick winners and losers, when that is the work of customers, not states.
Sweden needs to let deflation happen so Sweden can lead the world with the least bad -ism. Or go all the way and become the next Hong Kong.
Go Sweden!
***
And this just in from a child studying Sanskrit at the Sorbonne: The root of Maharaja is the same as mega and reign. See, the H sound in maha turned into a hard G in Europe in mega, but it goes silent in reign, where is goes to the J sound in Hindi.
Oh.
Feel free to forward this by email to three of your friends.
Sweden is, and has been, on the right track. Sweden had a economic breakdown like our 2008 back in 1992. Sweden handled it exactly right, for a state:
Sweden didn't just bail out its banks by simply having the government take over the "bad" debt; instead, it required banks to count their losses and issue warrants to the Swedish government before it received recapitalization.
All money and assets were to be accounted for to make sure all of the "fat" was trimmed.
The government also formed two new agencies. The first was an agency that supervised institutions that needed recapitalization and the second agency sold the assets the banks held as collateral.
The government then "bled" shareholders and allowed for "no sacred cows," according the article.
In a short time, the government had seized a large part of the Swedish banking industry and the new agencies drained most of the banks' share capital before it decided to put cash into the economy.
Now, as an aside, under anarchy, they would never have had the problem to begin with. But notice here, this article is from 2008 when Bush was still president. A clear path was already known, but the capitalists went their own way, and we are still paying too much for gas, getting too little for our money and in economic doldrums, five years into the Obama administration. Clearly socialism is superior to capitalism in handling these problems.
Of course Sweden is a small homogenous country, and have a completely different idea of the role of government. Hear this Swedish official:
Urban Backstrom, a senior Swedish finance ministry official at the time, told The New York Times that putting taxpayers on the hook without anything in return could be a mistake because "the public will not support a plan if you leave the former shareholders with anything."
How mistaken can one be? To this day billions are shoveled daily to the malefactors in the last break down, assuring the next one coming will be far worse, and the bills laid onto the children unto the third and fourth generation. Maybe Swedes would not support such a plan, but Americans have their Fritos and Superbowl and simply cannot be bothered with the effects of fascism.
But wait, the very best thing is happening, Sweden now has deflation. With victories mounting, what do Swedish politicians do? Try to wreck it!
The Riksbank's target is to maintain inflation at a rate of 2 per cent when measured by CPI.
Targeting inflation at 2% is to steal from the people, passing the money onto the bankers. This is why I do not like socialism either. Both ism's pick winners and losers, when that is the work of customers, not states.
Sweden needs to let deflation happen so Sweden can lead the world with the least bad -ism. Or go all the way and become the next Hong Kong.
Go Sweden!
***
And this just in from a child studying Sanskrit at the Sorbonne: The root of Maharaja is the same as mega and reign. See, the H sound in maha turned into a hard G in Europe in mega, but it goes silent in reign, where is goes to the J sound in Hindi.
Oh.
Feel free to forward this by email to three of your friends.
3 comments:
Hi John!
Bought your book recently from Amazon after seeing your lectures on Youtube. I've read a few of your posts (drafts) and in my view your somewhat of a genius.
I'm from Sweden and I do agree with your that for the moment we have a pretty good system in place and I think you would like our finance minister if you met him. Unfortunately, like you pointed out, our economy has other people running it too who are not as clever.
I certainly wouldn't advocate inflation except for banks and certain people but I wouldn't advocate deflation either as you seem to do. The only incentive should be consumption for goods that create real benefits to people.
/Blonde ABBA-fan.
Genius? Funny, no one has noticed that before...
If inflation is theft, how can it be good for anyone, in a moral sense?
If deflation, defined as the prices dropping for fewer dollars chasing present goods, and if naturally occurring, then how can it be a bad thing? Especially since we cannot have any recovery without deflation, it is to be hoped above all things.
If the only incentive is real benefits to people, then what role do banks (as we know them) play? They contribute nothing to a healthy economy.
Precisely agree about inflation and banks. Inflation is the driving force behind all speculative business ventures. But deflation on the other hand is just the other side of the same coin. It creates incentives to hold cash instead of creating ideas that solve real problems. (I've got to study the Austrian school of economics, which I've just read about in your book, to be able to see where you're coming from.)
Bank comes from Italian and means table I've heard, as in the table they were counting coins in those times. Trading in the old times was simply goods traded for other goods. People sometimes forget that our systems today are not as universal as they seem. Studying a crisis that happened a decade or two ago won't solve the fundamental problem with the system.
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