Monday, July 26, 2010
Shrink the financial sector!
We need to have policies that shrink the financial sector down to a fraction of its current size. It adds nothing to the real economy. In fact, it acts like a tax for exactly the reason so exemplified by Mr. Kashkari's statements. There needs to be a revolt against the finance capitalists, speculators and other parasites who are sucking the blood of every hard-working American. They are the real leeches. Not the recipients of Social Security.
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This is suspicious. UK bank assets were constant at 50% of GDP between 1880 and 1970 and then shot up to 500% in 2006. My source: article by Sam Fleming in The Times, 29th July. His source: Bank of England.
Also the chart shown at the URL below indicates that in the U.S. in the 1960s, debt was productively used: each extra dollar of debt added a dollar to GDP. Nowadays, each extra dollar of debt DECREASES GDP. Well who ever thought that Ninja mortgages added to GDP: the very idea is hilarious.
http://www.infiniteunknown.net/2010/03/21/us-the-most-important-chart-of-the-century/
Better quality financial products and services could be imported from abroad. Americans could enjoy a higher standard of living with greater access to less expensive services from Banks, Pensions, and Insurance companies and hedge funds. Fewer would have to toil in the undesirable towers and offices and cubicles in Manhattan.
George Carlin had it right in January of '08 with these comments:
http://www.youtube.com/watch?v=acLW1vFO-2Q&videos=5AJC_ffsw60
People have paid into Social Security their whole lives and now we're to make them work for 5 more years? As Robert Reich pointed out, not everyone can keep working that additional 5 years. And even for those who can, they wouldn't have much time left until death.
The military budget is about 1/2 of federal spending. The cuts could easily come there at some point, but no cuts anywhere should occur now.
The finance sector owns this government lock, stock, and barrel and the GOP doesn't give a damn about the average person at all. At least the Dems will throw the peasants come crumbs.
I should point out that the comments from Carlin there are filled with explicit language.
I'd like to point out what I pointed out before - that there is a form of "printing" in the Real Economy as opposed to that within the "Imaginary" economy of Fed & Treasury -
WHEN these banks especially goldman stanley etc created CDO's and other instruments what they were doing is piggy backing debt on debt, paper on paper. They increased the size of the economy but it was hot air.
This is a form of printing and when the music stopped, things imploded much more than what ever could happen with stimulus spending.
We know that stimulus spending is what creates the I = S relationship. Any credits formed within the Fed/Tsy are instantly mutliplied into investments and savings as a function of said spending.
The problem are these banks
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