Policymakers have helped to perpetuate an economic model that is ultimately unsustainable.The article is based on Bill Mitchell's analysis of US unemployment.
AlterNet
The Fed Is on the Verge of Making a Major Policy Error
Marshall Auerback / AlterNet
Doh. Artificial low interest fiat funny money booms always consist of unsustainable capital, investment and price structures that require addition injections of new funny money and government spending to be temporarily sustained into the future. Cut back on that, and the existing unsustainable structures collapse.
ReplyDeleteAustrian Business Cycle Theory for Slow Children
“Higher interest rates may be the trigger that halts the economy’s momentum, but it is important to note that the rentier style of capitalism that aided and abetted financial instability, wage stagnation and inequality has not been significantly transformed post-Great Recession.”
ReplyDeleteOne thing that has been transformed is that Treasury isn’t using the Depository accounts this time around so banks aren’t under that pressure this time... so the higher interest on savings and higher tax receipts won’t act counter-cyclically this way as ‘normal’...