This article finishes off a sequence of articles on an ancient debate in economics: what limits bank lending? (Links to Part I, Part II.) My argument is that the usual ways of looking at this question are highly misleading. The mainstream Economics 101 description of banking is hopeless — and then heterodox critics got bogged down in attacking a hopeless description of banking. The key to understanding banking is that they are a financial firm that borrows to invest in assets (a “levered financial entity”) — and they have some similarities to other financial firms, albeit that they have some special privileges....
Bond Economics
Banking Debate Woes: Part IIIBrian Romanchuk
4 comments:
The people who live on the Isle Of Skye in Scotland understand it fully and all of them spent either time in court or jail fighting against it. Clogged up the Scottish courts and jails until they were no longer functional.
Either build a bridge from the Mainland to the Island by government spending and free to use.
Or
Build a bridge using a bank loan and privatise the bridge which then you can add a toll and charge to cross for the next hundred years.
It really is as simple as that to understand.
When the people of Skye got their tax cuts to keep more money in their pockets the owner of the bridge just increased the Toll. Worked out how much they could increase it by.
https://en.m.wikipedia.org/wiki/Skye_Bridge
The Scots are Starting to understand what it means when it comes to climate change.
http://robinmcalpine.org/what-does-private-investment-in-retrofit-mean/
And
http://robinmcalpine.org/who-are-scotlands-voices/
Doesn't matter if it is a bridge or housing same shit different day.
Once the public sector has been changed into a rent extracting monopoly via bank lending. Is it any wonder truth social screams for tax cuts?
Here's your tax cuts now please hand them over to us thank you very much. There's a good serf.
Especially when all public services could be given to both business and households for free. Completely free of charge.
The star Trek version of society. A society everyone would vote for.
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