Oliver Blanchard make a few things clear. The crisis, recession, depression, whatever you choose to call it, will last another 6 years or more. During that time, the people of Europe will get poorer as they go along. So will the people of America. Global means what it says: global. He also makes clear that the IMF expects the people to comply with the Europeanization that the IMF and the rest of the banking class have in mind. Ever more central control, vs the ever stronger call for decentralization in Catalunya, Pays Basque etc., and soon in many more places. Globalization has no place in a shrinking, deflating, deleveraging world.
The IMF will lose their battle for control. But the people will be losers too. Southern Europe fears the Germanification of their countries, their thousands-of-years ancient societies, and rightly so. The Germans themselves would be wise to fear the Club-Medification of theirs. Or should we label it Club-Medication?
There’s not enough money on the planet. Not even enough credit.
What a dumb-ass! Money is not some shiny metal that must be dug out of the ground (despite the desire of some); it can be created at will by monetary sovereigns – a fact that will become very obvious if this Depression leads to a World War. Then they’ll be PLENTY of money to kill people with.
@not_me
You make a good point upon extracting the two shakiest sentences from the article. Yes, the fiat debt instrument money shall be created at will, and the more it is created the deeper into slavery those who use it will fall to their sovereigns. Oh, and about Depression, those who grab shovels will be the ones less likely to grab guns.
Sound money makes for groundedGrounded money makes for sound people.http://beforeitsnews.com/economics-and-politics/2012/09/twin-demons-what-we-need-today-is-the-separation-of-money-state-2444634.html
Scott Horton’s last interview for Antiwar Radio…
http://antiwar.com/radio/2012/06/30/lew-rockwell-20/
@Ilargi
Good read, thanks! I’ll pick out the same sentence not_me did though…
“There’s not enough money on the planet.” – Sure there is. There always has been but for those who monopolize and centralize its control through force and/or deception. Yes, we are largely in denial about the force, “Club-Medication” has a nice ring to it.
http://spiderjohn.com/music/medicati.wma
Yes, the fiat debt instrument money shall be created at will, and the more it is created the deeper into slavery those who use it will fall to their sovereigns. John Robb
Right now the population is enslaved to the banks. If they can’t repay the debt the banks created from thin-air then they lose their homes and businesses. In the past, those debts would be periodically forgiven but modern credit creation also cheats non-debtors so a universal bailout (e.g. Steve Keen’s “A Modern Debt Jubilee”) is more appropriate and THAT requires more fiat.
Also, how can we have 100% reserves lending without massive deflation without a huge increase in the amount of reserves?
As for slavery to the monetary sovereign:
1) We are a democratic republic so that would be slavery to the majority at
worst. Question? Why should 51% or more of the population desire to be thieves by government proxy? Because they have been cheated themselves? Then we should address their need for justice and then we need not fear “slavery to the majority.”
2) Fiat, after the universal bailout with full tender fiat, should only be legal tender for government debts, not private ones. If that were the case and genuine private currencies were allowed then the monetary sovereign would only hurt itself and its payees if it over issued fiat relative to taxation.
3) How many of those opposing more fiat creation are trying to protect the real yields on the “corporate welfare” they receive by lending to the monetary sovereign? Remember, a monetary sovereign never has to borrow its own money so those who lend to it are indeed receiving welfare.
^Right now the population is enslaved to the banks. If they can’t repay the debt the banks(monetary sovereigns) created from thin-air then they lose [control of] their homes and businesses. [Not all will lose their homes and businesses. Monetary sovereigns will increasingly pick and choose losers and nonlosers based on either cronyism or willingness of quasi-owners to renegotiate themselves into deeper slavery.] In the past, those debts would be periodically forgiven but modern credit creation also cheats non-debtors so a universal bailout (e.g. Steve Keen’s “A Modern Debt Jubilee”) is more appropriate and THAT requires more fiat. [How or why does jubilee require more fiat?]
Also, how can we have 100% reserves lending without massive deflation without a huge increase in the amount of reserves? [Beats me! Anyway, how is this relevant?]
As for slavery to the monetary sovereign:
1) We are a democratic republic so that would be slavery to the majority at
worst. [Yes, we have transformed largely into a democratic republic. That's unfortunate! The constitutional republic is rapidly slipping away. Checks against the tyranny of majority are almost gone. Sad! Those points aside, I still don't yet confuse the "monetary sovereign" with the "majority" as you have in your transition from your first to your second sentence of this paragraph.] Question? Why should 51% or more of the population desire to be thieves by government proxy? Because they have been cheated themselves? [Yes.] Then we should address their need for justice and then we need not fear “slavery to the majority.”
2) Fiat, after the universal bailout with full tender fiat, should only be legal tender for government debts, not private ones. ["Universal bailout" is not the same as "jubilee".] If that were the case and genuine private currencies were allowed then the monetary sovereign would only hurt itself and its payees if it over issued fiat relative to taxation. [I agree but for the word "only".]
3) How many of those opposing more fiat creation are trying to protect the real yields on the “corporate welfare” they receive by lending to the monetary sovereign? [Yields on corporate welfare ARE protected via fiat creation. You describe the status quo. How does "more" change anything?] Remember, a monetary sovereign never has to borrow its own money so those who lend to it are indeed receiving welfare. [Bingo! Well put! but "Remember", no matter what benefits one might perceive of welfare, it is that which perpetuates the chain of slavery!]
[How or why does jubilee require more fiat?] John Robb
That’s what Steve Keen calls his universal bailout, “A Modern Debt Jubilee” – an unfortunate choice of words it sometimes seems.
^Yes, quantitative easing for debtors [savers and consumers] would aptly be called universal bailout. Sad in a way, to call it jubilee as no forgiveness or debt cancellation is actually incorporated, but relief certainly would be cause for celebration. Downward force on interest rates would have to simultaneously be eased, lest we’d be right back where we started in no time.
Assuming there are no other changes to the fiat monetary system, this emergency measure is about the best we could do [short of a true jubilee]. Keen has possibly thought it through more than anyone, but most economists [politicians and citizens] outside of the pyramid-scheme influence of WashingtonDC, London, and Brussels, from Walter Block and Ron Paul to Ralph Nader and James Galbraith, have expressed a universal bailout, as such, to be better than TARP and the previous QEs.