The Purpose of the Credit Crisis

It’s always been unpleasant to imagine the kind of scenarios that Michel Chossudovsky, Canadian professor of economics, describes in his excellent video The Global Financial Crisis.

But the statistics of the UK Budget figures over the last 10 years paint exactly that picture, if only one has eyes to see it, it seems:

  • bankruptcy of the real economy
  • spiralling public debt
  • centralization of corporate power
  • concentration of wealth
  • globalization of poverty.

Historic US budgets tell another story on top of confirming the increase in indebtedness through a rising budget deficit.

With sighs…

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One response to “The Purpose of the Credit Crisis

  1. why not just divert the base rate of interest on any new money created commercially to the public purse and ring fence it to deal with the energy transition/climate change?

    A new few billion per year for such a just purpose could add up to 50 billion per annum over decades as amounts are collected bit by bit on each new loan issued (based n 2006 figures of borrowing which might then be stable). We would then not be contributing so highly to banks profits as the regulators try to control inflation by raising base rates. Thus government could then be helping to correct the underlying flaw of “free” money or money “out of thin air” that banks have been enjoying..

    We could then grow the system back to the right direction.

    Furthermore, If a floor was put on savings rates that banks must pay, even on small amounts at the same level as the base rate, that would encourage savers back and help to restrain future property booms getting out of control. There might even be further benefit in taking the pressure off the pension system.

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