March 25, 2009
Jayati Ghosh speaks about the current economic crisis.
The blinding gist of what she is saying is that the economic catastrophie is far greater than what caused the depression in scale and effect. Our resources are however far more sophisticated so recovery is inevitable. But for the first time ever, a redress of the conditions imposed by colonialism may occur. A genuine universal participation is now happening with the internet as the ultimate arbiter of relations between individuals anywhere.
In other words, there is a universal currency and the terms of trade between nations may no longer have much relevance. Everyone in the world now must be able to be wealthy or the system will not work. What we called “inflation” was the dilution of value. But how can more people be wealthy without more capital? Capital must grow alongside productivity.
Economies go both ways. Capital investment carries risk. If you invest properly, you do not overexpose yourself to risk. No 1 rule. Wall Street invested in risk and imported goods and when that faced by inevitable collapse they expected the Government to ameliorate the risk without addressing the effects on consumers?
The US Government are forced to lower the dollar as the demand for capital was increased by the drainage of credit. AIGs failure was triggered by irrational contracts over Lehman Bros failure.
So Bush bailed out the banks. Obama has prevented the pain being felt by the masses. Ron Paul is Right, but not for this time, thank-you very much. He should lead the Right, however, he far more brilliant than any other Republican leader.
The financial system needs to clean itself out of nonsense. That is what is stopping investment. People do not trust the markets to act in an honest or beneficial way due to ridiculous risk exposure. Trust was destroyed by AIG. You can not put a price on trust.
March 15, 2009
Dick Cheney warns America that President Obama’s policies “put America at risk”.
He thinks that if you torture just about anybody, you protect people. In the process you endanger everyone by creating new enemies.
Dick Cheney should go on trial for his crimes and then perhaps the media will not headline his paranoid excuses for spying on Americans, for holding foreign nationals without trial and in some cases without evidence.
President Obama’s policies are for the long road ahead. A road made far more difficult by the policies of the Bush era.
March 8, 2009
The fundamental of the economy of any country is that it’s people are doing something productive, and for that they can eke out a living, whether it be a basic or a more expensive variety – the function they are being rewarded for is difference, change, something as a result of their actions.