It’s starting to get interesting. Britain has just announced its sixth quarter of negative economic growth and is calling it a depression. Not poor ol’ Gordie Brown, former world greatest treasurer, though!
As in the US, where Barack Obama has only bailed out the banks and Wall Street – not the people – there will be no recovery. The economy is people, and people need a dollar in their hands for the economy to work. If people have no more capacity to borrow, why do we bail out banks?
Australia’s land price bubble will burst shortly, so we have the advantage of extra time in which to let our press and media know there should be no bank bailouts, nor propping-up of collapsing businesses. That’s arse backwards. The people need support – through tax cuts and a national land rent system. It’s the only way out of a depression.
When our land bubble is allowed to burst, as it must, the banks must quickly write down mortgage values to market and do their sums based on that. If it means they go under, they will be picked up at their true value by other companies, as the capitalist system demands.
But socialism for banks who over-lent without concern for risk management isn’t on! ‘Retaining confidence in the system’ by bank and stock market bailouts is the greatest load of BS. It is simply a con to keep putting dollars into the hands of the wealthy and delaying events until THEY put THEIR affairs into order – and the devil take the hindmost!
If rational people can’t get this message out, you can bet your bottom dollar that Kevin Rudd’s also going to try to ‘convince’ Australians that we need to assist the wealthy, too!
That’s why Michael Hudson’s current Australian tour has been so timely. He’s slaying them talking about this depression! He’s one professor of economics prepared to call BS when he sees it.