BOOM AND BUST

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The history of boom and bust is the history of miscreant private banks competing with each other to pump excessive credit into land prices. The financial implosion at the end of each eighteen year cycle proves it to have resulted from impossible levels of credit having generated gigantic real estate bubbles.

With all the public finger-pointing and doctored reasoning for the financial collapse out of the way following the bursting of each bubble, this taxation-directed process, engineered for rent seekers only, is permitted to resume for the next eighteen year cycle.

No better account of the lengthy list of those concerned with Victoria and Australia’s 1890s depression is to be found than in Michael Cannon’s “The Land Boomers“. We learn that the biggest rogues were located in parliament, the banks and real estate agencies. Most of these settled their extremely speculative debts for pennies in the pound, in secret legal ‘compositions’.

With the media emphasizing the collapse only in terms of the worst personalities involved, a public taxed on its incomes and purchases is thereby directed from laying any blame on the tax regime and high-level political, banking and real estate interests in aiding and abetting the speculative bubble. The cycle must be allowed to repeat. It is, after all, ‘The natural business cycle’.

Thusly, we head into the final two years of the current land price bubble, lurching towards a financial collapse such as the world has not seen.

While the repetitive process is many times worse than sad, both ‘legacy media’ and nouveau Trumpians enjoin we plebs to acknowledge our lowly position. We need to respect the wishes of our political leaders: they will fix things.

I won’t be holding my breath.