Good discussion, esp. from Pepe Escobar, as usual. Too bad that economic nitwit, Jim Rogers had to chime in with his incredibly ignorant remark about gov’t spending, and the US not being able to afford the infrastructure renewal that Trump is planning. The amount of harm these idiotic gold bugs have done is immense. The world no longer operates on a gold convertability basis. People don’t get it.
The great harm with fiat currencies is rather that, being an enormously powerful technology, it is subject to abuse. Thus the US gov’t has spent on stupidities and crimes, such as the bloated Pentagon budget that favors Generals and armament companies; on bank bailouts, and so on, rather than on truly productive projects, such as precisely what Trump wants to do. Fiat money is inflationary to the extent that the spending is not matched by corresponding productivity. But the US productivity has been shipped abroad. Jobs are now mostly in the part-time service industries. Money has gone to the banks, driving up asset prices and the stock market, but there is no gain for the average working person, no corresponding surge in wages and jobs. It is a parasitical financialized economy, as so well explained by Michael Hudson. This is not the fault of the “national debt,” it is the fault of the ruling bankster-multinational oligarchy abusing the system and bamboozling the booboisie.
Very true. When over 50% of the government budget goes to the military (probably around 60% if you see the hidden parts). There is nothing left to really invest in projects to jump start the economy.Until or “if”,that is stopped,we won’t see positive change.If they plan on keeping military amounts that high. They will have to expand revenue enormously to have money for improvements. Or expand the national debt vastly,over its already gigantic amounts.And since Trump wants tax cuts.Either tariffs would have to be installed to make up that lost money. Or I’m not sure where he’d get the money unless he raises the debt totals.
Thanks. Good comment.
I like the description of fiat currency as a technology.
Like “atoms” (atoms for peace? or atoms for war?), seems like the technology has been perverted
Katherine
Good discussion, esp. from Pepe Escobar, as usual. Too bad that economic nitwit, Jim Rogers had to chime in with his incredibly ignorant remark about gov’t spending, and the US not being able to afford the infrastructure renewal that Trump is planning. The amount of harm these idiotic gold bugs have done is immense. The world no longer operates on a gold convertability basis. People don’t get it.
The great harm with fiat currencies is rather that, being an enormously powerful technology, it is subject to abuse. Thus the US gov’t has spent on stupidities and crimes, such as the bloated Pentagon budget that favors Generals and armament companies; on bank bailouts, and so on, rather than on truly productive projects, such as precisely what Trump wants to do. Fiat money is inflationary to the extent that the spending is not matched by corresponding productivity. But the US productivity has been shipped abroad. Jobs are now mostly in the part-time service industries. Money has gone to the banks, driving up asset prices and the stock market, but there is no gain for the average working person, no corresponding surge in wages and jobs. It is a parasitical financialized economy, as so well explained by Michael Hudson. This is not the fault of the “national debt,” it is the fault of the ruling bankster-multinational oligarchy abusing the system and bamboozling the booboisie.
Very true. When over 50% of the government budget goes to the military (probably around 60% if you see the hidden parts). There is nothing left to really invest in projects to jump start the economy.Until or “if”,that is stopped,we won’t see positive change.If they plan on keeping military amounts that high. They will have to expand revenue enormously to have money for improvements. Or expand the national debt vastly,over its already gigantic amounts.And since Trump wants tax cuts.Either tariffs would have to be installed to make up that lost money. Or I’m not sure where he’d get the money unless he raises the debt totals.
Thanks. Good comment.
I like the description of fiat currency as a technology.
Like “atoms” (atoms for peace? or atoms for war?), seems like the technology has been perverted
Katherine