Canada has a society wide crisis in inequality, affordability & productivity, driven by decades of bad central bank monetary policy. Here's how to fix it, with receipts
We don't even need a private bank as a middle man taking profit from borrowing from the fed and lending it to people.
That's a bullshit job as Graeber coined the term.
The crash of 2008 was totally expected. How could housing climb 3-5x more than wages and keep going?
I found most people to be so brainwashed by capitalism that they thought rising house prices were a good thing... Especially if they owned a house 😂
But let's say you bought low, before 2000s and now want to sell. Sure, big jump in price means you made out well. But to buy another home, you still have to pay the high costs.
This housing bubble only really benefited the banks, gambling investors, and real estate companies.
Yes, and the housing bubble also created an affordability crisis where people can't afford a roof over their heads unless they have a massive salary. So it created a housing crisis AND a labour crisis at the same time.
While it is true that you technically could do without private banks, I am very wary of the power of monopolies, private and public, which put total control in the hands of a few.
While there are bullshit jobs, I think people of all political stripes fail to understand the level of organization and continuous regulation that comes with having money, no matter when in history it is, or what the ideology of the government is.
Whereever money is used, it is also used to order and organize people.
My hypothesis is that in order for money to work, and ensure that people are using it for good productive purposes and not to for harmful or criminal purposes, it requires an enormous amount of societal controls to regulate it and preserve its value.
What I believe happens is that as inequality grows and asset prices rise, it gets more difficult to get a return on investment, due purely to market forces. However, investors seeking higher returns see regulation as the obstacle, not the fact that they have overpaid. As a consequence, there is an effort to dismantle the very structures that are in place to prevent dangerous distortions in the economy and which ensure that money has value by enforcing audits and payment.
In a sense, the economy is like an enormous computer, where the algorithms of debt, contracts and fulillment are all being calculated and enforced by human beings. For all that people want to compare that to the Matrix, this is actually part of what human beings do in order to organize themselves as a matter of necessity - preventing anarchy and murder, making sure people get fed.
This web of financial relationships and accounting is what comprises both order and freedom in any society with money. The idea that these people could be replaced with bots or eliminated as jobs, in order to "free people" misses the point that this human regulation (if enforced correctly) is what makes the system work. Even the fact that human beings make mistakes more slowly, and that machines make them extremely rapidly, is one of the reasons some of the jobs that are perceived as bullshit may be more important than people realize.
Some parts of this are so good that they should be separate posts. For example this issue (one of your headings) is often a critique of those who support your policies
The History of Hyperinflation in Germany after WWI is Dangerously Wrong
You need a separate post for the topic, which you handle brilliantly!!
There are several elite economists who are in the same ballpark.
1. Friedman made a more direct reference you might wish to use, "Under the proposal, government expenditures would be financed entirely by either tax revenues
or the creation of money, that is, the issue of non-interest-bearing securities"
2. Nobel Laureate Simon Johnson talking about his book Jump-Starting America. His comments support your reference to Professor Collins ... in the next 27 minutes with a conclusion that we need to return to the era of 1939 to the 70's, and that China has continued those strategies that we abandoned.
I think you need to factor in interest on reserves which have spoiled your section on interest free bonds. Since they are bought with CB digital money, and that money (settlement balances) ends up on a private bank balance sheet and earns interest - the bonds are not interest free! The banks get the interest without the risk of holding bonds.
We don't even need a private bank as a middle man taking profit from borrowing from the fed and lending it to people.
That's a bullshit job as Graeber coined the term.
The crash of 2008 was totally expected. How could housing climb 3-5x more than wages and keep going?
I found most people to be so brainwashed by capitalism that they thought rising house prices were a good thing... Especially if they owned a house 😂
But let's say you bought low, before 2000s and now want to sell. Sure, big jump in price means you made out well. But to buy another home, you still have to pay the high costs.
This housing bubble only really benefited the banks, gambling investors, and real estate companies.
Yes, and the housing bubble also created an affordability crisis where people can't afford a roof over their heads unless they have a massive salary. So it created a housing crisis AND a labour crisis at the same time.
While it is true that you technically could do without private banks, I am very wary of the power of monopolies, private and public, which put total control in the hands of a few.
While there are bullshit jobs, I think people of all political stripes fail to understand the level of organization and continuous regulation that comes with having money, no matter when in history it is, or what the ideology of the government is.
Whereever money is used, it is also used to order and organize people.
My hypothesis is that in order for money to work, and ensure that people are using it for good productive purposes and not to for harmful or criminal purposes, it requires an enormous amount of societal controls to regulate it and preserve its value.
What I believe happens is that as inequality grows and asset prices rise, it gets more difficult to get a return on investment, due purely to market forces. However, investors seeking higher returns see regulation as the obstacle, not the fact that they have overpaid. As a consequence, there is an effort to dismantle the very structures that are in place to prevent dangerous distortions in the economy and which ensure that money has value by enforcing audits and payment.
In a sense, the economy is like an enormous computer, where the algorithms of debt, contracts and fulillment are all being calculated and enforced by human beings. For all that people want to compare that to the Matrix, this is actually part of what human beings do in order to organize themselves as a matter of necessity - preventing anarchy and murder, making sure people get fed.
This web of financial relationships and accounting is what comprises both order and freedom in any society with money. The idea that these people could be replaced with bots or eliminated as jobs, in order to "free people" misses the point that this human regulation (if enforced correctly) is what makes the system work. Even the fact that human beings make mistakes more slowly, and that machines make them extremely rapidly, is one of the reasons some of the jobs that are perceived as bullshit may be more important than people realize.
Some parts of this are so good that they should be separate posts. For example this issue (one of your headings) is often a critique of those who support your policies
The History of Hyperinflation in Germany after WWI is Dangerously Wrong
You need a separate post for the topic, which you handle brilliantly!!
There are several elite economists who are in the same ballpark.
1. Friedman made a more direct reference you might wish to use, "Under the proposal, government expenditures would be financed entirely by either tax revenues
or the creation of money, that is, the issue of non-interest-bearing securities"
https://www.almendron.com/tribuna/wp-content/uploads/2019/04/monetary-and-fiscal-framework-for-economic-stability-milton-friedman.pdf
2. Nobel Laureate Simon Johnson talking about his book Jump-Starting America. His comments support your reference to Professor Collins ... in the next 27 minutes with a conclusion that we need to return to the era of 1939 to the 70's, and that China has continued those strategies that we abandoned.
https://youtu.be/clEwdFIbEHg?t=357
3. Laureate Vickrey destroys all the flat earth, austerity economics thinking in Fifteen fatal fallacies of financial fundamentalism
https://www.pnas.org/doi/10.1073/pnas.95.3.1340
4. Laureate Stiglitz has been very progressive in recent years on inflation, policy, finance and housing. https://www.youtube.com/watch?v=9meFtd249us
Superb ...as always!
Thank you so much Joseph. I have deeply appreciated your support.
These two columns recount the ww2 approach which you advocate for renewal, and support the Simon Johnson link I posted earlier
1. Pulitzer winner and presidential biographer Professor Doris Goodwin essay
The Way We Won: America's Economic Breakthrough During World War II
https://prospect.org/health/way-won-america-s-economic-breakthrough-world-war-ii/
2. A similar essay by Professor Hockett
The Lesson Of World War II Robert Hockett
https://www.forbes.com/sites/rhockett/2021/11/12/war-on-inflation-part-1-the-lesson-of-world-war-ii/
I believe this is the entire 1942 Keynes radio event you referenced
https://www.bradford-delong.com/2020/05/john-maynard-keynes-how-much-does-finance-matter.html
I think you need to factor in interest on reserves which have spoiled your section on interest free bonds. Since they are bought with CB digital money, and that money (settlement balances) ends up on a private bank balance sheet and earns interest - the bonds are not interest free! The banks get the interest without the risk of holding bonds.