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A Modern Folly

Part of the present crisis is the crisis in bank lending. The Banks have been badly hurt by a rise in the price of inter-bank lending, and by a fall in available funds to insure their lending.

So we gave the banks lots of money but allowed them to act as private entities.

Now, the banks could quite legitimately with-hold the cash we gave them because we are as a society borrowing and spending and printing lots of money, which makes them think that there will be lots of monetary inflation in the future. Inflation punishes banks.

So we beg them, and consider making them smaller and even more vulnerable to future crisis. We also stand by whilst bankers give themselves lots of the money we gave the banks so that they could give it to us, whilst our government (elected by 21% of the electorate) avoids the tax cuts and spending cuts--the Hoover-style budget rebalancing--their bank plan requires to work.

Meanwhile, our government borrows from international banks that like our banks as they are,and sells our services, and spends madly. This also stops banks lending to individuals, since government, bizarrely, is a safer bet even if it has gone mad.

Why didn't we just nationalise them all in the first place? Because the state was sold to them years ago. If we are a free people, can't we take it back?

Comments

berenike said…
Another genuis suggestion for your reading pleasure, a Pious Book this time (but not just a printed fervorino):

Garrigou-Lagrange, Reginald The Three Ages of the Interior Life(I am wasting time too:-)
12:21 pm
Martin Meenagh said…
Thanks, Berenike. I still find myself thinking every day about the things Alan Fimister wrote of on virtually every page of his brilliant book; I promise a full review of that soon! I'll look up your suggestion. Hope all is well, M
12:55 pm
berenike said…
Publish! Publish! (in posh journal!) :-D

Thank you!
7:52 am
Martin said…
Well, you would think so.
8:00 am
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