Monday, August 08, 2011

"Time for Radicals" says Craig

"A financial system in which the face value flow of funds was vastly greater than the face value flow of goods traded is a bubble. The “bailout”, or payment of vast sums of ordinary people’s money to bankers to keep this crazed system going, could never make it sane.

Allowing bad banks to go to the wall was not just possible, it was essential. Instead the poor are in deep hock simply to maintain the lifestyles of awesome consumption led by the political and financial elites. That is the immediate cause of the services cuts and tax increases sweeping the Western world. The fact this is no solution at all to funny money explains why trillions were wiped off world stock markets last week. The explanation is simple; those trillions never existed in the first place.

So writes Craig Murray.

OK, all you dismal and realistic economists, explain to me now why you think Craig is wrong.

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