Exchange between two other people who believe bailout "fiat" can only be effective if it flows from the bottom, up.
--- On Sat, 12/13/08,
From: Dick Eastman
Subject: Wallace Klinck: industrial "bailouts" in current financial "crisis"
Sent: Saturday, December 13, 2008 11:16 AM Subject: Re industrial "bailouts" in current financial "crisis"
The so-called financial"crisis" derives from a faulty financial price- system which generates consumer prices more rapidly than it distributes incomes--forcing consumers to rely increasingly on creation of new money issued as repayable debt in the form of bank loans. When liquidity becomes eroded to the point where borrowing can no longer be sustained the whole financial edifice collapses like a deck of cards. Mass foreclosure which ensues reveals the confiscatory nature of the financial system, manifesting a tragedy of human effort. In a free society and rational economic system producers should get their money from consumers. Subsidizing producers so that they can create more goods for which consumers lack income to purchase is lunacy. What is needed is enhancement of consumer income to balance aggregate purchasing power with aggregate prices in each cycle of production. This would place consumers in a position to determine the viability of producers. The physical cost of production is fully met as production progresses. There should be no aggregate need for consumer debt whatsoever. If society had followed the Social Credit policy of C. H. Douglas who advocated Consumer Dividends and Compensated Retail Prices instead of the Fabian Socialist Social Debt policy of the late economist John Maynard Keynes non of the current madness would have occurred. We would be enjoying increasing prosperity with falling prices and increasing leisure as should be the case in any modern and civilized society.
Saturday, December 13, 2008 6:50 PM
Subject: Fw: Wallace Klinck: industrial "bailouts" in current financial "crisis" Excellent points. Passing out trillions of fiat currency to the Banksters will have no effect on the actual "economy" where people buy things like cars, furniture, houses, etc. because they don't have the income/jobs to do so. This "bailout" should go to the poor working people who would then buy new cars, houses, etc. and a real stimulation would occur. What sense does it make to pass out free money to the crooks who already got rich with their financial Ponzi schemes and created this crisis to begin with?
Comment:
So how do you put fiat at the bottom, without printing more?
YOU CUT OR ELIMINATE TAXES.
Good Luck to all!
