Pleased comment on this logic
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The wealth of a nation can only really be created by productive labour. As the banking system becomes more and more deregulated, opportunistic financiers will gravitate towards manipulating financial instruments for profit. Interest rates will rise to the point where income generated by labour cannot keep up. This will make more people play the numbers game instead of engaging in productive labour until one day the system collapses because there is not enough resources for the majority, who will presumably then violently revolt. To prevent this financiers must create a climate of fear and insecurity that will cow the majority or send them far away to fight distant wars of plunder. In this way, they kill 2 birds with one stone.
The solution to end all this suffering is to eliminate interest on loans and replace it with profit sharing arrangements. Then financiers can only earn from productive labour and the vicious cycle of rising interest rates and its consequences is broken. Governments cannot be trusted to effectively regulate interest rates because moneyed financiers will eventually coopt government and start a new cycle of rising interest rates. However, the restriciton of interest on loans can be enforced because it will have the support of the majority national stakeholders. -
Wow, those are 2 very long paragraphs, everytime I read the 2nd line, my eyes jump to the 4th line of the next para.
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Speaker's corner Homework forum under Economics -
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Originally posted by ditzy:Wow, those are 2 very long paragraphs, everytime I read the 2nd line, my eyes jump to the 4th line of the next para.
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Your title sounds hudax-ish.
And your post, typically GP.
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Okie, just a few comments
"The wealth of a nation can only really be created by productive labour."
Wealth of a nation is by free trade, hence the term common wealth. I think u're talkin abt absolute advantage in productivity. No nation will benefit from hyper productive labor of national goods which will oversupply the market and deflate prices and cause recession. Productivity works hand in hand wif trade.
" As the banking system becomes more and more deregulated, opportunistic financiers will gravitate towards manipulating financial
Dont see a link here. Y wud the banking system become deregulated??? And opportunistic investors are always "gravitating to manipulate financial phenomenon, whether the banking system changes or not...
"Interest rates will rise to the point where income generated by labour cannot keep up. This will make more people play the numbers game instead of engaging in productive labour "
Dont see the link here. Why i/r will rise uncontrolled? If liquidity reaches a certain level, market forces will force i/r to decrease, due to oversupply of credit flow. Even if i/r increase dramatically what has it got to do with income?
The motivation for labor has relatively little correlation to i/r imo, only idiots will depend on passive i/r income to survive.
" the system collapses because there is not enough resources for the majority, who will presumably then violently revolt. To prevent this financiers must create a climate of fear and insecurity that will cow the majority or send them far away to fight distant wars of plunder. In this way, they kill 2 birds with one stone.
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This is one chain of slippery slope argument. Might as well say that to prevent this, we should practise legal genoicide or be communists. (I think u're critisizing govts like the US that divert their ppl's attention to external wars instead of domestic economic problems. But I doubt this is the real cause.) -
Well, what do you make of this then?
Bank must not 'squeeze economy'
http://news.bbc.co.uk/2/hi/business/6910518.stm
What you learn in textbooks and happens in real life are two different things. -
how pleased u want my comment to be?
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Make it sound very screwed and I'm sure it will be so pleased.Originally posted by newcomer:how pleased u want my comment to be? -
I got only 1 comment to this:
THIS. IS. SPARTAAAA!!!!!!!!Originally posted by frakfrakfrak:The wealth of a nation can only really be created by productive labour. As the banking system becomes more and more deregulated, opportunistic financiers will gravitate towards manipulating financial instruments for profit. Interest rates will rise to the point where income generated by labour cannot keep up. This will make more people play the numbers game instead of engaging in productive labour until one day the system collapses because there is not enough resources for the majority, who will presumably then violently revolt. To prevent this financiers must create a climate of fear and insecurity that will cow the majority or send them far away to fight distant wars of plunder. In this way, they kill 2 birds with one stone.
The solution to end all this suffering is to eliminate interest on loans and replace it with profit sharing arrangements. Then financiers can only earn from productive labour and the vicious cycle of rising interest rates and its consequences is broken. Governments cannot be trusted to effectively regulate interest rates because moneyed financiers will eventually coopt government and start a new cycle of rising interest rates. However, the restriciton of interest on loans can be enforced because it will have the support of the majority national stakeholders. -
1 word Cheem !@!
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too much normative economics disguised as positive economics, in other words, you disguise your stance as the stated truth.
poor economic analysis, overall. -
your analysis(para 1) on hindsight, has quite a lot of truth, but still disjointed.....
your solution leaves much to be desired, but neither can i offer u one