Monied Misnomas

Karl FitzgeraldMultimedia3 Comments

Renegade Economists Podcast 237

As broadcast on the almighty 3CR, Wed May 16th, 2012.

12 year old Victoria Grant featured on the show, as I roll through some recent news items relating to our misconceptions about core economic ideas surrounding money creation, austerity and foreign investment.

Listen to the show

3 Comments on “Monied Misnomas”

  1. Karl – big hello from the democratic and freedom loving chest pumping Qatar. I got this response from someone on the Victoria Grant tube-

    “Debt hysteria is a right wing scam and I’m afraid her presentation plays into this

    First off, canada is not “enslaved” by debt

    http://www.socialistproject.ca/bullet/531.php

    “Total Canadian net government debt in 2011 is just 33.7% of GDP compared to an OECD average of 62.6% and 74.8% in the United States.

    Further, interest rates are at historically low levels. The Government of Canada can borrow through 10 year bonds at well under a 3% rate of interest, and provinces pay only slightly more.

    Net interest payments on government debt are 0.7% of GDP in 2011, well below the OECD average of 1.9% and the U.S. level of 1.9% of GDP.”

    She cites debt as abolute numbers and notes that it is “exponentially growing” but so is the natinoal income. Citing one number without the other is misleading. You can make any country look to be on the verge of bankruptcy that way.

    Private individuals households) have taken on unprecendented debt levels in recent deecades. Not agood thing at all because, unlike govermmnetts, they don’t live forever and cannot print their own currency. Household debt has increased becasue of policies that have transferred wealth upwards. People have been encouraged to borrow to make up the difference. in other words, a fast growing market developed for households eager to borrow as their bargaining power as workers declined.

    The solution is to redistribute wealth in the other direction (from rich to poor). Nationalizing the banks (which she doesn’t quite advocate, she still sees a role for them) could certainly be a useful part of that.”

    what’s your thoughts on this??

    adamski

  2. Hi Adam,

    yes I should have highlighted the danger of PRIVATE debt levels as past guests have. I would like to see debtheads discuss this more but it doesnt suit their agenda – they would have to discuss what the debt is for – land pre-dominantly (diverting away from the bank nationalisation agenda aka End the Fed).

    Here in Australia we have the 2nd lowest public debt levels in the OECD but the right wing demonises public debt. Niether side wants to recognise private debt becuaese again they would have to look seriously at the land issue.

    Nationalising the banks would help a little in attaining cheaper credit, but this would again allow cheaper credit to fuel another land boom. We need LVT to accompany it as so many economists are starting to accept.

    Send us a photo of where you listen to the Renegades in QATAR…on a beach, train, walking trail, bike?

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