In times like these, the truth is clear…the state underpins us all

Posted: April 8, 2020 in Economics, Geo Politics, Imperialism, Monetary System
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For all the talk of liberalism, the end of history capitalism, the power of the people, it is in desparate times that everybody can clearly see the wood from the trees, and now, globally, it is the state apparatus which is underwritting and underpinning our lives….almost by choice

The question 12 years ago, in the last great crisis, was will the central banks and the governments have any fire power left to tackle the next economic downturn. This has been emphatically answered, the state apparatus will do ‘whatever it takes’ to save whom they choose to save, the fiat money system will create as much money as it sees fit to maintain CONfidence…such that there is any still left

Interest rates no longer matter…only businesses borrow at next to nothing, the end consumer (the people) may be paying historically low rates but they are still high enough to be paying additional thousands of pounds on their debt

The irony that it is a Conservative government, still proud to be assocoiated with Thatcherism, is bursting open the deficit and piling on the national debt, for future generations to pay off through an increased tax burden and reduced public/welfare services

There was much talk of helipcopter money in the aftermarth of 2008, something that had previoulsy been seen in Japan I believe, in the 80’s/90’s, but now we see a realisation of that concept in the flag bearring nation for consumerism; the United States, promising to give americans earning under a certain amount approximately $1,200 each. In the UK, qualifying workers are being paid their income by the state, up to a certain threshold

I would also like to return to the concept of the ‘Implied Guarantee’ for most large corporations, when in distress they have an unwritten insurance poilcy by the state to rescue them, therefore they have an incentive in good times to take greater risks and not make their own rescue provision. If ever there was a test that this guarantee will always be available in the worst case senario….this is it.

This system, at its core, is a state backed goliath in which every citizen will feel thay have a claim for public funded support….there is no real private sector, no fair level competition, and no limit to what the state can fund…so the next time a politican takes to a public platform to decide on spending plans…know that when push come to shove, everything is on the table, and at all other times, its a CHOICE, to do, to intervene, to save or not….

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