Family Crest

Family Crest
Motto: I will never forget. [ Source HouseofNames ]

HUMANITY DOOMSDAY CLOCK - Moves forward to 2125 due to election of US President trump.

Estimate of the time that Humanity will go extinct or civilization will collapse. The HUMANITY DOOMSDAY CLOCK moves forward to 2125 due to US President trump's abandonment of climate change goals. Clock moved to 90 seconds to doom at December 2023. Apologies to Bulletin of the Atomic Scientists for using the name.

PLEASE QUOTE, COPY and LINK

While this material is copyrighted, you are hereby granted permission and encouraged to copy and paste any excerpt and/or complete statement from any entry on this blog into any form you choose. In return, please provide explicit credit to this source and a link or URL to the publication. Email links to mckeever.mp@gmail.com

You may also wish to read and quote from these groundbreaking essays on economic topics with the same permission outlined above

The Jobs Theory of Growth [https://miepa.net/apply.html]

Moral Economics [https://miepa.net/moral.html]

Balanced Trade [https://miepa.net/essay.html]

There Are Alternatives to Free Market Capitalism [https://miepa.net/taa.html]

Specific Country Economic Policy Analyses - More Than 50 Countries from Argentina to Yemen [https://miepa.net/]




Translate

Tuesday, February 21, 2012

Bankers Run Amok

Barry, My Liege;

In 2009, Iceland's government took over banks to help citizens. 25% of Iceland's population had home loans that were underwater. So, the government forced banks to forgive any loan amount over 110% of the home's current market value.

That was a debt forgiveness of 13% of GDP.

Additionally, the government protected all bank accounts in local currency with deposit insurance and let the owners of bank accounts in foreign currencies lose all value when the banks failed.

Result, Iceland will show nearly 3% GDP growth this year.

In Greece, bankers are in charge.

In fact, based on Iceland's experience, it can be argued that the policies in Greece will make the situation worse and not better.

The situations are not directly comparable, but do present opposite resolution strategies.

The banks which hold Greece's sovereign debt are reducing the debt by a number that is hard to establish in exchange for some cash to make debt service payments. Additionally, those bankers demand that public employment be reduced severely and that pensons be cut while taxes are raised. Youth unemployment is about 50%.

Nothing is included to help people find jobs or to grow the economy. Predictable result: GDP will decline further, there will be more riots and further debt problems.

It is reminiscent of Germany between the two 20th Century wars.

There is a simple lesson, My Liege: Do NOT let bankers run things.

Your faithful servant,

No comments:

Post a Comment