I am basing this on something I wrote in August 2012.
As you see, things haven’t really changed all that much. With the noble exception of Iceland, the bankers still have national governments by the short and curlies. This vice-like grip enables them to force Governments to continue stuffing purgatives down the throats of the unknowing masses, while still raking in enough cash to keep their country estates neat and tidy and their daughters in ponies. Greece is worrisome, because if Greece manages to get out of the clutches of the banksters, others may follow where the Greeks have already gone.
A synopsis of what I said then:
“I just don’t understand the rationale behind the current squeeze. The purpose of the squeeze apparently is to put the economy back to rights and thereafter expand it. A sort of fiscal detox and purgative along the medical lines of it’s hurting so it must be doing you good.
I’ll be grateful if someone could please explain slowly and carefully in words of one syllable or less how putting people out of work so that they have less to spend expands an economy?
Also, explain to me why savage deflation and contraction of economies, coupled with reductions in public and personal expenditure are going to start up economies again. If tax income is decreasing and isn’t there to spend while companies close because of empty order books, where is this stimulus going to come from? Looks like a vicious downward spiral to me.
The story from the financial community is that if you get your house in order, then investors will return and all will be rosy in the garden again. That’s fine advice from the guys that caused the problem in the first place. It’s not much comfort when the thought is of you and your family existing on the nuts and root vegetables you scavenge while out looking for work”.
Some of the answers are more clear. If there are fewer people working and paying tax, just increase taxes and reduce the costs of Government. Note that the cost reduction is not by reducing the amount of Government and thereby it’s cost, but by reducing the amount paid by Government for the provision of goods and services, particularly to those thrown out of work. Adding insult to injury doesn’t quite cover it.
Are our bankers feeling the pain? I don’t think so. They are still raking it in.
Our Financial Services environment is sorely out of balance and needs to be fixed. We aren’t going about it the right way.