Time to Change Course, Rebuild Finance and Debate 'What is The Good Life'

Jamie Galbraith is one of my favorites: He speaks clearly and holds nothing back. Elsewhere he has called for the destruction of the Financial System and a clean rebuilding of it. Makes sense, since in its current form it serves us not, and instead extracts the value of our labor and output. Finance should be a utility: Moving money from where it is to where it is needed. However, the reality is that Finance instead preys upon the majority, stripping the value from our assets (via loans and speculation), pocketing money they create akin to Counterfeiting.

As Finance grows and extracts all they can from a particular market, it continually moves on. Currently its intended prey is our public institutions: Social Security, Medicaid, Medicare, and even perhaps our public lands. Through its tools in the House and Senate, they pretend that it is the only way.

But there is a another reasonable way of viewing the current situation. Finance promised us jobs and prosperity if we cut taxes on Capital and High Incomes. We did so in 2003, with dismal job growth and stagnate gains since. It was a loan that didn't pay off. It is time to call it in: If we have learned anything over the past 20 years is that leaving money in the hands of the Finance industry and the excessively wealthy does society no good - and there is no credible argument that the majority of society need to give anything up to pay for the misdeeds of the members of the Finance Industry.

Galbraith here explains the global state of affairs very nicely, and reveals in commonsense terms how what is happening in America is not distinct or separable from what is happening in Europe - that Finance is currently in the advanced stages of destruction of the World Economy. Although speaking to a European Audience, he reveals many things about the global economy, the US Economy, and exactly how and why there are different current outcomes, but that all is not stable...

Galbraith: Change of Direction

Ireland America's Future If...

...The policies advocated by the Romney campaign are enacted, according to Paul Krugman. Ireland's 14% unemployment (30% youth unemployment) are a direct result of the austerity measures enacted by Ireland's leaders: Low corporate taxes, diminished government spending, etc.

It just seems counter-intuitive to me that high unemployment benefits anyone over the long term. But, it's short-term, "I've got mine, go get your own" thinking that underlies so many of the difficulties we face today, I guess I shouldn't be surprised.

Strike One - You're Out!

Anyone else catch the interview with AIG CEO Edward Liddy on 60 Minutes last night?

After admitting that it was perhaps just 20-30 people who brought AIG to the brink of collapse, it seemed to me that he struggled a little to explain why they still worked for the company. Although 2 have tendered their resignations, the remainder are allowed to continue on, and Mr Liddy even mentioned that perhaps the company still had need of their expertise. Wow.

But isn't that how it is? We coddle those who make mistakes at the top, while we 'throw the book' at those who make mistakes at the bottom. "There, there - you relied too heavily on flawed models..." vs "Three strikes and you're out!"

There will be those who will complain that comparing fraudulent financiers to drug dealers is an unfair or at least very unequal comparison. I would agree. The amount of social upheaval and damage caused by a single drug user is tiny compared to the damage caused by an unscrupulous financier. We can't afford to give them three chances - One, and they should be out!

Keep explaining, Mr Liddy. We're not buying. And as 85% owners of the company, we want them out!