Financial crisis: Minsky was right...

The Guardian Leader quotes Minsky as saying that instability is not an aberration, but lies at the core of the financial system. Amen to that. The system is a huge balloon, filled with expired air from the lungs of people who have taken out loans and are slaving away to repay. All very well while they are paying back their loans. If they cannot pay back, the bubble pops, loans become scarce, so businesses cannot finance their growth, so jobs are lost, so more people cannot pay off their loans, and more lenders come running to Government begging for handouts.

Free market capitalism is staring karma in the face.

Ironic that the neo-cons should be having to nationalise the financial institutions who have convinced everyone that it is they alone, and not an agency of the state, that should have the prerogative of pumping up the money supply.

The monopoly that the private corporations have on the creation of money is the elephant in the financial room. It is a fact that conventional economists and accountants love to obfuscate, but it is an elephantine fact, as proved by the following syllogism:
1 The world money supply has (until last year) been growing with a doubling time of about 10 years.
2 Therefore some agency is making new money.
3 Governments create about 3% of new money, by issuing notes and coins.
4 Therefore the vast majority of new money is created by private corporations.
5 They do this by creating loans at compound interest.
6 This explains why there is so much debt in the world's financial system.
7 It also explains why there is economic divergence - the rich get richer and the poor get poorer.
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The world desperately needs to change; the priority is to decarbonise the world economy, though there is much other good work that needs to be done in healing society and environment.
It is physically possible to do this.

In the end, what is physically possible must be made financially possible. Green Keynesianism through the Green New Deal, offers the only way out for us.

Please visit and participate in the Green Monetary Reform wiki.