Debt-fueled rat race drives economic crisis

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Leo Panitch part 1: Truly democratic institutions are needed to direct investment

Sunday May 4th, 2008

As the US Federal Reserve once again cut interest rates on Wednesday in the hopes of stanching the economic bleeding in the US, The Real News Network senior editor Paul Jay sat down with economist Leo Panitch to discuss the causes of--and solutions to--the current economic crisis. Panitch says that the increase in the standard of living since the Reagan era has largely been fueled by growing debt and longer working hours, and suggests that the solution is to democratize economic institutions.

Category:

News & Politics

Tags:

• united
• states
• america
• economy
• george
• bush
• democracy
• consumer
• debt
• reagan
• federal
• reserve

[RonPaulGeorgeRingo]

Out of control BORROW & spend goes back decades. The current leverage crisis is just the LATEST example - the straw that FINALLY BROKE the camel's back. Don't forget, MANY WARNED about the DANGEROUS LONG TERM consequences back in the 80's, when Reagan took this CREDIT CARD approach to governing, injected it with steroids, & essentially made it PSEUDO conservative dogma, the NATIONAL RELIGION!

Ron Paul was RIGHT - in 1988, & in 2008. His LOST party (& country) ignored him. Shame.

[crock703]

I'm skeptical about gold being the tamper-proof solution its lauded to be. If you're wealthy, you can hoard goal to drive the price up, instigate conflict so that it will sky rocket further, & exploit it to collect the remaining gold through your businesses, then buy whatever greater power you want. (Like buying legislation that creates an income tax or non-transarent Fed)

Is there even enough gold in the world to account for all our goods/services?

[bboucharde]

@NewColdness Well, the most troubling aspect of Obama's presidency is his massive deficit spending.....In fact, it is terrifying to those who know what it could lead to. Bush wasted billions of taxpayer dollars, too. Military procurement and corruption re: the Iraq War constituted a national scandal. Right now, the biggest threat to the continued existence of this nation is---The federal government.

[NewColdness]

@bboucharde how's the 'bama doing so far?

[davincij15]

BTW there is the same amount of gold per person now as there was 100 years ago. That is .6 an ounce per person.

If you build great products people will want it and give you gold for it, just like they do with Fiat currency. Then you are getting some thing for something. Instead of nothing for something. With Fiat someone else (banks) are getting something for nothing.

[davincij15]

1. All the evils you said about gold is accomplished only by a Fiat currency as the less gold out there the more it's worth. Also and a rich person or group can't get it all. You can't eat gold or live in it.

2. Like the above scenario the remaining gold will still have value just cost less for things in gold terms meaning an IPod would go for 1/32 of an ounce instead of 1/10. Because that is the price people would pay with the existing gold. Value is value no mater what it's number.

[crock703]

Some people aren't inherently evil, they're just consumed by fear & desperately hoard wealth w/o the preserence of moral leaderhip/influence.

No, I don't think you'll get an uncorrupted world where we can trust a Fed Res to function unfalteringly ethically. The suggestions this guy is making is to appoint oversees to the Fed, that are publically elected - it would force voters & journalists to become educated about Fed function. They'd be demystified & made accountable for once.

[davincij15]

Let me help first Google "Money as Debt" and watch that video then ask a question about it and I will try to answer it.

BTW keep in mind that speculation only drives the price up temporarily as speculators need to sell some time to lock in profits.

[mcoldskool]

Wow. Thank you. I'm a bright person, but I'm struggling with understanding these economic complexities. Seriously.

Another thing. Commodities speculation - seems to me that there is something immoral about that. Am I confused or naive?

[davincij15]

Your perception is in dollars. So it is difficult for you to understand gold. When you do something for payment you expect payment. That payment is to obtain something else, possibly at a later date. So that payment must hold it value long enough to get that item you want. FRNs (dollars) do not hold there value and go down in value. (it cost more to buy the same thing later) So $ you saved in your mattress or bank account has is useless 30 years from now. That is theft.