Fiscal Cliff An Artificial Crisis

Michael Hudson: Fiscal cliff was manufactured to shift more of the burden of the crisis onto ordinary people

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  News & Politics

[CoughingPig]

So what you mean is that we look like sailer pumping out water from a cracked boat ??! Surviving takes over progressing....

[CoughingPig]

Why dont they take deficit payback from those who Really put us there ?? like those lovely world bankers who became trillionnaires financing both sides of unjustified wars and creating also artificial financial collapses and drops, just after they bought tons of real valuables (gold,silver,...). They want you broke, hopeless, angry.... and then their slaves. Adios Justice-Freedom-Equality !

[WilhelmDrake]

The reason why the US is unable to complete internationally has to do with its cost structure, not wages.

What matters is what wages are spent on.

in the US, 75-80% of a workers wages go to pay interest on debt (mortgage, credit card, etc), plus taxes & wage withholdings.

Nations with lower levels of worker debt & lower costs of housing, transportation, healthcare ,etc can pay their workers less, while still supporting the standard of living needed to maintain a healthy & productive workforce.

[WilhelmDrake]

In Canada, the Central Bank is a explicitly publicly owed entity.

There is no debate about its nature as there is in the US with the Fed.

There's no debate in Canada concerning the source of our money, it's perfectly obvious to all.

In reality, both operate in essentially the same manner, differing only in details of implementation.

[WilhelmDrake]

Money is a non-interest bearing debt of the Federal Government, in which all other debts all denominated.

All NET financial assets in the economy, stem from Federal deficit spending, whether they bear interest or not.

Issuing interest bearing debts doesn't change the amount of net financial assets, only their composition (the ratio between interest/non-interest bearing debts) is altered.

The actual notes are printed by the Treasury and the Fed actually remits all profits to the Treasury.

[WilhelmDrake]

What kind of an economy is that doesn't use resources.

That the whole point of an economy, to mobilize labour & natural resources into the production & distribution of finished goods & services.

[WilhelmDrake]

If it is a private entity why does it remit all profits to the Treasury?

What kind of private bank would do that?