Michael talks of textbook la-la land. Truth: The money is in the banks and the banks are not lending it. The money is in the corporate vaults and they are not investing. The wage earner is pushed to more and more productivity and new hires are very low or are stagnant, or reversed. Outsourcing such as the obscene situation in Bangladesh ($50 a month wages!) increases profits extravagently but that profit is not fairly dispersed. Ugly stuff. I'm glad I'm just an artist clunking along day to day with Model T money. I won't have to answer for exploiting others or oppressing them...too much.
wc ----- Original Message ---- From: Michael Brady <[email protected]> To: [email protected] Sent: Fri, August 24, 2012 9:22:43 AM Subject: Re: Subjective - Objective Saul > The present crisis of Capitalism is one of fluidity - too much wealth is > held in reserve - for there are no areas of investment that will bring the > same guaranteed rate of return (profit) that the stock market and currency > manipulation does. The money is still in a bank somewhere. It's available to be loaned to individual and corporate borrowers. > The reason for the present attack on the middle class > (wages, pensions, housing, savings) is that these represent untapped reserve > of wealth (profit). What attack? By whom? > Meanwhile it is estimated that corporation have taken 3 > trillion dollars out of circulation and sit upon this as a cash reserve - > in that they have noting to invest it in. Again, the money is in banks available to be loaned, which is what banks do. Banks are required to maintain only about 5% reserves, which means that they lend out $19 for every $1 they keep in the vaults. That money is used for something, but whatever it's used for, it's spent. And if the borrower spends the money on anything besides paying the interest on earlier loans, tnen the new spending goes back into the economy in the form of wages or purchases. | | | | | | | | | | | | | | | | | Michael Brady
