The act of "creating financial structures" IS less valid than making a physical good. As Lincoln said:
"Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if Labor had not first existed. Labor is superior to capital, and deserves much the higher consideration."
Bonddad tries to argue that securitization helped people by making more credit available. Ultimately, credit is unhelpful to an individual because it is debt. If inflation weren't so high and the U.S. still had good-paying jobs producing physical goods, people wouldn't need credit.
But average annual inflation has never decreased since 1956. Inflation is of course a hidden tax on the worker, and it is caused by the presence of too much money in the system. Which of course is caused by things like securitization, which is a product of the fractional reserve banking system.
Don't be fooled--securitization may help the little guy a little bit in the very short run--i.e., he gets a house or a degree--but the grossly inflated prices of things ensure that the little guy is tangled up in debt for literally most if not all his life.
The real beneficiaries of securitization are/have been the big financial institutions, who can create money literally out of nothing and treat liabilities as assets in a way that the little guy is not allowed to do.
About Economy
Read the Article at HuffingtonPost
2 comments:
If you think that Paul Krugman is suggesting in any way that anything that attributes to inflation is good than you may have misunderstood one of his articles. I'm interested in which article you are speaking of. i just recently got internet back after a couple of years without it. But from what I've read in the Times paul Krugman has denounced any economic strategy that increases inflation. He dedicated an entire article to the subject suggesting that the Obama administration's financial advisors at the federal reserve are suggesting printing money at an increased rate that could cause inflation and ultimately undermine Obama's fiscal strategy and plan for fiscal responsibility. please email me if you have the time at xxxskunk420@hotmail.com and let me know about your references. I'm only disagreeing with upon my incomplete and scattered infermation. If you can correct me please do so. I am very intersted in getting my facts right.
I am very intersted
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