Wednesday, February 1, 2012

One thousand Paul Krugmans cannot save capitalism from the 1%

Quantitative easing is creating money to lend to big banks for free, so they can lend at high rates and increase their capital stock. Why? Not to stimulate real production, but to increase their competitive edge against Russia's fossil-fuel power, and China's economic power.

Though economists all know that only government investment in physical and social infrastructure can extend the life of capitalism, the 1% easily mobilizes austerians to keep those "growth" economists at bay. We never are able to get to the real debate that should be happening. That is, which infrastructure is the right investment. So the growth economists [like Krugman] can only point to increased unspecified government spending.

If government spending is used to increase roads and cars, collapse will just continue at a faster pace.

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