The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
The Forum - On Line Opinion's article discussion area



Syndicate
RSS/XML


RSS 2.0

Main Articles General

Sign In      Register

The Forum > Article Comments > Return of the GFC > Comments

Return of the GFC : Comments

By Saul Eslake, published 27/5/2010

In Europe, investors are nervous, while in China the government wants to put a plug in the country's property pipeline.

  1. Pages:
  2. Page 1
  3. All
Saul, the GFC never left us.We just delayed the inevitable by stimulus packages and bailouts.There is no such thing as too big to fail.Goldman Sachs and the like, should have been put ito liquidation.

The IMF ,Bank of International Settlements and the US Federal Reserve, just kept on creating more money to bail out a failed financial system.We are now seeing the destruction of the real productive economy to keep alive the derivative scams,credit default swaps and sub-prime debacles.

When we went off the gold standard in the 1970's, the World Reserve Banks created money like there was no tomorrow.When banks create more money that pop increases or GDP,they steal wealth form the rest of the community by diluting their wealth through inflation.Ordinary folk are then on the treadmill of chasing the depreciated value of their work efforts.Eventually the system does collapse.

What really needs to be addressed is the fractional reserve system of banking,that allows the least productive Corporates to feast off the real productive economy.It is this system that has over inflated the values of shares and property.If we reward those who really produce,then the booms and busts will cease to exist and there will be far less poverty.

Greed is destructive because it steals time from individuals to be educated.Working in sweatshops or long hours for your boss reduces opportunity for education and creativity.

We are just repeating the mistakes of the Great Depression ie creating money to delay the inevitable and prolong the downturn.
Posted by Arjay, Thursday, 27 May 2010 8:35:09 PM
Find out more about this user Visit this user's webpage Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
What is GFC.
Sounds rude.
Posted by undidly, Friday, 28 May 2010 9:08:24 AM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
It's like KFC, except this time it's Greek.
Posted by Bugsy, Friday, 28 May 2010 9:55:20 AM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
Didly
GFC = Great Financial crash.

Saul wrote;
>There may now be some greater risk to the RBA's (and Treasury's)
>latest forecast of above-trend growth in 2011.

I am reluctant to comment on someone so well known as an economist but
I don't think anything financial will enable us to escape the long GFC.

Growth will be absent permanently as growth is not dependant on money
but is totally dependant on energy.
China will have growth for a while as they have been running round the
world scooping up as much oil and coal as possible.
The price of oil will soon stop growth.
Posted by Bazz, Tuesday, 1 June 2010 4:48:27 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
  1. Pages:
  2. Page 1
  3. All

About Us :: Search :: Discuss :: Feedback :: Legals :: Privacy