Thursday, March 1, 2012
Link to Michael Hudson on How Banks Plan
Another gem from Michael Hudson:
“…Everything over subsistence, they’ll want as a loan…”
“…Once the entire surplus is paid to the banks, there’s nothing (left) over for rising living standards, there’s nothing over for new capital investment, there’s nothing over for long term research and development…”
Further, once growth is arrested, so is growth of the bank's investments. It becomes a fixed income stream on a fixed asset. Optimum is for the banks to aim for optimum real growth rate. But banks can’t do this.