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http://www.informationclearinghouse.info/article20208.htm
Most of all, the price of labor reflects the high cost of housing here mainly the cost of carrying a home mortgage plus non-mortgage debt. Labor doesn't benefit from these costs. And as matters have turned out, industry hasn't benefited either. It's the price the U.S. economy as a whole is paying for having become financialized and privatized in a dysfunctional way.
MW: You have said that the financial crisis is analogous to a "boa constrictor wrapping itself around the economy and slowly strangling it." Would you elaborate on that?
If 'the government' were to offer two products to the people for consumption the form of those products could be as such:
Product A:
A home and business property mortgage loan at no interest to qualified buyers
Product B;
A one percent interest loan for power production and consumption such as:
The purchase of Solar Panels
The purchase of a Solar Panel installation business ‘start up’
The purchase of an electric car
The purchase of an electric car taxi service
If ‘the government’ merely awarded the license to produce and maintain that new supply of money (not dollars) to compete with the current Federal Reserve issue of fraudulent currency (dollars), then the people could regain control of the economy because the people would have sound money backed by their own honest industry and property.
The moral is that economic strength consists of the ability to create credit that fuels economic growth. But the privatized banking sector is crippling this strength in the United States these days. Instead of creating credit to fund industrial capital formation, the banking system is lending to bail out bad financial pyramiding.
Credit is a product that's almost free to create. Its main cost of production is the lobbying expense to buy Congressional support.
The moral is that you can't really have a grab for empire and the wars that go with it and at the same time have a booming economy.
In 1985 there were just 13 US billionaires. Now there are more than
1,000. In 2005 the US saw 227,000 new millionaires being created. One survey showed that the wealth of all US millionaires was $30 trillion, more than the GDPs of China, Japan, Brazil, Russia and the EU combined. The rich have now created their own economy for their needs, at a time when the average worker's wage rises will merely match inflation and where 36 million people live below the poverty line."
HOLD ON
Please consider this:
http://www.the-portal.org/mutual_banking.htm
Just look for and read the description of something called: The Parasite City.
The dichotomy is not merely between an elite and the masses, or between the vested interests and the downtrodden, the cultured and the great unwashed. It is something much more specific. These two nations, two cities, actually are two economies – Economy #1 (production and consumption) vs. financial and property-based Economy #2 which controls the economic surplus in the form of savings and investment. And the different characteristics of these two economies go far beyond the merely economic dimension.
There are contradictions in that work. The BANKERS monopolize CREDIT costs. They are being challenged by a competitor.
The competition is Islamic Finance.
Here:
http://www.google.com/search?hl=en&q=Islamic+Finance
1 - 10 of about 1,200,000 for Islamic Finance
Watch how that grows.
Example:
http://www.forbes.com/2008/04/21/islamic-finance-sharia-islamic-finance-islamicfinance08-cx_ee_mn_0421islam_land.html
Islamic finance is booming
Why?
http://www.informationclearinghouse.info/article19818.htm
Partnership is the heartbeat of Islamic economics. “Underlying the system is the philosophy of risk sharing: the lender must share the borrower’s risk, making the two in effect partners, injecting a strong social component into the financial system. This concept separates Islamic Finance from Western Finance, which seeks to maximize profits and minimize loss through diversification and risk transfer.” Also, money must be put to work. Because Islamic finance prohibits interest, it seeks revenues from rents, royalties, business profits, or commodity trading; a mortgage, for example, represents a “rent to buy” arrangement. Thus, conceptually, Islamic economics is the opposite of Western finance, which revolves around the individual’s self-interest.
That is an example of employing the cost principle. Costs are not passed onto victims. Costs are accounted upon those who cause costs.
Last edited on Tue Jul 1st, 2008 07:58 am by Joe Kelley