Juggling Dynamite

This is an excellent article (longer than average) that explains some key economic myths which have been widely held and used to our demise over the past several years. These include:

Military spending stimulates the economy

The banks are acting more conservatively now than before the financial crisis

We’ve got to prop up the big banks

We’ve got to protect the bondholders against suffering big losses.

The government has prosecuted the financial fraud which it has discovered, but it’s hard to make out a case against most of Wall Street’s acts.

The economy always returns to equilibrium and stability by itself.

Obama’s belief that unemployment is good for the economy, and Greenspan’s belief that too little debt is bad for the country are also ridiculous.

But the most dangerous myth – because a lot of economic policy is based upon it, and because so few know that it is false – is the myth about how banks make loans…

Read the whole article here for some sanity and enlightenment.

This picture captures a 1000 words. I have been amazed at how many regular working people including civil servants have been so anti the occupy movement. If only they understood how their pensions, entitlements and employment have also been sacrificed by the misguided policies and greed of financial elites and politicians over the past 20 years. Those who do not see this yet, no doubt will before too long, when cuts, claw backs and closures continue to erode their perceived financial security for a few years to come.

Danielle was a guest today with Phil Mackesy of Talk Digital Network discussing recent trends in world markets and the global economy. You can listen to an audio clip here.