Mogambo Guru Agrees With Kinism.net On Cause of Financial Panic
On this site you read recently of Kinists pointing the finger of blame for our current economic woes directly at former Chairman of the Federal Reserve Alan Greenspan. His culpability in the financial meltdown is the crime of the century. We say crime because he knew what he was doing was wrong and did it anyway (likely under pressure from elements in the Federal Government from whom he is supposedly independent). His now infamous “irrational exuberance” comments have an ominous ring to them in retrospect, do they not? Well, a respected paladin of “contrarian” (meaning sensible) investment is saying now exactly what we’ve been saying for some time here at Kinism.net
They won’t call it Usury, but we know that it is exactly this which is at the heart of the financial panic. You see, if there is little or no motive to lend money at interest, then the risk is nearly always considered to be too high for a commercial enterprise. Here are some attendant factors to Usury (in combination with immoral fractional reserve banking):
-Undercaptialization of lenders
-Little-to-no collateralization of outflows
-Inordinate risk taking due to the devaluation of money
-Incentives to minimize or lie about risk of repayment
Add to these the disincentives to play by the rules when derivatives fractionalize and redistribute risk, when debt risk becomes an instrument of trade, and when large bank failures are rewarded by the Federal Government with billions of “bailout” fiat money, and you’ve created a dysfunctional banking and investment system. Do we now need a Weimar collapse to demonstrate that there is a practical if not theoretical limit to the degree that a nation can debauch its currency? The clueless buffoons in Washington are still listening to the echoes of the discredited J.M. Keynes. One wonders when sense will return to Washington.
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