Saturday, September 9, 2017

The very wealthy guarantee swamp debt service

As plutonomy advances, buying power is being segregated by the very wealthy into closed circuits of spending and investment. Young-Bruehl makes a similar case about political power in a post-Citizens United world. As Martin Gilens has shown, in the US, “actual policy outcomes strongly reflect the preferences of the most affluent but bear virtually no relationship to the preferences of poor or middle income Americans.”
One of the Kanosian bloggers.

Kanosians have created a world in which interest charges are rising some 10% a year for the swamp and they go broke unless Goldman-Sachs and the wealthy coordinate the debt service.  This is a non-market activity and the swamp pays huge bonuses to the wealthy when they collect the money for new debt.  GS and the very wealthy need to control volatility to get the interest charges paid.

The wealthy are concerned because pricing no longer works over the whole economy and the techies are getting around the swamp debt problem by creating new currency system.

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