The Black Hole Of The Economy

( – promoted by buhdydharma )

Crossposted from Antemedius

A black hole gravitationally sucks in everything that comes near it, and nothing can return from the other side of the event horizon once sucked in.

Banks lending money is one of the major, if not THE major way they produce revenue and profit. In any business, when sales are down you do everything you can do to increase sales revenue – or you go bust – UNLESS you can produce revenue another way.

Yet the real message coming through is that the banks BANKERS seem to have decided that they do not want to increase revenue in any other way than simply taking it from taxpayers instead of lending to generate revenue.

This leads me to suspect that they have no intention of returning to providing the “product” they have always provided to generate revenue, but instead have decided to simply and openly steal it, and that the current economic crisis is not something the government is trying to correct but is instead actively a partner in intentionally manufacturing.

With government help. With Geithner’s help. With the presidents help.

We have a big problem. The problem is not the economic crisis.

What is “government”?

Very simply, it is an agency of coercion. Of course, there are other agencies of coercion — such as the Mafia. So to be more precise, government is the agency of coercion that has flags in front of its offices.

   –Harry Browne

Thomas Ferguson is an American political scientist and author who studies and writes on politics and economics, often within an historical perspective. He is a political science professor at the University of Massachusetts Boston. He obtained his Ph.D. from Princeton University. He is also a contributing editor for The Nation.

Today Ferguson talks with Real News CEO Paul Jay about the banking crisis and the black hole at the center of the crisis, the Obama administrations response so far to it, and about something he thinks really needs to be done that is not being done.

Real News – March 25, 2009 – 12 minutes 25 seconds

Obama should save the banks, not the bankers

Tom Ferguson: Stimulus package is dangerously small; plan for toxic assets shovels money to bankers


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    • Edger on March 25, 2009 at 16:50

    • Viet71 on March 25, 2009 at 17:29

    to sit on the bailout money they get and not lend it.  Besides, with all the consumer debt and overbuilt housing markets, the demand for loans has to be relatively low.

    I get that sitting on money makes sense as delation gathers steam.

    What I don’t get is how devaluation of the dollar, which is underway, bears on the decision as to what to do with money.

    Does it mean higher prices for oil and gold?

    Does it mean we get the worst of all possible worlds:  inflation of everything oil-related, deflation of all else?

    • Edger on March 26, 2009 at 03:24
    • Robyn on March 26, 2009 at 04:30

    Black Hole:

    [Or something like that…it’s a gravity thing.]

    (Click on image for larger view)


    Hmmm….Denver…..Hmmmm….Denver Colorado……I’ve heard that mentioned before…..Gees another one?

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