Has the UK government implemented significant structural reforms to our financial system? Have we developed a long term solution to prevent another global ‘credit crunch’? I’m pretty sure we haven’t.
Have you ever wondered why goods and services are priced what they are, why you get paid those numbers on your wage slip and why over a 25 year period, I will pay enough mortgage interest for the bank to buy another whole house?
I attended an economics conference over the weekend discussing how to implement a ‘dynamic equilibrium economy’. That is, one that does not require growth. Environmentalists recognise that there are natural limits to growth and therefore the global economy cannot grow forever, especially not exponentially! Why are the media and politicians so disappointed when the economy grows by 0.1%? Is there something fundamental to our financial system that demands growth? Is that something interest?
Also, have you considered that most money doesn’t actually exist? Perhaps the ‘business cycle’ is in a downturn purely due to the reduction in money supply? Also, why are bankers allowed to create new money through fractional reserve banking and then pay themselves huge bonuses from the ‘profits’ they’ve created, leaving you to earn money to pay the interest on the loans of imaginary money they created?!
Have you figured out what the answers are yet? If so, please get in touch to clarify my understanding. The Chancellor of the Exchequer would also be interested to hear from you. If we don’t have the financial knowledge to hold our politicians to account, what hope do we have?