Tuesday, 30 June 2015

I am not an economist

I am not an economist.
I have worked with, drunk with and played sports with enough of them to know the science of economics has no proofs.  Anything an economist says must be believed and when it goes pear shaped it’s your fault because you didn’t go far enough with their advice. 
Lack of university degrees in law didn’t stop me investigating the infamous Section 44 and our criminal fraud Prime Minister. Having what I found out to be confirmed by professors of constitutional law at a couple of universities did wonders for my already enormous ego.
This week is newsworthy because of the Greek debt.
So mister and missus economists an idea.  Wipe out the debt in total, just like that.
Money is only numbers printed on paper or in special countries on plastic made to look like paper, debt is just numbers in a data file somewhere.  There isn’t really a room with hundreds of trillions of dollars or pounds or euros in it waiting to be lent to some unsuspecting country.  A trillion is a lot of zeros following a one, 1,000,000,000,000.  Why not just change the one to a zero in a one off action and wipe out all government debt everywhere.
This would mean governments could stop the catastrophic economic theory of austerity to fix the problem.  This would allow governments to create jobs in infrastructure projects and those people in the jobs will be able to spend their wages and make the rest of the economy grow. 
A person with a wage paying taxes is much more beneficial than a beggar on a street corner who is there because they have no job and no money to spend and no tax to pay.
The losers would be the banks who have to take a one off the front of each of the trillion numbers.  But as they never really had the trillions in room to lend in the first place it is all just fantasy. Bankers will be able to lend after the write off but only the actual amount of money they do have in a room somewhere.  No longer will they be able to create numbers based on theoretical mathematics.
How about it economists?  Does your belief system, allow you to contemplate this sort of thing?  And if calling your theories a belief system offends you, harden up.  Find yourself a mathematician to have a beer with or watch a game of football with, that will convince you it is only a belief system.

If this idea was used for all debts the financial benefit for economies would be massive.

Now my little bit of economics on the home front, I really do appreciate everything  people send, goodonya and thank you.

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