Letter - The mess we're in

D BLAKE
Last updated 07:50 03/09/2012

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The world banking and finance sectors, with their past over-liberal salary bonus and credit lending philosophy, slowly strangle productive growth and consumer consumption, resulting in critical recessional downturns.

With the current economic downturn, the banking and finance sectors expect governments to drive growth to reduce a crisis situation they themselves created and prepared to perpetuate by imposing austerity measures. However, austerity measures are themselves self-defeating by reducing production, consumption and debit repayment.

The banking greed requires debts to be repaid, which itself perpetuates, setting off a tsunami of reduced investment, stalled productivity and stagnant consumer demand, all counter-productive to sustainable growth.

Sustainable, productive growth will only occur if there is consumer consumption and adequate employment.

Unsustainable growth and debt have caused the present economic situation and governments are even now borrowing more digital debt to pay off digital debt, so where does sustainability lay?

The current system, devised by economists and financiers, seems to be based on the expectations that there will be perpetual growth for ever more. Now that myth has been blown out of the water where to now - cash and carry?

The idea of a cashless society is a nightmare devised by financiers, embraced by governments and unleashed on the public who have paid the penalty.

D BLAKE

Hamilton

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- Waikato Times

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