As the FT notes this morning:
John Kay, the economist and author, will warn this week that the world is heading for another financial crisis because the economic system is geared around trading profits that create market bubbles that inevitably burst.
Almost a year after the publication of his groundbreaking review of the UK's equity markets, the London School of Economics professor will say in a keynote speech this week that the world is “waiting for the next crisis”.
I agree. The next crisis is inevitable because:
1) We have not reformed banking
2) We've encouraged more inequality by reducing tax rates - especially on companies
3) We haven't tackled tax havens as yet
4) We have not invested in what is needed in our economy - housing, green infrastructure, better education and more - and so unemployment has remained high
5) We have not reformed the tax system - which remains regressive - exacerbated by Osborne's cutting taxes for the rich and increasing VAT
6) We have given the City cash to speculate with in the form of QE rather than investing it as green quantitative easing
7) We remain in awe of those who created this crisis
8 ) Politics remains firmly neoliberal across the spectrum
9) The economic narrative has not changed.
And perhaps of all of these the last is the most important.
Bring on the The Courageous State.
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It is good news the professor is questioning the economic value of equity markets and the trading in futures. I think you pointed out somewhere else, Richard, that the average amount of time a share is owned is about 20 seconds – no wonder the whole thing is an irrational ‘time-bomb’. It is even clear to me who is a novice in these things that we need to take control of the movement of money and its social effects – unfortunately gambling is an addiction and we will have to go through more crisis and some sort of cultural 12-step program before change takes place. Alternative banking systems like credit unions – are still too small in this country and too few aware of the options.
Fully agree.
But about “The Courageous State”, why don’t you distribute it using PDF/epub format and under CC licence if you think your ideas need to be known urgently, above all your others priorities ?
Because my publisher needs to earn a living
So you are implying that improving the way you share your ideas has a less priority than helping your publisher to earn a living. But you are also implying that improving the way you share your ideas will NOT help your publisher in his living. And if I understood correctly the content and political aim of your book, then I don’t understand your position.
I have to accept it of course, but I don’t understand it. If you wish to explain me a little more, I would be glad.
I think earning a living is honourable
You don’t?
Surely it is. And you must be thanked for this.
But my question was about priority.
**IF** spreading your ideas more effectively can transform the way your publisher is living much more deeply than some money from your book (and same for many many others persons because of the topic of your book: the state), then I think that “earning A living” objective is not enough ambitious (or too restricting), even if is honourable.
You’re entitled to that view
Said differently and in short words: isn’t it here a case where our understanding of common interest should be above interests of a few?
(I do not try to make you change your view, but just to help me to understand it better)
I have to precise your book is also available in kindle format at a much lower price (but still with DRM).
Place your bets now….
Perhaps a crisis will be engineered to bring an end to quantitative easing(money printing)by crashing the main fiat currencies. This will be used to justify a return to the gold standard.
Some will wish to consolidate their astronomical wealth, by inflicting far more pain on ordinary people…..and that brings us to the Bilderberg Group (BG) meeting.
After all there are too many of “us” on “their” world.
Sorry to be so cynical, but allegedly a disproportionate number of sociopaths will be attending the BG meeting this year, probably higher than usual…….
Richard
I agree with your analysis, but realistically how will things change.
Hoping to get in to the lecture on Tuesday – must get there early.
People will not be able to say they were not warned. Probably a great time to rotate into some serious short positions.