Tuesday, December 30, 2008

Economic intervention by government to protect interest of the rich

Current economic situation is created by extreme greed. By reducing interest rates governments of the world is creating another bigger bubble on top of this bubble.

Commodity prices are very high in most parts of the developed and developing world and this price is kept high using debt money. Rather than letting this bubble burst governments are helping the greedy real estate agents to keep the prices high by allowing them to refinance their (bad) debt. They are taking risk on my money in banks to keep prices high and sell it to me and government is colluding with them. If government is free and fair, it let the banks take over assets of the covered-under-debt realty companies.
When government intervenes and helps the economy it is just helping the rich and greedy.

If government wants to help the economy it should increase taxes (tax base) and spend on infrastructure projects directly.

No comments: