March 15, 2023 -Durt Fibo


I have groaned through complacent platitudes from journalists and popular analytical columnists (Reich, Cox-Richardson, and even hacks from the Federalist Society) for days as they retrench back to their default jobs, -ie, summarizing stale news- while bankers and politicians invent stories like children as the U.S.A. once again sets off an earthquake designed to crumble a global economic construct. As always, and as in 2008, a few of the favored will be rushing in to sweep up the rubble and consolidate it into venturous megalopoleis of “money.”

The world awoke to find sinkholes where Silicon Valley Bank and Signature Bank once towered. But other banks also held US securities and are now being caught short (around perhaps 20 right now in USA, and plenty of others in other lands). So, yes, dear columnists, the obvious first lesson is to restore and maintain good regulations. But equally obvious is that the bankers and economists thought that only the poor would suffer from interest rate hikes and are now surprised that such hikes can harm their own class as well. Finally: the interest hikes were textbook reactions to signs of inflation, but those textbooks are based on inflation driven by over-demand (driven by over-employment), which is NOT the case in these times. The hikes were frankly irrelevant because this inflation is driven by wildfire profiteering, as I explained in a Dec, 31 article, among many others.

What the commentators, reformers, economists and financiers seem unable to see is that it is the capitalists who don’t understand how money works.