DAS KAPITAL: ‘Debt Overload’, America Needs A Debt Jubilee – By Paul Craig Roberts | RIELPOLITIK
The problems of monopoly, monopsony, oligopoly are real. Especially so when indebted Americans have their high productivity, high value-added jobs offshored and then face robotics displacing the lower paid domestic service jobs that are their current employment. The profit maximizing activities of corporations reduce Americans’ incomes but not their debts. Thus, debt service becomes more difficult.
In the US today we have a situation in which the New York banks control Federal Reserve policy and financial legislation—the deregulation of the banking system and its subsequent bailout, for example. We have a situation in which monopolies, monopsonies, and oligopolies are stronger than the central government, which is unable to rein them in or act against them in any way. Corporations dispossess citizens of their jobs by offshoring the jobs. Creditor demands prevent university graduates from forming households. Debt service preempts retail demand except by further debt expansion.
This is an economy headed down, not up. Clearly, Hammurabi did far better for the Babylonians than Washington can do for Americans.