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Bill Bonner: “Zombie Banks” and “Zombie Elites”

July 22, 2013

DailyReckoning: “Zombie Banks: Nice Work if You Can Get It!” by Bill Bonner:

the Fed – in order to lend money to the US government – gives money to the zombie banks, which they hold as reserves at the Fed. Then the Fed pays them interest on this money! Nice work if you can get it.

While the zombies – the banks, the regulators, the “green” training programme chisellers, ‘disabled’ layabouts, et al – consume more and more of the economy’s resources, the productive sector ends up with less.

That’s the real reason the economy has not shucked off the Great Correction already; … the zombie elite – want to take advantage of it. “Never let a good crisis go to waste,” they say. They use the financial crisis – that they helped create – to consolidate power and keep the money flowing to their supporters, the zombies.

Let’s imagine that you wanted to ‘stimulate’ real growth. What would you do? Simple, you cut out the zombies. They don’t produce wealth. They absorb and consume… How would you cut them out? Simple, cut taxes… and cut spending…. That gives you a federal budget that is balanced. And that saves $1trn worth of resources – now going to the zombies – that can be saved and invested in the real economy,… it would take a while… and in the meantime the zombies would bitch and moan…

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From → economics, politics

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