Re: Yes .. the curiously British class-based mythical definition of inflation .. Archived Message
Posted by Ken Waldron on July 29, 2022, 8:04 pm, in reply to "Yes .. the curiously British class-based mythical definition of inflation .."
“wage-price spiral” is just a hoax... If you mean by "hoax" a political tool or dogma for keeping working wages low to the benefit of the ruling class, then yes. Its much mentioned for political reasons but certainly not the only way inflation makes its way into the system: in the current inflation crisis as Dempsey pointed out, its irrelevant. Of course it goes hand in hand with the other classical Monetarist dogma that interest rates are really the only other tool capable of controlling inflation. Taxation is clearly a better option but Interest rate rises benefit those with money further enriching the wealthy whilst actualy paying taxes is anathema to the ruling elite. "Sure, the government can print money to subsidize the purchase of the product, but ONLY they can do this..." Private banks create money every time they make a loan and as we saw in the Banking crisis can make money out of thin air to "invest" in that invisible casino of finance in all kinds of Derivatives: those gambling chips which Warren Buffett rightly named economic “weapons of mass-destruction” which lead to the great Financial crash. The situation has not really improved very much: in fact many of the financiers have moved from paper speculation to rentier landlordism and rack renting. Talking of which I saw a piece on the devastating consequence of this on US household rents the other day. I don't particularly like John Oliver's presentations, but the content was interesting. (You might have to use a VPN to access it):
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