The Fed: choosing "the controlled disintegration of the world economy"
POSTED BY: SIGNYM
UPDATED: Monday, May 19, 2025 16:08
VIEWED: 4838
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Here is a link to a historical perspective on the current political economic crisis, and its historic roots, a talk given by economist and Professor at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin, Yanis Varoufakis at Columbia University.
I thought I was pretty "up" on the history of American economic policy, but I learned a lot listening to this. It's long, but well worth your while if you're interested in knowing "why" things are the way they are.
One aspect that I hadn't realized is that the EU is actually of American design, set in motion by the post-WWII economic roles that the USA had designated for Germany and France.
Another interesting point is that Margaret Thatcher was brought down by her own Tory Party with her insistence that the UK NOT adopt the Euro currency. In fact, she was completely resistant to the UK joining the EU at all... both points where she was entirely correct.
A third point, alluded to in the title, was a comment made by then Fed Chair Paul Volcker, who commented that the Fed faced a choice between a stable world economy, and "the controlled disintegration of the world economy" which favored the USA, and chose the latter. That decision has been the basis of the Fed's decisions ever since.
The discussion traces our current situation back to just after WWII, when the USA was the unrivaled (in fact, the sole surviving western/ Asian manufacturer) through the various grand designs and policy decisions since then.
For those of you who listen, I hope you enjoy this as much as I did. It was enlightening.
http://yanisvaroufakis.eu/2011/11/20/the-global-minotaur-the-crash-of-
2008-and-the-euro-zone-crisis-in-historical-perspective/
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* link added. Very well.
And it seems Margaret Thatcher was treated by her party in much the same way Reagan was by the GOP.
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OOPS! Sorry! I did a post-edit.
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You can't build a nation with bombs. You can't create a society with guns.
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More apologies are due! In a hurry, I grabbed the wrong link. THIS is the link that you should be using. It begins with a recording of a fiery and defiant Margaret Thatcher, having just been deposed as PM by her own Tory Party, before the House of Commons once again expressing her vehement (and correct!) view of the Euro and the EU.... (audio only)
Europe Unhinged
http://yanisvaroufakis.eu/2014/11/10/why-is-europe-not-coming-together
-in-the-aftermath-of-the-euro-crisis-audio/
The previous link was The Global Minataur, in which Yanis Varoufakis explains much of the same history, but without the details about Thatcher.
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You can't build a nation with bombs. You can't create a society with guns.
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Woct your 1st link.
I supoz that amongst all that info iz the root cauze uv the flatlining uv income in the early 70z. They mention Nixon announsing sumthing in 71 wich equated to the 'end uv Bretenwoodz'.
It made me start thinking about how anything gets dun anymore. The only motiv the working man haz iz to not starv. Otherwize he shoud be wondering why hiz entire career iz apparently worth less than a week uv a Wall Street bankerz time and decide he wont trade hiz time for money anymore.
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DUZ XaT SEM RiT TQ YQ? - Jubal Early
http://www.nooalf.com
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Wall Street has gotten so used to ridiculous artificially-supported low interest rates, I shudder to think what's gonna happen when the Fed announces the first of its inevitable prime rate increases. That's a day you don't want to own any stocks or mutual funds.
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Why do you think its inevitable?
The rates will stay low az long az the peepl with their pawz on the controlz believ that its making the most money for them.
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DUZ XaT SEM RiT TQ YQ? - Jubal Early
http://www.nooalf.com
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Quote:
Originally posted by Jongsstraw:
Wall Street has gotten so used to ridiculous artificially-supported low interest rates, I shudder to think what's gonna happen when the Fed announces the first of its inevitable prime rate increases. That's a day you don't want to own any stocks or mutual funds.
The interest on the Federal Debt will become astronomical.
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Most people would say that the current interest payment on the debt is already "astronomical". Hundreds of billions of dollars a year for nothing, a national disgrace.
http://www.pewresearch.org/fact-tank/2013/10/09/5-facts-about-the-nati
onal-debt-what-you-should-know/
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Quote:
Originally posted by Jongsstraw:
Most people would say that the current interest payment on the debt is already "astronomical". Hundreds of billions of dollars a year for nothing, a national disgrace.
http://www.pewresearch.org/fact-tank/2013/10/09/5-facts-about-the-nati
onal-debt-what-you-should-know/
I personally would agree that the current interest is astronomical, but I must disagree with your claim that "most" would as well - otherwise "most" would have voted against the Debtor-in-Chief the last 2 times, or at least the Legislators mounting this debt in the last 5 times the polls were open, and they could have expelled them. This indicates that "most" do not understand this. An increase of the interest rate will be catastrophic to the Federal Budget.
According to your linky, from October 2013, at that time the interest rate was 2.43% and the percentage of total Federal Outlays was 6.23% spent on the interest payment. Thus if the interest rate went to 10%, the Federal Budget would need to spend over 25% merely on interest. Almost 20% of the Federal spending would evaporate.
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