Surely, Fordism is about the next logical step of deflation. Instead of overpriced piled high goods that no one can afford - “I know let’s invent some new for of debt that allows people to buy it regardless” we see "pile it high, having made it so cheaply with such high productivity workers that the WORKER themselves can afford to buy the company product out of their wages - no need for third-party debt at all. Buy a car over a year from a monthly dedcution from one’s high wages.
Prices fall when debt is not available to pay for it. The fractional reserve banking system is like the froth on the head of a badly-poured beer. Get rid of that froth, and we’d all find the world a much better place except those who’ve made their fortunes being part of the system behind arbitrarily-created “credit from nothing” which today’s debt problem is all about.
Even someone taking out a mortgage doesn’t have that “money” provided by the same amount of savings - it is just conjured up on a computer screen.
“Death to profiteering credit” and “long live hard cash” cannot be achieved without direct legislation to make the changes required. This is currently not possible, because the same rabble running the financial system to peddle debt, and raise other monies by merely juggling smoke are also in charge of our legislature, our media, and a good number of low-paying but high-employing companies all pushing various come-and-go governments to do their bidding, rather than the public’s
Meanwhile, our government worries about putting 45p on alcohol units, and an expensive leverson enquiry that won’t be putting any swathes of crooks in jail that could well do with being sent there…
Winseer:
Surely, Fordism is about the next logical step of deflation. Instead of overpriced piled high goods that no one can afford - “I know let’s invent some new for of debt that allows people to buy it regardless” we see "pile it high, having made it so cheaply with such high productivity workers that the WORKER themselves can afford to buy the company product out of their wages - no need for third-party debt at all. Buy a car over a year from a monthly dedcution from one’s high wages.
Prices fall when debt is not available to pay for it. The fractional reserve banking system is like the froth on the head of a badly-poured beer. Get rid of that froth, and we’d all find the world a much better place except those who’ve made their fortunes being part of the system behind arbitrarily-created “credit from nothing” which today’s debt problem is all about.
The first paragraph is more or less exactly what that system is all about with the exception that inflation and deflation becomes an irrelevance because all that matters is that workers are employed in making goods in a protected market place while at the same time being paid high enough wages to afford to buy all the production that’s being turned out.It’s obvious under that system that the level of growth in the economy will just reflect the level of wages and wage increases.While personal debt,with the exception of housing mortgages,isn’t needed in that system because debt is really just a symptom of the inbalance between wage levels in real terms compared to prices under the current system.While national debt is just a reflection of the trade deficit caused by importing stuff which we can provide for ourselves .The more people earn the more goods they can buy and can afford to replace on a regular basis which then allows more growth in employment and wages so on and so forth.Which explains the difference between the German economy of the 1930’s compared to the US one of the 1960’s.It also explains the inbuilt flaw in Britain’s post war economy v that of America’s.That was,of course,until ‘Reaganomics’ totally wrecked the US economy by throwing it to the wolves of the global free market economy just like Wilson and Thatcher did with ours.