"Yet, if you add the paradox of over-production to that mix — and the fact that such scarcities are potentially limited — you realise that the owners of capital have no interest in spending those claims on anything other than rent-producing assets, resources and/or anything they believe can protect their relative advantage.
All QE does is forces them to reposition their advantage from one based in future claims over more bountiful goods and services into one based on rent-collection and monopoly-related control over infrastructure, capacity and resources.
In a world of plenty, relative advantage can only be guaranteed by tightening the rein on accessibility to abundance. Those who have access to abundance will consequently work hard to withhold it from the population so as to keep their relative standing in place.
Technological innovation that allows such monopolies to be busted — or for goods and capacity to leak out for free — will also be discouraged, since these goods cannot be absorbed by the economy unless a relative redistribution of wealth comes with it.
In that context, it’s arguably only right that the state should enforce a penalty, tax or “negative rate” to erode the soaring advantage capital owners develop over non-capital owners.
Indeed, without such a tax, we would only move to an ever more unequal world, or one where an ever greater portion of the economy begins to depend solely on ongoing £200 Go payments.
And on that basis, the only downside of more QE and the collateral crunch that comes with it, is that capital will either be encouraged to flee developed markets altogether or be directed into riskier projects and pursuits that can undermine the current status quo.
The point really is that a collateral crunch doesn’t do anything but punish savers — and that, in the relative scheme of things, is not necessarily a bad thing.
QE addiction on that basis is no bad thing."
We are not doing enough to redistribute. Therefore the advantages gained by the elites are compounding. ERGO QE is policy that benefits the elite at the expense of the poor.
All QE does is forces them to reposition their advantage from one based in future claims over more bountiful goods and services into one based on rent-collection and monopoly-related control over infrastructure, capacity and resources.
In a world of plenty, relative advantage can only be guaranteed by tightening the rein on accessibility to abundance. Those who have access to abundance will consequently work hard to withhold it from the population so as to keep their relative standing in place.
Technological innovation that allows such monopolies to be busted — or for goods and capacity to leak out for free — will also be discouraged, since these goods cannot be absorbed by the economy unless a relative redistribution of wealth comes with it.
In that context, it’s arguably only right that the state should enforce a penalty, tax or “negative rate” to erode the soaring advantage capital owners develop over non-capital owners.
Indeed, without such a tax, we would only move to an ever more unequal world, or one where an ever greater portion of the economy begins to depend solely on ongoing £200 Go payments.
And on that basis, the only downside of more QE and the collateral crunch that comes with it, is that capital will either be encouraged to flee developed markets altogether or be directed into riskier projects and pursuits that can undermine the current status quo.
The point really is that a collateral crunch doesn’t do anything but punish savers — and that, in the relative scheme of things, is not necessarily a bad thing.
QE addiction on that basis is no bad thing."
We are not doing enough to redistribute. Therefore the advantages gained by the elites are compounding. ERGO QE is policy that benefits the elite at the expense of the poor.
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