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The world has been down this road before, Spain, Ireland and the US all have high real estate debt. During WWll, a Chaplain encouraged a pilot who wanted to quit flying bombing missions over Germany, too many men were dying needlessly and he couldn‘t see any point to their deaths. The chaplain explained that even though it seemed like it wasn’t worth dying for, it was imperative the pilot continue his missions. The Chaplain explained that the world had periods of light and darkness, and if he didn’t continue to fly those missions the world would be plunged into a terrible darkness and it would last hundreds of years. This real estate debt has the potential to plunge the world into economic darkness that will last hundreds of years. It’s happening now, in the US we have three classes, high end, low end and the class in the middle, the working class, who are being squeezed out in this “new economy”
Corporations are sitting on two trillion dollars they’re not investing to create “new” jobs. It’s an inefficient allocation of capital in this “free market” system.
Maybe if they pay no taxes at all they’ll create more jobs, which is unlikely. Higher taxes on the wealthier corporations prevents concentration of influence, but government no longer has the power to raise revenue from the ultra wealthy or prevent the abuse of consolidated power.
Without the ability to raise revenue from these trillion dollar corporations government will cease to function. Precisely what Karl Rove and his gang want, a bankrupt government which can no longer provide social services for those in need, or protections from those with too much influence. The real estate debt coupled with hobbling governments to do anything about it means that those in the middle and low end of the economic spectrum face financial servitude that will last hundreds of years.
We’re back to where we started, indentured servitude, and now with Bush’s recent change of the bankruptcy laws, we are without any rights or recourse, just a lifetime of work, paying off insurmountable debt, which in reality, can never be paid off.
