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View Diary: China Cuts US Credit Rating. Obama Cuts Hawaii Vacation Short. (171 comments)

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  •  Industrial capitalism (9+ / 0-)

    that's the key.  The great post-war economic boom was created by government extracting money from the FIRE sector by "debt" and turning it over to the industrial sector to pay workers to make things.  Even when we deliberately blew those things up or threw them away into outer space, they did better for the economy than leaving the money rotting in bank vaults, sitting idle.

    Quigley again:

    "In addition to their power over government based on government financing and personal influence, bankers could steer governments in ways they wished them to go by other pressures. Since most government officials felt ignorant of finance, they sought advice from bankers whom they considered to be experts in the field. The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally."

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