The write up by the always informative Pakalolo today reviewed talking points concerning a cause of inflation as lack of insurability for assets held by financial institutions and subordinate agencies providing insurance required by lenders. It is an issue that has been raised and discussed in general terms here before.
It is a lie.
IF insurers satisfy lender requirements and make the lender whole ( or infrequently the borrower) the the problem has been resolved in theory. At least according to the Federal Reserve. It is a bit of fabulist trickery that is similar to institutional responses during The Great Housing Theft of the 2008 period
It is the underlying absurdity of neoliberal economics laid bare in public. To wit: The magical market is all powerful and acts independently without lasting failure or.consequence. those who understand the esoteric mechanics of it all will act in loco parentis for the benefit of the great majority who do not or can not.
It is lie.
By the reasoning Powell employs the institutional lenders financing causes of climate issues should be protected from the predictable outcomes of their decisions. The way to do that, oof course, is to simply reduce the availability of required protection of assets necessary for individual Citizens initially attempting to secure financing or to meet escalating requirements.
As increasing numbers of Citizen are removed from the primary means of acquiring wealth the wheel turns and the magical market once again favors the wealthy.
Those Citizens who can absorb the increasing financial burdens accumulate wealth more rapidly, while those who cannot still need a place to live.
It is the type of jockeying for short term advantage at the expense of posterity that has driven and still drives climate issues.
Inflation is a problem of markets. The current definitions of markets are problems of hubris and greed.
Shelter is a problem of survival. So is food, among others.
Citizens are endlessly instructed to accept the means and methods that do us the most injury while excusing the theft of our common wealth is beyond general understanding much less subject to fact or popular agency.
THAT is not a lie.
Sincere thanks to Pakalolo for continuing coverage on the climate issues we are now beginning to experience.