John Clarke and Bryan Dawe on the million dollar questions – courtesy of the Australian Broadcasting Corporation
This sketch is doing the rounds and deservedly so – it’s a very funny skit on Europe’s troubling financial situation.
As ex-Prime Minister, Margaret Thatcher, is reputed to have quoted, “The problem with socialism is eventually you run out of other peoples money.”
By Paul Handover
Learning from Dogs 
Paul:
The public-private fractional reserve system creates money managed privately by amplifying seed money from the public, given through the government in two ways.
Such is the dirty little secret of the present capitalist system. I am not attacking capitalism in general, just its present version, which is a travesty.
The part which is not necessary here is the “private” part. The rest is necessary, because otherwise money creation would stop.
And what is the nature of the most proximal crisis? It is that money creation by those private entities in charge of creating public money has been diverted towards the derivative universe.
As a result there is no money for the real economy, in the West, and China is buying the USA. China does not mind, because it understands money as just a mean to create economic activity. It needs money to purchase necessary commodities, and it has, naturally, a lot of these.
Some say that the crisis in Europe has to do with socialism. And it is true that, just as in the USA, in recent years, government employee spending has augmented much faster than in the private sector. In 2008, average salary of state and local government employee was $86,417, much higher than the $59,900 of average private sector. Pension payments went from one billion per year a decade ago to five billion.
The considerable sums owed in the funny video are owed to private banks.
http://patriceayme.wordpress.com/
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Sorry, I forgot to mention the numbers I gave were in California (86K and five billion).
PA
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