Ann Pettifor writes the following on her Debtonation blog today:
The implications are clear. It took years – from 1929 until the 1940s – and a World War, before the US cleansed itself of the 1930s debt sludge. Japan is still trying to purge itself of debts built up in the 1980s. 18 years after the Japanese ‘debtonation’ of 1990, the economy is still the weakest of all the OECD countries. Eighteen years after the property bubble burst, Japanese house prices are still falling!
Will it take 12-18 years for the US economy to recover, after purging debts equivalent to 350% of GDP? On this reckoning: more than likely.
…and George Monbiot is saying what many of us UK taxpayers are starting to think on his blog today:
For the first time in my life I resent paying my taxes. Until now I have seen this annual amputation as a civic duty – like giving blood – necessary to sustain the life of a fair society. Suddenly I see it as an imposition. Its purpose has reverted to that of the middle ages: subsidising the excesses of a parasitic class. A high proportion of the taxes I pay will be used to bail out companies which, as the Guardian’s current investigation shows, have used every imaginable ruse to avoid paying any themselves.