Monthly Archive: January 2014

Who’s to Blame?

As much as I like to watch RT ( as a valuable alternative to the CNN ( propaganda, the Keiser Report has become a bit dull lately. The tenor to blame the “bad” bankers for the current crisis and the UK Chancellor George Osborne for bad financial politics in now routine. Keiser and Herbert (or their guests) often argue for more regulation. Sure, they have made their point, but the trouble is that the financial crisis that began in 2007 had its origins not in missing regulation, but in bad (over-complex) regulation. Keiser also uses the crisis to argue for using the government as a tool to stimulate the economy, to say nothing of the wider case for deficit-financed public investment in infrastructure. The value and effect of such programs has been wiedely questioned. The problem is that today’s Western democracies redistribute such a large part of income that politicians who argue for cutting expenditures always run into the well-organised opposition of recipients of government benefits. As illustrated in another post, this enhances inter-generational inequity.