Tuesday, 26 October 2010

Suicide Bankers are terrorists too

Suicide banksters, much like suicide bombers are terrorists. So says Max Keiser a Russia TV show host who is great fun but deadly serious. The nuclear weapons they use are:
  1. 0% interest rates
  2. Quantitative Easing
Both inflate away savings at about 10% annually. So innocent savers are being wiped out and the speculators are getting to heaven. Maybe. But he never talks about high rents* . That's a shame as that would then go to the root.

When interests rates and wages are low, rents must be high. This is the law of rent down to a T.
  • Production = Rent + Wages + Interest
  • Production - Rent = Wages + Interest
And before any work can be done or anything can be made we must pay rent. So wages and interest are what is left over AFTER rent has been taken out. Wages are definitely low and being forced lower. If interest is low too, rent must therefore be relatively high.

* Rent manifests itself severally as house prices, tenancy rentals, land values, credit interest and other monopoly profits/unearned incomes