Thursday, January 21, 2021

Tag: Are We Brewing a New Feudalism?

Are We Brewing a New Feudalism?

by Paul Craig Roberts, Paul Craig Roberts:

The answer to the question is “YES.”  The large bailed-out creditors will end up with the property of the non-bailed-out debtors who are being pushed deeper into debt with “bail-out loans” and fees and penalties for missed debt payments. Write-offs for the One Percent, and more indebtedness for everyone else.

Turn your mind to the economy.  The US has a work force of 164,000,000.  The unemployment forecast from the work closedowns is 30%.  That would mean 49,000,000 people who are potential rioters. (We are half way there with today’s report of a 16% unemployment rate with 22 million unemployed). Many of these people were already living paycheck to paycheck, could not raise $400, and their debts leave them no discretionary income.  As they could barely service their debts when employed, how do they service them when unemployed and when their small businesses are closed and incurring costs but have no revenues?  Loans further indebt them. The cash payouts to the unemployed might cover food and housing but will not service their debts.