Questions to the economists about COVID and the crisis

… One has to be precise. The frontline creators of the massive infusion of credit are the banks, led of course by the Central Banks. This of course draws on the major source of national credit, the government and state itself. But all that is actually happening is the creation of state debt – the banks are borrowing from the government, in order to continue doing what they always do, namely, make  profits. A real change of direction would only occur if the state was to become a direct investor, that is to say, if it took control of the movement of capital, at least to some degree, out of the mechanisms of the market in debt. Incidentally, this is about to create a monster debt crisis on top of all the other problems…

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Foto: Sylvia John

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