More than Gold..
October 17, 2011 § Leave a comment
Yesterday I’d played the folklorist’s card – of what was worth more than gold — a secret n’er told.
This morning, and I have to tell you I had neither time nor intention to make this comment, something remarkable aired on RNZ’s morning show.. in the matter of Steven Axelrod(former US Fed) telling all the ‘more than gold’ value. Contained in his phrase DEBT LEVERAGE.
Compulsion can trump both intention and time, which is my excuse for now doing this. Tho it will be short, confined to what that phrase actually means. Namely, debt-on-debt… as opposed the more usual debt-on-asset.*
SA arrived there through his “suitability” criteria for those taking loans, and, impliedly, lack thereof by those making them.
Anyone out there recall Jubilee 2000 and its aim to have banks negate African debt by that year? On the ChCh scene, there was even a guy in a cathedral who had gotten up to ask the Bishop’s guest how much of the indebted nations’ debt was actually compound interest? Or (in this fellow’s view I was to learn) debt-on-debt levied long term to account proud or prejudiced peoples’ unpayable enslavement.
Twas always a disappointment for me to have heard the speaker retort that he was a man of the cloth not an accountant. Rather than indulge moral considerations for which he was amply qualified his behavior – unknowingly IMO – helped retain the screen behind which financial appropriations oft amounting to extortion continue.
* Charging interest on a bank depositor’s loaned asset is one thing; charging further interest repeatedly on the bank’s unpaid interest something else. Lost or losable distinctions is doubtless one of the reasons SA prefers the term “liquidity”.
So.. well done RNZ for yet again enabling expertise express significant things of importance to us all.