(Full Reserve Banking) - '..tackling deficits.' - '..work rule reforms and pension reforms, not higher taxes..'

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<blockquote>'.. It would be a dangerous delusion for eurozone countries to backtrack on plans for tackling deficits.'

- Source, 16 May 2012</blockquote>

'..Europe and the US need work rule reforms and pension reforms, not higher taxes..'

<blockquote>'..my credit-view of deflation has accurately called for most of these things, including the rise in the price of gold and a collapse in the value of houses. Like Humpty Dumpty, people can define the term inflation however they want, but those who miss the boat on credit are left wondering why the economy is not acting as generally expected by their definition.

Most Austrians completely missed the ramifications of collapsing credit and the collapsing value of credit on bank balance sheets. Similarly, virtually all Keynesians missed the boat on the housing bust. In general terms, Keynesians missed the inevitability of a collapse that must follow a reckless expansion of credit. Only those who focused on credit have been properly aligned with what is actually taking place.


Hiking taxes in the midst of a global recession is foolish at best. Europe and the US need work rule reforms and pension reforms, not higher taxes. I strongly support ending collective bargaining of public unions, scrapping Davis-Bacon and all prevailing wage laws and instituting national right-to-work laws. Many US cities are effectively bankrupt by making pension promises that cannot be met. Greece is bankrupt for that reason (and others) as well.'

- Mike "Mish" Shedlock, Interview on the "Daily Bell": Rise of Money Metals, Why Credit Matters, May 15, 2012</blockquote>



(To recover) '..the increase in saving permits the financing of new investment projects..'

'..[Krugman] fails to consider the actual fiscal policy of Britain during the Great Depression.'

'..ethics in particular .. absolute principle of ethics..'

Banking Reform

As recently as 2010, Mervyn King, the governor of the Bank of England, said...
<blockquote>Another avenue of reform is some form of functional separation. The Volcker Rule is one example. Another, more fundamental, example would be to divorce the payment system from risky lending activity - that is to prevent fractional reserve banking (for example, as proposed by Fisher, 1936, Friedman, 1960, Tobin, 1987 and more recently by Kay, 2009).</blockquote>
- Full Reserve Banking</blockquote>