September 24, 2018

Modern economy history in a 15 seconds

Modern economy history in a 15 seconds - a mini-play

Cast: crisis, CB, consensus, printing machine, strange decisions

The people: We have federative governance and private money
Banks: You need change
The people: No
Central banks: Yes, here is a crisis. Here is a bubble
Banks and corps: OOPS… we just went broke
The printing machine: No worries, we will first print and then buy out everything
Central banks: For example, we can give you money if you give us stocks as collateral. We will fix down its price. Then you buy more stocks, and then you repeat that a few times. It’s an amazing idea…
A strange situation: What do you mean the system had just burst? Ok… not a problem. We have many other variants. The golden standard, trading surplus, the Maastricht treaty and plenty of other ideas. Trust us, keep buying.
The people: It looks kind of strange to us
Banks: Nothing strange. As soon as you go bankrupt, we will buy everything. Just don’t print money without us
The people: But didnt you say that’s what we needed to do in the first place
The crisis and the banks: Oh… we were mistaken. Sorry. Now we have a crisis of our own. But we will help you. Just make your CB independent, so no one can interfere. Meanwhile we will make an economic bailout here.
The people: But you said we couldn’t do that
The crisis and the bnaks: Oh… you know what… now it’s ok
The strange situation: So! Check this out! We are amazing! We bought all of your distressed assets and fixed your silly need for decentralization. Everything is great now. Don’t worry. We will call it “free market”. It sounds awesome, doesn’t it?!
The people: Isn’t that double standards?
Everyone, but the people: Stadrats-shmandarts. Boogy-woogy… Jeez… you are so intense. Such cry babies. Relax. Trust us. We will fix everything