Our thoughts turned to the issue of whether there is any financial or moral equity in the financial system as we were treated to the pre-release of a very thought provoking film called the Four Horsemen. This film is certainly worth watching when it is officially released and our thanks to Ross and Megan Ashcroft for the kind invite. We found it more constructive in its criticism than films like ‘Wall Street II’ and ‘Inside Job’ (films that are still worth watching though). The producers see their role to ask questions, and focus on the system that we act in as agents, rather than agent (banker/financier) focused finger pointing.
According to our analysis and preferred sources there seems to be precious little capital and/or equity in the balance sheets of too many of the institutions that make up the greater banking system. Perhaps there is also little moral equity in the model of finance we have pursued that has got us here also? What the global public seem to be really struggling with at the moment is how capitalism and the laws of bankruptcy and failure apply generally to us as individuals, but not to the central parts of the financial system. Within this, we find the #Occupy protests misguided and lacking intelligent leadership. What they should really demand is more capitalism, and a version founded on a purer Austrian inspired model.
We perceive a general lack of responsibility that has infected the heart of our monetary and financial system. It seems that in the workings of today’s financial system, the gains are often privatised and shared by a tiny few, but that the losses and costs of government support are very publically shared. Capitalism for the many, but socialism for the financial centre. We also have concerns with the responsibility of the financial authorities and regulators. The political class also play a role, and a key part of the financial system allows them to exercise irresponsibility too. We now face a financial system where vast levels of debt have built up, which Austrians like us perceive to be choking and a burden to growth and development. These debts have built up to a concerning level on the private balance sheets of the banking system and the balance sheets of sovereigns. How to get out of this bind is the question…
