Rise of the Effete Authoritarians
2023-06-05
Here in the West, particularly in countries such as the United States and Canada, we have experienced radical political and cultural changes over the past several years, and the pace of these changes seems to have accelerated since 2020. In the minds of many, there is an almost palpable feeling that a switch has been thrown and that the relationship between citizens and the state has been permanently altered.
Perhaps the most salient revelation in the wake of these changes is a highly diminished pretense of state legitimacy in Western liberal “democracies.” In the Platonic ideal, this legitimacy flows from the citizens’ belief that their democratic government—ostensibly comprising peers and fellow citizens—effectively and uniformly administers justice and serves the needs of all citizens.
Is the US Banking Crisis Over? It Has Barely Begun
2023-06-02
According to some commentators, the US banking crises is over, or at least can be easily managed by the Federal Reserve System. In addition, the Fed chairman has vouched for the health of the US banking sector.
However, the banking crisis is likely in its early stages. What has started as the collapse of regional banks is likely to spread to national banks. The key reason for that is the decline in the pool of savings and continuation of fractional reserve lending in which banks are legally permitted to use money placed with them in demand deposits in lending activities. Banks treat deposits as though they were loaned to them.
Although permitted by law, from an economic point of view, this results in money creation leading to consumption not supported by production, diluting the pool of