Thursday, July 21, 2022

An example of how the not so lean but still mean Bureaucracy Autocracy machine works.

First expert technocrats concoct and impose bank capital requirements implying their bureaucrat colleagues, those with no skin in the game, know better what to do with credit than e.g., small businesses.


Then politicians "complain" banks are not lending sufficient to small businesses.

And so, bureaucrats with access to lots of credit, further subsidized by central banks QEs and the preaching of MMT, design their own lending programs to small businesses, implying they know much better how to lend to small businesses than bank loan officers. This generates new jobs for loads of new bureaucracy associates, while adding loads of costs to be paid by tax payers or inflation.

Just an example of how Bureaucracy Autocracies empower themselves to grow and grow and grow

Of course, no matter those preaching MMT promise easy money ever after, that is unsustainable. The members of the fallen Bureaucracy Autocracies will also suffer. 

Citizens in countries suffering the curse of centralized oil revenues, they don’t live in a nation but only in somebody else’s business. Opposition politicians in such nations, more than changing that, usually only aspire to be the new owners of the business.

The same can be said of all countries suffering the easy public credit curse. Citizens there live in the business of their respective Bureaucracy Autocracy. Most of their respective opposition politicians, sometimes all, also aspire to be the new owners of that business.