Crunch Time - Conference of Australia’s progressive think-tanks
May 8, 2009
You can watch Ann’s speech on the Green New Deal at the new Crunch Time website. Crunch time is the first major conference of progressive Australian think tanks, covering topics including the economy, democracy, climate change, poverty, social inclusion and much more.




Welcome to my blog about the financial crisis. I'm Ann Pettifor, author and analyst of the global financial system, and co-author of the Green New Deal. I predicted an Anglo-American debt-deflationary crisis back in 2003, and am known for my work on sovereign debt and international finance, including Jubilee 2000. Currently a fellow of the
2 Responses to “Crunch Time - Conference of Australia’s progressive think-tanks”
Dear Ann Pettifor,
I concur with much of what you say. But I think that the ultimate cause of the financial crisis is something that you have not identified. It is simply the fact that the financial sector, unlike productive sectors of the economy, charges fees based on a percentage of transaction value instead of based on work done.
The rest of the economy has to produce something by toil or by thinking. And is paid salaries which are effectively based on an hourly rate = time spent.
Until it is made illegal to charge a fee based on transaction value instead of work done the coffers of the financial sector entities that do this “work” will continue to overflow with ill-gotten gains.
When you think about it, there would have been no financial incentive and no driving force behind playing “hot potato” with CDOs if there had not been a fee associated with these transactions that was based on a percentage of their alleged face value.
Regards
Mike Stenford
Comment By Mike Stenford on May 9th, 2009 at 1:09 pm
Powerful point, Mike…….Making money from money is a wonderful, effortless game, as you affirm….Ann
Comment By Ann Pettifor on May 9th, 2009 at 5:59 pm
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