Papantonio: Cash Hoarders Devastate Economy

[GoLeft TV]

This interview is a sneak peak of this weekend’s Ring of Fire on Free Speech TV. The wealthiest Americans are sitting on trillions of dollars in cash. They aren’t reinvesting, they aren’t giving workers a raise, and they aren’t spending. Ring of Fire host Mike Papantonio talks about how this affects our economy with Richard Eskow, a senior fellow at the Campaign for America’s Future.

More at Ring of Fire.

[ErikJ]

1. Does their hoarding cause the Feds to keep printing money?

To keep the economy going?

[NoMoreWarNow]

4. there probably is a connection-- I imagine if they didn't hoard the cash,

the Fed wouldn't need to inject more cash into the economy.

[tclambert]

2. But we're playing the Highlander version of capitalism . . .

in the end, there can be only one . . . with ALL the wealth. Nobody else will have anything, not even air to breathe. It's nothing personal. That's just how the rules of the game work out.

Right now, it's the 1%. But we're working hard to shrink that down to .000000001%.

[GreenStormCloud]

3. Are they putting the money under a mattress?

Unless they are piling actual cash in a box somewhere, then they have that cash in some bank or other financial institution as liquid assests. From that cash in the bank, loans are made. The money is being used. There is no such thing as idle money, unless it is hidden in a home safe.

[NoMoreWarNow]

5. the point is that it's not being used productively

if it was taken as taxes, it could be spent by the govt and stimulate the economy, for instance.

[GreenStormCloud]

6. When money is lent out that is also productive.

If the money is lent to someone to buy a new car, that is productive. If it is lent to buy a house, that is productive. If it is lent to someone to get an education, that is productive. If it is lent to someone to take a vacation, even that is productive. The only way that money isn't being productive if it is buried in the back yard.

[NoMoreWarNow]

7. yes, and right now, that is not being done enough

for a variety of reasons.

[GreenStormCloud]

8. If the money is in a financial institution, it is available to loans.

Only if the money is buried in the back yard is it out of circulation, and unproductive.