Thought Control in Economics

Slow Down Fast Money With the Tobin Tax

By focusing on regulation and bonuses, are world leaders missing the point?
Fast Money

AP Photos – Charles Dharparak

In 1971 the late Nobel laureate James Tobin proposed enacting an infinitesimal tax on all cross-border currency trades. Though it could be as small as one-tenth of one percent, the tax would generate enormous sums of money due to the sheer volume of trades. A modern variant on the Tobin tax would levy an equally small tax on all market transactions. For the ordinary purchase of stocks and bonds, the cost would be trivial – with no perceptible effect on buyers or sellers. But for the more complex, highly-leveraged derivative transactions – the very ones that sunk our economy – the cost of the tax would add up quickly, helping to dampen speculative excess and temper the wild flows of global capital. It would break the cannibalistic cycle of derivatives feeding off derivatives and money feeding off money. And before long – trade by trade, dollar by dollar – the tax would steer our global system back on course … hard work and entrepreneurial zeal would become valuable commodities again.

French President Nicolas Sarkozy is urging his fellow G20 leaders to introduce a Tobin tax, but his initiative is being largely ignored. Send an email to Barack telling him we need systemic change ... tell him to take up Sarkozy’s proposal and start slowing down fast money with a Tobin tax.

– Kalle Lasn

20 comments on the article “Slow Down Fast Money With the Tobin Tax”

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Anonymous

Ron Paul is part of the problem, not the solution. He's part of the same market cult that promotes the flawed neoclassical paradigm. His attempts to blame the Federal Reserve (privately owned, BTW) for the economic crisis is merely misdirection from where the blame ought to go--the need for growth at any cost to people or the environment. Ending the Fed (although I certainly wouldn't mind to see it gone--in fact I'd prefer it to be gone) or returning to the Gold Standard will not help anyone. These are merely phantoms to distract us.

Anonymous

Ron Paul is part of the problem, not the solution. He's part of the same market cult that promotes the flawed neoclassical paradigm. His attempts to blame the Federal Reserve (privately owned, BTW) for the economic crisis is merely misdirection from where the blame ought to go--the need for growth at any cost to people or the environment. Ending the Fed (although I certainly wouldn't mind to see it gone--in fact I'd prefer it to be gone) or returning to the Gold Standard will not help anyone. These are merely phantoms to distract us.

WickUdNoreastaH

What are you proposing then? Are you saying that we can create some kind of perfect currency "that doesn't create the excess liquidity that causes excess lending which then creates the bubbles and busts." Good luck with that. The bankers and the corporate whores will always find a way around that.

A. Smith

Government interference in the free market destroyed our economy Kalle you lunatic. They dangerously experiment with us on a day to day basis. The breakdown of the economy came from government intervention in the lending markets, housing markets, and banking industry. After which they decided the fate of the banks, which ones would go under and which would be spared. Your answer to this is to put more money into their economic Frankenstein projects?!!! marvellous. There is a reason Sarkozy is ingored, the same reason why you will be too, it is ridiculous.

A. Smith

Government interference in the free market destroyed our economy Kalle you lunatic. They dangerously experiment with us on a day to day basis. The breakdown of the economy came from government intervention in the lending markets, housing markets, and banking industry. After which they decided the fate of the banks, which ones would go under and which would be spared. Your answer to this is to put more money into their economic Frankenstein projects?!!! marvellous. There is a reason Sarkozy is ingored, the same reason why you will be too, it is ridiculous.

perceptiventity

'' The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution'' --
--> http://www.rollingstone.com/politics/story/26793903/the_big_takeover

...and it's great fun to read too (hilarious journalist)
despite the gravity of global mindfuckup involved

and thanks to the person who first posted the link in some previous blog discussions

perceptiventity

'' The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution'' --
--> http://www.rollingstone.com/politics/story/26793903/the_big_takeover

...and it's great fun to read too (hilarious journalist)
despite the gravity of global mindfuckup involved

and thanks to the person who first posted the link in some previous blog discussions

Ting Ba Dho

Bravo Lloyd! It blows me away at how next to no one will discuss the idea of dissolving the Fed and printing our own money. Dissolve the Fed, take back all the gold they stole from us, and throw them all in prison for creating and manipulating a system for their own benefit. It's fraud at its greatest. Let the government print it's own money (which it does for the Fed at tax payers expense) at no interest to itself rather than accumulating more and more debt every time a dollar is printed that in no way can be paid back without incurring more debt when more notes are printed to pay off the interest. There is zero way to win.

Georg

there is no free market. the economy is a game created to make the rich richer and the poor poorer. it is the private corporations and international banks and the corrupt governments of USA and Europe who make the rules of this game. this elite is not the ones who creates wealth, they are not scientist, doctors or construction workers, they just set the rules of the game. there is no democracy in the world today. the world is owned by those who make the rules. wake up moron!

Georg

there is no free market. the economy is a game created to make the rich richer and the poor poorer. it is the private corporations and international banks and the corrupt governments of USA and Europe who make the rules of this game. this elite is not the ones who creates wealth, they are not scientist, doctors or construction workers, they just set the rules of the game. there is no democracy in the world today. the world is owned by those who make the rules. wake up moron!

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