Ask Prof Wolff: How Treasury Bonds Help Corporations and the Rich

A Patron of Democracy at Work asks: "Please explain the role of the bond market (US Treasuries) in the failure of capitalism and democracy."

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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[Marxist]

I always learn so much about how this rotten system works. I thank you, prof. Wolff.

[standfortruth]

Thank you professor, you explain in a way easy to understand.

[oldsesalt]

I seem to remember that the companies that borrowed government money in 2008 at .25% ended up lending it back to the government at 4%. That is free money.

[PriusOmega]

Great video. To add, the American plutocrats/banks control the creation of the fiat units used to denominate these loans. So when they either mess up their accounting, or take massive risks without consideration, they can just change the rules and print over their mistakes to ensure they themselves are never in a bad position (2008 GFC, market manipulation around commodity trading, GME option trading in 2021, SBV bank bailout valuing underwater bonds at par, etc).

[Shining]

❤️ Thank-you Mr. Wolff for the insightful video in breaking it down, and slowly walking us through it 🎯

[bernardoalvarezdelcastillo]

It's always a pleasure to learn this griping truths. Thanks a lot, prof. Wolff.

[boombot]

Thank❤🌹🙏 you, dear professor Wolff! People need to wake up and demand change❤👍!

[leeengdahl]

Bravo. This should not be news to those living in the USA since ther 1980s when many of the hard-won battles of the Great Depression and Post-WW I era were overwhelmed by legislation and executive action. Pity that most people in the USA might find this difficult to grasp or call it agit-prop. O well, history will have its way eventually but it is pleasant that such things are said by Dr Wolff as they will echo into daily life gradually.

[MrLouladakis]

that's why companies here in greece are making so much money and people so less even though we have higher wadges we get paid less and less money by the day! your work is an eye opener thank you professor!.

[SolidAir]

I never understood the MMT people when they seem to say that borrowing doesn't matter because we just print the money anyway. But we have to pay interest on the debt. So the rich lenders are getting the benefit of this system (not to mention foreign investors) and so it increases inequality which we know is not a good thing.

[aravindkurup]

When scholars like prof. Richard Wolf or prof.Noam Chomsky speak, U-tube always retains the sound volume illegibly low. Understandable.

[daviddixon]

You articulated this topic on Treasury Bonds extremely well. In fact, I have never heard this topic explained, before in the context in which you presented it! Thank you for your expertise; I am always very impressed with your Lectures.

[justanotheroldguy]

This is an even better video when combined with a previous Wolff video where he explains consumer debt. Where workers are forced to borrow because wages are too low.

[petestanton]

I see, that's how J. "Biohazard" Stucki-GALT did it. Astounding!

[ianboard]

I don't know if I completely agree with the idea that borrowing is always a political decision not to tax. It usually is, but what of extraordinary events like a war (real one like WWII, not the BS ones these days) or huge infrastructure projects? In that case it's a cash flow issue - just like people prefer to get a car loan rather than pay all at once.

[jamysmith]

Every year I fill out my tax form and come to the donate $1 to the campaign fund check box and imagine if that were the sole source of funding

[bmaalimarber]

Very Clair Pr. Richard Wolff in fact the taxes system should be just and reasonable. That's mean, every one should pay its obligation towards the State and pay the taxes. And the amount of the taxe should be proportional to his revenue.
Otherwise the State is fiasco...

[soularddave]

So, let me get this straight. We're being taxed by corporations & the rich in a 'round-about way.

[player]

There are many different forms of business organization and ownership. I've always wondered why the subchapter C corporation is the only one that pays a separate tax. Wonder what Wolff would think if his much hated "big corporations" paid no taxes but were just pass-thru entities like all other forms of business ownership?

[advandepol]

Is the same thing going on in western europe?