Capitalism, Coronavirus and War: A Geopolitical Economy, by Radhika Desai

Dear respected madam Ms Radhika Desai,

I have these doubts regarding what you said in the video on YouTube, “How big corporations took over Western governments” a discussion on your book, “Capitalism, Coronavirus and War”.

It would be helpful and I would be grateful, if you could throw light upon them.

Thank you.

I have put the excerpts deliberately in reverse order, because they are connected in reverse order.

On; from 22:21 to 23:16

“what the Federal Reserve does is in order to give more liquid assets to Banks they will buy illiquid assets from Banks ….

… buying Securities that had become massively devalued they were worth nothing by giving them the face value……

……employed in order to preserve the assets of the rich because essentially the money was being created in order to fill the black holes that were the balance sheets of big corporations of all sorts”

And on from 21:03 to 21:38

“…..point I want to make is that the deficit that you saw in 2020 and 2021 was deep and it was big vast bulk of it was incurred not in order to put money in the hands in the pockets of people as I show in my book there a study upon study that has shown that bulk of the money was actually went directly into the pockets of rich people in part even the money that was given to ordinary People because imagine if you are indebted the money barely stops in your account for a for a brief moment before it goes to pay off your debt so it basically goes to the owners of big financial institutions and or goes to your landlord”

Question:

“…. Securities that had become massively devalued they were worth nothing ……”

How did these securities become devalued?

My take is; the securities were devalued because of the incompetence of the people at the bottom. So a competent and productive corporate entity cannot be allowed to suffer due to the incompetency of the public. So in order to protect the corporate entity from the incompetence of the public, the state will have to come in and pay the debt of the incompetent people and save the productive and competent corporate entity in the best interests of the state in large. When the state paid the debt it went to the incompetency of the incompetent people and not to the competent CEOs of the corporations. They were just paid their salaries as per contract. Nothing more.

Am I right in saying this?