"For a government in a fix, tax revenue could be increased by encouraging consumers to borrow,..."
How exactly? Where would it be levied? If overall tax revenue were to increase, it would need to exceed the tax revenue lost from decreasing VAT, fuel duty, stamp duty etc as people buy fewer thigns, and the lower corporation tax as lots of companies (except banks) as businesses collapse. Presumably this would come from taxing savings. Well, this year VAT is £101bn, corporation tax £40bn, fuel duty £26bn. There isn't enough money to save to generate the interest to generate the tax to fill this shortfall.
"...so it should come as no surprise that previous, and sensible, restrictions on borrowing were relaxed."
"The symmetry that requires the debt-ridden government to create consumers goes beyond evolving from the static to the dynamic at both ends of the process..."
"...It follows that in order to be a better consumer it is necessary to borrow, so the banks also win at both ends of the system."
It doesn't follow at all, credit was relaxed so people spent more. We all know that..
"... necessary to borrow, so the banks also win at both ends of the system."
So the banks should have won. But these are the same banks that "won" by going bust, and are still indebted after central banks printed $1 trillion of money to wipe out their debts.
"Whoever coined the term Homo sapiens was way off the mark."
You said, it Mr Watkinson.