View Single Post
Old 27-06-2017, 09:56 AM   #10
iamawaveofthesea
Senior Member
 
Join Date: Jan 2014
Posts: 26,740
Likes: 13,667 (7,885 Posts)
Default

Sabotage of the global economy by the central bankers:

The world economic order is collapsing and this time there seems no way out
Will Hutton
The refugee crisis is paralleled by the savage fallout from a global financial system running out of control
Sunday 11 October 2015 00.05 BST

The heart of the economic disorder is a world financial system that has gone rogue. Global banks now make profits to a extraordinary degree from doing business with each other. As a result, banking’s power to create money out of nothing has been taken to a whole new level. That banks create credit is nothing new; the system depends on the truth that not all depositors will want their money back simultaneously. So there is a tendency for some of the cash banks lend in one month to be redeposited by borrowers the following month: a part of this cash can be re-lent, again, in a third month – on top of existing lending capacity. Each lending cycle creates more credit, which is why lending has always been carefully regulated by national central banks to ensure loans will, in general, be repaid and sufficient capital reserves are held. .

The emergence of a global banking system means central banks are much less able to monitor and control what is going on. And because few countries now limit capital flows, in part because they want access to potential credit, cash generated out of nothing can be lent in countries where the economic prospects look superficially good. This provokes floods of credit, rather like the movements of refugees.

The false boom that follows seems to justify the lending. Property prices rise. Companies and households grow overconfident about their prospects and borrow freely. Economies surge well above their trend growth rates and all seems well until something – a collapse in property or commodity prices – unravels the whole process. The money floods out as quickly as it flooded in, leaving bust banks and governments desperately picking up the pieces.

Read more https://www.theguardian.com/commenti...down-recession
__________________
when the people in power want you dead, just existing is a revolutionary act

Last edited by iamawaveofthesea; 27-06-2017 at 09:57 AM.
iamawaveofthesea is offline   Reply With Quote