Friday, August 12, 2011
The World's Money Is Draining Away ... Where's It Going?
Spiegel asks:
"Is The World Going Bankrupt?"
That is an odd question.
If some people are losing money, others must be gaining money, right?
But where is all the money going?
Bloomberg's Jonathan Weil hints at the answer in a post entitled "Is There Enough Money on Earth to Save the Banks?"
Two years ago the central planners convinced investors that the biggest surviving financial institutions would be able to earn their way back to health, in part through low interest rates and taxpayer support. The pressing question soon may be whether there is enough money on the planet to save the system as we know it, and if so, how much longer it will be before a crisis comes along that finally swamps the ability of governments to contain it.
One-hit wonders such as Fed-induced stock-market rallies can induce euphoria momentarily. They don’t fix the big problem.
As I've previously noted, the giant banks are drawing the American and world economy down into a black hole. If we don't break up the giant banks now, they'll be bailed out again and again, and virtually all independent economists and financial experts say that will drag the world economy down with them.
Indeed, many economists and financial experts say that we'll have a never-ending depression or perpetual zombification unless the banks and bondholders are forced to write down their bad debt.
But the question remains: if all of the world's money (of the Western world, anyway) is draining out, where's it going to?
Economists note:
A substantial portion of the profits of the largest banks is essentially a redistribution from taxpayers to the banks, rather than the outcome of market transactions.
Indeed, all of the monetary and economic policy of the last 3 years has helped the wealthiest and penalized everyone else. See this, this and this.
A "jobless recovery" is basically a redistribution of wealth from the little guy to the big boys.
The Bush tax cuts and failure to enforce corporate taxes also redistribute wealth to the top 1%. See this and this.
Economist Steve Keen says:
"This is the biggest transfer of wealth in history", as the giant banks have handed their toxic debts from fraudulent activities to the countries and their people.
Nobel economist Joseph Stiglitz said in 2009 that Geithner's toxic asset plan "amounts to robbery of the American people".
And economist Dean Baker said in 2009 that the true purpose of the bank rescue plans is "a massive redistribution of wealth to the bank shareholders and their top executives".
The money of individuals, businesses, cities, states and entire nations are disappearing into the abyss ...
... and ending up in the pockets of the top .1% richest people.
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Posts
Depressing stuff, unstoppable deflationary cycle solved through inflation?
ReplyDeleteReally do hate fractional-reserve-banking.
Curious to know how much the 0.01% of the population own in terms of wealth or PPP...I wouldn't want to put the people who have a few hard earned millions in the same category as the multi-billionaires.
Underestimation of the 'global-citizen class' too the max.
If a digital printing press prints in a forest and no one is around to hear it digitally print, does it still create inflation?
Would love to know how much money has truly gone into the transnational banks worldwide.
Screw it all, let the weapons of financial-mass-destruction drop, death by debt-based derivatives, such an unassuming way to die...
No Sh*t, Jose! Capitalism has ALWAYS been a zero sum game; for somebody to win, somebody else had to lose. USA got on top of the world post WWII because the rest of the world was destroyed; By cleverly using the brontonwoods system they were able to extract wealth. Nixon gae USA a shot inthe arm by removing the gold standard, the USA could print as much dollars as it wanted/needed to. The jig is finally up
ReplyDeleteAll dollars belong to the Federal Reserve, it says so right on the bill -- above The United States of America. Money returns to its maker.
ReplyDeleteBTW: No, P < P + I thus there is NOT ENOUGH money in the world to pay off all debt.
You are playing with THEIR MONEY. Toss it out and make your own.
Help start an alternative... if you are a business or know of a business that accepts silver or gold in barter have them list their business here.
ReplyDeleteIt is new, so be gentle!
http://www.bartercalcpro.com
Considering that the super rich are the .01 of the American people and there are approximately 312 (2011 census) million Americans; appoxmitly 31,200 people would be considered super rich. We are only talking about a few large families that rule the rest of us. Take away the innocent children and there are approximately 312 political super elites.
ReplyDeleteTheir directly paid minions (congress, government officials, main stream propaganda media are probably another 31,000 people. Again, we are only talking about .02 % of the total American population.
That’s not too big of number to prosecute for criminal/treason activities!
Apart from the spot-on content, this post is also highly visually appealing.
ReplyDeleteAccording to what I have been able to find out, the Rothchild family has the control of about 500 Trillion dollars worth of wealth. They go to GREAT lengths to hide most of their wealth. It has been said that the Rothchild`s control the Federal Reserve Banking system, which is NOT part of the US Government. It is a privately owned, for profit, organization. If you read a book titled: Vile Acts of Evil, Banking in America You will begin to get the picture.....
ReplyDelete