The question of the cause, haunts the current financial crisis not only by the press but also through surveys. "State failure or systemic crisis?" It says. We illuminate the question needs a little more detail.
trigger the financial crisis of 2008/2009 is unquestionably the real estate bubble burst in the U.S. was in 2007. Were awarded mortgages to people whose credit rating was questionable at best (so-called "subprime lending"). Steadily rising property prices animated Neubelastung the debtor to the "value added" of their homes with new mortgages. The whole thing was fueled by government programs to stimulate the housing market. Without end houses were built, approved without a correction of the market was. Stimulation was no longer able to hold back the forces of the market correction movement as September 2008, the levees broke. Property prices fell not, they fell through the floor - and polluted many Americans with mortgages that suddenly many times a were higher than the value of their homes. Loans, have recently been perceived as being a healthy, were now "junk bonds".
But why? If one has slept in the control authorities or was it even bribed to look away? Has capitalism failed? Had not the market, the situation must clean up much earlier? Who is to blame?
Our money is debt - because our debt is money. Money creation takes place in the modern banking system through the granting of loans. At the moment of signing a credit contract, the bank's balance sheet is extended by the amount in question. Any repayment rate not only wipes out the debt, it actually wipes out the money. What has the bank here of a loan? In the event of insolvency of the debtor but fails to repay, the trend of security to the bank. But banks are held at the security more interested in the interest which not, as such redemption, disappears from the balance sheets, but flows as a gain in equity of the bank. This interest has been generated, they were not part of the loan. But if money can be drawn only as a liability and interest rates are not part of this creation, where did the money come from to service the interest?
It is generated from newly acquired debt. Our monetary system resides therefore hold an inflationary dynamic that accelerated exponentially with time. Calls for a debt interest, the servicing new debt requires that interest by the pull back. This dynamic limits when it comes to be insufficient or no collateral is that you can borrow. Credits must be given to borrowers with increasingly deteriorating security.
We were then about the situation of the real estate crisis in 2007 that the collapse of significant parts the international credit system moved to the. The whole monetary system founded on debt could only be saved by the massive debt of the States which formed the short-term debt gap closed. As long as the states to enforce their unlimited powers necessary to the ownership of its citizens, as borrowers experience of last resort, will survive the monetary system.
But that can also meet this ability to quickly show their limits Iceland and Greece. If the amounts to be borrowed, in part, higher by far than the GDP of the debtor country, the interest charged by the banks are usually so high that after a very short time a government bond issued to finance the interest must be. First, such effects are in countries which either have long lived beyond its means, or the immense sums at short notice, as have applied for a bailout or stimulus package. In such cases, the debtor countries by debt and caught up with them to be recovered. As the housing bubble bursts then the "debt bubble" - and not a "borrower of last resort" is more in sight.
obsolete sooner or later the fate of each country uses a fault covered currency. By this time, the major banks, the debtor country is probably not once but twice.
The money is therefore responsible for what we call economic crises, but who is to blame? By no means is the market, because this attempt only the debts that were never met, leading to their intrinsic value back, ie zero. We were only too apathetic or just too stupid to realize this.
Nor have failed to inspectors or analysts, at least not in terms of the existing monetary system. Without Flattening the eyes of all in check and award committees, the system would collapse much earlier.
which examined the need for a scapegoat, plain to see in the mirror. Our uncritical, almost blind, Willingness of the colorful pieces of paper of the Central Bank and the zeros and ones have to use the banks as cash and we forged our children and grandchildren thick chains. If we are not in time these chains by a deliberate blow up currency reform, bloody conflicts, poverty, hunger and suffering are inevitable.
trigger the financial crisis of 2008/2009 is unquestionably the real estate bubble burst in the U.S. was in 2007. Were awarded mortgages to people whose credit rating was questionable at best (so-called "subprime lending"). Steadily rising property prices animated Neubelastung the debtor to the "value added" of their homes with new mortgages. The whole thing was fueled by government programs to stimulate the housing market. Without end houses were built, approved without a correction of the market was. Stimulation was no longer able to hold back the forces of the market correction movement as September 2008, the levees broke. Property prices fell not, they fell through the floor - and polluted many Americans with mortgages that suddenly many times a were higher than the value of their homes. Loans, have recently been perceived as being a healthy, were now "junk bonds".
But why? If one has slept in the control authorities or was it even bribed to look away? Has capitalism failed? Had not the market, the situation must clean up much earlier? Who is to blame?
Our money is debt - because our debt is money. Money creation takes place in the modern banking system through the granting of loans. At the moment of signing a credit contract, the bank's balance sheet is extended by the amount in question. Any repayment rate not only wipes out the debt, it actually wipes out the money. What has the bank here of a loan? In the event of insolvency of the debtor but fails to repay, the trend of security to the bank. But banks are held at the security more interested in the interest which not, as such redemption, disappears from the balance sheets, but flows as a gain in equity of the bank. This interest has been generated, they were not part of the loan. But if money can be drawn only as a liability and interest rates are not part of this creation, where did the money come from to service the interest?
It is generated from newly acquired debt. Our monetary system resides therefore hold an inflationary dynamic that accelerated exponentially with time. Calls for a debt interest, the servicing new debt requires that interest by the pull back. This dynamic limits when it comes to be insufficient or no collateral is that you can borrow. Credits must be given to borrowers with increasingly deteriorating security.
We were then about the situation of the real estate crisis in 2007 that the collapse of significant parts the international credit system moved to the. The whole monetary system founded on debt could only be saved by the massive debt of the States which formed the short-term debt gap closed. As long as the states to enforce their unlimited powers necessary to the ownership of its citizens, as borrowers experience of last resort, will survive the monetary system.
But that can also meet this ability to quickly show their limits Iceland and Greece. If the amounts to be borrowed, in part, higher by far than the GDP of the debtor country, the interest charged by the banks are usually so high that after a very short time a government bond issued to finance the interest must be. First, such effects are in countries which either have long lived beyond its means, or the immense sums at short notice, as have applied for a bailout or stimulus package. In such cases, the debtor countries by debt and caught up with them to be recovered. As the housing bubble bursts then the "debt bubble" - and not a "borrower of last resort" is more in sight.
obsolete sooner or later the fate of each country uses a fault covered currency. By this time, the major banks, the debtor country is probably not once but twice.
The money is therefore responsible for what we call economic crises, but who is to blame? By no means is the market, because this attempt only the debts that were never met, leading to their intrinsic value back, ie zero. We were only too apathetic or just too stupid to realize this.
Nor have failed to inspectors or analysts, at least not in terms of the existing monetary system. Without Flattening the eyes of all in check and award committees, the system would collapse much earlier.
which examined the need for a scapegoat, plain to see in the mirror. Our uncritical, almost blind, Willingness of the colorful pieces of paper of the Central Bank and the zeros and ones have to use the banks as cash and we forged our children and grandchildren thick chains. If we are not in time these chains by a deliberate blow up currency reform, bloody conflicts, poverty, hunger and suffering are inevitable.
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