Freitag, 10. April 2015

The living on the expense of others glut

In a recent post Ben Bernanke points to the serious problem of constant german trade surplus, which leads to escalating imbalances of cumulated current accounts with a savings glut on one side and unsustainable indebtnes on the other side. While I agree on the destructive consequences of this development with Ben, I like to point out that only money that got created (by the banks) beforehand can be saved. So the savings glut follows an excessive money creation by the banking system. The savings glut, Ben Bernanke complains about, is a direct consequence of excessive money creation by the banks.

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The tendency of banks to expand their balance sheets, to increase the base of which they generate their income by interest differentials, is driving the level of debts and with that as a direct consequence the level of savings. The US banking system is doing this like nuts for decades now and the US as whole is living on the expense of others by trading the so generated IOUs for all kinds of goods like german luxury cars, japanese high quality products, chinese products and oil. The US is doing that with 88 of their trading "partners" and is in the meantime not only unwilling but unable to deliver real goods in return for this hughe cumulated pile of IOUs aka US$ and US$ nominated (triple A rated!) papers.
While it is certainly a stupidity on the german side to accumulate such amounts of IOUs from someone who is obviously unwilling and unable to deliver real stuff in return, it is the US who enforced the acceptance and savings of US$ all over the place by pushing a so called "Washington consensus" in their own narrow interest.

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By the way, the problem created by banks and powerful elites is very obvious on the level of economies, but it also exists inside every economy, where firms and people are forced to accept money created by banks for labour and real things, which end up highly concentrated in the hands of a few (very powerful). The global economy is not a level playing field nor is a single economy a level playing field. There is always a gradient of power which drives imbalances between economies but also inside economies to escalate.
Equilibrium is the pipedream of economists intended to hide this simple fact.

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And the banking system is instrumental to create that gradient and to increase its steepnes over time (until things break) and is making an enormous business out of this madness.

Sapere Aude!

GeorgTrappe

Kommentare:

  1. Könnte Dir jetzt einen Passus hier reinstellen, den ich vor einem Jahr zu Bernanke, Ben S. 2005: The Global Saving Glut and the U.S. Current Account Deficit. @ geschrieben habe, wo ich zeigte, wie es wirklich funktioniert. Aber offensichtlich übetragen sich die Meme auch so. In Borio, Claudio/Disyatat, Piti 2011: Global imbalances and the financial crisis: Link or no link? BIS Working Papers No 346. @
    die These dann fein säuberlich auseinandergenommen. Die US-Eliten bewegen sich wohl nur noch in sebstreferentiellen Systemen. Grüße, SB

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  2. Danke fuer den Hinweis auf den BIS Aufsatz. Ja, wenn man mal begriffen hat, wie das Bankensystem funktioniert und wie Geld entsteht, dann kommt man nach etwas gruendlicherem Nachdenken zu Einsichten, die mit dem, was einem ueblicherweise so vorgesetzt wird, nicht mehr viel zu tun haben.
    Ich bin inzwischen der Ansicht, dass die Erklaerungsansaetze, die die Bank- / Geldrealitaet ausschliessen, bzw verdrehen notwendiger Bestandteil eines Setups sind, das es einigen wenigen erlaubt die Massen nach ihren Vorstellungen zu lenken.
    Gruesse
    GT

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