does anyone know where all the money came from over the past 15 years???
Capitalism Hits the Fan: A Marxian View on Vimeo
now i think this guys got a point, the money we were borrowing were the profits from our employers...
because they did'nt want to pay better wages and take a smaller profit...
http://www.politics.ie/economy/44223-money-2-a.html
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A lot came from German pension funds.
They had plenty money doing nothing.
We had a young vibrant demographic.
A match made in heaven, so it was thought.
Its only a chat, we ain't the world council.
In 2000 the Women's Institute in Britain gave Tony Blair the slow hand clap to demonstrate their contempt.
[COLOR="Red"]It was dignified, restrained and effective.[/COLOR]Doesn't Bertie deserve the same scorn. No shouting, no abuse, no agression just a relentless slow clap whenever he speaks in public would be enough to end that man's presidential fantasy.
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You want to buy a house say 100000,you have a deposit of 10000 which you give the bank.The bank by law have to hold 10% reserve,they hold your 10000 ,get on computer and ask central bank for 100000 which they get , give to you.The money is given to builder and the whole process starts again .The 10000 you deposited can now end up producing upto 1000000 in monies.Sort of money out of thin air minus the tree and ink to print it
A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.
WEAVER, HENRY GRADY,
Most of it never actually existed.
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When banks type a loan into a borrower's current account that is brand new money. They don't take it from some other account. The more outstanding loans there are, the more money there is. When loans get paid off or defaulted that money is cancelled out. When this happens faster than new loans are created the total amount of money is reduced. This causes a recession or depression. The central bank lowers interest rates to try to get people to take out new loans to replace the money that is gone but people don't want to borrow when they might loose their job.
www.webofdebt.com/articles/creditcrunch.php
I think electronic money should be created by governments just like notes and coins. That way the amount that existed would be stable.
well davey mac says it came from german pension funds and bank savings.
but a substantial amount was credit that frankly DIDNT exist and vanished when the bubble burst leaving people with massive debts
Originally Posted by crocked
The biggest problem here is the mistaken belief that profit = stolen wages. And the fallcy of one pie. That video tells us nothing about the causes of financial crisis. In fact, he could have just stood up and said "crises just happen" and sat back down again. I've made my thoughts on this video clear here: http://www.politics.ie/economy/39706...ml#post1357345
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It doesn't really work like that.
The money didn't really come from any one place, though the Germans are net savers. Some of the money came from Irish savers, Japanese, Italians, Germans, everyone.
When the bubble popped and money "disappeared" this money was "replaced" by the ECB.
Nobody knows how much "money" there is, thats why the ECB targets an interest rate rather than a level of the money supply.
If you're not convinced by the article I linked to and have time for something more detailed Joseph Huber, an economics professor at the University of Halle, presents a much more complete argument here:
www.soziologie.uni-halle.de/publikationen/pdf/9903.pdf (in English)
speaking as someone who is illiterate when it comes to financial affairs it seems to me that this was a global pyramid scheme that has just wound up. when all is said and done there is not enough physical wealth to cover all the virtual wealth that was 'created' during the boom. like all such schemes if you didn't cash in in time you lose big time. the only difference is that a lot of the people who are losing are in positions of influence and power and are doing their damndest to claw back something at the expense of those who had neither the capital or the gamblers mentality to get involved in the con. its a bit like having a cheque for say €1M with no money in the account.
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