Exploding actual property costs, zero rate of interest and a rising inventory market – the wealthy are getting richer. What hazard lies in await common residents?
For years, the world’s central banks have been pursuing a coverage of low cost cash. The at the beginning is the ECB (European Central Financial institution), which buys unhealthy shares and bonds to avoid wasting banks, tries to gasoline financial progress and props up states which can be in debt. However what relieves state budgets to the tune of lots of of billions annoys savers: rates of interest are near zero.
The fiscal insurance policies of the central banks are inflicting an uncontrolled world deluge of cash. Consultants are warning of latest bubbles. In actual property, for instance: it’s not simply in German cities that costs are taking pictures up. In London, a one-bed condominium can simply value greater than 1,000,000 Euro. Increasingly cash is shifting away from the actual economic system and into the speculative subject. Extremely complicated monetary bets are going down within the world on line casino – playing with out checks and balances. The winners are set from the beginning: in Germany and all over the world, the wealthy simply get richer. Professor Max Otte says: “This flood of cash has prompted a harmful redistribution. Those that have, get extra.” However with low rates of interest, any cash in financial savings accounts simply melts away. These with money owed may be joyful. However massive firms that need to swallow up others are additionally joyful: they’ll borrow low cost cash for his or her acquisitions. Coupled with the liberalization of the monetary markets, cash offers have turn out to be indifferent from the actual economic system. Nevertheless it’s not simply the banks that want a relentless supply of latest, low cost cash at the moment. So do states. They want it to maintain a grip on their mountains of debt. It’s a form of snowball system. What occurs to our cash? Is a brand new disaster looming? The movie ‘The Cash Deluge’ casts a brand new and stunning gentle on our cash in these instances of zero rates of interest.
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