imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The World Dependent on Central Banks

by Ernst Wolff Thursday, Apr. 12, 2018 at 4:43 AM
marc1seed@yahoo.com

The situation seems extremely contradictory. The global economic and financial system has been clinically dead since 2008. It only functions because it is artificially kept alive by the central banks like a patient in the intensive care unit $!8 trillion was pumped into the global system.

THE WORLD DEPENDENT ON CENTRAL BANKS



The unparalleled monetary policy of western central banks is in a cul-de-sac



A hyper-inflation threatens on the horizon



By Ernst Wolff



[This article published on January 2, 2018, is translated from the German on the Internet, www.infosperber.ch.]



The situation at the beginning of 2018 seems extremely contradictory. The economy grows, the stock market posts all-time records, the unemployment numbers fall and industry shows an optimism not seen for a long time. At the same time, the world congeals under the greatest debt burden of its history, suffers in the greatest social inequality and sees itself exposed to even higher risks than before the 2007/ 2008 crisis.



Where do we really stand now? Can we look calmly to the future or do historic dangers threaten? Is there an economic theory that can answer these questions?



The Economic Theories of the Past Cannot Help Us



These theories cannot help for a simple reason. We live in an exceptional situation that the world has not seen before. The global economic- and financial system has been clinically dead since 2008. It only functions because it is artificially kept alive by the central banks like a patient in the intensive care unit.



Since the near-collapse of 2008, the largest central banks of the world pumped between and trillion into the global financial system and lowered the interests almost seven hundred times. The greatest part of this "cheap" money flowed into financial speculation and ensured a historically unparalleled distortion of the markets.



Assuming stock prices say anything about the profitability of a business is completely over. Big businesses all over the world have used the cheap money to buy back their own stocks and artificially force up prices (4 billion by March 31, 2018, according to The Real World Economic Review).



Imagining costs and interest yields of state bonds say anything about the economic and financial strength of a country belongs to the past. The central banks rescued whole countries from bankruptcy by buying their bonds and generating markets through artificially-created demand where it really did not exist anymore.



The Manipulation is Unparalleled



Central banks intervene directly in the stock markets and ensure that even tottering businesses keep their heads above water and others are treated far above their actual value. For example, the Swiss Central bank (SNB) is the largest shareholder with Apple, Alphabet, Microsoft, Amazon, and Facebook and held US shares in the amount of billion at the end of 2017/2018. Remember, the SNB can create the money with which it buys shares.



All this means we live in a system artificially driven and inflated by money creation and the lowering of interests. But this has fatal side-effects because central banks function according to the same principles as the rest of our economic- and financial system. The money they create must be paid back and is not given away. Thus the global mountain of debts constantly increases.



Fueling inflation is a proven means for relieving the burden of debts. The higher general price level lowers the number of nominal debts in relation to other money values. However, bringing about such inflation requires the methods used since 2008: money creation and the lowering of interests.



For some time, central banks all over the world announced a tightening of their monetary policy after ten years of cheap money because the past policy increased the risks of over-indebtedness and did not bring the desired result. The FED has taken very timid steps in this direction. However, the largest mountain of debts in history stands in the way of a further tightening of monetary policy. The bankruptcy of countless debtors was the consequence of ignoring enormous holes in the treasuries of creditors. The system could be plunged into the next crisis that may be more serious than 2007/2008.



A Hyperinflation at the End



The situation in which we are mired can be described as follows. The central banks have adjusted to a monetary policy that produces some positive phenomena on the surface that cannot be canceled without causing the collapse of the system as a whole.



In other words, the global financial system is like an addict who experiences brief upswing phases again and again because of the drug injections. However, their organs are intensely damaged from time to time and sometime or other – without notice – their functioning breaks down.



No one can predict when this will happen – whether in 2018 or later. Only one thing is certain: the means of manipulation available to central banks are largely exhausted. Only negative interests remain after low- and zero interests – and with that the destruction of classical banking, namely awarding credits. After the flood of newly created money, only the creation of even more money remains – and the way into hyper-inflation.



The only way out could be orderly debt cuts on a large scale. However, politics and economic interest groups are obviously not ready for that.



GROWTH CRITICISM AND REDUCED WORKING HOURS

By Heinz-J. Bontrup



"We produce more and more with fewer and fewer workers. This increased productivity has led to an exorbitant multiplication of wealth on the side of the owners of capital. Only an overdue reduction of working hours with full wage compensation offers a way out of the long-lasting misery of mass unemployment. The de-growth theme (growth-decline post-growth) is a theme more for the entertainment pages than for level-headed realistic economic reflection.



Renouncing on a productivity-driven growth on the background of private and public investments, mass unemployment and precarious labor markets with a marked low-wage sector (despite a legal minimum wage that is now introduced) is more social romanticism and cynicism toward the unemployed, the poor and precarious workers in the country. When an economy does not grow and even shrivels completely irrespective of the economic order, a misery economy inevitably arises as in the case of Greece. Then the environmental conservation myth demanded so rightly and coherently by growth critics does not even have a marginal chance of conversion or introduction at the end."



JACKSON HOLE: CENTRAL BANKS CAUGHT IN A TRAP



The central banks maneuver between the plague and cholera instead of taming the international financial casino at last



By Ernst Wolff



[This article published on August 25, 2017, is translated from the German on the Internet, www.infosperber.ch.]



The international financial elite will meet in Jackson Hole, Wyoming from August 24-26, 2017 for their annual monetary policy conference of the Federal Reserve Bank of Kansas. Under the motto "Promoting a Dynamic World Economy," leading representatives of central banks will discuss the real problems in the financial sector with economists and top managers from all over the world.



Unlike what the motto suggests, the meeting takes place on the background of a world economy dragging along that can no longer keep going despite intensive efforts for ten years. The reason is that the global real economy is bled white by a financial sector whose manipulation has reached a historically unparalleled extent and is ruled above all by the central banks.



Since the 2007 crisis, the mammoth central banks have pumped more than trillion into the system ("creating liquidity") and raised the interests worldwide more than 670 times ("ensuring cheap money"). The cheap money was allocated to stimulate the economy, it is said. However, the lion's share flowed directly into the global financial casino where it drives up stocks and real estate prices to dizzy heights, generates a massive mountain of debts and creates the greatest imbalance ever seen between the real economy and the financial sector.



The Motor of Development: The Central Banks



The opposite happened even though politicians of all shades and colors promised to draw the necessary conclusions after the 2007/2008 financial crisis. The financial sector is regulated less today but the sums are greater and the risks higher than before the near-crash of 2007/2008.



In the meantime, the central banks have become the motor of development. In the first five months of this year, they created and brought into circulation .5 trillion. To that end, they created state and business bonds as new money and acted as big shareholders.



The Bank of Japan is one of the ten most important shareholders while the European Central Bank keeps insolvent states (and their governments) above water. The Swiss National Bank has worldwide partnerships with more than 1500 businesses and 20% in stocks.



Corporations use the cheap money obtained from central banks mainly to buy back their own stocks and force up their prices again (and the bonuses of managers coupled to them) – a mechanism that causes the stock price of a business and its success in the market to have nothing to do with each other.



Two Options That Both Lead to Ruin



That the global printing of money did not lead to an inflation felt in everyday life in the past is because firstly money hardly flowed into the real economy. Secondly, the purchasing power of the majority disappears in many countries because wages stagnate or even fall internationally – on account of the expanded low-wage sector. Therefore, an industry cannot raise prices without reducing the demand and its own profit.



Enormous inflationary bubbles arose on the stock-, bond-, and real estate markets while hardly nay devaluation of money can be felt in everyday life. Moreover, the cheap money seducing to borrowing has produced huge mountains of debts that cannot be reduced in many cases – on account of the stagnating real economy (so-called "rotten credits").



Both problems – the bubbles on the markets and the historic all-time record in debts and rotten credits – set the central bankers of the world before an insoluble problem with only two options:



limiting the printing of money and raising interests again to prevent a further increase of bubbles or even to reduce them

on the other hand, lowering the interests and supplying the money market with additional cheap money to make possible the repayment of credits and preventing the genesis of more rotten credits.

Only Way Out of a Hopeless Situation



The present financial system is in a rather hopeless situation. Either the bubbles will burst or the mountain of debts will collapse. Both variants endanger our social structures. Mass unemployment, the bankruptcy of a huge number of medium-size businesses and drastic cuts in social services and pensions will be the consequences. This could generate considerable political unrest and end the relative peace in Europe.



To prevent such a development, our elected parliaments and governments must dry up the international financial casino and break its disastrous influence in the real economy and politics.



Comments – Gisela Weber, 8/26/2017

The monetary-, fiscal- and financial systems are manmade. We can change them – along with the necessary change of consciousness… Do we want whole countries to be driven to ruin through speculation? Wouldn't limiting this and preventing havoc be more reasonable?

Luzia Osterwalder, 8/27/2018

A rule is a patriarchal construction, not a human right. A people can survive without rule but there can be no rule without the people.

Gisela Weber, 8/27/2018

Unfortunately, we are more and more a pseudo-democracy… Most people run in a hamster wheel and can hardly see beyond it.

Luzia Osterwalder

For a long time, we had base democracies in pre-patriarchal time with the Iroquois (North American Indians) and with matriarchies that still exist (for example, the Mosua in China).

Our democracies are pseudo-democracies. On Election Day, we delegate our self-and joint determination to a few who ultimately decide against our will…

Governments are not interested in granting relief to the people. In my opinion, bringing back decision-making authority to the base is most important…

Report this post as:

Local News

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

Amy Goodman interview on cell phone safety A08 10:29PM

Mesa, Arizona police officer kills unarmed white man A08 9:50PM

Israeli leaders should be prosecuted for war crimes A08 9:48PM

Paraphysique de l'autorité A08 12:11AM

Two Podcasts on fbi corruption A06 10:13PM

Fbi assassins assault & try to kill DAVID ATKINS A06 7:29PM

EPA Head Scott Pruitt: Of Cages And Sirens A06 2:15PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy