Greeks Rush the Banks; Lines Form at ATMs; Nearly $1 Billion Withdrawn in Past Week

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Greeks Rush the Banks; Lines Form at ATMs; Nearly $1 Billion Withdrawn in Past Week

Mac Slavo
SHTFPlan.com
Wednesday, May 16, 2012

Without a government for the last eleven days, and amid mainstream discussion of a Euro Zone exit, the Greek people are realizing that the economic and political system as they know it is rapidly descending into chaos.

With massive jobless rates that have forced many into bartering to survive, and facing credit destruction across the entirety of the country that has led to shortages of critical supplies like life saving medicines, those with any money left at national banks are taking the desperate step of withdrawing as much of their savings as they can from a banking system on its last leg.

This is what it looks like when a populace plagued with uncertainty finally loses trust in the credibility of their country’s leadership and financial system.

Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders yesterday, according to a transcript of the meeting posted on the presidency’s website today. Papoulias said he got the information from the head of the Bank of Greece, the central bank, George Provopoulos, according to the transcript.

Via Zero Hedge

Greeks line up at ATM’s across the country to withdraw cash:

As has been said before, Greece is the canary in the coal mine.

The debt has piled up across Europe and the United States. Like the Greeks, Americans will soon hit a breaking point from which there will be no return. When it does finally happen you can be assured that your local ATM’s and banks will be inundated with panicked depositors attempting to take possession of as much of their money as possible.

But once the lines start forming it will be too late. Banks will have no choice but to limit withdrawals and close their doors (even to safe deposit box owners), because they will not have enough cash on hand to meet demand.

The choice is simple: Either prepare now and have physical assets in your possession, or join the crowds and hope the government will come up with a solution to the massive outflows that will ensue when the bank run begins.

Considering the madness we’ve seen when people can’t get their hands on a Black Friday discounted Xbox or flat screen TV, our guess is that any solution the government puts forth to deal with the anger and frustration of people who can’t access their money will involve something like this:

http://www.prisonplanet.com/greeks-rush-the-banks-lines-form-at-atms-nearly-1-billion-withdrawn-in-past-week.html

antikakistocrat's picture
antikakistocrat
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Comments

Greece, like Italy, Spain and all the so called PIIGS countries should go back to their currency. You can't imagine what kind of hammering about would happen if we leave the Euro we receive every minute from mainstream media (Unfortunately here in Italy we don’t have Thom Hartmann). The propaganda, the economic terrorism just to scare and confuse people's mind is extremely strong. People don't understand what's behind this mess. People don't understand what's the difference between a monetary sovereign nation and one who isn't. A sovereign nation that has its debt denominate in its own currency can't default. In the US you have an almost perfect monetary system but the big powers, the GOP etc, are mudding the water around how it should work for people’s benefit, just to confuse people’s mind. When I hear some “big mind” from the right comparing the US to Greece I really think that you should start a new revolution.

I think that following that rhetoric (even Democrats and president Obama think that you will run out of money….) you impose silly constrains on your economic engine. I don’t say that printing is the solution but you should have clearly in mind that a nation with its free floating non-convertible currency cannot default. I think that Warren Mosler (he will be here in Italy tomorrow and Friday) might help to debunk the most common “fraud” out there. If you don’t mind….here is the link to download this fantastic free e-book:

http://moslereconomics.com/

http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf

Send the link to speaker Baynor who wants to restart again the debt ceiling debate again. I think it might be useful to Paul Rayn as well.

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augluc
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Nov. 6, 2010 10:20 am

We need in America a debt free money system with Congressional oversight.

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antikakistocrat
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Quote antikakistocrat:We need in America a debt free money system with Congressional oversight.

1. Glass-Steagall

2. United States National Bank

3. Hamiltonian credit system run from the new U.S.National Bank

4. Immediate projects, funded by the Hamiltonian credit run from the new U.S.National Bank, reenergizing US production industries, modernizing and progressing our country, and providing unlimited great employment for all.

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Karolina
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Nov. 3, 2011 7:45 pm

We all ready have a hamilton style national bank its called the federal reserve. The problem we are having is that we need to have better control over it. We need to close it down and start over the central bank under hamilton was only authorized 20 years at a time and was killed off several times over the years.

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workingman
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Mar. 20, 2012 8:13 am

A banking system with congressional oversight, or congressional control? The Fed already is subject to congressional oversight, and has regular public meetings with the House and Senate. What Herr Doctor Ron Dumbass Paul wants is congressional control. Which, if you love the way the Republicans have obstructed everything in the Senate for the last 3.5 years, just think of what they can do for the banking sector.

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Phaedrus76
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Sep. 14, 2010 8:21 pm

Congress has meetings and they set the policies however they have very little control. When was the last time the fed was audited? Where the records made public? In the audit did they find out where the tarp money went?

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workingman
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Mar. 20, 2012 8:13 am

Well, Greece and other countries could go back to their own currencies. However, the debts are in Euros.

They should probably go back to their own currencies and repudiate the debt. That would, however entail another bankster crises in England, Germany, the Netherlands and the U.S.

Debts that can't be repaid by Greece, Spain, Italy, etc., won't be. Their economies are shrinking from austerity measures, and government revenues are plunging.

The 1% are demanding more from the world's economies than they can provide.

Retired Monk - "Ideology is a disease"

polycarp2
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Jul. 31, 2007 4:01 pm

Though Ron Paul might avoid WW3, he clearly would not benefit our economic situation, IMO.

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Karolina
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Quote polycarp2:The 1% are demanding more from the world's economies than they can provide.

...and so the 1% will be going through bankruptcy reorganization soon enough.

Just like everybody else.

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Karolina
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Quote workingman:We all ready have a hamilton style national bank its called the federal reserve.

Are you aware that the Federal Reserve is a PRIVATE BANK with NOTHING FEDERAL, and NOTHING RESERVED, and has always had foreign ownership?

It was established by the British, its title was chosen to fool the public, and it got the job of controlling all of the creation of our money in 1913 while the Congress was on leave. A handfull of stealthy people deliberately stayed behind to put the bill through after everyone else had left so that no one was in the building to vote "NAY."

President Woodrow Wilson signed it in, years later admitting that he had made a horrible mistake of putting the creation of the United States money into the hands of a different nation.

This new national bank now would be the third one since the first. A good history of US Banking starts on a post titled Origins of Today's Economic Problem.

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Karolina
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Quote Karolina:
Quote workingman:We all ready have a hamilton style national bank its called the federal reserve.

Are you aware that the Federal Reserve is a PRIVATE BANK with NOTHING FEDERAL, and NOTHING RESERVED, and has always had foreign ownership?

It was established by the British, its title was chosen to fool the public, and it got the job of controlling all of the creation of our money in 1913 while the Congress was on leave. A handfull of stealthy people deliberately stayed behind to put the bill through after everyone else had left so that no one was in the building to vote "NAY."

President Woodrow Wilson signed it in, years later admitting that he had made a horrible mistake of putting the creation of the United States money into the hands of a different nation.

This new national bank now would be the third one since the first. A good history of US Banking starts on a post titled Origins of Today's Economic Problem.

Yep And so was hamlitons national bank, it was a private corporation working with the federal gov.

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workingman
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Mar. 20, 2012 8:13 am

Where did the tarp money go? Googled, and it is pretty clear. http://www.nytimes.com/packages/html/national/200904_CREDITCRISIS/recipients.html

http://www.businessweek.com/magazine/content/10_41/b4198029792387.htm

http://money.cnn.com/news/storysupplement/economy/bailouttracker/

That took seconds. But, if spewing out half baked nonsense is your style, go for it. When others point you to facts, read them and learn, or go away.

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Phaedrus76
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Quote workingman:Yep And so was hamlitons national bank, it was a private corporation working with the federal gov.

No it wasn't.

Do you just make up imaginary facts as you go along?

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Karolina
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Quote Karolina:
Quote workingman:Yep And so was hamlitons national bank, it was a private corporation working with the federal gov.

No it wasn't.

Do you just make up imaginary facts as you go along?

Nope i go by what the history books say. Hamilton wanted to fund a private bank with 10 million dollars. 2 million fron the federal government And the rest from stick holders. The federal government did not have 2 million so the new bank had to loan it the money that the federal government would pay back over time.

Wikipedia has a nice artle about this.

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workingman
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Give me a link.

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Karolina
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Quote Phaedrus76:

A banking system with congressional oversight, or congressional control? The Fed already is subject to congressional oversight, and has regular public meetings with the House and Senate. What Herr Doctor Ron Dumbass Paul wants is congressional control. Which, if you love the way the Republicans have obstructed everything in the Senate for the last 3.5 years, just think of what they can do for the banking sector.

Okay what part of these Banking Quotes remains untrue today ?

"A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men."
-Woodrow Wilson, (1856-1924) 28th US President, passed the Federal Reserve Act

"If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon."
-Robert Hemphill, Credit Manager of Federal Reserve Bank, Atlanta, Ga.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
-Henry Ford

"100% of what is collected is absorbed solely by interest on the Federal Debt ... all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government."
-Grace Commission (report submitted to President Ronald Reagan on January 15, 1984)

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
-Alan Greenspan, Chairman, US Federal Reserve Bank

"In the United States today we have in effect two governments ... We have the duly constituted Government ... Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution."
-Congressman Wright Patman

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it."
- Congressman Louis T. McFadden in 1932 (Rep. Pa)

"Every effort has been made by the Fed to conceal its power but the truth is, the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will."
- Congressman Louis T. McFadden

"What is needed here is a return to the Constitution of the United States. We need to have a complete divorce of Bank and State. The old struggle that was fought out here in Jackson's day must be fought over again... The Federal Reserve Act should be repealed and the Federal Reserve Banks, having violated their charters, should be liquidated immediately. Faithless Government officers who have violated their oaths of office should be impeached and brought to trial. Unless this is done by us, I predict that the American people, outraged, robbed, pillaged, insulted, and betrayed as they are in their own land, will rise in their wrath and send a President here who will sweep the money changers out of the temple."
-Louis T. McFadden, (1876-1936) US Congressman (R-PA) (1915-1935)

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs."
-Thomas Jefferson, (1743-1826), US Founding Father, drafted the Declaration of Independence, 3rd US President

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."
-Thomas Jefferson

"History records that the money-changers have used every form of abuse, intrigue, deceit, and violent plans possible to maintain their control over governments by controlling money, and its issuance."
- James Madison

"The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."
-Andrew Jackson, (1767-1845) 7th US President

"Whoever controls the volume of money in any country is absolute master of all industry and commerce."
-James A. Garfield, President of the United States

"Our whole monetary system is dishonest, as it is debt-based... We did not vote for it. It grew upon us gradually but markedly since 1971 when the commodity-based system was abandoned."
-The Earl of Caithness, in a speech to the House of Lords, 1997

"The modern banking system manufactures money out of nothing. The process is perhaps the most astonishing piece of slight of hand ever invented. Banking was conceived in iniquity and born in sin.....Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen, they will create enough money to buy it back again.....Take this great power away from them and all great fortunes like mine will disappear and they ought to disappear, for then this would be a better and happier world to live in.....But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit."
-Sir Josiah Stamp, Director of the Bank of England

"Give me control of a nation's money and I care not who makes the laws."
-Mayer Amschel Rothschild

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antikakistocrat
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Apr. 18, 2012 3:41 pm

Deficit spending is the only way to grow the economy. Not only in difficult times but ALWAYS.

(Federal Deficits = Net Private Savings+ net imports), applies to USA and other nations that have their own currencies. If all deficits are added, the above equation leads to
(cumulative total govt_deficit) = (total national private wealth) = 60 Trillion, approx.
This is proved in
http://pshakkottai.wordpress.com/2012/02/27/national-debt-and-national-wealth-compared/
http://pshakkottai.wordpress.com/2012/03/30/another-proof-of-mmt-4/

In short, (govt debt) is (peoples' anti-debt) and (govt surplus) is (peoples anti-surplus)!
(Govt_debt / GDP) is exactly the same as (peoples' wealth/ GDP) and can be any number not limited to 100%.

The debt is massive, unpayable, and unnessary to pay back and also conceptually nonsensical. It is peoples wealth. It can be paid back by the govt instantaneously by fiat.

This means NO debt ceiling, NO borrowing from itself and NO need for a federal reserve.
The congress has to be educated first, however because it operates as though the gold standard was never abolished. It was abolished in 1971.

If the treasury and fed are one entity and owned by the govt and state banks are encouraged based on the North Dakota model, small privately owned banks and credit unions can continue to serve the needs of public with larger reserve requirements, for example, as India does (25% reserve is common). The interest payments go to the citizens instead of the plutocracy and even though it is not strictly debt-free it would be OK. Basically there would be no banks too big to fail and most would be nationalized. The treasury would fund worthwhile projects directly following the orders of various executive departments on projects chosen for funding by Congress. India does that too. Uncontrolled money growth will end as well as influence of money in bribing Congress.

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pshakkottai
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Jul. 11, 2011 11:27 am

If all banks were government owned, interest rates between 5 and 6 % could finance government in place of taxes.

Interest would be re-spent back into the economy instead of being sucked into financial paper. Figures jive to do that.

Americans seem to refer paying taxes rather than having government run banks based on the model of the state-owned Bank of N. Dakota. Americans have a rather stupid ideology of private banking to maintain....and pay through the nose to maintain it.

Retired Monk - "Ideology is a disease".

..

polycarp2
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Jul. 31, 2007 4:01 pm

pshakkottai you have got to be kidding me?!?!?!?! Deficit spending is the ONLY way to get economic growth!?!?!?!?!?! What planet do you live on?

If that's the case, let's cut all taxes to zero and borrow every dollar the government needs to run. And let's not worry about how much we spend, let the government send everyone a million dollar bill every month. Yipee, everyone will be rich!

They tried that in Germany right after World War 1 and look what happened. Factory workers had to get paid twce a day so that the money they got could actually buy something. You think the dollar is weak rught now? With your plan a sheet of toilet paper would be worth more than a dollar real quick.

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mauiman58
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Quote mauiman58:

pshakkottai you have got to be kidding me?!?!?!?! Deficit spending is the ONLY way to get economic growth!?!?!?!?!?! What planet do you live on?

If that's the case, let's cut all taxes to zero and borrow every dollar the government needs to run. And let's not worry about how much we spend, let the government send everyone a million dollar bill every month. Yipee, everyone will be rich!

They tried that in Germany right after World War 1 and look what happened. Factory workers had to get paid twce a day so that the money they got could actually buy something. You think the dollar is weak rught now? With your plan a sheet of toilet paper would be worth more than a dollar real quick.

Wowi Maui. How in the hell do you think an economy grows? If there's no new money thrown into the mix then the economy can't grow it can only move from point A to point B. So you can either have the private banks lend out paper money with nothing to back it or you can have government give out paper money with nothing to back it. They could eliminate all taxes and the government could borrow everything it needs to run. It's easy to borrow money when you borrow it from yourself.

Taxes aren't for government spending. They just want us to think that's the case. Taxes are for controlling the economy so that a sheet of toilet paper won't be worth more than a dollar real quick.

The higher the National Debt is the more money is working in the American economy. More Debt = Good, Paying Back The Debt = Bad.

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Bush_Wacker
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Jun. 25, 2011 7:53 am

Wow, you really believe that? So why didn't the one trillion dollar stimulus that President Downgrade pushed through in 2009 solve the problem? I suppose you will argue that it wasn't enough?

The problem with that thinking is that your favorite president (George W) had one trillion dollar yearly deficits (or close to it) the last two years he was in office and those were economically the worst two years of his presidency.

Also then you have to be against the "tax the rich" theme that a lot of Dems have because in your mind that would be step in the wrong direction?

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mauiman58
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Jan. 6, 2012 6:45 pm

Nope, I'm not against taxing the rich. It's not for revenue as I've said before but it's about keeping the economy flowing while keeping the fat cats from getting too far ahead of the rest of us. Lowering the taxes on the rich has achieved nothing but widening the gap between the rich and the rest. When the government needs money it can simply borrow it into existence from itself. Sure a small percentage of it goes to pay off the Fed but it's negligible. That 15 trillion dollar National Debt is really just a measure of National Wealth. The problem with George and any other republican is that they create money for the sole purpose of lining the pockets of their friends and future employers. If George would have made sure that a larger portion of that money went into the actual country instead of a few private individuals then there would be no problem.

Americans owe nothing of the National Debt. Americans actually "own" part of the National Debt. The problem is that a select few have been given the priviledge of owning much more of it than most of us.

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Bush_Wacker
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Jun. 25, 2011 7:53 am

OK, I must truely be the "right wing idiot" that everyone claims I am, because I don't follow your logic at all, sorry. We are just going to have to agree to disagree on this point and move on.

However I must point out that the notion that Republicans line the pockets of their followers with governmnet money but the Democrats don't simply is not true. Obama lined the pockets of his supporters with TARP money big time, at least as bad as George W if not worse.

Like I said, ALL politicians use goverment money to help themselves get re elected first and foremost. President Downgrade is a prime example of that. I'm not so sure of George W, but I can understand if you are politically on the left why you might feel that way.

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mauiman58
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Jan. 6, 2012 6:45 pm

RE: More Debt = Good, Paying Back The Debt = Bad.

Except that the govt can pay back the debt in an instant by money creation.

The private sector is the owner of wealth. It gets the interest money from the govt.The govt is in debt to itself!

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pshakkottai
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Jul. 11, 2011 11:27 am

War funding is the least effective stimulus. The same amount spent on education would have done wonders. This game Monopolis explains MMT. Please read it.

Playing Monopolis Monopoly: An inquiry into why we are making ourselves so miserable | | New Economic PerspectivesNew Economic Perspectives

at http://neweconomicperspectives.org/2012/05/playing-monopolis-monopoly-an...

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pshakkottai
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Jul. 11, 2011 11:27 am

You are right.Mitchell suggests the same. I refer to inflation in the other blogs.

–The other reason federal income taxes should be eliminated « #Monetary Sovereignty – Mitchell

at http://rodgermmitchell.wordpress.com/2012/01/01/the-other-reason-federal...

ZIMBABWE! WEIMAR! HOW MMT DEALS WITH HYPERINFLATION HYPERVENTILATORS (PART 1) | PRAGMATIC CAPITALISM

at http://pragcap.com/zimbabwe-weimar-how-mmt-deal-with-hyperinflation-hype...

Wir wollen Brot! | Bill Mitchell – billy blog

at http://bilbo.economicoutlook.net/blog/?p=17006

Zimbabwe for hyperventilators 101 | Bill Mitchell – billy blog

at http://bilbo.economicoutlook.net/blog/?p=3773

Printing money does not cause inflation | Bill Mitchell – billy blog

at http://bilbo.economicoutlook.net/blog/?p=13834

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pshakkottai
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Jul. 11, 2011 11:27 am

Sorry pshakkottai, this "right wing idiot" cannot see how your "solution" nothing but a sure fire prescription for hyperinflation. See Germany after WW 1 to see how that happens. And by the way, I'm sure there are a lot of "left wing idiots" out there who will agree with me that the 1 trillion dollar a year deficits we are running right now are unsustanable. I've heard them say that. Obviously we disagree on the solution to the problem.

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mauiman58
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Jan. 6, 2012 6:45 pm

Sorry pshakkottai, the "right wing idiot" just cannot see how your solution ends up in anything other than hyperinflation, where a square of toilet paper would be worth more than a dollar bill. See Germany right after WW 1 to see how that happens.

Sorry for the duplication

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mauiman58
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Jan. 6, 2012 6:45 pm

I quote the main points from "Wir wollen Brot".

"

The reality is that the hyperinflation episode was not a result of the central bank expansion of its balance sheet (issuing more notes) – that was a symptom rather than a cause. Two points are clear. First, the Treaty of Versailles imposed unrealistic reparation obligations on Germany which forced it to “print money”. Second, the invasion of the Ruhr by Belgo-Franco troops after the war cut German’s export income.

There was a nice summary of this in an article today published in the Melbourne Age (November 23, 2011) – Germany picks the wrong war. The author (Saul Eslake) wrote:

Those hyper-inflations, and similar episodes in other countries occurred not simply or solely because central banks printed enormous quantities of money: but rather because they did so in order to maintain demand in circumstances where, for very different reasons, the supply side of their economies had been massively eroded.

In the case of Weimar Germany, the Reichsbank began printing money in order to pay the reparations imposed by the Treaty of Versailles. And those money-printing operations were dramatically stepped up after January 1923 when, after Germany failed to deliver one hundred thousand telegraph poles to France, 40,000 French and Belgian troops invaded and occupied the Ruhr Valley, Germany’s industrial heartland, dramatically curtailing Germany’s export income (and hence its capacity to earn the foreign exchange needed to pay reparations to France).

There is almost always a major loss of productive capacity involved prior to the inflationary event."

"On Zimbabwe, Eslake wrote that “The hyper-inflation experienced more recently in Robert Mugabe’s Zimbabwe resulted from his government’s printing of huge amounts of currency to pay for the continued activities of his government while simultaneously destroying the productive capacity of Zimbabwe’s agricultural sector by handing it over to his cronies.” Exactly."

"Conclusion

Germans appear to have a very selective historical memory and have constructed certain events (the 1920s) in selective ways to reinforce the conservative neo-liberal ideology.

If the austerity bent they are insisting on continues more idle capacity will appear and they will be further undermine the future growth path of the region.

Ironically, by scaring off productive investment through austerity they actually increase the inflation risk in the future. While in the Weimar years the French and Belgians seized Germany’s industrial heartland and reduced the inflationary-room for growth, the current austerity is killing growth in productive capacity and so for a given nominal spending growth rate, the inflation risk becomes higher.

It is also clear that the austerity approach is not working to achieve their goals – however misguided those goals are. Budget deficits will rise as a result of the automatic stabilisers reacting to further declines in real GDP growth.

The only card they can play is the ECB and they should use the currency-issuing capacity to “fund” deficits in all nations commensurate with the existing private spending gap.

This would fast track domestic growth, increase world trade and would achieve reductions in budget deficits, rising exports, and significant reductions in unemployment.

The bond market traders would flood back into European tenders at low yields and the ECB could gently retire back into its conservative world.

If they don’t do that then as Saul Eslake notes:

Germany’s economic and political generals are re-fighting the wrong wars. In so doing, they are risking the whole European project, and more besides.

They should study the lessons of the two great European wars in the C20th and stop lying about what happened."

From Mitchell I quote "

In Summary

–Inflation is a general increase in the value of goods and services compared to the value of money.
–A little inflation stimulates economic growth.
–Federal deficits are absolutely necessary to grow the economy and to prevent recessions.
–By themselves, deficits could be inflationary. However, today’s world trade helps prevent this, so inflation today is caused not by deficits, but by oil prices.
–The government can control inflation via interest rates.

The Inflation Fear

Water is necessary for life, but if you drink 50 gallons of water in one day, you will die. So for a healthy life, don’t drink too little water, or too much water, but do drink water, especially if you plan to work out. And for sure, don’t stop drinking water.

Money growth is necessary for economic growth. But too much money can cause inflation. So for a healthy economy, don’t create too little money or too much money, but do create money, if you want the economy to grow. And for sure, don’t stop creating money (running deficits).

The goal is to grow the economy as much as possible without too much inflation. The method is to create as many dollars as possible, up to the point where interest rates don’t control inflation. It surprises many people to learn the U.S. never has had an uncontrollable inflation caused by too many dollars."

http://rodgermmitchell.wordpress.com/2012/03/24/monetary-sovereignty-for...


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Time to Rethink the War on Terror

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When Eric Holder eventually steps down as Attorney General, he will leave behind a complicated legacy, some of it tragic, like his decision not to prosecute Wall Street after the financial crisis, and his all-out war on whistleblowers like Edward Snowden.

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