Even though there is an exponential rise of the monetary over the
past 5 years, I don't think we have sufficient warning over what it could
mean. The monetary base forms the basis for fractional reserve lending. If the
monetary base rises by, say, 300%, that rise can be multiplied by that
fractional reserve ratio, let's say 10:1 (although it's currently much higher
than that, so this is very conservative)...So, monetary base was in total £10,
total lending could be £90
- this is the start point of 5 years ago. Today
& for the next few years, with a tripling of monetary base in an economy
not much larger in terms of actual goods & services, the banks can lend £270
- that money can be spent into the economy of the same size,and that £270 is
chasing the same physical amount of goods & services. What happens to
prices? Theoretically, they can triple, given the same fractional reserve
requirement.
Another aspect of inflation, outside the 'science' of economics, is the
psychological aspect - that of loss of faith in the value of money by the
population at large.
Many thought this was the real reason Weimar Germany
suffered hyperinflation - people lost faith in money, so charged higher prices
(from selling their goods or labour) & spent that money as quickly as
possible (money velocity increased), to retain some value in real goods. The
German central bank merely kept pace with demand, subsequently, for that demand
in notes & coins - they couldn't - so they simply printed larger
denominations - which further undermined faith in paper money & so on.
I say that, 'smart money' will see this coming & get into
real assets - though I doubt the ordinary punter will be able to do this at that
juncture . I would suggest we (the 99%) start doing this now.
6 comments:
Statistics from Germany's employment agency show that at the top end German workers' wages rose by 25% between 1999 and 2010 while salaries in the lowest fifth rose by a mere 7.5%, when inflation was 18%. That has led to what economists refer to as internal devaluation, significantly reducing their purchasing power and doing damage to the German economy.
In a statement on Thursday (29 August), the ECB revealed that 35 percent of management positions and 28 percent of senior posts would be held by women by 2020. The current share of women in middle management positions at present is 17%, with women currently holding 14% of senior management positions. The ECB said that it would also draw up its own gender diversity action plan.
The move comes less than a year after the Frankfurt-based bank found itself at the centre of a gender row after the European Parliament opposed the appointment of Yves Mersch, charman of Luxembourg's central bank, to its executive board, after insisting that EU finance ministers should have considered a female candidate for the post.
Sharon Bowles, who chairs the Parliament's influential economic and monetary affairs committee, wrote to Eurogroup leader Jean-Claude Juncker urging him to consider a female candidate to replace the ECB's Spanish economist Gonzalo Paramo.
Despite having the support of the centre-right EPP, parliament's largest political group, Mersch was narrowly rejected by 325 votes to 300 with 49 abstentions. Deputies said their negative opinion on Mersch was solely because of gender balance.
However, ministers ignored the vote and confirmed Mersch's appointment in November 2012.
The six members of the ECB's executive board have all been male since Austrian central banker Gertrude Tumpel Gugerell stood down in May 2011. Meanwhile, none of the 23 members of the ECB's governing council,, which include the central bank governors of the 17 eurozone countries, are women.
MEPs and ministers are also currently considering a bill proposed by Viviane Reding, the bloc's justice and civil liberties commissioner, aimed at forcing publicly-listed firms in the EU to have at least 40 percent of women in non-executive posts on their boards by 2020.
For her part, Bowles reacted to the ECB decision on Thursday by saying it is "too little too late."
"We are still faced with another generation of men dominating the top position in all the central banks," she added.
Corruption is the abuse of power by a public official for private gain or any organized, interdependent system in which part of the system is either not performing duties it was originally intended to, or performing them in an improper way, to the detriment of the system’s original purpose. The abuse of public offices for private gain is paradigmatic of corruption.
http://www.injusticexposed.org/
This film explores the evolution of propaganda and public relations in the United States, with an emphasis on the “elitist theory of democracy” and the relationship between war, propaganda and class.
Corruption is the abuse of power by a public official for private gain or any organized, interdependent system in which part of the system is either not performing duties it was originally intended to, or performing them in an improper way, to the detriment of the system’s original purpose. The abuse of public offices for private gain is paradigmatic of corruption.
http://www.injusticexposed.org/
This film explores the evolution of propaganda and public relations in the United States, with an emphasis on the “elitist theory of democracy” and the relationship between war, propaganda and class.
Il 22 settembre la Germania va alle urne per il rinnovo del Bundestag, il parlamento federale tedesco. Dal voto uscirà anche il nuovo Cancelliere.
Mai come questa volta è un voto che riguarda il futuro non solo dei tedeschi, ma anche di tutto il resto d'Europa. Per questo La Stampa lancia un sondaggio insieme ai cinque giornali partner del progetto "Europa": Le Monde (Francia), The Guardian (Gran Bretagna), El País (Spagna), Süddeutsche Zeitung (Germania) e Gazeta Wyborcza (Polonia).
Diteci cosa pensate della Germania, in sei domande/risposte. I risultati di questo giro d'orizzonte saranno pubblicati dai sei giornali che partecipano al progetto.
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