Trillion euro bank plan for eurozone

[webfact]

ECB unleashes its most aggressive effort to revive economy
DAVID McHUGH, AP Business Writer

FRANKFURT, Germany (AP) — Europe's ailing economy will get a major dose of stimulus from the European Central Bank — a bond buying program designed to make loans and exports cheaper so companies can hire and expand.

Starting in March, the ECB will buy 60 billion euros' worth of government and corporate bonds each month at least through September 2016. The 1.1 trillion euro program was an emphatic signal of the ECB's willingness to do all it can to rejuvenate the economy shared by the 19-nation euro currency alliance.

ECB President Mario Draghi pledged Thursday to extend the bond buying if needed until the bank saw a significant upturn in the eurozone's excessively low inflation, which threatens to become a downward spiral.

Stocks rallied in Europe and the United States after the ECB's announcement, with the Dow Jones industrial average jumping 259 points, or 1.5 percent. The euro's value, meanwhile, plunged nearly 2 percent against the dollar to its lowest level in 11 years in anticipation that the ECB's bond purchases will drive down the currency. A lower-valued euro would make European exports more affordable overseas.

The ECB's purchases will flood the economy with money that the central bank will create — a power it wields as the euro's legal issuer. Its chief mandate is to maintain price stability. It's fallen well short of its goal of 2 percent annual inflation, considered consistent with a healthy economy. The current rate is minus 0.2 percent.

Fears have spread that the eurozone could face chronic falling prices, or deflation. Though low or falling inflation is often welcomed by shoppers, it reflects sluggish demand and can paralyze an already weak economy — a problem that has long afflicted Japan, the world's third-largest economy.

The eurozone is still working off a crisis over excessive government debt in countries like Greece, Portugal and Ireland. The alliance's economy has lagged even as the United States and Britain have recovered more robustly from the financial crisis and Great Recession. Unemployment is 11.5 percent across the currency union, and 26 percent in Greece. In the United States, by contrast, the unemployment rate is 5.6 percent.

Earlier Thursday, the ECB kept its main interest rate unchanged at a record low 0.05 percent.

There's no guarantee that the ECB's bond buying can succeed without further action by national governments in the currency union. Skeptics have suggested that the bond buying has been robbed of some of its potential effectiveness through delay and that Europe's problems lie beyond the reach of monetary policy.

"We shouldn't get carried away with the scale," said Luke Bartholomew, investment manager at Aberdeen Asset Management. "It may boost inflation expectations at the margin, but will probably only have a small positive effect on Europe's real economy."

"A weaker euro should help exports a little, but it won't suddenly make European economies much more competitive. That urgently requires structural reforms, which European leaders seem unwilling to push through. "

In Davos, Switzerland, German Chancellor Angela Merkel said before the announcement that "whatever decision the ECB makes, it must not distract from the fact that the actual impulses for growth from sensible conditions must be created, and can be created, by politicians."

The ECB acted after months of excessively low inflation in the eurozone had discouraged borrowing and spending and kept the economy at risk of recession. The fate of the eurozone is vital for the global economy in part because Europe is a major trade partner for the United States, Britain, Eastern Europe, and Asia. And European officials have warned that stagnation must end if voters are to maintain their support for the shared currency.

The U.S. Federal Reserve launched three rounds of bond purchases that were credited with helping jump-start the U.S. recovery. The Bank of England and the Bank of Japan have also done bond purchases.

Draghi and the ECB governing council made a key concession to critics of massive government bond purchases: They said the risk of any losses would stay with national central banks for 80 percent of the bonds bought.

Draghi has faced opposition from two German members on the governing council. German Bundesbank head Jens Weidmann had argued that bond purchases could stick German taxpayers with losses in case of default. And he complained that the new stimulus would take pressure off governments, such as those of France and Italy, to ease regulations on hiring and firing and make their economies more business- and growth-friendly.

In Davos, Pier Carlo Padoan, Italy's minister of economy and finance, said of the ECB's program: "Families and companies that are now trying to reduce their debts can have more confidence and spend more. Companies can invest more."

Draghi cautioned that it would be "a big mistake" for euro countries to view the ECB's bond-buying program as a rationale to increase government spending.

"That would undermine confidence," he said.

Economists note that government bond yields have already fallen substantially since the depths of the eurozone's debt crisis in 2012. That means it will be hard to drive bond-market borrowing costs down much more. Banks — the main source of credit for eurozone companies — will get more cash. But any economic pickup depends on whether businesses decide to further borrow and expand.

-- (c) Associated Press 2015-01-23

[NeverSure]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

[cigar7]

I can see the Euro going down to 30-35 baht.

[alant]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

This is a joke yes?

It must as I recall days of more than 70 thb to the £ sterling now it doesnt even get you 50 thb. so I for 1 do not think the British fiscal policy warrants praise.

A joke yes?

Edited January 23, 2015 by alant

[Shiver]

The trouble with trying to get out of deflation is that it's controlled by a lever whose pivot point is near to one side rather than central, so you don't go gently from deflation to mild inflation, it tends to overshoot massively into hyper-inflation, and oops, end of yet another currency.

Edited January 23, 2015 by Shiver

[Baerboxer]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

This is a joke yes?

It must as I recall days of more than 70 thb to the £ sterling now it doesnt even get you 50 thb. so I for 1 do not think the British fiscal policy warrants praise.

A joke yes?

This post is about the Euro not British fiscal policy. Since you brought it up.

What was the Euro rate when the pound was 70 ThB for 1?

How is the Euro doing now and which way is it heading?

The biggest joke was to think the Euro could work without a fully federal Europe. The poor Germans must be pissed at have to keep bailing out lazy, mismanaged, Southern Europeans states who won't change.

Edited January 23, 2015 by Baerboxer

[Zumteufel]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

(...)

Unfortunately, (some?) other currencies in the region follows the Euro's path. SEK and DKK, for example. I mostIy get paid in the two latter. Unfortunately.

[rickirs]

"Europe's ailing economy will get a major dose of stimulus from the European Central Bank — a bond buying program designed to make loans and exports cheaper so companies can hire and expand."

Compare EU's plan for economic growth to Thailand's plans:

- Borrow billions from the Chinese

- Deny government stimulus is needed (NCPO)

- Initiate more Price and Profit controls

- Encourage more household debt

- Initiate populist subsidies and public "gifts"
- Insist that neighboring countries get financial aid instead of Thailand

- Vow a strong economic performance

[shawn82]

And here we go again. For example Swedish krona have lost almost 40% against the Baht in 6 month. Why? Because the government have printed 100% more money in the last 8 years without telling the people.

ECB does everything wrong.

-0.2% inflation. Anyone living in EU can tell you: nothing is cheaper. How can inflation decrease while housing for example are at record level?

We really need a French revolution and take care of the 1%ers..

1930-1970 No economic crash. Then 1976, 81. 91, 2001, 2008.
Why? Because money lost it value and banks gained the ability to lend out something that does not exist and get interest for in. Best business idea ever! There are even a legal case in Sweden about this.
Fact: When bank lend you money: they don't have that money. In Sweden for example banks are required to have 0% by law. In US its 8-10%. If I for example lend 100 dollars in US, the bank only need to have 10dollars. 90 dollars created that does not exist. And somehow they get interest on it.

Another absurd thing is that banks threat checking accounts as assets. So when I get my 100THB saliry: According to the bank THEY have 100THB and therefore they can lend out 1000 that does not exist.

This is exactly what happens every 8-10 years now. Still today most people don't understand what happened in 2008.

2008:
You buy a house. The bank value it at 100 dollars. They can therefore lend out 80dollars. (and again: the money they lend out: they only have 10% of it. The rest is air)

The next day the bank calls you and say: Your house is worth 50 dollars. We can therefore only lend you 40 dollars. You have to either foreclose or pay the difference in cash.

And when we talk hundred of thousands of dollars: People dont have that kind of money. The absurd thing is that its the bank that decides what value the house have. Even if there is a buyer who wants to pay the original price: the buyer cant get a loan for that price.

Suddenly the bank have a "bad loan". Officially they have "lost" 50 dollars and have a house. The loss is tax deductible. The government bailed out the banks. A couple of years later: The house is worth 100 dollar and we the bank can give a loan to it.

This is how the biggest wealth transfer in history was done. Again and again. And the winners are always the banks.

Todays dollar: Only 3% of the total amount of money are coins and bills. The rest is "nothing". Stuff banks have created and get interest for.

Since the banks needs to have cash to pay out to people who wants cash: If the customers want 3.000001% of all cash = the system crashes like 2008. This is the reason why they want all to pay with card. Every western countries goal is to remove all money from the society to protect this insane system,

I dont know how it is in other countries. In Sweden: banks dont have cash anymore. I sold my house last year. Its impossible to get that money in cash. Legally I can get about 1500 dollar/week. All because the banks are protected. If the people have to much cash the system crash.

This is why Bitcoin is such a huge treat to governments and banks.
Banks cant lend out non existant bitcoins. Governments cant print bitcoins. Thats why they campaign against it all the time. Most security hacks against bitcoins are probably done by governments. (or more likley: MT Gox and the Silkroad owner. They have the same ethnic background. And if you check the banks 2008: same ethnic background. Just a fact).

Take Thailand:
One of the main reason why housing is "cheap" here is because people cant lend 80-90% of the housing price.

The whole western economy is built on this insane hyper economy.

Every company is recommended to have 70% debt. I buy shares in these AAA companies. Automaticly I am allowed to lend 90% of that chare price and so on and so on... They lend out far far more than the original value since this is just a money transfer.

Today the 1% own more than 50% of ALL THE WORLDS assets.

In Sweden: 115 years ago: State, aristocrats, church and farmers had 90% of the wealth.

Today its the 0.7% of the population that owns over 75% of all assets. This biggest heist/money transfer have gone extremely fast.

And yes. Its a specific inner circle that always have the money/wealth in western countries. The control media. Invented Political Correctness. "Rasism" and so on. Everything from the same Frankfurt school (just read the wiki).

This is why the non-western world like Thai for example have a huge advantage over western countries. There are no Political correctness in Thailand. My freedom of speech is much greater here than in Sweden where they lock people up just for example pointing to academic facts. I cant even say what ethnic group that owns 90% of Swedish media. Its a fact who own it, but legally I cant say it without going to jail. "western freedom".

Only solution is a French revolution and simply take back all assets by the 1%. Would solve all dept problems and so on.

Then move to bitcoin or some currency that are not controlled by greedy politicians or bankers that can charge interest for something that does not exist.

There will be an economic collapse between 2016-2018.

It will start in the USA 2016 because of tax hikes/less money = the banks starts again with this cycle of stealing money.

(and above is a hint why most westerners "hate" muslims. They dont have interest. Everything in western media that you read about muslims: who owns that media. What are their agena? Think and you see a funny pattern. But most people just want to live in their dreamworld. I personally am a refugee in Thailand fleeing a corrupt government in Sweden that have killed of 30% of the ethnic swedes in just 30years. Its ok. Its just evil whiteys)

[wolf5370]

And here we go again. For example Swedish krona have lost almost 40% against the Baht in 6 month. Why? Because the government have printed 100% more money in the last 8 years without telling the people.

ECB does everything wrong.

-0.2% inflation. Anyone living in EU can tell you: nothing is cheaper. How can inflation decrease while housing for example are at record level?

We really need a French revolution and take care of the 1%ers..

1930-1970 No economic crash. Then 1976, 81. 91, 2001, 2008.

Why? Because money lost it value and banks gained the ability to lend out something that does not exist and get interest for in. Best business idea ever! There are even a legal case in Sweden about this.

Fact: When bank lend you money: they don't have that money. In Sweden for example banks are required to have 0% by law. In US its 8-10%. If I for example lend 100 dollars in US, the bank only need to have 10dollars. 90 dollars created that does not exist. And somehow they get interest on it.

Another absurd thing is that banks threat checking accounts as assets. So when I get my 100THB saliry: According to the bank THEY have 100THB and therefore they can lend out 1000 that does not exist.

This is exactly what happens every 8-10 years now. Still today most people don't understand what happened in 2008.

2008:

You buy a house. The bank value it at 100 dollars. They can therefore lend out 80dollars. (and again: the money they lend out: they only have 10% of it. The rest is air)

The next day the bank calls you and say: Your house is worth 50 dollars. We can therefore only lend you 40 dollars. You have to either foreclose or pay the difference in cash.

And when we talk hundred of thousands of dollars: People dont have that kind of money. The absurd thing is that its the bank that decides what value the house have. Even if there is a buyer who wants to pay the original price: the buyer cant get a loan for that price.

Suddenly the bank have a "bad loan". Officially they have "lost" 50 dollars and have a house. The loss is tax deductible. The government bailed out the banks. A couple of years later: The house is worth 100 dollar and we the bank can give a loan to it.

This is how the biggest wealth transfer in history was done. Again and again. And the winners are always the banks.

Todays dollar: Only 3% of the total amount of money are coins and bills. The rest is "nothing". Stuff banks have created and get interest for.

Since the banks needs to have cash to pay out to people who wants cash: If the customers want 3.000001% of all cash = the system crashes like 2008. This is the reason why they want all to pay with card. Every western countries goal is to remove all money from the society to protect this insane system,

I dont know how it is in other countries. In Sweden: banks dont have cash anymore. I sold my house last year. Its impossible to get that money in cash. Legally I can get about 1500 dollar/week. All because the banks are protected. If the people have to much cash the system crash.

This is why Bitcoin is such a huge treat to governments and banks.

Banks cant lend out non existant bitcoins. Governments cant print bitcoins. Thats why they campaign against it all the time. Most security hacks against bitcoins are probably done by governments. (or more likley: MT Gox and the Silkroad owner. They have the same ethnic background. And if you check the banks 2008: same ethnic background. Just a fact).

Take Thailand:

One of the main reason why housing is "cheap" here is because people cant lend 80-90% of the housing price.

The whole western economy is built on this insane hyper economy.

Every company is recommended to have 70% debt. I buy shares in these AAA companies. Automaticly I am allowed to lend 90% of that chare price and so on and so on... They lend out far far more than the original value since this is just a money transfer.

Today the 1% own more than 50% of ALL THE WORLDS assets.

In Sweden: 115 years ago: State, aristocrats, church and farmers had 90% of the wealth.

Today its the 0.7% of the population that owns over 75% of all assets. This biggest heist/money transfer have gone extremely fast.

And yes. Its a specific inner circle that always have the money/wealth in western countries. The control media. Invented Political Correctness. "Rasism" and so on. Everything from the same Frankfurt school (just read the wiki).

This is why the non-western world like Thai for example have a huge advantage over western countries. There are no Political correctness in Thailand. My freedom of speech is much greater here than in Sweden where they lock people up just for example pointing to academic facts. I cant even say what ethnic group that owns 90% of Swedish media. Its a fact who own it, but legally I cant say it without going to jail. "western freedom".

Only solution is a French revolution and simply take back all assets by the 1%. Would solve all dept problems and so on.

Then move to bitcoin or some currency that are not controlled by greedy politicians or bankers that can charge interest for something that does not exist.

There will be an economic collapse between 2016-2018.

It will start in the USA 2016 because of tax hikes/less money = the banks starts again with this cycle of stealing money.

(and above is a hint why most westerners "hate" muslims. They dont have interest. Everything in western media that you read about muslims: who owns that media. What are their agena? Think and you see a funny pattern. But most people just want to live in their dreamworld. I personally am a refugee in Thailand fleeing a corrupt government in Sweden that have killed of 30% of the ethnic swedes in just 30years. Its ok. Its just evil whiteys)

Of course this is not a new concept - just has more recently taken on monster proportions as you describe. The rot started back when coins stopped being worth their value - Lady Jane Gray was executed as a pretender to the throne although she cousin to the king and ushered in because of her religion. The reason why was that she was pushing for the shilling to be worth a shilling, which had changed very recently. Before Tudor times a coin carried its worth in metal - a golden guinea was worth a guinea in gold content - after it was less than half. Today some coins are actually worth more than their face value, which is why they are removed from tender or changed to baser metals. Notes of course have no intrinsic value, only the promise to pay. With notes came the ability to lend money that does not exist.

There are only two ways this ends: A revolution (likely post huge global crash); or technology makes wealth obsolete. Neither likely any time soon as they are controlled with little bubble bursts that still profit the big money and decimate the poor guy on the street.

The other thing in your time scales is that during 30-76 period you mentioned there being no crashes, the world was still reeling from and paying for the Wall Street Crash that caused (with a little help from the French and the Treaty of Versailles) the second world war.

[Mudcrab]

And here we go again. For example Swedish krona have lost almost 40% against the Baht in 6 month. Why? Because the government have printed 100% more money in the last 8 years without telling the people.

ECB does everything wrong.

-0.2% inflation. Anyone living in EU can tell you: nothing is cheaper. How can inflation decrease while housing for example are at record level?

We really need a French revolution and take care of the 1%ers..

1930-1970 No economic crash. Then 1976, 81. 91, 2001, 2008.

Why? Because money lost it value and banks gained the ability to lend out something that does not exist and get interest for in. Best business idea ever! There are even a legal case in Sweden about this.

Fact: When bank lend you money: they don't have that money. In Sweden for example banks are required to have 0% by law. In US its 8-10%. If I for example lend 100 dollars in US, the bank only need to have 10dollars. 90 dollars created that does not exist. And somehow they get interest on it.

Another absurd thing is that banks threat checking accounts as assets. So when I get my 100THB saliry: According to the bank THEY have 100THB and therefore they can lend out 1000 that does not exist.

This is exactly what happens every 8-10 years now. Still today most people don't understand what happened in 2008.

2008:

You buy a house. The bank value it at 100 dollars. They can therefore lend out 80dollars. (and again: the money they lend out: they only have 10% of it. The rest is air)

The next day the bank calls you and say: Your house is worth 50 dollars. We can therefore only lend you 40 dollars. You have to either foreclose or pay the difference in cash.

And when we talk hundred of thousands of dollars: People dont have that kind of money. The absurd thing is that its the bank that decides what value the house have. Even if there is a buyer who wants to pay the original price: the buyer cant get a loan for that price.

Suddenly the bank have a "bad loan". Officially they have "lost" 50 dollars and have a house. The loss is tax deductible. The government bailed out the banks. A couple of years later: The house is worth 100 dollar and we the bank can give a loan to it.

This is how the biggest wealth transfer in history was done. Again and again. And the winners are always the banks.

Todays dollar: Only 3% of the total amount of money are coins and bills. The rest is "nothing". Stuff banks have created and get interest for.

Since the banks needs to have cash to pay out to people who wants cash: If the customers want 3.000001% of all cash = the system crashes like 2008. This is the reason why they want all to pay with card. Every western countries goal is to remove all money from the society to protect this insane system,

I dont know how it is in other countries. In Sweden: banks dont have cash anymore. I sold my house last year. Its impossible to get that money in cash. Legally I can get about 1500 dollar/week. All because the banks are protected. If the people have to much cash the system crash.

This is why Bitcoin is such a huge treat to governments and banks.

Banks cant lend out non existant bitcoins. Governments cant print bitcoins. Thats why they campaign against it all the time. Most security hacks against bitcoins are probably done by governments. (or more likley: MT Gox and the Silkroad owner. They have the same ethnic background. And if you check the banks 2008: same ethnic background. Just a fact).

Take Thailand:

One of the main reason why housing is "cheap" here is because people cant lend 80-90% of the housing price.

The whole western economy is built on this insane hyper economy.

Every company is recommended to have 70% debt. I buy shares in these AAA companies. Automaticly I am allowed to lend 90% of that chare price and so on and so on... They lend out far far more than the original value since this is just a money transfer.

Today the 1% own more than 50% of ALL THE WORLDS assets.

In Sweden: 115 years ago: State, aristocrats, church and farmers had 90% of the wealth.

Today its the 0.7% of the population that owns over 75% of all assets. This biggest heist/money transfer have gone extremely fast.

And yes. Its a specific inner circle that always have the money/wealth in western countries. The control media. Invented Political Correctness. "Rasism" and so on. Everything from the same Frankfurt school (just read the wiki).

This is why the non-western world like Thai for example have a huge advantage over western countries. There are no Political correctness in Thailand. My freedom of speech is much greater here than in Sweden where they lock people up just for example pointing to academic facts. I cant even say what ethnic group that owns 90% of Swedish media. Its a fact who own it, but legally I cant say it without going to jail. "western freedom".

Only solution is a French revolution and simply take back all assets by the 1%. Would solve all dept problems and so on.

Then move to bitcoin or some currency that are not controlled by greedy politicians or bankers that can charge interest for something that does not exist.

There will be an economic collapse between 2016-2018.

It will start in the USA 2016 because of tax hikes/less money = the banks starts again with this cycle of stealing money.

(and above is a hint why most westerners "hate" muslims. They dont have interest. Everything in western media that you read about muslims: who owns that media. What are their agena? Think and you see a funny pattern. But most people just want to live in their dreamworld. I personally am a refugee in Thailand fleeing a corrupt government in Sweden that have killed of 30% of the ethnic swedes in just 30years. Its ok. Its just evil whiteys)

Money will be the least of the Swedes problems in a few years.

Making sure your wife and daughters are covered from head to foot and do not drive cars will be more of an issue.

[Daniel Boon]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

just asking ... what's the difference between the USA doing it (and currently some $US18 trillion in debt) and the EU ?

[Daniel Boon]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

This is a joke yes?

It must as I recall days of more than 70 thb to the £ sterling now it doesnt even get you 50 thb. so I for 1 do not think the British fiscal policy warrants praise.

A joke yes?

short memories ...

[Daniel Boon]

And here we go again. For example Swedish krona have lost almost 40% against the Baht in 6 month. Why? Because the government have printed 100% more money in the last 8 years without telling the people.

ECB does everything wrong.

-0.2% inflation. Anyone living in EU can tell you: nothing is cheaper. How can inflation decrease while housing for example are at record level?

We really need a French revolution and take care of the 1%ers..

1930-1970 No economic crash. Then 1976, 81. 91, 2001, 2008.

Why? Because money lost it value and banks gained the ability to lend out something that does not exist and get interest for in. Best business idea ever! There are even a legal case in Sweden about this.

Fact: When bank lend you money: they don't have that money. In Sweden for example banks are required to have 0% by law. In US its 8-10%. If I for example lend 100 dollars in US, the bank only need to have 10dollars. 90 dollars created that does not exist. And somehow they get interest on it.

Another absurd thing is that banks threat checking accounts as assets. So when I get my 100THB saliry: According to the bank THEY have 100THB and therefore they can lend out 1000 that does not exist.

This is exactly what happens every 8-10 years now. Still today most people don't understand what happened in 2008.

2008:

You buy a house. The bank value it at 100 dollars. They can therefore lend out 80dollars. (and again: the money they lend out: they only have 10% of it. The rest is air)

The next day the bank calls you and say: Your house is worth 50 dollars. We can therefore only lend you 40 dollars. You have to either foreclose or pay the difference in cash.

And when we talk hundred of thousands of dollars: People dont have that kind of money. The absurd thing is that its the bank that decides what value the house have. Even if there is a buyer who wants to pay the original price: the buyer cant get a loan for that price.

Suddenly the bank have a "bad loan". Officially they have "lost" 50 dollars and have a house. The loss is tax deductible. The government bailed out the banks. A couple of years later: The house is worth 100 dollar and we the bank can give a loan to it.

This is how the biggest wealth transfer in history was done. Again and again. And the winners are always the banks.

Todays dollar: Only 3% of the total amount of money are coins and bills. The rest is "nothing". Stuff banks have created and get interest for.

Since the banks needs to have cash to pay out to people who wants cash: If the customers want 3.000001% of all cash = the system crashes like 2008. This is the reason why they want all to pay with card. Every western countries goal is to remove all money from the society to protect this insane system,

I dont know how it is in other countries. In Sweden: banks dont have cash anymore. I sold my house last year. Its impossible to get that money in cash. Legally I can get about 1500 dollar/week. All because the banks are protected. If the people have to much cash the system crash.

This is why Bitcoin is such a huge treat to governments and banks.

Banks cant lend out non existant bitcoins. Governments cant print bitcoins. Thats why they campaign against it all the time. Most security hacks against bitcoins are probably done by governments. (or more likley: MT Gox and the Silkroad owner. They have the same ethnic background. And if you check the banks 2008: same ethnic background. Just a fact).

Take Thailand:

One of the main reason why housing is "cheap" here is because people cant lend 80-90% of the housing price.

The whole western economy is built on this insane hyper economy.

Every company is recommended to have 70% debt. I buy shares in these AAA companies. Automaticly I am allowed to lend 90% of that chare price and so on and so on... They lend out far far more than the original value since this is just a money transfer.

Today the 1% own more than 50% of ALL THE WORLDS assets.

In Sweden: 115 years ago: State, aristocrats, church and farmers had 90% of the wealth.

Today its the 0.7% of the population that owns over 75% of all assets. This biggest heist/money transfer have gone extremely fast.

And yes. Its a specific inner circle that always have the money/wealth in western countries. The control media. Invented Political Correctness. "Rasism" and so on. Everything from the same Frankfurt school (just read the wiki).

This is why the non-western world like Thai for example have a huge advantage over western countries. There are no Political correctness in Thailand. My freedom of speech is much greater here than in Sweden where they lock people up just for example pointing to academic facts. I cant even say what ethnic group that owns 90% of Swedish media. Its a fact who own it, but legally I cant say it without going to jail. "western freedom".

Only solution is a French revolution and simply take back all assets by the 1%. Would solve all dept problems and so on.

Then move to bitcoin or some currency that are not controlled by greedy politicians or bankers that can charge interest for something that does not exist.

There will be an economic collapse between 2016-2018.

It will start in the USA 2016 because of tax hikes/less money = the banks starts again with this cycle of stealing money.

(and above is a hint why most westerners "hate" muslims. They dont have interest. Everything in western media that you read about muslims: who owns that media. What are their agena? Think and you see a funny pattern. But most people just want to live in their dreamworld. I personally am a refugee in Thailand fleeing a corrupt government in Sweden that have killed of 30% of the ethnic swedes in just 30years. Its ok. Its just evil whiteys)

well explained shawn82 ... of course you will get rabid dogs who no everything about nothing and nothing about anything having a go at you, because deep within they know how on the outer they are and (almost religious like) hope that they will be protected by seeing the 'emperor as having clothes' ...

[Thai at Heart]

I feel sorry for people who get paid in Euros. It would be the craps to have your currency deliberately devalued. The UK was smart to decline adopting the Euro.

Why oh why do some countries willingly give up their national sovereignty to some group they have no control over? Why do they release the sovereignty of their national borders to some group?

Yes this could stop the possibility of deflation but if it works, overnight it creates inflation. This hurts people on fixed incomes and people with savings, especially.

I just shake my head.

This is a joke yes?

It must as I recall days of more than 70 thb to the £ sterling now it doesnt even get you 50 thb. so I for 1 do not think the British fiscal policy warrants praise.

A joke yes?

You do realise that Thailand was pulling itself out of its own crisis at that point and since then the problems are in that west.

70 to the GBP was never ever sustainable.