Nervous Cypriots hit cash machines 16 March 2013 Lines formed at many ATMs as people scrambled to pull their money out after word that the 10 billion euro (£8.6bn) rescue package Cyprus agreed with its euro area partners and the International Monetary Fund included one-off levy on deposit, an unprecedented step in the eurozone crisis. The levy is expected to raise 5.8 billion euro. European officials said people with less than 100,000 euro in their accounts will have to pay a one-time tax of 6.75%, those owning more money will lose 9.9%. Cypriot bank officials said that depositors can access all their money except the amount set by the levy. But that hardly assuaged people who continued to withdraw cash from ATMs until the machines ran out, unsure what or how much would be taxed. The country's co-operative banks also shut their doors after depositors scurried in hopes of protecting their savings.
There Is No Invisible Hand - Jonathan Schlefer by Jonathan Schlefer | 10:06 AM April 10, 2012 One of the best-kept secrets in economics is that there is no case for the invisible hand. After more than a century trying to prove the opposite, economic theorists investigating the matter finally concluded in the 1970s that there is no reason to believe markets are led, as if by an invisible hand, to an optimal equilibrium — or any equilibrium at all. Of course, the dynamic but turbulent history of capitalism belies any invisible hand. Adam Smith suggested the invisible hand in an otherwise obscure passage in his Inquiry Into the Nature and Causes of the Wealth of Nations in 1776. In the 1870s, academic economists began seriously trying to build “general equilibrium” models to prove the existence of the invisible hand. Leon Walras, of the University of Lausanne in Switzerland, thought he had succeeded in 1874 with his Elements of Pure Economics, but economists concluded that he had fallen far short. An engineering analogy may help.
US Debt Ceiling Visualized: Stacked in $100 dollar bills @ $16.394 Trillion Dollars $122,100,000,000,000. - US unfunded liabilities by Dec 31, 2012. Abovet you can see the pillar of cold hard $100 bills that dwarfs the WTC & Empire State Building - both at one point world's tallest buildings. If you look carefully you can see the Statue of Liberty. The 122.1 Trillion dollar super-skyscraper wall is the amount of money the U.S. Government knows it does not have to fully fund the Medicare, Medicare Prescription Drug Program, Social Security, Military and civil servant pensions. The unfunded liability is calculated on current tax and funding inputs, and future demographic shifts in US Population. Note: On the above 122.1T image the size of the bases of the money stacks are $10 billion, and 400 stories @ $4 trillion "It is incumbent on every generation to pay its own debts as it goes. "This is when you need to remember that when a nation's economy collapses, the wealth of the nation doesn't disappear, it only changes hands." Everyone needs to see this.
Bagsiden: ’Mere kul på’ Klodens klima kokser. Det strømmer ind med videnskabelige advarsler. Det er her og nu, udledningerne af drivhusgasser skal bremses. Men ha, ha, det vrøvl vil vi da blæse på. Nu har USA’s højreekstremister fået dansk følge. I teksten hedder det: »Angsten for de såkaldte klimaforandringer er nærmest blevet en religion, der ikke kan eller må kritiseres, fordi den regnes for et fastslået faktum. Skatteborgerpenge Man gætter nok ikke galt, hvis man antager, at pengene til DFU’s dyre annonce til syvende og sidst er hentet i skatteborgernes lommer. Ved en freud’sk fejlskrivning hedder det i DFU’s triumferende brev om kampagnen: »Igennem flere år har vi været eksempler på skræmmekampagner, der har haft til hensigt at føre klapjagt på forskning og initiativer, der har ønsket en fair og konstruktiv debat Så sandt som det er skrevet.
Can the Internet Replace Big Banks? Douglas Rushkoff, a media theorist, author, and documentarian. The ideas in this piece are built on the arguments of his new book, Present Shock: When Everything Happens Now. We've seen digital technology disintermediate everything from record companies to university curriculum. Yet banking has remained rather immune to all this disruption. Sure, ATMs and online banking may threaten the bank teller's union, but central banking's monopoly over money has hardly budged. However, the rapidly changing digital economy is about to give banks a run for their money. In short, banks can continue to write loans to their communities, but only if they also help these communities invest in themselves, as well. For centuries, banks have enjoyed the exclusive privilege to put money into the world. In order to preserve their own wealth, the aristocracy made local currencies illegal and forced everyone to borrow their money at interest. So what are banks to do? Image via iStock, MHJ
Robert Brenner: A Marxist explanation for the current capitalist economic crisis Robert Brenner. Marxist economist Robert Brenner was interviewed by Seongjin Jeong for Hankyoreh, one of South Korea’s leading daily newspapers. The interview was published on January 22, 2009. Seongjin Jeong: Most media and analysts label the current crisis as a ``financial crisis''. Robert Brenner: It's understandable that analysts of the crisis have made the meltdown in banking and the securities markets their point of departure. This could not be more misleading. How would you explain the long-term weakening of the real economy since 1973, what you call in your work ``the long downturn’’? What mainly accounts for it is a deep, and lasting, decline of the rate of return on capital investment since the end of the 1960s. What happened was that one after another new manufacturing powers entered the world market --Germany and Japan, the northeast Asian newly indistrialising countries (NICs), the South East Asian ``Tigers'' and, finally, the Chinese leviathan. This is a complex issue.
Revealed – the capitalist network that runs the world PLoS One By Andy Coghlan and Debora MacKenzie AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy. The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (see photo). “Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. The Zurich team can. The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). 1. (Data: PLoS One)
Krisen og den udeblevne systemkritik II Kære Per Bilde, Niels Finn Christiansen, Bent Moos, Svend Mortensen, Jørgen Lindgaard Pedersen, Niels Chr. Sidenius, Vibeke Sperling og Leif Søndergaard. Tak for kronikken d. 11. april, som reagerer og kommenterer min pamflet Krisen og den udeblevne systemkritik. Formålet med den var kort og letlæseligt at bruge den aktuelle krise til at vise, at det kapitalistiske system er selvdestruktivt. Det nødvendiggør nogle forenklinger, men legitimerer selvsagt ikke grundlæggende fejl i ’analysen’. I anerkender, at mit motiv for at ’frikende’ politikerne, erhvervslivet og bankerne for krisen er at fokusere på kapitalismen som system. I nævner også politikernes ansvar for »den husejervenlige skattepolitik«. Som en mønt på højkant Bankernes uansvarlighed med hensyn til boliglån var ganske vist den umiddelbare årsag til ’boblen’. Denne iagttagelse er ikke særlig original. I har ret i, at ikke alle ubalancer er selvforstærkende, så dér burde jeg måske have taget et forbehold. Defaistisk hjørne
The Biggest Price-Fixing Scandal Ever | Politics News Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything. You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. That was bad enough, but now Libor may have a twin brother. The Scam Wall Street Learned From the Mafia Why? The bad news didn't stop with swaps and interest rates. "You name it," says Frenk.
LIVE from the NYPL & The Aspen Institute Present: Capitalism and the Future What will the American economic system look like in the months and years ahead? Who are the innovators currently shaping the future? And what will be the role of business in that future? President of the Aspen Institute, Walter Isaacson invites Niall Ferguson, MA, D.Phil., Laurence A. About Niall Ferguson Niall Ferguson is Laurence A. About Walter Isaacson Walter Isaacson is the President and CEO of the Aspen Institute, a nonpartisan educational and policy studies institute based in Washington, D.C. About Indra Nooyi Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo, which has the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. About Eric Schmidt Since joining Google in 2001, Eric Schmidt has helped grow the company from a Silicon Valley startup to a global enterprise.
On The Trail Of Dubai's Stolen Gold: A Robbed Client Breaks The Silence, And A Fascinating Detail Emerges On Christmas Day, 2015, we told our readers the fascinating tale about the Turkish-Iranian gold smuggling ring - perhaps the biggest and most brazen in history, one which lasted for years, which saw billions in gold transported out of Turkey and into Iran to allow Tehran to circumvent the western financial sanctions using gold as a medium for bater, and which was all made possible thanks to the tiny Emirate of Dubai. What made this particular instance of gold smuggling especially memorable is that it reached to the very political top in both Turkey, and Iran, and Dubai. Here, for those who missed it the first time, is the letter that Gold.A.E.'s stunned clients received in late December: Dear Client A group of minority shareholders of GOLD HOLDING suspected that there were questionable financial transactions being undertaken in Gold AE DMCC ("the Company"). But was Gold Holding involved in the smuggling of billions in gold out of Turkey and into Iran?
Bog for bog: Finanskrisen skyldtes ikke grådighed Der er jo ingen, der tror på, at grådigheden opstod i 00’erne. Den har altid været der. Finanskrisen skyldes nærmere, at man lidt efter lidt havde fjernet den kontrol, man klogeligt oprettede efter krisen i 30’erne, siger professor i økonomi Christen Sørensen. Han var en af de få, der forsøgte at advare imod en forestående krise, før markedet krakkede i 2008. Her anbefaler han fem bøger, der kan hjælpe os til at forstå finanskrisen. 1. Du snyder os lidt på konceptet, når du fremhæver en rapport i stedet for en bog. »Ja, det gør jeg, fordi det er den mest den mest autoritative og den mest grundige rapport om baggrunden for finanskrisen. Undersøgelseskommissionen bag rapporten havde fået til opgave at finde årsagerne til krisen – giver de en analyse af, hvorfor man havde dereguleret den finansielle sektor? »I den tidligere nationalbankdirektør Alan Greenspan havde det frie marked en person, der tillod alt. Hvem har ellers ansvar for finanskrisen i USA? »Nej, det kan man ikke sige. 2. 3. 4.
Germany's Bundesbank reveals plan to bring gold reserves home | Europe FRANKFURT— Germany’s Bundesbank plans to bring home some of its gold reserves stored in the United States’ and French central banks, bowing to government pressure to unwind a Cold War-era ploy that secured the national treasure. Germany amassed gold reserves in the post-war era thanks to rapid economic expansion that saw growing exports to the United States, where its dollar claims were turned into gold under the Bretton Woods agreement that Germany joined in 1952. As the Cold War set in, Germany kept its gold reserves put, keeping them out of reach of the Soviet empire. But government officials have grown uneasy about the storage set-up and have called for the Bundesbank to inspect the bars. The Bundesbank now wants to change the arrangement too, even though it has said it does not see a need to count the bars or check their gold content itself and considers written assurances from the other central banks as sufficient. "To hold gold as a central bank creates confidence," Mr Thiele said.
From crisis to crisis: can capitalism survive? Part I: Can Capitalism Survive? Part II: Details Proliferate, Structure Abides Can capitalism survive? “No,” argued two of the system’s most astute observers, “it cannot.” Schumpeter wrote in the 1940s, when the specter of communism was still haunting Europe, but in today’s climate of financial meltdown the idea that capitalism is destroying itself has once again gained traction outside of traditionally socialist circles. A growing sense of uncertainty and fear about the future is certainly part of this . For both Marx and Schumpeter, systemic risk is at the very heart of the system. David Harvey makes a similar argument in . Sometimes the wages are too high and sometimes they are simply too low to sustain accumulation. The Keynesian “solution”, however, introduced a new set of barriers. It is fascinating to observe how well-intentioned “enlightened” capitalists like Joseph Stiglitz and Paul Krugman have responded to this new crisis of underconsumption.