Yanis Varoufakis the Future of the Global Economy The Real Finger!
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UNITED TOGETHER WE CAN NOW! UNIDOS CONTIGO PODEMOS AHORA! Capitalism is dying! The market-economy-system belongs to the history! National Civilization replaces by the Universal Civilization! Now it is time for the radical alternative peaceful human digital socialist system! Currencies replaces by Laws! (See: “The rule of Law” also called Nomocracy!). Party-top ruled socialism has no future and is damned to be an eternal opposition in all the countries of the world! Please join now a peaceful digital democratic org united with a common language and with common laws to own and to rule everything together! Parties and leaders are not needed! Equal power to the people! We all are politicians and presidents with the same human status! Stand up! Please give the common sense a chance! Limit the future! Organize in a Human Universal Digital Democratic Org and ask me to join! We must bury capitalism! Good Luck! Fred Blomson 1937, popular philosopher,@fredblomson, cosmopolitan, world-citizen. Facebook Groups: We Universal Cosmopolitans, We Nomocrats GR, Wir Kosmopoliten DE, Read more www.equalitynow.eu
ΕΝΩΜΕΝΟΙ MAZI ΜΠΟΡΟΥΜΕ ΤΩΡΑ! UNIDOS CONTIGO PODEMOS AΗΟΡΑ! Ο καπιταλισμός πεθαίνει! Το συστημα της οικονομιας της αγορας ανήκει στην ιστορία! Ο Εθνικος Πολιτισμός αντικαθισταται απο το Παγκόσμιο Πολιτισμό! Τώρα είναι η ώρα για το ριζοσπαστικο εναλλακτικο ειρηνικο ανθρώπιστικο ψηφιακο σοσιαλιστικό σύστημα! Τα νομίσματα αντικαθιστάνται με Νόμους! (Βλέπε: ”The rule of Law" που ονομάζεται επίσης Nomocracy!). Ο δεσποτικος κομματικος σοσιαλισμός δεν έχει μέλλον και είναι καταδικασμένος να είναι μια αιώνια αντιπολίτευση σε όλες τις χώρες του κόσμου! Παρακαλείσθε να ενωθούμε τώρα σε μια ειρηνική δημοκρατική ψηφιακή οργανωση δεμένοι με μια κοινή γλώσσα και με κοινούς νόμους να κατέχουν και να δεσποζουν τα πάντα συλλογικα! Κομματα και ηγέτες δεν χρειαζονται! Δεν ειμαστε προβατα! κυριαρχια στο λαό! Είμαστε όλοι ισοτιμοι ανθρωπιστες πολιτικοί και πρόεδροι! Ξεσηκωθειτε ! Παρακαλώ δώστε στην κοινή λογική μια ευκαιρία! Περιορίστε το μέλλον! Οργανώστε αμεσως μια ανθρώπιστικη καθολικη ψηφιακη Δημοκρατική Οργανωση και ζητήστε μου να ενταχθω! Πρεπει να θαψουμε τον καπιταλισμο! Καλή Τύχη! Good Luck! Fred Blomson 1937, popular philosopher,@fredblomson, cosmopolitan, world-citizen. Facebook Groups: We Universal Cosmopolitans, We Nomocrats GR, Wir Kosmopoliten DE, Read more www.equalitynow.eu
FÖRENADE TILLSAMMANS VI KAN NU! UNIDOS CONTIGO PODEMOS AHORA! Kapitalismen är döende! Det marknadsekonomiska-systemet tillhör historien! Den Nationella Civilisationen ersättes av den Universella Civilisationen! Nu är det dags för det radikala alternativa fredliga humana digitala socialistiska systemet! Valutorna ersättes av Lagarna! (Se: "Rule of Law" även kallad Nomocracy!). Partitoppstyrd socialism har ingen framtid och är fördömd att vara en evig opposition i alla länder i världen! Låt oss att förenas i en fredlig digital demokratisk Universell Organisation bundna med ett gemensamt språk och med gemensamma Lagar att äga och att härska tillsammans! Partier och ledare behövs inte! Makten till folket! Vi är alla politiker och presidenter med likvärd mänsklig status! Stå upp! Var god ge det sunda förnuftet en chans! Begränsa framtiden! Organisera er i en Human Universell Digital Demokratisk Organisation och be mig att gå med! Vi måste begrava kapitalismen! Lycka Till! Good Luck! Fred Blomson 1937, popular philosopher,@fredblomson, cosmopolitan, world-citizen. Facebook Groups: We Universal Cosmopolitans, We Nomocrats GR, Wir Kosmopoliten DE, Read more www.equalitynow.eu
VEREINTE ZUSAMMEN KÖNNEN WIR JETZT! UNIDOS CONTIGO PODEMOS AHORA! Der Kapitalismus liegt im Sterben! Das marktwirtschaftliche System gehört zu der Geschichte! Die Nationale Zivilisation wird durch die Universelle Zivilisation ersetzt! Nun ist es Zeit für das radikale alternative friedliche menschliche digitale sozialistische System! Währungen werden durch Gesetze ersetzt! (Siehe: "Rule of Law" auch Nomokratie genannt!). Partei-Top-dirigiert Sozialismus hat keine Zukunft und ist dazu verdammt, eine ewige Opposition in allen Ländern der Welt zu sein! Bitte melden Sie sich jetzt! Parteien und Führer sind nicht erforderlich! Macht dem Volke! Wir alle sind Politiker und Präsidenten mit dem gleichen menschlichen Status! Aufstehen! Bitte dem gesunden Menschenverstand eine Chance geben! Begrenzen Sie die Zukunft! Organisieren Sie sich in einer Menschliche Universale Digitale Demokratische Organisation und fragen mich, um beizutreten! Wir müssen den Kapitalismus begraben! Viel Glück! Good Luck! Fred Blomson 1937, popular philosopher,@fredblomson, cosmopolitan, world-citizen. Facebook Groups: We Universal Cosmopolitans, We Nomocrats GR, Wir Kosmopoliten DE, Read more www.equalitynow.eu -
ya, hes right on.
Worker self directed enterprises -
if a country does not control its own currency then it its a sovereign nation in name only . .wink wink most countries in europe . .and the US too cuz the fed is private
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i like any economist with work boots
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Varoufakis is the shit. And "the real finger" is a genius subtitle to this video. Keep 'em coming Minethis1!
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"So, I'm accussing Germany not of being unfair, but of being STUPID".
That's a GOOD conclusion, a good ENDING phrase!!.
Deal with it
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+Minethis1 Thank you for this lecture by Yannis, Minerhis!This channel only get better ,and better!Great thanks,my friend! I think you blend it so well!A Schiff vs a Karofakis is wonderful! !!It obvious for anyone what happening in world!Great thank my friend! And Yannis is right,on Euro,EMU,etc this is a complicated!I sincerouly hope Greece get out of this mess!Greece dont deserve this! But maybee Yannis,should start with a great Tax on the wealthy in Greece,and deal with the Oligopholy in Greece and after that deal with Troika!I dont think they could not slip away that easy than!
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+Minethis1
The Grexit Proposal
THE GREXIT PROPOSAL
WRITTEN BY FRANK VAN LERVEN ON MARCH 17, 2015.
http://www.positivemoney.org/2015/03/grexit-proposal/
'It is no secret that tensions are high between Greece, Germany, the Troika, and the rest of Eurozone creditors. There is a lot of posturing from both sides, and much has been said about a potential ‘Grexit’ (Greek exit). Indeed, renewed fears of a Grexit have been shaking the financial markets as chairman of the Eurogroup, Jeroen Dijsselbloem, accused Greece of time wasting, while Greece’s Finance Minister Yanis Varoufakis has hinted at the possibility of a referendum regarding Greece’s membership of the Euro. A Grexit might never happen, but it also might be just around the corner.
So what type of monetary framework the Greeks should adopt if they were to part ways with the Eurozone? Here is what we would suggest to Yanis and the rest of the Greek people, should a Grexit come to fruition.
The Problems of Current Monetary Systems
Firstly, if the Greeks were to establish their own currency there would be little sense in basing it on a monetary framework that has failed time and time again in the UK, Europe, Asia, Latin America, and North America. The countries that have permitted the banking sector to create money out of nothing have been subjected to pro-cyclical booms and busts, making millions unemployed and wiping out years of growth. For the following reasons, there is virtually no point in replicating a system that history has shown does not work:
A. The amount of money in the economy is determined by the confidence of private banks
Banks are private sector entities that are naturally profit-maximizers. Yet, they are special in that the vast majority of their profits come from creating money by issuing loans. In periods of relative economic stability, they therefore have an incentive to create vast sums of money, normally for pre-existing assets in the financial and property sectors that do not directly contribute to GDP. The prices of these assets then quickly increase. However, as the majority of lending is used to buy pre-existing assets that do not enhance GDP growth, the majority of incomes do not increase in line with the proportion of debt in the economy. The growth in private sector debt vastly outpaces growth in incomes. The rate of lending and new money creation eventually slows down. Prices start to decrease, but the value of the loans stay the same (i.e. the value of assets decline while the value of liabilities go unchanged) and a crisis unfolds.
This however, is just the tip of the iceberg. Just as banks can create money through lending, money is destroyed when loans are repaid. Thus, when the rate and value of loans being repaid exceeds the rate and value of new loans being extended, the stock of money decreases. When a crisis begins to unfold, banks that have lent too much to people or businesses that can’t repay become concerned about the solvency of their balance sheet. Consequently, they limit their lending to households and businesses, spending is diminished, and prices go down even further, leading to a recession.
Indeed Greece should be all too familiar with this last process, as the Greeks have been forced to deleverage and pay down their debts by the Troika, and run a primary budget surplus 4.5% of GDP per year. According to Steve Keen this effectively means that roughly 4-5% of the Greek money supply (or 4-5% spending power) is being withdrawn from the economy every year.
B. The economy can only be stimulated through encouraging further indebtedness
All of the above implies that the only effective way to get the economy going again and the only way to get businesses and consumers spend more is by encouraging more borrowing. But if excessive levels of debt (specifically private sector borrowing) were the source of the crisis, then is this not the recipe for the next crisis?
C. The revenue generated through money creation (seignorage) is acquired by the banking sector instead of the general public
Central Banks sell the money they issue, in the form of notes and coins, at face value. Yet creating this money only costs a fraction of the face value of the notes and coins. The Central Bank therefore makes a significant profit when creating cash (called seignorage), and then passes this profit on to the treasury.
However, as banks are able to create money in the form of electronic bank deposits, they also acquire a certain amount of seigniorage. The difference is that private banks issue between 95-97% of all money, while only 3-5% of money is created by central banks. Therefore, the vast majority of seignorage profits are captured by private banks and not the general public.
D. Banks are too big to fail
Under the current monetary system, banks are too big to fail. If we did let them fail, the entire payments system would collapse. This is because banks perform three functions, which are currently inherently interconnected: 1) They provide a payments system, allowing money to be transferred as well as received, 2) They offer savings and investment schemes which allow savers and investors to grow their money over the long-term, and 3) They provide loans and mortgages.
The deposits that banks create – i.e. the electronic money that makes up the majority of the total stock of money – are essentially the liabilities (promises to pay) of private banks. Because we use these liabilities (or promises to pay) as our primary form of money, then an irresponsible bank that has issued too many loans of poor quality must be rescued just so that the entire system of payments doesn’t collapse along with it.
The Solution: A Sovereign Money System
A.
In a Sovereign Money system, the power to create money would be removed from the banking sector and transferred to a public body, such as the Bank of Greece. The Bank of Greece would be solely responsible for creating new money, which would then be transferred to the government, who could use it for public spending, tax cuts, or direct transfers to citizens. Current account customer would hold the electronic money issued by the Bank of Greece, rather than holding the liabilities of the private banks.
Banks would still have the important function of matching savers with borrowers, and would act as intermediaries. The difference being that a bank could only lend out money that a saver made available through an investment account.
Such changes would allow the Bank of Greece to make sure that money creation would correspond to growth in the real economy. Money creation would therefore not depend on the willingness of the banking sector to lend. If inflation rose above the targeted level, then the Bank of Greece would slow the rate of money creation. Conversely, if there was deflation, then the Bank of Greece could speed up the rate of money creation. The newly created money would be transferred to the government to spend directly into the veins of the real economy. The Bank of Greece would be able to influence the wider economy much more effectively and directly than under the current system.
B.
Instead of having money created through the process of lending, Sovereign Money would be created free of debt. When new money would be created the Greek Treasury would issue a certain amount of ‘perpetual zero-coupon bonds’. These would be interest free and would never need to be repaid. The Bank of Greece would then purchase these bonds by crediting the Treasury account with new Drachmas.
So that the Bank of Greece’s balance sheet would balance out, the newly created money would appear as a liability of Bank of Greece and an asset of the Greek treasury. The bonds would be an asset to the Bank of Greece and a liability of the Greek treasury.
C.
Giving the Bank of Greece a monopoly on issuing all new currency would mean that new money could be created even while businesses and households are paying down their existing loans. No one would have to take on more debt for there to be an increase in spending in the economy. The supplementary spending by the Greek government would counter any reduction in spending caused by the private sector trying to pay down its debts. It would permit debt reduction without increasing risks of a future crisis.
D.
Allowing the Bank of Greece to have a monopoly on all new money creation, would mean that all the profits from creating electronic money and bank notes would go to the Greek government. With 95-97% of current money created by banks, transferring this prerogative to the Bank of Greece would increase public revenues massively, allowing for more public spending or the repayment of public debt.
E.
A separation of investment accounts and current accounts would mean that the payments system would not be jeopardized when a bank fails. Instead of having current accounts with money that is composed of uncertain promises to pay issued by banks, such account would hold risk-free and debt-free money issued by the state. If the customer’s bank were to fail, the money in the current account would still be safe and the customer could still access it and spend it. Customers that made their money available for lending in an investment account, would need to wait while the bank was liquidated in order to get their investment back. Payments could only be made via a current account and not an investment account. Accordingly, it would not be necessary to bail out an irresponsible bank in order to protect the payment system.
Ultimately, Greece could have a much brighter future ahead, with money creation under democratic control. The Bank of Greece would have more direct and better means of influencing the economy when necessary, not to mention a sounder and less complex banking system.
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