It would be wrong to think of this as a “bank run” – much less as a panic. The depositors were not irrational or falling subject to “the madness of crowds” in withdrawing their money. The banks simply were too selfish…
Regardless of the precise solution, the lesson is clear: pumping new money into the economy without altering power relations will only exacerbate existing inequalities. We made this mistake in 2008 – it’s essential that we don’t make it again.
Global developments in finance and geopolitics are prompting a rethinking of the structure of banking and of the nature of money itself.
It now appears that the grand yearly addition to total human wealth, the global GNP, is no longer growing.
The global deflationary wave we have been tracking since last fall is picking up steam.
As oil prices continue to fall, a strange phenomenon is making its presence felt across Europe: deflation.
Don’t worry. It’s not complicated. I offer a simple explanation for the recent fall in oil prices in just two charts.
In this post I present a retrospective look at my prediction from 2012 published on The Oil Drum (The “Red Queen” series) where I predicted that Light Tight Oil (LTO) extraction from Bakken in North Dakota would not move much above 0.7 Mb/d.
If oil is “just another commodity,” then there shouldn’t be any connection between oil prices, debt levels, interest rates, and total rates of return. But there clearly is a connection.
The Full Employment Act of 1946 declared full employment to be a major goal of U.S. policy.
Quantitative easing (QE) is supposed to stimulate the economy by adding money to the money supply, increasing demand. But so far, it hasn’t been working. Why not? Because as practiced for the last two decades, QE does not actually increase the circulating money supply. It merely cleans up the toxic balance sheets of banks. A real “helicopter drop” that puts money into the pockets of consumers and businesses has not yet been tried. Why not? Another good question . . . .
We are far enough and deep enough into the most heroic monetary and fiscal efforts ever undertaken to finally ask, why aren’t these measures working? Or at least we should be. Oddly, many in DC, on Wall Street, and the Federal Reserve continue to steadfastly refuse to include anything in their approaches and frameworks other than "more of the same."