Business News USA

Business News USA

However, hello! The world economy, as you heard, is recovering after the crisis. However, not everything is in order in the state of Denmark: Spain, Portugal, Ireland, Italy – you’ll be amazed! – Can not get out of debt. But Greece simply collapses.

Single European currency reeling, and Mr. Bernanke – Federal Reserve – and did not dare to refuse anti-crisis rate of zero. That is, the printing of cheap dollars.

Greece’s public debt is unfortunate is 110% of GDP. When that is considered a critical excess of 60%. It is worth noting that at present, this level exceeded all eurozone countries, even considered the most stable of Germany and France.

Italy’s sovereign debt exceeds 115% of GDP. Outside the euro area of greatest concern is the United Kingdom, and especially Japan, whose debt is approaching 200%. Incidentally, for Russia this figure is below 7%.

In this case, it should be noted that the state debt load key economies of the world the U.S. is virtually the Greek and the ratio of debt to GDP and the level of budget deficit.

What is the difference between the Americans from the Greeks? The fact that Americans can print money and make debts, and the Greeks – no. True, the debt will still have to maintain – that the Greek, that American. And when the debt is such that it can not serve?

Leonid Waldman, Russian and American economists: “When the accumulated debts of this size – the front stagnation ahead necessarily fall in the rate of growth of gross national product. And in fact, the only purpose to which the state should aim for – it seeks to devalue the debt. And to do that, it appears not so easy. Here, Bernanke has not yet been able to do it. Moreover, he naprudil insane amount of money. ”

That is, the choice is simple: either default or inflation. More precisely, the Greeks, then there is no choice. And the U.S. has a choice: they will naturally choose inflation. Bernanke chooses inflation. However, inflation does not pick him. Where is she, and inflation? Where does all these crazy dollars? There is such an ambush: The Great Loop.

U.S. banks that received trillionth of direct and indirect state support and are not able to invest that money in the frozen domestic economy, were forced to withdraw all the excess dollar supply in the so-called emerging markets, primarily in China.

Thus, China has restored the inflow of dollar supply and its foreign currency reserves, despite the sharp drop in exports. In this case, the excess of the dollar supply the Chinese had placed in the same U.S. Treasury securities. That, in turn, allows the United States indefinitely to print dollars and inflate its debts.

Here is a Chinese loop – infinite, it would seem, and meaningless. Money in the real economy does not go. Credit collapse. And in the financial sector are growing revenues and everything is in order. However, the meaning is.

All this anti-crisis policy called the “nationalization of debt.” Financial speculators have said: now all your problems – our problems. And then, of course, everything is as it became to build! In the financial sector! This map has gone! Straight, out of the crisis.

The Chinese Government has ordered that state-controlled funds, controlling foreign exchange assets, withdraw money from riskier, in his opinion, dollar-denominated assets. First and foremost, it concerns the U.S. Treasury bonds and U.S. mortgage-backed securities.

Until now, China is the world leader in investments in U.S. Treasury bonds, ie, the largest creditor of America.

Now it is not, incidentally. Now the leader is unhappy Japan. Which, we recall the formal features – the deepest bankrupt … Ends with a freebie.

What is the “nationalization of debt? All risks ailing economy debited to the state. And now it risks the state. And what is the state? It is a social system: pensions, health care, education, and little defense.

All this, for others, built the western welfare, deflate: no pensions, no health care. If you have a Greek debts, and the picture in the news inevitably be Greek.

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