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Markus Lanz - Dirk Müller - Der Grund der Finanzkrise

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One thing is clear. We discuss about Greece, a singular problem. However, that is Greece… But we just learned that all is connected with everything. That can effect Spain. This can effect Portugal. Whether that is meaningful or not, doesn't matter. The global markets play that for the moment. In the moment something is joining and there is something developing. But we need to see the Bigger Picture We have created a system of compound interest, a debt system, which inherently can't work in the long run. Actually, all protagonists agree on that. From the begin, our financial system, in the way we designed it, has a half-life period. It has a finite life span. That's interesting, a representative of money calling the whole system into question. That's right! That's quite accepted. The question is: How long will it continue? We are in a very late stage of this system, which was working for several decades but the debt increases dramatically upwards, exponentially upwards. Those debts, those Interests has to be acquired by someone. From the citizens, the people who have to work for it and the people have to step on it more and more. The people have to give more and more being narrowed down more and more to pay the interests, until they can't take it anymore and say: "Now, we go to the barricades." Then the system gets reset, which means debt will be renegotiated. If this will be just a "Haircut" Or, if it will be complete renegotiation of the debt. That's a distinct topic. Mr. Müller, as you are talking about real fundamental issues. Please explain: How is our Monetary system constructed? How does it work? Cue: "Josephs' Penny" "Josephs' Penny" is an interesting story because it's the easiest way to outline the problem of the compound interest, therefore it simplifies strongly, of course. It points to the Problem in a simplified form. If Joseph had opened an account with only 1 Euro cent 2000 years ago, if this would had been possible, in an savings bank. Let's say the bank of Judea and if he negotiated well, so that he gained 5 percent interest and the bankbook had gone missing and somebody would find it today, here in Hamburg and brought it to the Bank of Hamburg, without wanting to make a bank advertisement, and would enter up interest. Then, let us ask a question to the audience: How much money would be at your disposal now, Ladies and Gentlemen? We're talking about one Euro cent. 2000 years, 1 cent to 5 percent interest. How much money you would get? He has negotiated well. More money than existing in the world. Mr. Eichel, your tip? I've never been good at guessing but he has made the calculation, but 5 percent is simply too much. Ok, but we assume that, now. My answer: More money than existing in the world. 295 billion world globes of pure gold! Or 880,000 globes of the sun and a couple of moons, depending on the exchange rate. In short, it's pure madness! The system of compound interest with it's exponential growth of money, which can also be seen similar in Biology, with it's exponential growth can't work in the long run. At an early stage there is no problem, it grows very slow, but after a while growth steepens, strongly. in this stage we are at, right now concerning total global debt. Not just the State and the citizens, but the whole global debt and debt can't increase infinitely. You've made an interesting assert, you say, if we look back in time, we actually can see exactly this happening again and again in various Civilizations and there's always happening a relocation of money meaning, money has the tendency to move to only a few people who are able to accumulate a lot of money and the rest of the people are having less and less. Is that true? That's the logical consequence. Persons who have a lot of money and can't spend all of it, gain much more, much quicker because of mechanism of compound interest. Meanwhile people who have less money or have some debt to pay fall into debt trap more and more. If they can't go into deeper debt or if they aren't indebted themselves, the state steps in on behalf of the people, and it's the people who have to work for the interst. It can't work in the long run. As a result more money is accumulated by less and less people and the masses pauperize. In what period are we, right now? The way I see it, we are at the final stage. but nobody knows, if it is going to continue for two years, for ten years or maybe even for 25 or 20 years. I don't know that. No bright prospects. Someday we are going to renegotiate all this debt.

Video Details

Duration: 4 minutes and 17 seconds
Country: Germany
Language: German
Producer: ZDF
Views: 1,094
Posted by: zeitgeistmexico on Jun 15, 2010

Dirk Müller, Hans Eichel und Olaf Henkel bei Markus Lanz im ZDF zum Thema: "Griechenland in der Krise – der Euro in Gefahr?"

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