Tuesday, September 18, 2012

Public Talk on the Euro Zone Crisis

Tonight I will be talking about the euro zone crisis at the University of Twente, with a focus on what has and has not been done, and why the consequences are so dire:



  1. Thanks for the interesting presentation.

    As you can calculate yourself, the financial system is currently destroying itself with the "unlimited" monetary financing actions like OMT of the ECB, QE3 of the FED and the Central Bank of Japan actions today.

    A sensible reaction to all these actions is to realize that a currency is basically a social construction with an in itself "worthless" exchange medium. This exchange can be organized in a lot of ways like Barter, Local Exchange Trading Systems, Timebanks, Regional Money, Commercial Credit Circuits, etc. The Swiss WIR Bank in Basel has a very successful system operational.

    More background information can be found on wuala.com/CreditRatings/Analysis/Models/Euro/

    1. Thanks for the valuable information.

      Having studied the documents on your link, we concluded the scenario of the "fiscal pact plus" is the best scenario for the Euro-zone.

  2. You have given an interesting talk with a lot of stuff to think about.

    Regarding mentioned quantitative easing actions of the FED (QE3) and ECB (OMT) you have to take into account that this money is very unlikely to reach consumers and (small) businesses.

    This virtual money has mainly the function to strengthen the balance sheets of banks in order to facilitate continuation of their semi ponzi schemes.

    Regarding the current transfer union which in your opinion has to be transformed into a Political, Fiscal and Banking Union for survival of the Euro, you can calculate yourself what the chance of survival is, given the time-frame you have sketched and these necessary conditions which you have given.

  3. Thank you for the presentation.

    It is obvious that a lot is going to change in the (financial) world the coming decades.

    Given the "unlimited editions" of the monetary financing actions of the FED and ECB and the introduction of electronic money will give a complete different meaning fro money.

    This will also have consequences for behavior of people and how the deal with money.

    Since the money quantities which can be created are at the moment unlimited as the speed and quantities of money which can be transferred electronically, the best way to deal with this as a consumer is to calculate with zero intrinsic value of money to manage your risk.

    Also the current transformation from a linear to a circular economy because of the far too large current footprint of people in the world. This will also will completely change the money flows in the future.