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Italian banks could cause massive global problems.

Discussion in 'Politics' started by Jason76, Dec 16, 2016.

  1. Jason76 Cat Moderator

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  2. jimbob Cat Moderator

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    Yes, it would effect the EU but hard telling what it would do to other economies.
     
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  3. Quality Checked Bird Moderator

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    Generally, one can say that banking crises are not a good thing. I'm confident about that. How a crisis will ramify through the major world economies is beyond me. But... Greece is having difficulties (it hasn't ceased having problems for quite a while), Britain may have serious problems, and so might Spain.

    The first question is what will too many crises to digest at one time do to the European Union? If the EU has crisis-level problems, everybody else will too.
     
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  4. jimbob Cat Moderator

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    True. I'm not suggesting that the EU is not an important economy.

    It is my opinion that there is something seriously wrong with the world's banking establishments but I have not done the research to even guess what it might be.
     
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  5. Quality Checked Bird Moderator

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    My guess is that it goes well beyond banking institutions. Economies always have problems. Not continuously, but periodically. Inflation, for instance, has been a problem for centuries. Bad money driving out good money goes back to the ancient world. The bigger the economies involved, the greater the potential instability. There are far, far too many people involved in economic decisions (every person with a penny in his pocket) for rational policy to work perfectly.
     
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  6. jimbob Cat Moderator

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    Valid points. What was that word? Trust? Ha!

    Most everyone wants a bigger piece of the pie that they have honestly earned and will do most anything they think they can get away with.

    I am financially stable because I have lived a rather conservative life style.

    And then I always like to blame governments for spending money that they don't have. They borrow that money from the most wealthy people on the planet. This causes inflation.

    So many questions - so few answers.
     
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  7. Quality Checked Bird Moderator

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    Yup, trust. When people no longer trust the solvency of a bank, the walk, and the bank goes down the tube -- perhaps with total justification. Most of us trust banks, with good reason. If all the banks fail, the money you have buried in your basement won't be worth anything, anyway.

    I don't see everyone grabbing bigger pieces of the pie than they have earned, except rich wealth accumulators, like Donald Trump and all his ilk. But maybe life is different where you live.

    Right, living within your means is a very wise policy.
     
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  8. jimbob Cat Moderator

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    Yeah, but like I said recently, I am becoming more cynical in my old age.
     
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  9. Quality Checked Bird Moderator

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    What does that mean, exactly?
     
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  10. jimbob Cat Moderator

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    Basically, it means that I am seeing more of what I consider to be wrong paths governments, societies, and individuals are taking. It seems to me that most of what is happening is causing people to polarize rather than bringing the people together in common interests.

    It is separating the people so that they no longer have a common goal and therefore little or no power.
     
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  11. Quality Checked Bird Moderator

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    Huge, huge problem, I agree. The question is, what is driving the polarization that is, indeed, very visible. Is it...

    1. institutions (governments, newspapers, political parties, whatever...) deliberately dividing and polarizing people in order to prevent from coming together in common interests or...
    2. people individually grabbing on to bad information and turning against perceived enemies?
    3. people and communities being driven apart and polarized by excessive competition, declining prosperity, increased poverty (and/or downward mobility),

    Or a combination of all three (it's always a combination of all three). Personally I think the main driver in polarization and fragmentation is #3. When people's circumstances worsen, they tend to blame others--and usually the wrong ones. They tend to circle the wagons against "outsiders" who might have been "insiders" a few years ago. They get defensive. People have been experiencing declining purchasing power (downward mobility), greater visible gaps in wealth between themselves and people in the richer classes (not just the top 1/2 of 1%), for quite some time. The social fabric is consequently fraying and getting ragged.

    That purchasing power, household debt, income, social mobility, and so on have been following adverse trajectories for the last 30 or 40 years is not accidental. Its the result of steadily greater concentration of a great deal of wealth among the richest 1% to 5%, and the greater impoverization of the poorer 1/2 to 3/4th of the population. Why has wealth been getting more concentrated? Largely because tax law has made it possible. Tax policy isn't the only factor, but it is a big one. How thoroughly the IRS audits rich people, how carefully it tracks off shore cash movement, how easily tax shelters remain hidden, etc. is another factor. Increases in "productivity" is another factor. Off-shoring jobs is a factor. There are a basket full of factors, some much bigger than others.

    Of course, some people have a poor grasp of reality, and of course some institutions would like to divide the population against each other. That's true, but I still think it's the economy.
     
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  12. jimbob Cat Moderator

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    I would put equal importance on your 1. & 3. but only a little of 2. because it is a reflection of 1. & 3.

    Globalization is the New World Order. The goal is to make the common people all over the world powerless and dependent upon the NWO.

    They are doing a pretty good job so far.
     
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