The World’s Money Is Draining Away … Where’s It Going?

Spiegel asks:

“Is The World Going Bankrupt?”

That is an odd question.

If some people are losing money, others must be gaining money, right?

But where is all the money going?

Bloomberg’s Jonathan Weil hints at the answer in a post entitled “Is There Enough Money on Earth to Save the Banks?”

Two years ago the central planners convinced investors that the biggest surviving financial institutions would be able to earn their way back to health, in part through low interest rates and taxpayer support. The pressing question soon may be whether there is enough money on the planet to save the system as we know it, and if so, how much longer it will be before a crisis comes along that finally swamps the ability of governments to contain it.

One-hit wonders such as Fed-induced stock-market rallies can induce euphoria momentarily. They don’t fix the big problem.

As I’ve previously noted, the giant banks are drawing the American and world economy down into a black hole. If we don’t break up the giant banks now, they’ll be bailed out again and again, and virtually all independent economists and financial experts say that will drag the world economy down with them.

Indeed, many economists and financial experts say that we’ll have a never-ending depression or perpetual zombification unless the banks and bondholders are forced to write down their bad debt.

But the question remains: if all of the world’s money (of the Western world, anyway) is draining out, where’s it going to?

Economists note:

A substantial portion of the profits of the largest banks is essentially a redistribution from taxpayers to the banks, rather than the outcome of market transactions.

Indeed, all of the monetary and economic policy of the last 3 years has helped the wealthiest and penalized everyone else. See this, this and this.

A “jobless recovery” is basically a redistribution of wealth from the little guy to the big boys.

The Bush tax cuts and failure to enforce corporate taxes also redistribute wealth to the top 1%. See this and this.

Economist Steve Keen says:

“This is the biggest transfer of wealth in history”, as the giant banks have handed their toxic debts from fraudulent activities to the countries and their people.

Nobel economist Joseph Stiglitz said in 2009 that Geithner’s toxic asset plan “amounts to robbery of the American people”.

And economist Dean Baker said in 2009 that the true purpose of the bank rescue plans is “a massive redistribution of wealth to the bank shareholders and their top executives”.

The money of individuals, businesses, cities, states and entire nations are disappearing into the abyss …

… and ending up in the pockets of the top .1% richest people.

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  • Ding Bat

    Fucking rubbish.

    • Joanna


  • Peter Vujin

    Welcome to the New World Order….

  • Rich Keogh

    The bush tax cuts? how much phony money has Obama printed? what about government SPENDING? Give me a break. Yet Washington area seems to be doing just fine on OPM.

  • Pete Watchman

    “Love of money is a root cause of all evil”. The greed of people has made them become progressive debtors and degenerative losers with 1/2 marriage ending up in divorce, 1/4 adult becoming mentally ill. also the head of lions will be a lion and head of monkeys will be a monkey so no use blaming the heads and their so called 1% rich people… wake up world, the world in its current form is going to end by 2033. Just google it and find out.

  • Michael

    I can tell you where the cash is going, everyones been sucked into electronic payments, and paying taxes, and all the rest, Me i earn cash and im happy that i realise there is shit loads of it, i dunno go have some courage and realise there is plenty of cash, most people are stuck on this notion that money is running out and financial instutions have all the cash etc… LOL sorry you know why people believe its running out they have fallen mainly for government lies etc…THERE IS HEAPS OF CASH AND ITS EVERYWHERE, i can tell you though as an Automotive technician the only thing the world lacks is Resources, ever wondered why cars are being made crappier and crappier ill tell you why most metals and plastics are being recycled and every time they recycle the product it gets weaker anyway a bit off subject, you want cash no problems just quit your job and all the rest of it and tell the world how much you want and how much your worth to do a particular job, I KNOW there is plenty odf cash I circulate enough of it, no im no criminal i just dont believe what media and the “system tell me” truth be told people need to appreciate what they have live in the present not some future date trying to aquire something for some sort of golden retirement or some nonsense, help others what makes us all aprreciate life “look into it” it is true that whenever money is lost all that happens is wealth gets transferred to the smarter person, if any of you want cash just go earn it, invest it sometimes you win it, sometimes people are generous with it and buy you dinner you may not see the money but its there, its everywhere its abundant, i love how people say money is the root of all evil, I would actually objectify that and say the lack of money leads to crime thus the lack of money is evil, and the lack of money also leads to greed As greed is born from people believing there is not enough of something so they feel the need to hoard it, no sorry moneys everywhere if you are unable to see it clearly open your eyes , if you want money its a simple as wanting it there is no mathematical equation their is no invisible man saying you can not have it, there is no government standing in your way the only person standing in your way is you, personally i find money boring and dull