Dirk Ehnts — German conservative newspaper ‘gets endogenous money’ – kind of

Important. As Dirk says, the future of Europe depends on getting this.

I sincerely hope that in the coming months we will see a wider discussion of endogenous money as a description for how banks work. It will then become clear that repayment of loans destroys money in the form of deposits, and that this is what is holding the European periphery, nay, the whole euro zone back. If we as European consumers have less deposits in our bank accounts, how are we supposed to buy more stuff? If we don’t, then unemployment will stay above 10% in the euro zone and the slump continues. This is an unhealthy situation brought about by ‘the free market’, and if economic policy does not intervene then the weak economy will continue.What this means for European politics should be clear to everybody (article by Reuters):

French far-right leader Marine Le Pen would reach the final round of a presidential election if voters were to vote now, winning more votes than any mainstream party in the first round, a poll showed on Thursday. 

The survey by pollster IFOP showed Le Pen winning 26 percent of all votes in round one of the two-round election, versus 17 percent for either President Francois Hollande or his more popular prime minister, Manuel Valls. 

The next presidential election is in 2017.

The end of Europe as we know it is what it could mean.

econoblog 101
German conservative newspaper ‘gets endogenous money’ – kind of
Dirk Ehnts | Berlin School for Economics and Law