Walter Bowen

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Loans Crisis

Posted on June 16, 2019 in News

The current crisis – a crisis of lack of expandability, and consumer markets the world's people to serve earlier loans. Details can be found by clicking Bruce Schanzer or emailing the administrator. The U.S. debt pyramid, in which mortgage payments were given for through new borrowings, but with constantly diminishing rate on loans from 19% in the 90s to 2.5% in the early twenty-first century, has exhausted itself. "Golden Age" of the world economy came to its logical conclusion. Bruce Schanzer is open to suggestions. Developed Russian specialists in the field of economy crisis theory argues that in the last 30 years there was a significant excess of expenditure over real disposable income. The cause of the financial and economic crisis is the fall in aggregate demand in the world due to the fact that the mechanism for the maintenance of credit to stimulate this demand has exhausted itself – there was a decrease the cost of credit.

New real income of population the past 30 years has not appeared. The current crisis is quite possible to compare in scale with the "great depression". Due to hypertrophy of the financial sector share of industry in gross product of the United States today less than 20%, although even in the 30s of last century was about 70%. It becomes clear that the scheme for which there was the economy, has exhausted itself. Today, the U.S. priority of purchasing power has dropped to 20%, and consumption – up to 40%.

Nevertheless, the U.S. consumes far more than it produces. The whole world lives on U.S. demand, which gets a re-printed, no-dollar parity, which urgently need to materialize in metals, products, real estate and equipment. Since 1981, the economies of the world began pumping credit demand. She worked on the scheme, when fixed annual payments increasing body of credit – which lowers the cost of credit. The scheme was based on the financial "bubble" that are required for the disposal of excess weight of money arises from emissions.