Radical of the crisis: debt without redemption

a dozen years ago, the financial crisis shook the world and the Central banks opened their cornucopia, were the inflation concerns are large - even the fear of

Radical of the crisis: debt without redemption

a dozen years ago, the financial crisis shook the world and the Central banks opened their cornucopia, were the inflation concerns are large - even the fear of a Hyperinflation made the round that came out then. Even now, meanwhile, the Corona-crisis is not yet over, will it show up again. Christian von Bechtolsheim, Chairman and spokesman for the asset management Focam, believes – in contrast to 2008 – but this time not in a higher Inflation. "Even if the quantity of money in relation to economic output increases significantly, we have not a classic inflation scenario. The increase comes not to the Individual.“ Although uncertainty about the value of Money was, but exactly why am investing so much. "The expansion in the money supply is true, what rate of return or as a safer port, the following applies: real estate, investments in companies, agricultural and forestry area." It is precisely in the latter area, the prices have grown enormously, and the current income in the parts per thousand range of pressed

Martin Hock

editor in the economy.

F. A. Z.

Extraordinarily, the increase in real estate prices but. At prices of 50 times the net cold rent in Munich, with the normal income earners real estate in good locations could make hardly. And because these are so expensive, do the stocks still relatively attractive. The papers offer relatively more safety and income: "The technology Index, the Nasdaq-100 has reached due to the many crises-profiteers in the Index last, a all-time high in the area and further growth is possible here."

The System of the drug works

Even the some of the feared other Extreme, Deflation looks of Bechtolsheim. The massive expenditure of States and Central banks would be prevented. There are other things he fears more, and this is the idea of state budgets and the economy on withdrawal of the drug liquidity."The System of the drug of liquidity works so far. You must keep it alive. A Feedback would be uncontrollable.“ First of all, says von Bechtolsheim, this would lead to a collapse of the emerging countries. Because if the money would be used for debt repayment and not for the purchase of goods and services, lack of demand, but That would threaten millions of small producers in these States in their existence.

A redemption of the debts accumulated would be fatal, says the asset Manager, for the saving countries. The M3 money supply would massively shrink, and unemployment, in turn, increase significantly. But he relies on the Insight and learning ability of the policy: "After the experiences of the 20. Century, in a primarily stability-oriented policy to the radicalisation of the society has contributed to this constructive.“

for A more expansionary monetary policy as long as no Problem, as long as there is not an imbalance between the Currency. But this was not to be expected: "The monetary policy in the United States is still loose; and China wants to weaken America and that's why. As long as the Euro is credible, there is no Problem. And as long as taxes are in euros, remains the major role in the internal ratio.“

The redemption of lots of Corona bond, as a crisis solver

The way out of the current crisis will lead, actually, to print global money, says Bechtolsheim. "The States could hang up on bonds completely by the Central banks adopted and without replacement are fully booked. Alternatively, the would go also with an eternal, or a hundred-year bond. To the taxpayer that would have any impact, because you do not need to recapitalize a Central Bank, which controls the amount of money.“

Updated Date: 16 June 2020, 06:20

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