The current economic crisis is frequently blamed on over-borrowing by states, banks and citizens. I suggest another angle: the source of the problem is excessive accumulation of wealth, by some countries such as China and large financial groups, such as pension and hedge funds. Think about it. Money had become cheap, very cheap, in recent years. The hoarders needed to put the money to 'work', they had run out of productive businesses to invest on, so the competition between these hoarders intensified, causing drops in the cost of money and enticing many countries and a significant part of the population to take debt as a normal fact of life. Money is still cheap, suggesting that the hoarders still have huge reserves, but they are also worried that they might not be repaid in full, so they throw s#*t into the fan by forcing austerity measures that should ensure that they get paid before anyone else. Borrowers had choices on who to borrow from while money was cheap. Once th...
It's a confusing world out there