– #Mate.matics || Finance and Banking | Fiscal and Monetary Policies || 4 –
The necessity of pursuing true happiness is the foundation of all liberty – Happiness, in its full extent, is the utmost pleasure we are capable of. (John Locke, Essay Concerning Human Understanding)
Honourable Master Milei,
Before picking a bone with you, how about sharing some odd +++ World News +++ to start with?
+++ Navalny: Dead, His Legacy To Live On[1] +++ Brazil: 40,824 Homicides In 2022[2] +++ Gaza: Four months And 30,000 Deaths[3] +++ US: American Fentanyl Crisis‘ Dramatic Death Toll[4] +++ Hollywood: Dreamworks‘ Desire To Do Digital Body-Stripping Under Scrutiny[5] +++ Ukraine: Hundreds Of Western Parts In Lethal Weapons Of Russia In Use[6] +++ China: Real Estate Crisis Dragging Suppliers To Death[7] +++
On the issue, this publication seems to bear a couple of unwanted textual redundancies. Attentive readers may appropriately be viewing these trivial conspicuities as signifiers simply emphasising intentional purpose.
At second glance, the according replica of certain contents serve different kinds of the context for the sake of sparking attention, clarity of understanding and deepening explicitly voiced concerns. The subsequent Three Chapters of Elaboration including subjects to digression (Excursus), feature specific building blocks of content, logically permitting optional allocation in terms of coherence.
However, the author had chosen a slightly different, dialectically creative approach aiming at challenging readers by means of engaging in the Act of cross-boder thinking.
THE CASE OF ARGENTINA (1980 - 82)
Do you remember?
In 1982, Argentina's economy having just survived the Banking crisis[8] (1980) after a fashion, had still continued remaining on the Brink of Collapse.
Does the Falklands War[9] ring a bell?
Back in the day, Leopoldo Galtieri[10] must‘ve been suffering from escalating suicidal tendencies, attempting to be challenging[11] the British Armed Forces cold door knocking.
At that time, someone might've already told him about John Law[12]. Law – would’ve loved Bitcoins![13] – Godfather of Magic Money and the Central Bank, coined the idea of acquiring money out of nowhere, turning Land Ownership into an Asset, backing loans taken up while improving the debtors credit score on such rural! Asset Backed Securities[14].
Money has fallen much from the Value it had. That Land is of greater Value. ... To Supply the Nation with Money, it is humbly propos'd, ... To authorize the Commission to lend Notes on Land Security ... Land has a more certain Value than other goods, for it does not encrease in quantity, all other goods may. ... For as everything is produced by Land, so the Land must keep its value, because it can be turn'd to produce the Goods that are in use. ... Land is what is most valuable, and what encreases in Value more than other Goods; so the Paper Money issued from it, will in all appearance not only keep equal to other Goods, but rise above them. (John Law, Money and Trade Considered With a Proposal for Supplying the Nation with Money)
Land as an Asset securing Money Supply[15] ... what is more valuable than Land ... Soil ... Earth(?) … wow! – quite likely, Comandante en Jefe ... lo siento ... Buey de Pentecostés Leopoldo figured, killing more than two birds with one stone, seemed an idea magnífica!
¿Lo tienes?
En este punto cabe señalar, Latin America’s Monetary Policy History[16] and Modern Monetary Disasters[17] have always proven odd Siamese Twins. Most of the Latino Hemisphere’s población desfavorecida should’ve deserved the milagro de la moneda de crédito social[18].
With a few honourable exceptions if not merely Prebisch[19] to be credited, Latin American and specifically Argentine Economists! never seem to have gained sufficient insight to the opaque if not vicious correlation of Money Supply and Inflation[20] as much as Money Creation and Debt Monetisation[21]: Money is not the value for which goods are exchanged, but the value by which they are exchanged (John Law).
¿Comprendes?
Back to Galtieri’s Argentina.
In fact, Argentina, i.e. her large scale Land Owners couldn’t have offered Galtieri Land Property[22] free of charge, remaining at his disposal. However, the Falklands[23] were in reach and all of a sudden suggested enforced acquisition. Eventually, it seemed quite rational to an Argentine Desperado of a Dictator to be pinching the Islas Malvinas.
Against the aforementioned backdrop and with sufficient hindsight, these findings adding inevitable conclusions suggest, the Falklands Conflict needn’t be merely considered a classic example of a Divisionary War[24] per se, for Galtieri’s Act of Aggression could be reasonably reinterpreted and termed a Last Stance on withstanding National and Personal Bankruptcy.
Back to John Law and his genius.
What ‘s he got to do with Barter ... Coins[25] ... IOUs[26] ... Bills of Exchange[27] ... Bank Notes[28] ... anyone, anyone?[29]
How about engaging in a historical briefing correspondingly?
According to thousands of years of Common Sense and Traits, Barter used to suggest a closed system of natural and human Resources available, limiting the qualitative and quantitative Scope of exchanged Goods and Services among People.
Due to their Nature and State of Aggregate, Size and Weight or simply for the sake of Choice and Convenience, many kinds of organic, material and intellectual Property denied physical Exchange among Trading Parties.
Hence, this either recommended a Marking out of Claims necessitating the Owners' Relocation to the Point of Purchase or alternatively, necessitated official Registry, i.e. administrative Registration of Deed in regard to portable or immoveable Property.
Only when the last tree has been cut down, the last fish been caught, and the last stream poisoned, will we realize we cannot eat money. (Cree Indian Prophecy)
Not surprisingly, early in Mankind's History, various kinds of Coinage[30] made of Gold[31], Silver[32], Copper[33], Iron[34] and also Clay[35] reflected on these Raw Materials' genuine significance in terms of developing Civilisation’s Survival further, especially in the sense of effective and efficient Trade.
Beyond their primal utility, Fabricates of minted precious Matter turned out a logistically convenient Media of Exchange, substituting for real Goods and Services, eventually accelerating the pivotal Convenience of Trade and Turnover significantly.
Most importantly, values of traded Goods and Services were on par with one another. Even IOUs[36] and Bills of Exchange[37] didn't impair such Balance in Trade. In fact, John Law envisioned turning such negotiable instruments, i.e. Security papers into a regular experience of a legal tender.
Studying John Law's Treatise Money and Trade Considered With a Proposal for Supplying the Nation with Money[38], specifically by means of issuing Banknotes, is a must in regard to understanding enhanced Money Creation and its viral Supply, inherently coinciding with the urge of establishing a Central Bank being in charge of emitting, monitoring and regulating the legal Tender's Quantity and Circulation per se.
Ready for an Excursus on Argentina’s Blue Print for The Great Greek Gig?
Greece has been either considered the offspring or amplifier of the Global Reign of Crises as follows: Subprime Mortgage issue[39] (2007-2010), European Debt[40] (2009-2010) and Global Financial crisis[41] (2009) as much as the Great Recession[42] (2007-2009)
Ever thought of Argentina[43] having served as the Blue Print for The Greek Role Model?
In the wake of the US Housing Bubble[44], many communities of Global Investors believed in High Yield Junk Bonds[45] on the US Real Estate Market. Whereas other packs of International Speculators cherished faith in Greek Federal Bonds[46].
Rating Agencies played a key role in both cases, i.e. in terms of awarding junk bonds on the US Real Estate Market promising assessments, in lockstep with literally appreciating Goldman Sachs'[47] job of cooking the Greek government's books as a stepping stone for meeting the EU‘s Austerity Measures – granting Greece membership to the EU Monetary Union – supporting worldwide investor interest in Greek Federal Bonds as well.
Back in the day, Greece was also considered among the most intriguing global tax havens[48].
Coincidentally, General Motors'[49] gradual decline had already led to massive lay-offs, marking one of the unexpected tipping points of casualties contributing to the subprime mortgage crisis' escalation.
Eventually truth emerged, Greece's government had built an Eiffel Tower on quicksand, i.e. leaks finally unmasked the scope of corruption[50] and financial window dressing having supported the Great Greek Gig.
In retrospect, both past events fortuitously signify the European Debt and Global Financial crisis' as well as the Great Recession's points of origin.
THE CASE OF CALCULATIONS (PRAESENTIA)
Now this!
Reportedly, there ‘s been an odd, i.e. reverse correlation of global Distribution and Concentration of growing Wealth[51] (Private Equity[52]) versus surging Debt[53] and regressing, at best stagnating Income[54]. Argentina serves as a neat example of affirming of a widening Rich-Poor-Gap-Governmental-Debt-Trap.
Here a few pressing questions in a global Context as follows:
How come, the grand total net Value of global Natural Resources[55] (US$ 311 Trillion) almost matches global total Debt[56] (US$ 300 Trillion)?
How come, the grand total Value of GDP[57] (US$ 86 Trillion) equals only a good third of global total Debt[58] (US$ 300 Trillion)?
How come, the grand total net Value of Assets (Private Equity)[59] (US$145.4 Trillion by 2025) – en líneas generales – equals almost the twofold of the grand total Value of GDP[60](US$ 86 Trillion) as much as it equals nearly half of global total Debt[61] (US$ 300 Trillion) and pretty much half of the grand total net Value of global Natural Resources[62] (US$ 311 Trillion)?
Does anyone know, whether there 's another Planet besides Earth and the Moon available to be putting a Mortgage on?
What kind of insane number crunching is this... anyone, anyone?[63]
Who ‘s scratching one’s head?
¿No es asombroso... perdón... dudoso?
How come, half of Argentina’s population on average ‘s been living on the edge[64], on the one hand; on the other hand, the list of billionaires[65] has accepted new members to the Club, whose respective equities have been inclining sharply; for some reason, Argentina’s Household Debt has been skyrocketing synchronously?!
How does such a Counterflow Principle work?
Neither deposited nor invested or borrowed Money proliferates on anything but mere compound interest calculation.
How about doing a bit of a calculation?
For example, 120,000 US $ invested in Government Notes (2 to 10 years of investment period) for 10 years or Bonds for 30 years (20 to 30 years of investment period) at an annual interest rate of 3 percent would yield 161,270 US $ (10 year notes) or 291,272 US $ (30 year bonds) respectively.
Wow!
Now, who could afford such a lump sum just like that?
Few can, many times over ... 250,000 US $ ... 500,000 US $ ... 1,000,000 US $ ... 10,000,000 US $ ... 20,000,000 US $ ... 50,000,000 US $ ... 100,000,000 US $ ... 1000,000,000 US $ ... etc.
THE CASE OF LIFE (AB INITIO)
What determines our lives?
Money (too) many will say.
Well, Money is a medium of exchange bearing no real value in itself.
In contrast to Barter, Money just permits instant Settlement of Transactions of Supply and Demand on all kinds of Commodities, semi-finished Manufactures, Goods and Services.
Again ... what determines our lives?
Good question ... I've never thought about that ... Sorry, I'm too busy ... Just leave me alone many others will say.
Few will be stating Self- Fulfillment or Success.
Just a few people might be answering simply A Healthy and Happy Life and Living.
So, what does really determine our lives?
Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. (World Health Organisation, Health)
It's our organic Nature requiring Life Support in terms of long-term physical and psychical Well-being called Health[66] spanning from Birth to Death.
Any objections ... anyone, anyone?[67]
The growing quantity of produced Goods and viral spreading of Services seem to approve of ever surgeing quantity of Money in circulation, yielding the impression, mankind needed so much more, in the sense of accomplishing and sustaining a specific Standard of Living.
Earth's finite contingents of Matter and Space by means of Natural Resources (Raw Materials, Fossil Fuels, Water and Air) limit! Global Economic Growth[68] as much as Overpopulation[69] and man-made environmental Pollution[70] called Climate Change.
Ready for a figuratively related (fourfold) Excursus on The United States of America accordingly?
Argentina ‘s been somewhat trying to emulate the US Government’s Wallstreet Shuffle of Debt Procreation Unlimited. Unfortunately, Argentina ‘s neither been an economic Superpower, nor a financial Titan, military Monster or a manufacturer of the global Anchor Currency.
The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default. (Alan Greenspan)
(Part 1 – New Realities)
Originally starting out as a staged self-referential concept of prolifically self-replicating[71], algorithmitised cycles of advertised offer and primed demand, these self-fulfilling prophecies face the earthly, i.e. natural limits of manpower, fossil fuels, raw materials and other commodities. Autocatalysis[72] of such kind, inevitably yields such a Bubble‘s implosion[73] having fed on the Real Economy[74], the latter also being destined to collapse.
Drucker’s presumption, The New Realities[75] had already introduced a Raw Materials[76] and Industrial Economy[77] having become uncoupled, lacked lexical precision[78], for both have always embodied the Real Economy. More specifically, manufacturing semi-finished goods and end products bear on manpower, fossil fuels and raw materials.
At the time of Drucker’s aforementioned publication, the Finance Sector seemed to have detached itself from the Real Economy insofar as the Bretton Woods Agreement[79] had already been repealed having no longer required an exchange of Gold for U.S. currency.
Assuming the Real Economy and Financial Sector having gained autonomy from one another recommends, reflecting on the extent to which the digitisation[80] of businesses, governmental, public and social services has brought about a third entity having gained self-propelling momentum, i.e. the Virtual Economy, particularly the algorithmically biased Financial Sector and Virtual Currency Market[81].
What's the subject of life - to get rich? All of those fellows out there getting rich could be dancing around the real subject of life. (Paul A. Volcker)
The Virtual Economy and Financial Sector undoubtedly depend on the Industry as much as the latter bears on the Raw Materials Economy, itself relying on Earth’s natural resources. Wag the dog! Over the past three decades – especially reviewing the internet’s emergence taking effect in the mid 1990s – this bottom-up cause-effect relation has (virtually) been turned upside down.
(Part 2 – New Practices)
How about investigating the Systemic Origins of Global Financial and Economic Crises (2007 – 2010) against the following abstract’s backdrop of Financial Instruments, Vehicles and Practices:
AI in Financial Trading[82] – Financial Stability[83] – Systemic Risk[84] – Rating Agencies[85] – Money as Debt[86] – Debt Equity Swap[87] – Global (Mutual) Indebtment[88] – Shadow Banking[89] ––– Ethically Disputed Business Practices[90] of Creative Finance: Off-Balance-Sheet Financing[91] – Off-Balance-Sheet Entities[92] – Single Purpose Vehicle[93] – Third-Party Technique[94] – Private Public Partnerships[95] – Articles Of Incorporation[96] – Asset-Backed-Securities[97] – Bearer Security[98] – Collateral[99] – Defeasance[100] (related: Off-Balance[101]) – Equipment Certificate Trust[102] – Exchange Of Assets[103] (related: Nine Men's Morris[104]) – Financial Leverage[105] (related: Gearing[106]) – Golden Parachute[107] – Interval Measures[108] – Leveraged Buy-Out[109] – Leveraged Lease[110] – Macrs (Modified Accelerated Cost Recovery System)[111] – Monte Carlo Simulation[112] – Novation[113] (related: Legal Defeasance[114], Off-Balance[115]) – Prepack[116] (Prepackaged Bankruptcy) – Registrar[117] (related: Freddie Mac[118], Fannie Mae[119], Subprime Mortgage Crisis[120], European Debt Crisis[121], Global Financial Crisis[122], Global Economic Crisis[123]) – Securitization[124] (related: Multiple Credit Formation[125]) [related: Asset-Backed-Securities, Collateral, Defeasance, Exchange Of Assets, Financial Leverage (Gearing), Leveraged Buy-Out, Leveraged Lease, Novation (Legal Defeasance), Prepack (Prepackaged Bankruptcy)] – Workout[126] (Workout Agreement)
(Part 3 – New Crises)
How about recalling what happened after the Great Depression[127] or Black Monday[128]. Recollecting the long-standing Global Aftermath to Greece's, i.e. an Economic Gnome's Government Debt Crisis can neither suggest asking such a silly question, nor attempting to phrase Self-Fulfilling Prophecies wrapped in Half-Truthed Queries.
By the way, do you know, what the Subprime Mortgage issue[129] (2007-2010), European Debt[130] (2009-2010) and Global Financial crisis[131] (2009) as much as the Great Recession[132] (2007-2009) have in common with Algorithms, Butterflies, Goldbugs, S & P, Moody's and Fitch?!
An algorithm is a mathematically formulated procedure, used to perform a digitally enhanced computation on delivering outcome in a specific context.
Put simple, according to chaos theory the Butterfly Effect[133] signifies something nondescript or small at best, bearing potential of exerting colossal impact on everything and everyone else.
In a nutshell, Gold Bugs[134] are investors believing in a steadily inclining price of Gold. S & P[135], Moody's[136] and Fitch[137] issue Credit Ratings of Corporate and Governmental Entities to their clients' and their own advantage.
In the wake of the US Housing Bubble[138], many communities of Global Investors believed in High Yield Junk Bonds[139]on the US Real Estate Market. Whereas other packs of International Speculators cherished faith in Greek Federal Bonds[140].
The ultimate purpose of economics, of course, is to understand and promote the enhancement of well-being. (Ben Bernanke)
Rating Agencies played a key role in both cases, i.e. in terms of awarding junk bonds on the US Real Estate Market promising assessments, in lockstep with literally appreciating Goldman Sachs'[141] job of cooking the Greek government's books as a stepping stone for meeting the EU‘s Austerity Measures – granting Greece membership to the EU Monetary Union – supporting worldwide investor interest in Greek Federal Bonds as well.
Back in the day, Greece was also considered among the most intriguing global tax havens[142].
Coincidentally, General Motors'[143] gradual decline had already led to massive lay-offs, marking one of the unexpected tipping points of casualties contributing to the subprime mortgage crisis' escalation.
Eventually truth emerged, Greece's government had built an Eiffel Tower on quicksand, i.e. leaks finally unmasked the scope of corruption[144] and financial window dressing having supported the Great Greek Gig.
(Part 4 – New Debt)
Well you know, Money doesn't grow, it's just produced in certain quantities. Even Money in terms of savings doesn‘t procreate, for it‘s hoarded either physically or virtually deposited on a Bank, i.e. Transaction Account[145]. Neither deposited nor invested or borrowed Money proliferates on anything but mere compound interest calculation.
The Gross Domestic/National Product grows, feeding on Human Effort from by means of Labour, Intelligence, Technology and Use of Natural Resources, also including Animals called Stock (Factors of Production[146]: Land, Labour, Technology, Capital, Information).
How about incomes and old-age pension schemes[147]? Small to Mid Income, i.e. average wages and salaries have never truly corresponded with the employees' value added to the Companies‘ Revenues and Profits. Perhaps Marx[148] rings a bell.
Decent People can certainly affirm of Multiple Taxations on Earned Incomes, Common Savings, Stock Investments and Pensions frustrating gradual Accumulation[149] of Material Wealth, hence, denying a carefree and joyful after-work! life.
Neither Free Market and Social Market Economies nor Socialist and Communist Economies make a difference. Interestingly all of these economic phenotypes share unequal Income Ratios in a societal context.
It's not time to make a change / Just relax, take it easy / You're still young, that's your fault / There's so much you have to know / Find a girl, settle down / If you want, you can marry / Look at me, I am old, but I'm happy / I was once like you are now / And I know that it's not easy / To be calm when you've found something going on / And take your time, think a lot / Think of everthing you've got / For you will still be here tomorrow / But your dreams may not (Cat Stevens, Father and Son)
According to Haavelmo[150], societies bearing unequal income ratios tend to impair their Economical Performance.
The Economic Aggregates‘ lifting and shunting effects fail to substantiate in mutual compliance, resulting in a kind of piston seizure frustrating the economy as a whole. National Money Flow is the (!) lubricant granting and sustaining a successful National Economy.
Consequently, Haavelmo deducts, the lowest third of Income Earners accounts for an economy’s power reserves inducing Impetus and Momentum bottom-up into all other Aggregates. His findings diametrally withstand, e.g. the Reagonomics‘ infamous trickle down theory[151].
Institutional and individual large-scale Income Earners tend to invest significantly more time in verifying their Investment Decisions and Return Expectations than low and average Income Earners.
Such caution puts a systemic Restrain[152] on the national Economy‘s Performance.
Quite many experience the Strain, few others don’t feel the Pain.
Inspite of surging Governmental Debt[153] in lockstep with inclining Debt Service Contingencies and Capacities, common sense should've suggested enquiries into the odd nature of especially Developed Economies‘ Government (US: Treasury) Notes[154] and Bonds[155], having steadily rendered annual Interest Yields at 3 to 5 percent, matching Blue Chip Stocks' Performance.
How about doing a bit of a calculation?
For example, 120,000 US $ invested in Government Notes (2 to 10 years of investment period) for 10 years or Bonds for 30 years (20 to 30 years of investment period) at an annual interest rate of 3 percent would yield 161,270 US $ (10 year notes) or 291,272 US $ (30 year bonds) respectively.
Wow!
Now, who could afford such a lump sum just like that?
Few can, many times over ... 250,000 US $ ... 500,000 US $ ... 1,000,000 US $ ... 10,000,000 US $ ... 20,000,000 US $ ... 50,000,000 US $ ... 100,000,000 US $ ... 1000,000,000 US $ ... etc.
Feeling dizzy?
Back to the issue.
Eventually, findings tend to be solidifying hard evidence of an inherent Cycle of Cause-Effect Self-Referencing[156], serving to clarify the extent to which the Explosion of private Savings of mainly blessed, dubious or privileged Income Earners has been conspicuously correlating with the exponential Growth of Governmental Debt.
Accordingly, Governmental Debt Service is not only to amortise internal[157] an external[158] Debt. Crisp Governmental Debt taken up, is also to provide Special Assets backing the Provision of Returns on Investments to those natty or shadowy shareholders having acquired Treasury Notes and Bonds.
Ain’t this a Money Pit[159]?
Well, comprehensive enlightenment of such kind doesn’t alway render sufficient relief, does it?
Such a fundamental consideration raises a pivotal as much as a paradoxical question: How can the Quantity of Money in Circulation have multiplied over Centuries without Earth having grown in lockstep?
More people, more Gods ... sorry ... Goods and Services to be divided, i.e. produced, rendered and purchased among each other?
Does that really make sense?
Whatever we earn a Living with, no matter how much Money we earn, eventually translates into sustaining our Survival on physical and psychical Well-being on Earth's finite Natural Assets and according Supplies.
What about the Money Creators?
Wrong Question.
What 's gone wrong with Money Creation?
Money Growth diametrically opposes dwindling natural resources all of our Products are made of, particularly those serving our living in the first place.
In other words, Earth's utilised resources provide even lesser Assets, backing mushrooming Monetary Media and Financial Vehicles in Use and Circulation.
THE END?!? | !?!
That ‘s pretty much it.
Respectfully yours and get well soon,
Cal Caleido
Frame of Reference
Erdoğan’s & Milei’s National Lampoon
Kristalina & Ajay ... Let’s Talk about Milei’s Argentina Over A Cup of Mate
Mme Villarruel ... Let’s Talk Over A Cup of Mate
Milei ... Let’s Talk Over A Cup of Mate
Beware of The Bitcoin
[1] What we know about Alexei Navalny's death in Arctic prison | Reuters
[2] Homicides Are Down In Brazil. But It's Not Time For A Victory Lap | Wilson Center: Recent data shows that Brazil recorded 40,824 homicides in 2022
[3] Middle East latest: 30,000 people now killed in Gaza during conflict | World News | Sky News
[4] Drug Overdose Death Rates | National Institute on Drug Abuse (NIDA) (nih.gov): 106,000 drug overdose deaths reported in 2021. ––– Fentanyl Awareness | DEA.gov
[5] Hollywood's Desire to Use Dead Actors' AI Likenesses Hits a Roadblock | PetaPixel
[6] Exclusive: Russian weapons in Ukraine powered by hundreds of Western parts, report says | Reuters
[7] China’s too-big-to-fail property giants just the tip of real estate crisis, as ‘suppliers are being dragged to death’ | South China Morning Post (scmp.com)
[8] The Argentine Banking Crisis of 1980 in: Banking Crises (imf.org) ––– “The Case of Argentina” | Manifold | BFI (uchicago.edu): But in 1982, Argentina defaulted on its foreign debt, as did many other countries in the region. A natural consequence of this default was that the only remaining source of financing for the government was printing money. A decade of very high inflation followed, which ended when the currency board was adopted in 1991.
[9] Falklands War (Wikiped) ––– Argentina - Falklands War, Galtieri, Malvinas | Britannica
[10] Leopoldo Galtieri (Wikiped) ––– Argentina - Falklands War, Galtieri, Malvinas | Britannica
[11] Argentine Navy, Army, Air Force - Falklands War 1982 (naval-history.net) ––– Armed Forces of the Argentine Republic (Wikiped) ––– 1982: HMS Sheffield Hit by Exocet Missile - YouTube ––– related as follows: A Short History of the Falklands Conflict | Imperial War Museums (iwm.org.uk) ––– The Falklands War | Remembrance | Royal British Legion ––– The British Army and the Falklands War | National Army Museum (nam.ac.uk) ––– 1982 - RAF Museum
[12] John Law | Money Creation, Banking System & Financial Innovator | Britannica ––– John Law (economist) - New World Encyclopedia ––– related (01) as follows: John Law's Lifetime Contribution to Monetary Economics (tcd.ie) ––– Government Equity and Money: John Law’s System in 1720 France - Federal Reserve Bank of Chicago (chicagofed.org) ––– John Law pioneered ideas about banking and monetary policy that are important to this day | The Spectator ––– related (02) as follows: The Great Paper-Money Experiment | Mises Institute ––– What John Law Taught Us About the Perils of Printing Money | Mises Institute ––– related (03) as follows: Government Equity and Money - John Law’s System in France (bu.edu) ––– John Law and the Mississippi Bubble: 1718-1720 - 2001-10 (ms.gov) ––– related (04) as follows: John Law - Money and Trade Considered With a Proposal for Supplying the Nation with Money (utexas.edu): Money has fallen much from the Value it had. That Land is of greater Value. ... To Supply the Nation with Money, it is humbly propos'd, ... To authorize the Commission to lend Notes on Land Security ... Land has a more certain Value than other goods, for it does not encrease in quantity, all other goods may. ... For as everything is produced by Land, so the Land must keep its value, because it can be turn'd to produce the Goods that are in use. ... Land is what is most valuable, and what encreases in Value more than other Goods; so the Paper Money issued from it, will in all appearance not only keep equal to other Goods, but rise above them ... But as this Addition to the Money, will employ the People are now Idle, and these now employ'd to more Advantage: So the Product will be encreas'd, and Manufacture advanc'd. If the Consumption of the Nation continue as now, the Export will be greater, and a Balance due to us ... Since it is very practicable to make Land Money, it would be contrair to Reason to limit the Industry of the People, by making it depend on a Species is not in our power, but in the power of our Enemies; when we have a Species of our own every way more qualified.
[13] Related feature: Beware of The Bitcoin
[14] Asset-Backed Security (ABS): What It Is, How Different Types Work (investopedia.com): An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity.
[15] Related as follows || Money: The History of Money: Early money | Britannica ––– Circular flow of income (Wikiped) ––– | ––– Banking and Finance: The Evolution of Banking Over Time (investopedia.com) ––– Bank | Definition, History, Types, Examples, & Facts | Britannica Money ––– The History of the Financial System - trimplement blog ––– Chapter 1 - History of Financial Globalization, Overview (columbia.edu) ––– The Origins and Development of Financial Markets and Institutions: From the Seventeenth Century to the Present (uv.mx) ––– | ––– Financial Instruments: Financial Instruments Explained: Types and Asset Classes (investopedia.com) ––– Financial Instruments - IFAC (ifac.org) ––– Classifications: Financial Instruments, Functional Categories SNA/M1 (un.org) ––– Financial instruments: defining the rationale for triggering their use (europa.eu) ––– Financial instruments working with microfinance (frankfurt-school.de) ––– Financial instruments, financial markets and financial market infrastructure (banque-france.fr) ––– Financial Instruments and Associated Risks (islandsbanki.is) ––– related: Rating of Financial Instruments (creditreform-rating.de) ––– | ––– Debt: Debt | Definition & Facts | Britannica Money ––– What is private debt and public debt? | Britannica ––– Public debt | Definition, Types, Examples, & Facts | Britannica Money ––– How public debts rescued the banks during the financial crisis | Britannica ––– National debt | economics | Britannica ––– Government budget | Definition, Types, Features, Objectives, & Facts | Britannica Money ––– | ––– Oddious Debt: Good Debt vs. Bad Debt | Britannica Money Odious debt (Wikiped) ––– Debt slavery | Definition, History, & Facts | Britannica
[16] The Historical Evolution of Monetary Policy in Latin America (cepal.org)
[17] Modern Monetary Disasters by Sebastián Edwards - Project Syndicate (project-syndicate.org)
[18] Silvio Gesell (Wikiped) ––– Social Credit | political economics | Britannica ––– Free Money for Social Progress: Theory and Practice of Gesell's Accelerated Money on JSTOR ––– ––– Silvio Gesell, Who Wanted To Create Money That Expired, Is Making A Comeback : Planet Money : NPR ––– Silvio Gesell's Theory and Accelerated Money Experiments (hal.science) ––– Free-economics: The vision of reformer Silvio Gesell (researchgate.net) ––– related (1) as follows: Clifford Douglas | Social Credit, Labour Movement, Industrialism | Britannica ––– Social Credit | political economics | Britannica ––– related (2) as follows: Austrian Places: The Woergl Experiment — New Austrian (austrianinformation.org) ––– A Free Money Miracle? | Mises Institute ––– The Austrian "Credit Money" Craze of 1920 | Mises Wire ––– How a Tiny Austrian Village Solved Play-to-Earn Gaming Economics…in 1932 | by Greg Larson | Coinmonks | Medium ––– Naturalmoney.org - The miracle of Wörgl ––– The Wörgl Currency and Demurrage | Reinventing Money ––– Shillings from Heaven / Wörgl's Miracle (German / English Subs) (youtube.com) ––– related (3) as follows: Local currencies in European History: an analytical framework (hal.science) ––– related (4) as follows: The Origins and Political Consequences of Social Capital (princeton.edu)
[19] Raúl Prebisch | Latin American, Economic Theory, Dependency Theory | Britannica ––– Dependency theory | Definition & Facts | Britannica ––– Raúl Prebisch - The Economic Development of Latin America and Its Principal Problems (cepal.org)
[20] The link between Money Supply and Inflation - Economics Help ––– Understanding inflation | Deloitte Insights ––– How Does Money Supply Affect Inflation? (investopedia.com)
[21] Money creation (Wikiped) ––– Debt monetization (Wikiped)
[22] Land Ownership: The Landowners from the Great Depression to the rise of Peronism, 1930–1945 | The Landowners of the Argentine Pampas: A Social and Political History 1860–1945 | Oxford Academic (oup.com) ––– In Argentina The Upper Class Dominated Rural Land Ownership | Real Estate and Investment News from South America (gatewaytosouthamerica-newsblog.com) ––– The Ridiculously Large Ranches of the Argentinian Interior - Curbed ––– related as follows: Argentinian billionaire in Falklands bid | London Evening Standard | Evening Standard ––– Former Soros Protege Thrives Amid Argentine Crisis with Diverse Real Estate Portfolio (bloomberglinea.com) ––– Soros Protege Eduardo Elsztain Builds Real Estate Empire in Argentina - Bloomberg ––– Eduardo Elsztain (Wikiped) ––– | ––– Land Reform: Whose Land Is It and What Is It For? An Unfinished Debate about Land Access in Argentina (thetricontinental.org) ––– | ––– Land Inequality in Latin America: Latin America has most unequal land distribution, Colombia fares worst: charity | Reuters ––– Land inequality in Latin America worse today than in decades | Oxfam International ––– Unearthed: Land, power and inequality in Latin America (oxfam.org) ––– Scramble for riches: Can South America's Lithium Triangle mint new millionaires? - Mining.com
[23] Falkland Islands (Wikiped)
[24] Diversionary foreign policy (Wikiped) ––– Diversionary Theory of War - International Relations - Oxford Bibliographies ––– specifically related as follows: Falkland Islands War - Argentina, Britain, Conflict | Britannica ––– Was the Malvinas/Falklands a Diversionary War? : A Prospect-Theory Reinterpretation of Argentina’s Decline (uni-konstanz.de)
[27] Bill of Exchange Definition: Examples and How It Works (investopedia.com) ––– related as follows: Negotiable instrument (Wikiped) ––– Promissory note (Wikiped)
[29] Anyone, anyone teacher from Ferris Bueller's Day Off - YouTube
[37] Bill of Exchange Definition: Examples and How It Works (investopedia.com) ––– related as follows: Negotiable instrument (Wikiped) ––– Promissory note (Wikiped)
[38] John Law - Money and Trade Considered With a Proposal for Supplying the Nation with Money (utexas.edu): Money has fallen much from the Value it had. That Land is of greater Value. ... To Supply the Nation with Money, it is humbly propos'd, ... To authorize the Commission to lend Notes on Land Security ... Land has a more certain Value than other goods, for it does not encrease in quantity, all other goods may. ... For as everything is produced by Land, so the Land must keep its value, because it can be turn'd to produce the Goods that are in use. ... Land is what is most valuable, and what encreases in Value more than other Goods; so the Paper Money issued from it, will in all appearance not only keep equal to other Goods, but rise above them ... But as this Addition to the Money, will employ the People are now Idle, and these now employ'd to more Advantage: So the Product will be encreas'd, and Manufacture advanc'd. If the Consumption of the Nation continue as now, the Export will be greater, and a Balance due to us ... Since it is very practicable to make Land Money, it would be contrair to Reason to limit the Industry of the People, by making it depend on a Species is not in our power, but in the power of our Enemies; when we have a Species of our own every way more qualified.
[39] Subprime mortgage crisis (2007-2010) (Wikiped)
[40] European debt crisis (Wikiped)
[41] Global financial crisis in 2009 (Wikiped)
[42] Great Recession (2007-2009) (Wikiped)
[43] The Argentine Banking Crisis of 1980 in: Banking Crises (imf.org) ––– “The Case of Argentina” | Manifold | BFI (uchicago.edu): But in 1982, Argentina defaulted on its foreign debt, as did many other countries in the region. A natural consequence of this default was that the only remaining source of financing for the government was printing money. A decade of very high inflation followed, which ended when the currency board was adopted in 1991.
[44] 2000s United States housing bubble (Wikiped)
[45] Related: Junk bonds’ crunch is nothing like the 2008 housing meltdown - MarketWatch
[46] German, French banks held $38 bln in Greek bonds - News | Khaleej Times
[47] Goldman helped Greece cook books - VoxEurop ––– Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt - DER SPIEGEL
[48] Estimation of the size of tax evasion in Greece (researchgate.net): The purpose of this paper is to estimate the extent of tax evasion in Greece for the period 1980-2018. For this estimation we have chosen to apply an indirect method of approach to the issue, as developed by Tanzi, based on the assumption that estimating the size of the shadow economy can lead us to a safe measurement of the extent of tax evasion. More precisely, through the Currency Demand approach which is based on the basic assumption that activities under the shadow economy constitute a direct response of taxpayers to the increased tax burden and also that cash is mainly used to conduct such transactions and of the wealth derived from them, the size of the shadow economy was determined using the method of the University of Leicester research team and then the level of tax evasion was assessed by imposing an annual tax rate on it as a ratio of total tax revenue to Gross Domestic Product. The results showed a significant increase of the size of tax evasion during the period considered, while the model estimation showed that most of the tax evasion came from direct taxation. ––– Tax shortfalls in Greece. Country Focus 5/2008 (europa.eu)
[49] General Motors and the Subprime Crisis (managementstudyguide.com) ––– GMAC Made Risky Subprime Mortgage Loans : NPR ––– Rejected by Courts, Retirees Take Last Shot to Save Pensions (usnews.com): When General Motors went through the biggest industrial bankruptcy proceedings in history, 20,000 retirees from GM's Delphi Corp. subsidiary saw their retirement savings slashed. Dave Muffley poses outside one of the Delphi Corporation plants in Kokomo, Ind., Monday, July 11, 2022. As General Motors Corp. underwent the biggest industrial bankruptcy proceedings in history, and the federal government negotiated a company restructuring, Muffley's healthy retirement savings would be slashed by 70 percent, and his life's trajectory would take a dramatic spiral downward.
[50] Corruption in Greece (Wikiped) ––– FACTBOX-Scandals plaguing Greece's conservative government | Reuters ––– Bribery scandal puts strain on Greek leader - Europe - International Herald Tribune - The New York Times (nytimes.com) ––– Greece-OECD project: Technical support on anti-corruption - OECD
[51] Global Wealth Distribution and Concentration: 9 charts that explain the history of global wealth - Vox ––– Chart: All of the World's Wealth in One Visualization (visualcapitalist.com) ––– This Simple Chart Reveals the Distribution Of Global Wealth (visualcapitalist.com) ––– The rapid growth in global wealth | McKinsey
[52] Global Private Equity Distribution and Concentration: Private Equity Market Size by Asset subclass & Growth forecast (moonfare.com)
[53] Global Debt Distribution and Concentration: Chart: Global Economy to End Decade on a Low Note | Statista ––– Global debt is fast approaching record $300 trillion - IIF | Reuters
[54] Global Income Distribution and Concentration: What is the distribution of global income? | Sustainability Math
[55] The 10 countries with the most valuable natural resources (worldexcellence.com): Natural resources are essential to the survival of any nation. They provide the necessary materials for industry and manufacturing, as well as a source of energy and food. While each country has an abundance of its own resources, there are some nations that stand out among others in terms of their abundance of natural resources. By looking at these top 10 countries with the most natural resources, it’s easy to see why they are so important for the global economy. With their rich supply of resources, these countries will likely remain powerful and influential in the years ahead. ––– || ––– 1. Russia | Key natural resources: Coal, oil, gas, gold, and timber / The net worth of natural resources: $75.7 trillion ––– | ––– 2. United States | Key resources: Copper, oil, natural gas, and gold / The net worth of resources: $45 trillion ––– | ––– 3. Saudi Arabia | Key resources: Timber, natural gas, and oil / The net worth of resources: $34.4 trillion ––– | ––– 4. Canada | Key resources: Oil, natural gas, timber, uranium, and phosphate / Net worth of resources: $33.2 trillion ––– | ––– 5. Iran | Key resources: Natural gas and oil / Net worth of resources: $27.3 trillions ––– | ––– 6. China | Key natural resources: Timber and coal / Net worth of natural resources: $23 trillions ––– | ––– 7. Brazil | Key natural resources: Gold and uranium / The net worth of natural resources: $21.8 trillion ––– | ––– 8. Australia | Key nresources: Coal, copper, iron ore, and timber / Net worth of resources: $19.9 trillion ––– | ––– 9. Iraq | Key resources: Natural gas & oil / The net worth of resources: $15.9 trillion ––– | ––– 10. Venezuela | Key resources: Iron, natural gas and oil / The net worth of resources: $14.3 trillion || Grand Total: $310,50 ––– | ––– related as follows: Total economic value (Wikiped) ––– Commodities - Live Quote Price Trading Data (tradingeconomics.com) ––– Commodity Markets (worldbank.org)
[56] Global Debt Leverage: Is a Great Reset Coming? | S&P Global (spglobal.com): Record leverage. Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product. This translates to $37,500 of average debt for each person in the world versus GDP per capita of just $12,000. Government debt-to-GDP leverage grew aggressively, by 76%, to a total of 102%, from 2007 to 2022. ––– Ranked: Government Debt by Country, in Advanced Economies (visualcapitalist.com) ––– Global Debt Monitor 2023 - International Monetary Fund (imf.org) ––– related as follows: Debt-to-GDP ratio (Wikiped) ––– Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)
[57] Global Debt Leverage: Is a Great Reset Coming? | S&P Global (spglobal.com): Record leverage. Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product. This translates to $37,500 of average debt for each person in the world versus GDP per capita of just $12,000. Government debt-to-GDP leverage grew aggressively, by 76%, to a total of 102%, from 2007 to 2022. ––– Ranked: Government Debt by Country, in Advanced Economies (visualcapitalist.com) ––– Global Debt Monitor 2023 - International Monetary Fund (imf.org) ––– related as follows: Debt-to-GDP ratio (Wikiped) ––– Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)
[58] Global Debt Leverage: Is a Great Reset Coming? | S&P Global (spglobal.com): Record leverage. Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product. This translates to $37,500 of average debt for each person in the world versus GDP per capita of just $12,000. Government debt-to-GDP leverage grew aggressively, by 76%, to a total of 102%, from 2007 to 2022. ––– Ranked: Government Debt by Country, in Advanced Economies (visualcapitalist.com) ––– Global Debt Monitor 2023 - International Monetary Fund (imf.org) ––– related as follows: Debt-to-GDP ratio (Wikiped) ––– Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)
[59] The rapid growth in global wealth | McKinsey ––– Global Assets under Management set to rise to $145.4 trillion by 2025 (pwc.com): Global Assets under Management set to rise to $145.4 trillion by 2025.
[60] Global Debt Leverage: Is a Great Reset Coming? | S&P Global (spglobal.com): Record leverage. Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product. This translates to $37,500 of average debt for each person in the world versus GDP per capita of just $12,000. Government debt-to-GDP leverage grew aggressively, by 76%, to a total of 102%, from 2007 to 2022. ––– Ranked: Government Debt by Country, in Advanced Economies (visualcapitalist.com) ––– Global Debt Monitor 2023 - International Monetary Fund (imf.org) ––– related as follows: Debt-to-GDP ratio (Wikiped) ––– Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)
[61] Global Debt Leverage: Is a Great Reset Coming? | S&P Global (spglobal.com): Record leverage. Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product. This translates to $37,500 of average debt for each person in the world versus GDP per capita of just $12,000. Government debt-to-GDP leverage grew aggressively, by 76%, to a total of 102%, from 2007 to 2022. ––– Ranked: Government Debt by Country, in Advanced Economies (visualcapitalist.com) ––– Global Debt Monitor 2023 - International Monetary Fund (imf.org) ––– related as follows: Debt-to-GDP ratio (Wikiped) ––– Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)
[62] The 10 countries with the most valuable natural resources (worldexcellence.com): Natural resources are essential to the survival of any nation. They provide the necessary materials for industry and manufacturing, as well as a source of energy and food. While each country has an abundance of its own resources, there are some nations that stand out among others in terms of their abundance of natural resources. By looking at these top 10 countries with the most natural resources, it’s easy to see why they are so important for the global economy. With their rich supply of resources, these countries will likely remain powerful and influential in the years ahead. ––– || ––– 1. Russia | Key natural resources: Coal, oil, gas, gold, and timber / The net worth of natural resources: $75.7 trillion ––– | ––– 2. United States | Key resources: Copper, oil, natural gas, and gold / The net worth of resources: $45 trillion ––– | ––– 3. Saudi Arabia | Key resources: Timber, natural gas, and oil / The net worth of resources: $34.4 trillion ––– | ––– 4. Canada | Key resources: Oil, natural gas, timber, uranium, and phosphate / Net worth of resources: $33.2 trillion ––– | ––– 5. Iran | Key resources: Natural gas and oil / Net worth of resources: $27.3 trillions ––– | ––– 6. China | Key natural resources: Timber and coal / Net worth of natural resources: $23 trillions ––– | ––– 7. Brazil | Key natural resources: Gold and uranium / The net worth of natural resources: $21.8 trillion ––– | ––– 8. Australia | Key nresources: Coal, copper, iron ore, and timber / Net worth of resources: $19.9 trillion ––– | ––– 9. Iraq | Key resources: Natural gas & oil / The net worth of resources: $15.9 trillion ––– | ––– 10. Venezuela | Key resources: Iron, natural gas and oil / The net worth of resources: $14.3 trillion || Grand Total: $310,50
[63] Anyone, anyone teacher from Ferris Bueller's Day Off - YouTube
[64] Argentina's poverty levels hit 57% of population, a 20-year high in January, study finds | AP News: Poverty levels skyrocketed to 57.4% of Argentina’s 46 million people in January, the highest rate in 20 years, according to a study by the Catholic University of Argentina. The findings quickly unleashed accusations between Argentina’s former Vice President Cristina Fernández de Kirchner and the government of President Javier Milei, who came to power announcing a series of shock measures aimed at tackling the country’s severe crisis. About 27 million people in Argentina are poor and 15% of those are mired in “destitution,” meaning they cannot adequately cover their food needs, according to the study released over the weekend.
[65] List of Argentines by net worth (Wikiped)
[66] Constitution of the World Health Organization (who.int): Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition. The health of all peoples is fundamental to the attainment of peace and security and is dependent on the fullest co-operation of individuals and States. The achievement of any State in the promotion and protection of health is of value to all. Unequal development in different countries in the promotion of health and control of diseases, especially communicable disease, is a common danger. Healthy development of the child is of basic importance; the ability to live harmoniously in a changing total environment is essential to such development. The extension to all peoples of the benefits of medical, psychological and related knowledge is essential to the fullest attainment of health. Informed opinion and active co-operation on the part of the public are of the utmost importance in the improvement of the health of the people. Governments have a responsibility for the health of their peoples which can be fulfilled only by the provision of adequate health and social measures.
[67] Anyone, anyone teacher from Ferris Bueller's Day Off - YouTube
[68] Figuratively related features on The United Statess of America – a case in point – as follows: RE: Tirement in Dire Straits! - Cal Caleido’s Substack––– Greenspan’s Stunt Show! - Cal Caleido’s Substack ––– Beware of the Alien Nation: - Cal Caleido’s Substack
[69] Related features as follows: Una Festa Sui Prati: The Malthusian Curse. - Cal Caleido’s Substack ––– Desert Dune Drifters! - Cal Caleido’s Substack
[70] Related features as follows: On A Day Before Tomorrow ... - Cal Caleido’s Substack ––– SHOOT FROM THE HIP: TERRA – EUPHORIA – PHANTASMAGORIA! - Cal Caleido’s Substack ––– Energy Spending Spree aD Nineteen Eighty. - Cal Caleido’s Substack ––– Soothe the Lion‘s Tooth: - Cal Caleido’s Substack
[71] John von Neumann, Theory of Self-Reproducing Automata (mit.edu) ––– John von Neumann, First Draft of a Report on the EDVAC ––– John von Neumann, The General and Logical Theory of Automata ––– related: Fibonacci sequence (Wikiped) ––– related: Self-reference effect (Wikiped) – Eternal return (Wikiped) – Ouroboros (Wikiped)
[72] By analogy: Autocatalysis (Wikiped): A set of chemical reactions can be said to be "collectively autocatalytic" if a number of those reactions produce, as reaction products, catalysts for enough of the other reactions that the entire set of chemical reactions is self-sustaining given an input of energy and food molecules (see autocatalytic set). – The second law of thermodynamics states that the disorder (entropy) of a physical or chemical system and its surroundings (a closed system) must increase with time. Systems left to themselves become increasingly random, and orderly energy of a system like uniform motion degrades eventually to the random motion of particles in a heat bath. ––– related: When is order disorder? (uu.edu) The Butterfly Effect (ens-lyon.fr) ––– related: John Nash, Non-Cooperative Games (upc.edu) – John Nash, Equilibrium Theory (uchicago.edu) – The Work of John Nash in Game Theory (nobelprize.org) ––– related: Steven Strogatz, Nonlinear Dynamics and Chaos (biodyn.ro) – Steven Strogatz, Oscillators that sync and swarm (squarespace.com) – Sync: The Emerging Science of Spontaneous Order — Steven Strogatz – Steven Strogatz: The science of sync | TED Talk ––– listen! the police synchronicity 1 - YouTube – the police synchronicity 2 - YouTube
[73] Predicting collapse of adaptive networked systems without knowing the network | Scientific Reports (nature.com) ––– Ricardo Hausmann - The Collapse of Economies - YouTube ––– related: Gödel's incompleteness theorems (Wikiped) ––– related: Poincaré recurrence theorem (Wikiped)
[74] The impacts of the global financial crisis on the real economy, economic policies and academic debates (uni-muenchen.de) ––– related by means of the Financial Crises‘ repercussions on the Real Economy as follows: Jean-Pierre Landau: Complexity and the financial crisis (bis.org) ––– What Caused the Global Financial Crisis?-Evidence on the Drivers of Financial Imbalances 1999–2007; by Ouarda Merrouche and Erlend Nier; IMF Working Paper 10/265; December 1, 2010 ––– The Origins of the Financial Crisis (brookings.edu) ––– The Global Financial Crisis: Causes and Consequences (ethz.ch) ––– Crisis and Response: An FDIC History, 2008–2013 ––– Origins of The Crisis - Drawing The Big Picture (oecd.org) ––– How The American Dream Became A Global Nightmare - An Analysis of The Causes of The Global Financial Crisis (unsw.edu.au) ––– Causes of the Financial Crisis: Many Responsible Parties (hks.harvard.edu) ––– The Global Financial Crisis: Causes, Anti-Crisis Policies and First Lessons (ifo.de) ––– Five explanations for the international financial crisis (ipe-berlin.org) ––– Financial Stability and Financial Crises: The Role of Derivative Instruments in International Financial Crises (boeckler.de)
[75] The New Realities : Drucker, Peter F : Free Download, Borrow, and Streaming : Internet Archive: The American experience and its lessons: The first lesson of the American experience is that the raw material economy and the industrial economy have become uncoupled. For the developed non-communist countries the raw material economy has become marginal. (..) By 1989 the raw material economy world-wide had been in its most serious and most prolonged depression ever for almost a decade. Yet the industrial economies were booming. Equally important: the economy is steadily becoming less material-intensive. … The newest energy’ of all – information – has no raw material or energy content a all. It is totally knowledge-intensive’. Manufacturing is increasingly becoming uncoupled from labour. (..) Where none of the traditional factors of production’ – land, labour and money – determines competitiveness or competitve advantage any longer, trade is increasingly being replaced by investment as the world economy’ s economic driver. Investment used to follow trade. Now trade follows investment.
[76] Global Map of Material Flows in Total (viewsoftheworld.net) ––– Worldmapper | rediscover the world as you've never seen it before ––– Global Map of Fossil Fuel Flows (viewsoftheworld.net) ––– Worldmapper | rediscover the world as you've never seen it before
[77] GDP per person World map | SIMCenter (wrsc.org)
[78] Related: Grammar (Wikiped) – Sentence (linguistics) (Wikiped) – Syntactic Structures (Wikiped) – Vocabulary (Wikiped) – Ambiguity (Wikiped) – Vagueness (Wikiped) – Semantics (Wikiped) – Supervaluationism (Wikiped) ––– Information theory (Wikiped) – Fuzzy logic (Wikiped) ––– Linguistics (Wikiped) – Neurolinguistics (Wikiped) – Psycholinguistics (Wikiped) ––– Noam Chomsky - Syntactic Structures (tallinzen.net) ––– Peter Chen, Entity Relationhip Model (dragon1.com) – Peter Chen, Entity-Relationship Modeling: Historical Events, Future Trends, and Lessons Learned (lsu.edu) ––– Parsing (tohoku.ac.jp) ––– Sentence Patterns (towson.edu)
[79] Bretton Woods Agreement and the Institutions It Created Explained (investopedia.com) ––– About the IMF: History: The end of the Bretton Woods System (1972–81)
[80] Noam Chomsky - Syntactic Structures (tallinzen.net) ––– Peter Chen, Entity Relationhip Model (dragon1.com) – Peter Chen, Entity-Relationship Modeling: Historical Events, Future Trends, and Lessons Learned (lsu.edu) ––– Parsing (tohoku.ac.jp) ––– Sentence Patterns (towson.edu)
[81] Satoshi Nakamoto, Bitcoin: A Peer-to-Peer Electronic Cash System ––– related: Fed warns of 'economic ruin' when governments print money to pay off debt (cnbc.com) – How ‘Spoofing’ Traders Dupe Markets - WSJ – 10 Tips To Avoid Common Financial Scams (investopedia.com) – Money creation, bank profits, and central bank digital currency | VOX, CEPR Policy Portal (voxeu.org) – Money Creation in Fiat and Digital Currency Systems (imf.org) – Money Creation in Fiat and Digital Currency Systems (researchgate.net) – Digital Cash: Why central banks should issue digital currency (positivemoney.org) – Banks do not create money out of thin air | VOX, CEPR Policy Portal (voxeu.org) ––– listen! Dee D. Jackson - Automatic Lover (1978) - YouTube
[82] Electronic trading platform (Wikiped) ––– Was software responsible for the financial crisis? | Technology | The Guardian ––– Can Algorithms Help Predict the Next Financial Crisis? (upenn.edu) ––– Spoofing (finance) (Wikiped) ––– Mirror trading (Wikiped) ––– Social trading (Wikiped) ––– Copy trading (Wikiped)
[83] Ken Rogoff - Debts, Deficits and Global Financial Stability - YouTube
[84] Systemic Risk Contributions: A Credit Portfolio Approach (bis.org) ––– McKinsey Global Institute, Debt and Deleveraging. The global credit bubble and its economic consequences (mckinsey.com) ––– The Economist, Financial risk got ahead of the world’s ability to manage it. (economist.com) ––– Number-crunchers crunched | The Economist
[85] EU Commisson, Frequently asked questions: legislative proposal on credit rating agencies (CRAs) ––– Debasement of Ratings (columbia.edu): What is the evidence that rating agencies have been performing badly in measuring credit risk on the debts that they rate? The evidence relates to two separate phenomena: inflated ratings and low-quality ratings. The inflation of ratings is defined as the purposeful over-rating (under-estimation of default risk) on rated debts. Low-quality ratings, defined as ratings based on flawed measures of underlying risk, are a related but logically distinct phenomenon. The recent collapse of subprime-related securitizations revealed both problems in the extreme, but these problems have been present in securitized debt instruments for decades. ––– The Failures of Credit Rating Agencies during the Global Financial Crisis - Causes and Possible Solutions (researchgate.net): The adequacy of credit ratings is crucial for normal functioning of debt markets. Failures of credit rating agencies have strengthened the negative effects of global financial crisis, generating additional systemic risk. The errors of the agencies can be explained by many reasons as business models, conflicts of interest and absent or ineffective regulation of their activities. To overcome these major problems, we can apply different approaches. The best solution is to improve regulatory practices, combining it with limiting the regulatory status of rating agencies. ––– The Credit Ratings Game - BOLTON - 2012 - The Journal of Finance - Wiley Online Library: The collapse of AAA-rated structured finance products in 2007 to 2008 has brought renewed attention to conflicts of interest in credit rating agencies (CRAs). We model competition among CRAs with three sources of conflicts: (1) CRAs conflict of understating risk to attract business, (2) issuers' ability to purchase only the most favorable ratings, and (3) the trusting nature of some investor clienteles. These conflicts create two distortions. First, competition can reduce efficiency, as it facilitates ratings shopping. Second, ratings are more likely to be inflated during booms and when investors are more trusting. We also discuss efficiency-enhancing regulatory interventions. ––– Credit Rating Agencies: How to Restore Credibility (tavakolistructuredfinance.com): Ostensibly the U.S. Securities and Exchange Commission (SEC) qualifies the NRSRO designation. The SEC’s series of failures to check the creation and sale of hundreds of billions of dollars of blatantly misrated securitizations leading up to the financial crisis are beyond the scope of this report. It’s worth noting, however, that if the Food and Drug Administration failed to check the sale of tainted meat that repeatedly sickened a large segment of the population, we would demand a top to bottom overhaul of the organization and its methods. ––– FT, More Wrongdoing At Banks, More Swingeing Fines, No Prosecutions, May 23, 2015: THE scene was familiar: regulators meting out vast penalties to banks, scathing statements about gross misconduct, yet no individuals charged with any crimes and some confusion as to what exactly the banks were admitting to and what effect that would have. On May 20th a consortium of American and British government agencies announced settlements with six international banks regarding claims that they had manipulated currency markets. The six—Bank of America, Barclays, Citigroup, JPMorgan Chase, Royal Bank of Scotland (RBS) and UBS—agreed to pay $5.6 billion in penalties. All but Bank of America also admitted to crimes, although the significance of that is unclear. (Note: Original weblink no longer available) ––– FT, The Credit Rating Controversy, June 29, 2015: The "Big Three" global credit rating agencies—U.S.-based Standard and Poor's (S&P), Moody's, and Fitch Ratings—have come under intense scrutiny in the wake of the global financial crisis. (..) In Europe, the Big Three garnered further controversy over their sovereign debt ratings. While the public debt of crisis-hit countries like Greece, Portugal, and Ireland was relegated to “junk” status, the agencies also downgraded the creditworthiness of France, Austria, and other major eurozone economies. (Note: Original weblink no longer available) ––– FT, Rating Agencies: Badly Overrated – Regulators And Investors Rely Too Heavily On Credit Ratings, May 16, 2002: PITY the poor rating agencies. They work their socks off trying to give sensible credit ratings to every financial instrument they are asked to assess. Now they are under attack: from countries that claim to have been unfairly downgraded (such as Japan, see article); from companies struggling to cope with adverse markets; and from investors alarmed at the speed with which triple-A names can sink to single-B. America's regulators are also, post-Enron, reviewing the top three agencies' quasi-official status, for anti-competitiveness and potential conflicts of interest. (Note: Original weblink no longer available) ––– FT, Sec Pledges Overhaul Of Rating Agencies, January 25, 2003: The Securities and Exchange Commission on Friday pledged a sweeping overhaul of the regulation of credit rating agencies following criticism of their role in the collapse of Enron and the crisis in the telecommunications industry. The chief US financial regulator said a review of the credit rating business had "identified a wide range of issues that deserve further examination". (Note: Original weblink no longer available) ––– FT, Rating Agencies – Exclusion Zone, February 6, 2003: Regulators promise a belated review of the ratings oligopoly. THE domination of any industry by three firms ought to set regulators thinking. Does their power distort markets? Is lack of competition damaging? So it is in the world of credit ratings, where two big agencies, Moody's and Standard & Poor's (S&P), and one smaller one, Fitch, hold sway. The Securities and Exchange Commission (SEC) was asked by Congress last year to review their role. (Note: Original weblink no longer available) ––– FT, Paris To Target Credit Rating Agencies At G7, May 1, 2003: France plans to raise the issue of regulating the international credit ratings agencies with its partners in the Group of Seven industrial countries. The aim is to agree a set of principles with the ratings agencies to make them more transparent and accountable. The French finance ministry has already sounded out Moody's Investors Service, one of three big agencies that dominate the business. (Note: Original weblink no longer available) ––– FT, Pressure On Cdo Ratings, January 12, 2006: The European structured finance market is set to see benign or improving credit ratings cross most market segments this year after the best ever year for upgrades in 2005, according to analysts at Standard & Poor's, the ratings agency. The one area of continuing relative weakness in structured finance - which covers all kinds of asset-backed securitisations - would probably be in collateralised debt obligations, which in 2005 were hit by troubles in the US car industry and were likely to see ratings downgrades again this year. (Note: Original weblink no longer available) ––– FT, CREDIT RATINGS INDUSTRY COMES UNDER ATTACK, March 7, 2006: The dominance of the credit ratings industry by a handful of companies was attacked on Tuesday before the powerful Senate Banking Committee hearing in Washington. The hearing followed calls for legislative action that began intensifying after the failures of the main ratings agencies to flag up problems at Enron, WorldCom and Parmalat. More recent examples include Delphi, the car-parts maker that went from an investment grade rating in December 2004 to bankruptcy in less than a year. The Securities and Exchange Commission currently designates Nationally Recognised Statistical Rating Organisations using unspecified criteria. Only ratings supplied by an NRSRO are valid in the context of laws and regulations involving credit ratings, giving NRSROs huge influence.
[86] Money as Debt - Full Documentary - YouTube
[87] What is Debt/Equity Swap? | Examples | How Does it Work? (wallstreetmojo.com) ––– Corporate Debt Restructuring - ppt video online download (slideplayer.com)
[88] Countries Compared by Economy > Debt > External. International Statistics at NationMaster.com ––– World Debt Clocks (usdebtclock.org) ––– Creditor Country vs Debtor Country (sas.com) ––– America's Foreign Creditors - NYTimes.com ––– Whoops! Why Everyone Owes Everyone and No One Can Pay by John Lanchester | Business and finance books | The Guardian ––– Trends and major holders of U.S. federal debt in charts | Economic Commission for Latin America and the Caribbean (cepal.org) ––– Which Countries Hold the Most U.S. Debt? (visualcapitalist.com) ––– The Resistible Fall of Europe: An Interview with George Soros by George Soros - Project Syndicate (project-syndicate.org) ––– European Debt Crisis - Economic Collapse In 3 Minutes - Clarke & Dawe MUST SEE Video - YouTube ––– The European Debt Crisis Visualized - YouTube
[89] Shadow banking: still big, still dangerous - YouTube
[90] Ethically disputed business practices (Wikiped)
[91] Off-Balance Sheet Financing (OBSF): Definition and Purpose (investopedia.com) ––– Off-balance-sheet (Wikiped) ––– The Rise and Fall of WorldCom: Story of a Scandal (investopedia.com) ––– Enron Scandal: The Fall of a Wall Street Darling (investopedia.com) ––– The Accounting Trick Behind Thirty Years of Scandal | TIME.com
[92] Off-Balance-Sheet Entities: An Introduction (investopedia.com)
[93] The next chapter: creating an understanding of Special Purpose Vehicles (pwc.com) ––– Report on Special Purpose Entities (bis.org) ––– Special Purpose Entities and their role in Megaprojects: a new focus for understanding megaproject behaviour - CORE Reader
[94] Third-party technique (Wikiped)
[95] U.S. Department of Transportation, Risk Assessment for Public-Private Partnerships: A Primer (dot.gov) ––– David Hall, Why Private-Public Partnerships don't work - The many advantages of the public alternative (world-psi.org)
[96] What Are Articles of Incorporation? What's Included (investopedia.com)
[97] Asset-Backed Security (ABS): What It Is, How Different Types Work (investopedia.com)
[98] Bearer security financial definition of Bearer security (thefreedictionary.com)
[99] Collateral Definition, Types, & Examples (investopedia.com)
[100] What Is Defeasance? How It Works on the Balance Sheet and Example (investopedia.com) ––– Novation: Definition in Contract Law, Types, Uses, and Example (investopedia.com)
[101] Off-Balance Sheet Financing (OBSF): Definition and Purpose (investopedia.com)
[102] Equipment Trust Certificate (ETC) Definition (investopedia.com)
[103] Exchange of assets financial definition of Exchange of assets (thefreedictionary.com)
[104] Nine men's morris (Wikiped)
[105] What Is Financial Leverage, and Why Is It Important? (investopedia.com)
[106] What Is Gearing? Definition, How's It's Measured, and Example (investopedia.com)
[107] Golden Parachute: Definition, Examples, Controversy (investopedia.com)
[108] Interval Measure – Meaning, Importance, How to Calculate, Burn Rate | eFM (efinancemanagement.com)
[109] Leveraged Buyout (LBO) Definition: How It Works, with Example (investopedia.com)
[110] Leveraged Lease Definition (investopedia.com)
[111] Modified Accelerated Cost Recovery System (MACRS) Definition (investopedia.com)
[112] Monte Carlo method (Wikiped) ––– IN THE LAND OF THE MAGIC ASTERISK - The New York Times (nytimes.com) ––– Four Magic Tricks for Fiscal Conservatives by Jeffrey Frankel - Project Syndicate (project-syndicate.org)
[113] Novation: Definition in Contract Law, Types, Uses, and Example (investopedia.com)
[114] What Is Defeasance? How It Works on the Balance Sheet and Example (investopedia.com)
[115] Off-Balance Sheet Financing (OBSF): Definition and Purpose (investopedia.com)
[116] Prepackaged Bankruptcy Definition (investopedia.com)
[117] Registrar: Overview and Examples in Corporate Finance (investopedia.com)
[120] Subprime mortgage crisis (2007-2010) (Wikiped)
[121] European debt crisis (Wikiped)
[122] Global financial crisis in 2009 (Wikiped)
[123] Great Recession (2007-2009) (Wikiped)
[124] Securitization: Definition, Meaning, Types, and Example (investopedia.com) ––– Secured Debt Definition (investopedia.com)
[125] Management of Corporate Greatness: Blending Goodness with Greed - Pradip N. Khandwalla - Google Books
[126] Workout Agreement Definition (investopedia.com)
[127] Great Depression (Wikiped)
[128] Black Monday (1987) (Wikiped)
[129] Subprime mortgage crisis (2007-2010) (Wikiped)
[130] European debt crisis (Wikiped)
[131] Global financial crisis in 2009 (Wikiped)
[132] Great Recession (2007-2009) (Wikiped)
[133] Butterfly effect (Wikiped) ––– related: Chaos theory (Wikiped) ––– listen! Crazy Town - Butterfly (Official Video) - YouTube
[134] Gold Bug Defined (investopedia.com)
[135] Home | S&P Global Ratings (spglobal.com)
[136] Fitch Ratings: Credit Ratings & Analysis For Financial Markets
[137] Fitch Ratings: Credit Ratings & Analysis For Financial Markets
[138] 2000s United States housing bubble (Wikiped)
[139] Related: Junk bonds’ crunch is nothing like the 2008 housing meltdown - MarketWatch
[140] German, French banks held $38 bln in Greek bonds - News | Khaleej Times
[141] Goldman helped Greece cook books - VoxEurop ––– Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt - DER SPIEGEL
[142] Estimation of the size of tax evasion in Greece (researchgate.net): The purpose of this paper is to estimate the extent of tax evasion in Greece for the period 1980-2018. For this estimation we have chosen to apply an indirect method of approach to the issue, as developed by Tanzi, based on the assumption that estimating the size of the shadow economy can lead us to a safe measurement of the extent of tax evasion. More precisely, through the Currency Demand approach which is based on the basic assumption that activities under the shadow economy constitute a direct response of taxpayers to the increased tax burden and also that cash is mainly used to conduct such transactions and of the wealth derived from them, the size of the shadow economy was determined using the method of the University of Leicester research team and then the level of tax evasion was assessed by imposing an annual tax rate on it as a ratio of total tax revenue to Gross Domestic Product. The results showed a significant increase of the size of tax evasion during the period considered, while the model estimation showed that most of the tax evasion came from direct taxation. ––– Tax shortfalls in Greece. Country Focus 5/2008 (europa.eu)
[143] General Motors and the Subprime Crisis (managementstudyguide.com) ––– GMAC Made Risky Subprime Mortgage Loans : NPR ––– Rejected by Courts, Retirees Take Last Shot to Save Pensions (usnews.com): When General Motors went through the biggest industrial bankruptcy proceedings in history, 20,000 retirees from GM's Delphi Corp. subsidiary saw their retirement savings slashed. Dave Muffley poses outside one of the Delphi Corporation plants in Kokomo, Ind., Monday, July 11, 2022. As General Motors Corp. underwent the biggest industrial bankruptcy proceedings in history, and the federal government negotiated a company restructuring, Muffley's healthy retirement savings would be slashed by 70 percent, and his life's trajectory would take a dramatic spiral downward.
[144] Corruption in Greece (Wikiped) ––– FACTBOX-Scandals plaguing Greece's conservative government | Reuters ––– Bribery scandal puts strain on Greek leader - Europe - International Herald Tribune - The New York Times (nytimes.com) ––– Greece-OECD project: Technical support on anti-corruption - OECD
[145] Transaction account (Wikiped) ––– Demand deposit (Wikiped)
[146] Factors of production (Wikiped)
[147] Pensions at a Glance 2021: OECD and G20 Indicators | en | OECD ––– related: Expatica: The largest online resource for expat living ––– related: These are the countries where people retire the youngest (qz.com) ––– for comparison: Purchasing power parity (Wikiped) ––– GDP per capita, PPP by country, around the world | TheGlobalEconomy.com
[148] Karl Marx (Wikiped) ––– related: Karl Marx, Capital - Volume I (marxists.org)
[149] Examples: Taxation and Saving (berkeley.edu) ––– The Effects of Taxation on Savings (hit-u.ac.jp) ––– The Taxation of Household Savings (ifs.org.uk)
[150] Trygve Haavelmo (Wikiped): Trygve Magnus Haavelmo (13 December 1911 – 28 July 1999), born in Skedsmo, Norway, was an economist whose research interests centered on econometrics. He received the Nobel Memorial Prize in Economic Sciences in 1989.
[151] Trickle-down economics (Wikiped): Trickle-down theory is an economic strategy where taxes levied on the high-income group are curtailed. The theory claims that the increase in wealth will trickle down into lower economic sections in the form of increased investments and employment.
[152] Note: E.g. since the 1970s Germany's national money flow has decelerated to one sixth of its original top velocity. Over the past five decades, the exponential accumulation of large assets and fortunes by means of interest yields has brought about a degree of wealth concentration having coincided with galloping wealth inequality. ––– related: Annual report 1970 (bundesbank.de); Outlook for the German economy for 2022 to 2024 (bundesbank.de)
[153] List of countries by government debt (Wikiped) ––– List of countries by external debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org) ––– Country List Government Debt to GDP (tradingeconomics.com)
[154] Example: TMUBMUSD10Y | U.S. 10 Year Treasury Note Overview | MarketWatch
[155] Example: United States Rates & Bonds - Bloomberg ––– World Government Bonds - Daily updated yields
[156] Self-reference (Wikiped)
[157] List of countries by government debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org)
[158] List of countries by external debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org)
[159] Tom Hanks - Idiot Laugh - “The Money Pit” - YouTube
[160] Cree Indian Prophecy: Only when the last tree has been cut down, the last fish been caught, and the last stream poisoned, will we realize we cannot eat money.
[161] Constitution of the World Health Organization (who.int): Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition. The health of all peoples is fundamental to the attainment of peace and security and is dependent on the fullest co-operation of individuals and States. The achievement of any State in the promotion and protection of health is of value to all. Unequal development in different countries in the promotion of health and control of diseases, especially communicable disease, is a common danger. Healthy development of the child is of basic importance; the ability to live harmoniously in a changing total environment is essential to such development. The extension to all peoples of the benefits of medical, psychological and related knowledge is essential to the fullest attainment of health. Informed opinion and active co-operation on the part of the public are of the utmost importance in the improvement of the health of the people. Governments have a responsibility for the health of their peoples which can be fulfilled only by the provision of adequate health and social measures.
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