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Unconventional Consideration Manners of the Economic Crisis III

What is to be done as a solution for the crisis?

Uwe Petersen

In the beginning of 2011 Unkonventionelle Betrachtungsweisen zur Wirtschaftskrise. Von Haien, Heuschrecken und anderem Getier (Unconventional Consideration Manners of the Economic Crisis I. From Sharks, Grasshoppers and other Creatures) was published, which explained aphoristically succinct aspects of the economic crisis. At the end of August, 2011, the second volume with the subtitle Illnesses of the Economic System and Possibilities and Limits of their Healing appeared in German, which analyses the traditional measures of the economic policy and exemplarily describes the economic case history of single countries. The result of these analyses was that the conventional economic policies only cured symptoms but aggravated even the fragility of the economic system. Therefore in this book (a little modified and actualised translation of the third volume published in German in 2012) unconventional solution possibilities of the financial and economic crisis are indicated, and are backed up ethically. The treatises in this volume are clear for themselves, and at the same time give an overview about the crisis problems all together, and that’s why it seemed to be justified to translate only this volume in English.

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B. Necessary economic measures to overcome the global financial and economic crisis

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I. The restriction and reduction of public indebtedness At the moment the biggest economic problem is the worldwide high public indebtedness. States which can no longer repay due credits, because they are classified as less creditworthy, or no longer creditworthy, have to pay higher interest or not be permitted to get any more new loans. If one considers the present practice of the public debt raising, it does not concern the objective ability to pay the debts back, but rather the evaluation of rating agencies. For if one would judge on the basis of objective criteria, no state is able to pay back its debts without destroying its economy and with it would also affect the world economy and bring about social riots. Interest and repayments are normally only paid from new indebtedness. That is possible as long as the believers are ready to finance due payments anew with new credits every time, thus the indebtedness could go on endlessly. But with what means should interest on national debts or repayments be paid? If an entrepreneur takes out a loan to buy production plants, then if the investments are properly calculated he earns at least the interest and write-offs on the investment from them. A house builder pays interest and loan repayments on his house from the saved rent payments, which he would have had to pay if he had not built a house, and also from future savings. If someone wants a bigger acquisition and takes out a loan...

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