The banks have not made their shit all alone

With completely disorientated in turn exchange markets, where the "volatility" of the course reached yet never experienced widespread, it approximates the hypocentre (the actual home versus the epicentre located on the surface) of the financial process to tackle the whole economy earthquake. The banks have not made their shit all alone.

No doubt return to grace of the dollar should it something to some central banks deliberate intervention. Nothing that in the third quarter, the Bank of China has increased its stock of 100 billion dollar balances. While not a panic in the international currency! The time has come to China to propose reforms. The dollar system has this result, ultimately intolerable, that goods that it sells in the United States, it is she who pays. Many Americans, if it explained the mechanism, consider poisoned gift. They prefer a protection for jobs better paid, even if buy more expensive products that they have produced themselves.

In the meantime, the system in question continues to drink until more thirst (it remains to prove!) the world in "cash". The world so-called reserves accumulated in foreign currency (dollars especially) reached end of July the amount great to 3,090 billion: almost 5 times more there 10 years, 158 times more than thirty years ago ("suspension" by President Nixon of the standard gold of Bretton Woods). These assets are held primarily in bonds and bonds issued by the American Treasury which should count for a debt. It would scratch the amount consolidated around the world. They were used as support to a massive expansion of credit.

When the French banks are 40 billion euros that the State is prepared to allocate them to help their "recapitalisation", they meet a just intuition. But they do not want to admit the reason. The accumulation of indebtedness in the monetary world led to a situation of bankruptcy, as Jacques Rueff. In the current state of things, the solvency is not really the order of the day. Why Because it is out of reach. Except of course for this or that institution remained faithful to the principles of sound management, otherwise the good simply sense. The "system" create permissive conditions of a frantic race to the riskier gains, it exempts no leader, nor any regulator, its own responsibilities. No one is ever forced to déraisonner.

The stock market rout will make inevitable clean balance sheets to restore solvency. It requires a positive subtraction balance: total assets inflated for example by the "goodwill" recorded at less total debt surpayées acquisitions, downgraded the fact that some of them spend for own funds. If it can be said, the decline was still beautiful days before it.

With the floating exchange (historically, the regime of the changes in time of war), characterized as a globalized economy is fragmented in separate currency areas. But, no one wants to consider. No responsible authority informed the character aberrant disastrous practice of the "carry trade": it was borrowing at ridiculous interest rates of the yen or the Swiss francs to finance high-yield investments denominated in New Zealand or Australian dollars. Such differences of rates were inconceivable in the world by the standard or of Bretton Woods.

A situation of bankruptcy involves prohibitive interest rates. When a market is almost closed, as are especially the bond market of the loans issued by corporations and the interbank market, this means in financial terms of the likely infinite rate. This drift opposed the policy of the central banks of frenzied lowering their rate. The dollar system allows the US Government to continue good balance debt. At the end of the second world war, it borrowed 10 years at a rate of 1.5. How long the globalized economy withstand such hijackings in the opposite direction of savings