Author: Michel Santi

Real estate, growth’s parasite

May 29, 2015 0

The meager European economic growth – often described as anemic – stems from a savings glut. Economic stagnation becomes secular from the moment the money stops flowing, that is, once the investor keeps his precious cash in his bank account and that bank is no longer able to recycle it towards productive sectors of the…

By Michel Santi

In Europe, growth is a curse!

May 19, 2015 0

Let us be inspired by the British example where, against all expectations, David Cameron was re-elected Prime Minister. He had previously imposed on UK’s citizens and economy a pitiless austerity. But, a few months before the election he authorized a recovery in economic growth. Had he not done so, he would not have been re-elected!…

By Michel Santi

The pernicious effects of corporate bonuses

May 14, 2015 0

The cash bonuses, stock options, pensions and mega salaries received by corporate executives are clearly a wealth transfer mechanism. In this regard, the Euro 300,000 annual pension to be paid to Philippe Varin, departing CEO of PSA Peugeot Citroën, pales in comparison to the remuneration of the great American bosses. Does Nicholas Woodman, GoPro founder,…

By Michel Santi

Work is an outdated value!

May 14, 2015 0

Humans have always had to work to support themselves. However, in its current form, work is a very recent concept in the course of human history. Until the advent of the tradable joint stock company (Dutch East India Company) towards the end of the Renaissance in 1602, human beings had indeed worked for themselves. Creative…

By Michel Santi

To save the rich, relieve the poor!

April 29, 2015 0

A debate rages on, mostly in the United States, regarding the secular stagnation of our economies. This secular stagnation is due, in my opinion, to the extraordinary productivity of capitalism. The very low, zero-boundary or even negative interest rates are simply the consequence of capital’s very efficient productivity. As for unemployment, it is itself a…

By Michel Santi

The real estate standard

April 28, 2015 0

At the height of the 2008 financial crisis, the U.S. government seriously considered nationalizing a large chunk of the American banking system. Instead, what it did was take effective control of the massive U.S. mortgage market. Without Federal guarantees and full government support, the U.S. real estate market (already under critical pressure from the subprime…

By Michel Santi

What is money in 2015?

April 28, 2015 0

Money is only a means of payment. Moreover, any vehicle generally accepted as payment for goods and services is by definition comparable to money. This broader definition of money allows us to find several other means of payment in circulation and in use in our societies and economies. Indeed, bank notes and electronic transactions passing…

By Michel Santi

Innovation will save Switzerland!

April 24, 2015 0

Europe and Switzerland are in full deflation, aggregate demand is at best anemic and only the emergence of a single or multiple asset bubbles is likely to revive their economies. Retail prices decline as consumers, who no longer have the means to maintain their current living standard, refuse to listen to the “credit sirens” and…

By Michel Santi

Too late to fight against inequality!

April 24, 2015 0

Do not be fooled by deflation. It is the decades-old general decline in wages, which inevitably leads to the lowering of consumer prices. And consumer prices will be made to adjust to the deterioration of our standard of living. Deflation is only the natural result of our shrinking purchasing power. Prices collapse for an obvious…

By Michel Santi

There is life outside of work

April 24, 2015 0

The time when Voltaire stated in Candide that “Work saves us from three great evils: boredom, vice and need” is over. Today, it is no longer appropriate to work regardless of the cost. In other words, less work could improve our living conditions and could undoubtedly improve the way we do work. The belief that…

By Michel Santi