Something’s got to give

April 21, 2016 0

The secular stagnation that is infecting our economies brings with it the germs of instability and financial torment. Since interest rates and monetary creation are the only weapons still at the disposal of the only public institutions that still wield some sort of power in our modern world, their initiation with a view to relaunching…

By Michel Santi

When real estate threatens growth

April 13, 2016 0

It’s not a coincidence if real estate prices – relatively stable up until now – suffered unhealthy volatility at the dawn of the 1990s. This phenomenon was the direct consequence of integrating the banking and financial systems together because deregulation and innovations such as securitisation intensified the flow of cross-border and transcontinental capital, thus inducing…

By Michel Santi

Choose your poison

April 7, 2016 0

“The essence of secular stagnation: sick recoveries which die in their infancy and depressions which feed on themselves and leave a hard and seemingly immovable core of unemployment.” It is in these terms that the father of secular stagnation, Alvin Hansen, described to the American Economic Association the economic climate of 1938…which could just as…

By Michel Santi

Life beyond capitalism

March 21, 2016 0

The economy is no longer a job supplier. This paradigm has now come to pass because, in the era of globalisation and the financialisation of our economies, growth no longer goes hand in hand with honourable and fairly paid work but for a minority. The subprime crisis came about fundamentally due to huge loans given…

By Michel Santi

The European social nightmare

March 8, 2016 0

What European social model? Is there only one, when the Germans are more than ever obsessed with competitiveness and their trade surplus? In reality, Merkel and Schauble’s only solution in order to compete with emerging and developing countries – and therefore to preserve Germany’s market shares – consists of crushing southern European workers under an…

By Michel Santi

Oil: victim of deflation

January 30, 2016 0

The collapse in oil prices has not brought with it the happiness that had been counted on, since economic fundamentals have not improved. As for Western consumption, its slight progress is owed more to a further drop in inflation indices than to an increase in salaries and revenues that is worthy of being called so.…

By Michel Santi