Never before has there been as much money as there is today and rarely has money been so cheap and yet the Central Banks continue to pump money into the world we are being flooded by trillions of dollars and euros. The it cant go on forever its a ticking time. Bomb but its never been easier for investors to get their hands on cheap money running up debt since practically free of charge organizations are just boring large amounts of money from each other and then using that to make money by lending it to others who are using that to lend it to others a snowball system that lets the rich become even richer savers on the other hand are losing billions every year thanks to. Lower Interest Rates. And if you just open a savings account its almost like burning money. This deluge of money has created deals worth billions companies are bought and sold for vast sums because the lands are cheap the employees become the pools of the speculators. I guess the question is wheres all this money going to go. In and. The end. Game. The end. The end. Where in bad bowden doff in western germany this couple faces the same dial m. R. As many others want to deal with their savings in this world of low Interest Rates karlheinz a recently retired Court Bailiff knows all about money and debts his Life Insurance policy is due to payouts in how should he invest the money in a house theyve already got one theres a lot at stake for the cycling enthusiast and his wife wants security and old age as was a good time. After i was hoping that after the payout is id be able to invest the money again and earn interest which could be added to a pension fund but its all gone gone but that plan isnt going to work out for government who is in your midst. Karlheinz has always led a modest life in a way stayed away from investments that paid high returns but were risky you never thought it would come to this. He doesnt know what to do with Interest Rates this low and nor to his friends. I knew some of told me they wont keep their money in a bank account anymore thats exactly what for one of a shame stead theyll deposit it as physical cash in a safe for just buggered to hold it would have been to plenty of. Its barely worth going to the Bank Interest on savings is almost zero but just opened one percent that means that he gets one cent for every hundred euros a year whats happening with his money. People are worried says the director of the local branch of folks bank elma schmitz although there hasnt been a run on the safe deposit boxes yet there have been more requests to keep money in cash or gold or from. Were living in since for father weve seen a continuing fall in Interest Rates over the past eight years arent need a crystal ball to tell you whether it will stay like this for long i think well have the situation for another two or three years after that things will change again but we wont have the Interest Rates we have ten or twenty years ago about it since and the interviewer put since wildish on the magazine home. The manager knows who he blames for these low Interest Rates the European Central bank. The remit of the e. C. B. Is clear price stability it uses the base rate as its too weak to deliver that and its been lowering the base rate steadily ever since the financial crisis down to zero savers are left by the wayside but countries with high levels of debt such as greece are able to get their hands on cheap money so to banks in southern europe. The cheap money is supposed to fuel growth by buying government bonds the cd has pumped additional trillions of years into the markets otherwise the system would face potential collapse the price of all this is a deluge of money the money has to go somewhere into shares and real estate which continue to rise in price the result is a massive concentration of wealth right at the top. Bill gates the worlds richest man has a fortune of sixty five billion euros that the market value of his shares to compare the total value of all of the worlds cash is less than one hundred times that amount five trillion years. The value of zero goods and services created every year around the world is seventy five trillion euros thats the real economy the worlds debts are far higher than that state businesses and private individuals all have debts a world living on credit seven hundred and five trillion dollars the value of derivatives the speculative financial bets on the future theyve got almost nothing to do with real goods anymore to recap this is the fortune of bill gates. What happens when theres too much money in the world economist max ata says this deluge of cheap money isnt just flooding the big banks he sees low Interest Rates as the symptom of a massive sickness in the Global Financial system whats more cheap money and dangerous then tar economy and amid increasing levels of debt he says those who believe that with the financial crisis of two thousand and eight receding things are now better again much mistaken. This influx of money is extremely dangerous its slow but at some point the dam will burst and then well be in a huge crisis comes down to. The biggest danger is that this flood of cheap money will split our society it moves money from the bottom up puts he sends a gigantic redistribution machine. Interests and low Interest Rates are demanded by many economists and they mean that states can borrow on the cheap states can take on more debt it also means the rich can do the same and often without any liability if they default and if i is one of the super rich going to business then on only liable to the extent of my holding not with the rest of my wealth thats a blatant injustice compared to middle class families and regular people with Home Construction laws because this flood of money doesnt just save states and banks it also favors the rich who use this cheap money to buy shares companies and real estate with rapidly rising values while the Financial Investments of ordinary people lose value the middle the middle classes have savings and insurance policies and these investments are the losers in a low Interest Rate were all reset ison suffer because real estate prices are going up. There for reference to the starting with that there were a lot of mutants like. London the Worlds LargestFinancial Center illustrates very clearly the effect that this monetary deluge trillions are traded here three hundred thousand employees in the Financial Sector are trying to turn money into even more money londons only real estate prices are skyrocketing all the major banks have offices here this is where the money of the worlds rich is invested. Grown man bodice of h. Knows the scene well there are neighborhoods where millionaires are being pushed out by billionaires bodice of it is fighting against a sell off of the city of london to speculators together with colleagues plea has researched the anonymous owners of several properties as a former banker hes familiar with cries developments. Always abuse house and again depending on the size of difficult to say how deep they are but anywhere between three to five maybe five to seven million on those on this but in this particular area five to seven million pops now you think about news housing this is a family place so think about what kind of family can afford to buy a house for three to five even four five to serve seven Million Pounds. The expensive houses are all speculative objects and empty london belongs to investors who dont live in the city well mine bought us of each discovered that this town house was sold to a ukrainian billionaire for sixty six Million Pounds. On paper the mansion is owned by a shell company. Right now there is an excess of forty thousand properties in london that are owned by a more intimate offshore corporations meaning that we dont know who the owners they could be decent people we could be mafia therefore we suspect that a lot of this money that came to the one that exploded prices here is actually of good margin. Theres construction underway everywhere speculating with real estate is the big game in town trillions of years from russians germans chinese and indians of poor dental london. From social economical perspective it is not sustainable you cannot have a city where a residence and a workers cannot cannot live in the us this is a this is what the problem with bubbles is that nobody knows when theyre going to burst. But london doesnt have a monopoly on real estate bubbles they now exist in cities around the world. And not if a real estate bubble were to burst sure it would get the wealthy or invest at this but they have a diverse investment portfolios they seize opportunities around the world if the real estate bubble in munich were to burst theyll be in real tokyo where they can act globally but the middle class cant discard the middle shes missed. As seen in the financial crisis of two thousand and eight the middle class is hit while the rich get richer in times of boom and bust not much has changed the minor regulations introduced into the Financial Sector on very tangible here in london the speculators are looking for new ways to make more money in the worlds number one Financial Center many transactions are now taking place. In the shadows Banking System the bonuses for lucrative deals are as plentiful as ever and frank said to see the regulations relaxed even further the show must go on. Out townsend has lived through it all hes been driving a taxi for fifty four years chauffeuring bankers and brokers around the city dealing in the worlds trillions has become the trump card at the british economy he says optimistically. Beneficial to them that i think its that. The birds people who invest whether what work will have a part of what i come for it i want to mess about it because its a thats good for the big good as you call it are you cultivate yet. He too has profited but in exchange has to live far outside the city center a Million Pounds for a single room apartment no ordinary noko can afford that. Theres not many would love that as a pot from us all people who still live and love the most of the south the houses always side of the ball the houses off the cows or by the fat profit souder moved out to support the. Ottawa yeah. Some leave the city entirely and forever. Get around anderson was one of londons financial stands he now lives in wales he paid the same for his farm as he would have to pay for a tiny single room apartment in Downtown London but thats not the only reason why he came here hes had enough of the financial excesses. The city is full of greedy ruthless clever people and if they put more regulation a little bit more compliance some restrictions these guys work out how to game the system to make sure. It benefits them. To day he writes novels and screenplays about the financial world he used to earn a few hundred thousand pounds a year he didnt care who the trains heard thats a few years ago now but nothing has changed says anderson this is general wards those who make fat deals at the expense of others. I make lots of strange gambles incredible reckless decisions but they come good then i make huge amounts of money if they go bad maybe i lose my job but thats the only downside so this is what is called an asymmetrical risk it encourages short term gambling. Anderson is certain that the Financial System will keep growing and sprawling the prospects of big profits the low Interest Rates the deluge of money the former financial insider believes these elements make for an explosive mix. The ponzi system that exists is such that organizations are just pouring large amounts of money from each other and then using that to make money by lending it to others who are using that to lend it to others which means that you have very. A system where ultimately no ones really got the money that backs up all the money thats being lent out and subsequently. When that system comes crashing down then. Its good night. Attacks on speculative Financial Transactions could slow this merry go round however this Financial Transactions tax would need to be introduced globally but even the small scale version with just ten e. U. States failed after years of negotiations even the german finance minister both going scheuer personally pushed for this tax but britain was against it and will be even more against it in the future london as a Financial Center would suffer thats most regrettable because this tax would be the necessary surgery for the sick Financial System the z. B. And other Central Banks flooding the world with cheap money isnt a cure its just pain relief and in the long run it has serious side effects the entire setup is a system that keeps saving itself temporarily but at some point it will inevitably fall apart. Until then it exacerbates the enormous injustice that already exists those who have benefit a handful of super rich individuals own as much as the poor half of the worlds population combined this flood of money is increasing the gap between rich and poor and further. People like these are struggling at the hands of low Interest Rates car heinz and his friends are worried in the past the world was a veritable part dies the savers the economy was booming and into. Restraints were high even if inflation was too nevertheless successive generations lived by the motto those who saved get more out of life than a lot like you and bad for you can tune in the cost you could rely on a certain Interest Rate for your savings account you could live without. It but not anymore. Which metaphor people think it is in the seventys we got a fixed rate of seven percent. For a short while we go into level percent. Karlheinz has an appointment with his Financial Advisor at the bank what should he do with his money. And if. Your boss will go and we have this account open next year alone if insurance policy will mature. What can we do with this money. On the ocean margaret im going to the finance the advisor wants to know about her clients readiness to take risks hes actually move risk averse and wants to invest his insurance money as brutally as possible every day it sits in the savings account it loses purchasing power and he knows that. We have to be kind and since youre getting almost no interest we have to see where we can generate a return is most of the sure and that means stocks and chance in forcefield on ten want to be involved in the self and then. Investing more in property bonds and chasse thats what his bank advises what else can he do in times like these. And. I dont feel uneasy or really comfortable with the idea although ive generally had positive experiences to date. Shares property bonds i risk whether he likes it or not. Has to participate in the game of the big financial world its an industry in party mood Big Companies a buying up competitors thanks to low Interest Rates and thereby increasing their share value only Shareholders Benefit from this strategy and they tend to be affluent. German chemical giant bya bort american seed supplier monsanto for example for sixty five billion year is. The Worlds Largest brewery and why is a bush in bev swallowed the number two s a b. Miller for the equivalent of over one hundred billion euros. And Software Giant microsoft board professional networking site linked in for twenty six billion company is as the playthings of International Financial interests. The less prominent case w. M. s has been based in guys ling and in south west germany since the mid Nineteenth Century its a brand with a world class reputation w m f manufactures cutlery and Coffee Makers it used to be in the hands of german owners and shareholders its operations meant security of the thousands of families then the financial gamblers set their sights on w. N. After. The company has changed owners three times in the past eleven has every time it sold the price goes up enormously at the same time wages and working conditions of last. Protests. When the company was taken over by french group b. Martin pushpa hoped things would finally get better again hes on his way to a w m f works meeting on behalf of the i. G. Metal labor union. He thinks its symptomatic of todays age how easily a deal worth billions is made the investors at the big banks can get that hands on cheap money no problem the new owner paid one point six billion euro as. The idea of it so easy for investors to buy and sell businesses and. The chief huge profits you never achieve that through a companys day to day operations and of the question for me is to what extent is it harmful when jobs become a lot in this game invite a shot it. Splits of. I was meeting during unsettling times at w m f what are the prospects with the new owner the staff have had bad experiences in the past. Was involved with the not like a dry when theres nothing left to get out was sold off all the extent that people are sitting here its been that way for years everyone lines their pockets we can only hope the company survives and that commerce restored. At least the employees are told to day that the new buyers do not intend to cannibalize w m f further before sending it on but Union Representative martin pushed knows the only way such deals can be paid for is through extremely low Interest Rates on loans. And. In the deal that w m f went as follows new york based equity firm k. K. Or aa who are w m f for around six hundred and sixty Million Euros via a subsidiary located in a tax haven k k r used one hundred million of their own capital and borrowed five hundred and sixty million from banks. Four years later k. K. Are sold w m f to french household equipment maker s e bay for one point six billion a deal supported by very low Interest Rates k k r made a profit of nine hundred forty million year and is after repaying the loan and investing just one hundred million of its own capital that surveyed. Turn of more than eight hundred percent a lucrative deal but only for k. K. Our shareholders need to dismiss this big thats possible because at the moment theres enough money on the Global Market other investors are able to pay such prices and if the money werent there they wouldnt be able to shift such volumes so we will not come extent one. Learns the most nothing thats the flip side of the money deluge Financial Investors do deals with huge sums that would have been unthinkable in the past in a regulated Financial System. Until nine hundred seventy one the world was financially stable currencies were covered by gold the real economy was in balance with the amount of money available then u. S. President nixon needed money for the vietnam war he switched on the money printing machine not least because opec had increased oil prices this money then flooded the world. Banks came up with new investment models they now wanted to make money not with goods but with money alone this was the start of the financial industry of today. Credit cards and current accounts accelerated Financial Transactions. Form a public responsibility as well privatized pensions are a case in point the private sector is better at everything than the state so they said need billions came into play. In the one nine hundred eighty s. Margaret thatcher deregulated the banks in london bill clinton did the same later on wall street chancellor Gerhard Schroeder in germany then also bought into the deregulation philosophy money was to earn money and. Thereby create growth the Global Casino was open for business their liberalism half of liberalization was a mistake its the wrong word too if you deregulate markets that need to be regulated then you create chaos you unleash an avalanche of money on to the world modestly policy or you can call that liberalization but it was a policy that benefited only a few people namely the rich it has caused a lot of problems for the world at least usually a start it. To liberalize ation or deregulation allowed the deals of the banks to explode they now acted internationally major banks have become investment establishment that fund huge deals more and more money goes into speculation thats where the big money is made this has less and less to do with the real economy of the Central Banks alone responsible for this influx of money away and as they dont come from. Economic students in germany are investigating just that what do people now about the origin of money thats what they want to find out and in the scheme of the way from the university of seguin were doing a Research Project about money what does money mean to you that you can do anything with that money and where does the money come from. Not from a thats for sure. How is money made. Through work of course. Im not sure in banks. Noticed by the state and i couldnt tell you. The responses were sobering. Thought it was really very delightful people had no response at all some said the bank all that its just printed and some mention manipulation and im on team are most had no idea. For years financial expert help their point kat has been annoyed that money plays almost no role in economics and many consider it just a neutral means of exchange. For this caucus nation and a strange that its not just the public who are in the dark the students Street Survey demonstrated that well enough but the money creation process also seems to be something of a mystery among academics and even in the banking boardrooms. The banks are silent for a reason they would have to explain to their customers that these days its them creating the money and them benefiting hugely as a result as pica to explains money isnt neutral after all its not the Central Banks but private banks that generate most of this new money a process also known as deposit money creation get continue very money is created when someone goes to a bank to take out a loan the bank opens an account and issues the funds but its then in a contract with the individual whos taking out the loan the bank hopes that person will pay it back someday that means the original impulse to create money comes from private banks. Thats new to most people. Many think a loan works like this save his take money to the bank and the bank lends this money to a customer such as someone buying a house or running a business. So thats not the case if someone has savings and their money is parked in a savings account the advantage for the bank is that person cant just take it out when the bank issues alone its created from nothing on these two processes really dont have anything to do with each other even though it looks that way even though thats what the textbooks say this is how it works a customer wants to take out a loan for ten thousand during his the bank has to deposit between one and three percent so at least one hundred year ends with the central bank that said in return the bank is allowed to transfer ten thousand euros to the customers account at the push of a button and the bank generates ten thousand euros of any tronic money from one hundred euros and in return it connects the interest this creation of deposit money is a license to make money. Bangs not to split the banks are happy of course that they can do this because that gives them a free reign they get to keep the profits the scene your age thats a few billion every year who want to miss out on that definitely not them. Gobs of private banks basically create new money as they wish not used to be the privilege of the millions of princes and governments. Its a privilege to create money and therefore profits out of nothing this privilege has been in the hands of the financial industry for a long time and didnt recent years its been unchecked is that really such a good idea for us. The big banks in particular have massively increased the money deluge in this way as a way of imposing more controls on the Financial System again private banks could be deprived of the privilege of printing money developed and sound ready underfoot in switzerland. And syria is a popular location with banks theres an initiative here that advocates reigning in the swiss banks in future it says only the National Bank should be allowed to create money not private banks anymore the initiative is fighting for fully backed money and an end to the privilege of big banks to generate an ectopic money at the push of a button. That you have i not having or used to be city treasurer in st gallen it was then he understood that we cant carry on with limitless loans and debts. Ninety ninety percent of all our money is just numbers on a computer in a bank somewhere and the banks make this money thats what we find worrying and thats what we want to change. The all. Great things have small beginnings. But members of the initiative asked trucking accord with many passes by. They distrust the Financial System. And of the major banks are creating a spiral of loans and debt with them money creation. You know its been in fine form a bank. Now retired i cant say that with pride any more that casinos no. Go lobby for me his son is beat up on paper its way up my alley put up for knowledge the manipulation happens everywhere but i saw for a. Way in the future generation of being robbed and i want to put thing in that i feel at the moment its primarily the big banks who are pocketing the profits of this money making enterprise the Swiss Initiative wants these billions to benefit the countrys citizens by only allowing the National Bank to create money if we want to take away the right of banks to create money but were not taking away a line of business theyll still be allowed to lend money and manage assets and oversee Financial Transactions from being at the banks you get to keep all of that. They want then National Bank to play a key role in the future. Private banks would only be allowed to is your loans if they have the money in their vaults one hundred percent secure private banks would not be allowed to create deposit money any more and the profits from this privilege would also benefit the National Bank the general public other women as the National Bank is obligated to look after their well being. And of them must the group want the creation of money to be state controlled and not in the hands of private banks billions in Interest Payments with then flow into the public purse. This is. Who i support these various initiatives banks wouldnt be able to create new money theyd have to work with the money they have and deposits and thats a good first step its not enough but its an important step on the path towards a fair Financial System is a vision to go short of the big sort of feel good system. It appears absurd on the one hand the world is flooded with cheap money but at the same time some places have none of the places that dont offer big profits right away but that in the long term would benefit the future of our society. Where at the impact top in munich and office space the startups a space for companies that have innovative ideas for the future new technologies Sustainable Solutions for our problems but theres no money there. Laurin hon and his team are working on a car for the future for example their baby goes by the name z on a small electric car that generates some of its own an atrocity. The city runaround is designed to access electricity from the well protected solar cells on the car body it will also source electricity from a battery. Its an inexpensive and highly eco friendly electric car. Developing this eon costs money and no bank wants to stump up this money says louvain hahn startups like his dont stand a chance of getting a loan from a bank even though theres more than enough money available. The Banking Committee banks are out of the question where too risky banks prefer to invest in infrastructure something thats long term and safe whether loan or security must be a long year jesus is he shows us is our company goes bankrupt they have virtually nothing they could recoup. Comus the world. Louvain hahn had to collect money from private donors online Venture Capital no loans for their projects thats the central issue for young entrepreneurs they cant get their hands on any of this cheap money that when you need it will start but starting next is the risk that was awesome can give us at the end of the day its not about money but about creating opportunities so that people who want to do something can do something from credit limit on the bike if you dont invest in that or the startups cant access money easily and cant develop easily then theyll move country and then on the up years its a lot of there are lots of entrepreneurs here who want to push forward sustainable products and Services Products where the consequences for people and the environment are taken into account from the word go products designed to create value for society i think its a scandal that Companies Like this struggle so much to Access Funding from banks own major investors to. Call heinz i bought bowden doff invest in the traditional fashion hes received the money from his insurance policy and hes made a decision hes looking at his house with a painter and decorator he wants to invest some of the money and renovations. A fixed Asset Investment strategy to circumvent the low Interest Rates and all of this to have a shot. Has realised in recent months how important it is to Pay Attention to money matters. The times when we could hand over our responsibility at the cashiers desk are over maybe hell be fortunate but one thing is certain the sick Financial System is going to cost us a lot of money. Only short of a club if i dont think anyone will come out of this situation. Unscathed weve been living on loans yes there will be wealth destruction us current Financial System is very likely to lead to the next disaster we need a different system but it would be enough if we just return to what we heard was highly regulated Financial Markets and the Banking Sector under control and whose purpose was to serve the in and out of government or. We have to reign in the worlds Financial System but exactly the opposite is happening in the United States under donald trump to make the system safer for people a system like that and this age by the Swiss Initiative could be one Building Block in particular states have to reduce their massive debts its the only way we can curb this deluge of money and break through the spiral of violence thats also why we need International Debt conferences where states mutually waive their debts its ask the people to foot the bill. Big banks must cover their loans with more of their own capital than they do today. Then needs to be a global tax on Financial Transactions and money needs to go to places where it benefits society for our future sake. The interests of the financial industry have determined developments in politics and society for far too long trump and brags it mustnt be allowed to fuel that even further money is far too important to be left to the banks an urn. For sarah willis. Is a. Path to. Join her journey as musical discover her. Today im in something ill go to chile ive been invited here to take part in a very special concert conducted by the venezuelan conductor to stop to demand a member pass from braille full of full of life. Good luck fifteen minutes. Of austrias for to find its pointers. Police and soldiers are practicing how to repel migrants. But some locals find the drills totally inappropriate so. Its fear mongering really feeling thats because very few migrants are now crossing into the alpine republics. In thirty minutes on d w. Moving on beethoven. His work goddess for. The munster country faces. The Children First bomb the twenty. Sixth. Move. This is you know the news coming to you live from berlin another giants folds the world cup in a tournament full of surprises brazil our im specialist kevin deployment took at the box and fired the ball into the neck to help his country advance the final four well show you what happened and find it whats next as for them to. Say that the boys tracks in the flow