How the rich get richer – money in the world economy | DW Documentary

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  • Published on:  Wednesday, July 5, 2017
  • Exploding real estate prices, zero interest rate and a rising stock market – the rich are getting richer. What danger lies in wait for average citizens?

    For years, the world’s central banks have been pursuing a policy of cheap money. The first and foremost is the ECB (European Central Bank), which buys bad stocks and bonds to save banks, tries to fuel economic growth and props up states that are in debt. But what relieves state budgets to the tune of hundreds of billions annoys savers: interest rates are close to zero.

    The fiscal policies of the central banks are causing an uncontrolled global deluge of money. Experts are warning of new bubbles. In real estate, for example: it’s not just in German cities that prices are shooting up. In London, a one-bed apartment can easily cost more than a million Euro. More and more money is moving away from the real economy and into the speculative field. Highly complex financial bets are taking place in the global casino - gambling without checks and balances. The winners are set from the start: in Germany and around the world, the rich just get richer. Professor Max Otte says: "This flood of money has caused a dangerous redistribution. Those who have, get more." But with low interest rates, any money in savings accounts just melts away. Those with debts can be happy. But big companies that want to swallow up others are also happy: they can borrow cheap money for their acquisitions. Coupled with the liberalization of the financial markets, money deals have become detached from the real economy. But it’s not just the banks that need a constant source of new, cheap money today. So do states. They need it to keep a grip on their mountains of debt. It’s a kind of snowball system. What happens to our money? Is a new crisis looming? The film 'The Money Deluge' casts a new and surprising light on our money in these times of zero interest rates.

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  • DW Documentary
    DW Documentary  a years ago +146

    For the Spanish version of this documentary, visit our new YouTube channel 'DW Documental':

  • Roy Tonkin
    Roy Tonkin  11 hours ago

    What would happen if everyone in World took their money out of the banks in cash?

  • snipess armah
    snipess armah  12 hours ago

    Let's make that money with this

  • jackgoldman1
    jackgoldman1  14 hours ago

    Too many government employees, not enough people who create real wealth. Too many speculators and dead beats like public employees and bankers. Few want to work, making or creating wealth. Buy gold. Hold only gold as real money.

  • jackgoldman1
    jackgoldman1  14 hours ago

    You are wrong. Debt is not money. Debt, computer credits, are not money. Gold is money, a claim on the past. Debt is a claim on the future, yet to be paid as debt, credit, promises yet to be fulfilled. Debt is not money. Loans are not money. Computer credits are not money. Gold is money. Central banks hold gold as money. Central banks do not hold debt, debt notes, or credits as money.

  • thuggoe
    thuggoe  15 hours ago

    sounds like all we need to do is take all our money out of banks, easy enough

  • opensourceror
    opensourceror  20 hours ago

    Lost me at "There needs to be a global tax on financial transactions" 41:21. So that's your agenda? Replace the current bank run coercive financial system with a collectivist coercive re-distributive system that's just as authoritarian, if not more so. No thanks!

    Maybe we should stop trying to centrally plan the financial system and let people choose their own destiny for a change. Decentralized free trade and private digital currencies FTW.

  • sergsfault
    sergsfault  23 hours ago

    strangly enough its the other way around in ukraine where i live. loans are very expensive and savings interest is pretty high in 2014 it was 20 percent! now i think its around 10 not sure but surly not 1....but the credit is so expensive you cant even take a morgage you wont be able to pay it off or start a bussiness its a losing i think cheap creadit is better...and dont old people have like pension funds coming in to them monthly? why do they need to invest at that age..cant you not worry about money at least when youre old and just live?

  • Seven Ellen
    Seven Ellen  yesterday

    It's obscene that these practices are even legal. The system's broken! It's only a matter of time before it all blows up. Why is there no National Maximum Wage? The fact there is none is beyond dangerous for the world. It'll end it somehow.

  • djguy100
    djguy100  yesterday

    I'm an Entrepreneur and in my country every time I have gone to the bank for a loan for a new company or to expand we are refused. All my companies are profitable and have 0 debt. I don't know where this cheap free money is but I would like some 🤷🏻‍♂️🤷🏻‍♂️

  • Afroman Scarecrow Productions

    Today I will be mostly exposing what is wrong in society....

    Serial offences perpetrated by white collar fraudsters are not stopped earlier because there is no online record that you can search to identify solicitors from Irwin Mitchell who turn dishonest blind eye and are inherently bad.

    Hence, I have broadcast your caricatures so other professionals can put a face to each of the crooks involved in these crimes. The lack of such a one stop white collar fraud prevention initiative is necessary to prevent unwieldy and callous crimes.

    A system must be in place that has the effect of exposing dishonest solicitors at Irwin Mitchell and deceptive trustees at Begbies traynor Group PLC who money launder for their criminal client Owen Oyston. Instead, your abject silence and threats only temporarily shields the blot on society and the real scammers within both your corrupt outfits from justice, scrutiny and the authorities.

  • jrmp20thlover
    jrmp20thlover  yesterday +1

    These old german people are funny. They are so worried they don't know where to put their money. Imagine how worried a young german or a young portuguese must be when we can only find crapy paying jobs that don't even allows to start saving for the downpayment of a house. The rest isn't new to me. If a bank or corporation is too big to fail, it's too big to exist.

  • rail33 Taterman07

    Close the central banks give loans to people who need it who can use it to compete with businesses not a home loan they cant afford and make the super rich use their own physical cash

  • rail33 Taterman07

    All in all let the rich borrow cheap when they dont have to let them and continue to let the super rich buy up everything force us to buy their goods and services even though people aren't making more money

  • sundiii99OWS
    sundiii99OWS  yesterday


  • science2491
    science2491  yesterday

    Get bitcoin or gold before it's too late. Clock is ticking, your money is losing value daily.

  • the SantasWS
    the SantasWS  2 days ago +1

    The cure is a financial transaction tax? (aka more Government) WRONG!!!
    The only cure is the abolishment of Central Banking the Fed, ECB and BoE have to go.
    2nd Corporate limited liability has to go and the CEO and board have to be made personally responsible.

  • Barry Thacker
    Barry Thacker  2 days ago

    To the guy inheriting a lot of money, i suggest him to buy gold and hide it. This next big depression will kill off most people because paper currencies will be devalued and people do not hunt and garden. In the big cities just a long power outage can kill them. i was doing storm tree removal in a filthy rich neighborhood my elderly customer thought her husband was going to die after a couple of weeks with out power. This got me to thinking how dependent we are.

  • Bhar Sena
    Bhar Sena  2 days ago

    If every poor and middle class people not buy unwanted goods and spend money carefully wherever necessary , then inflation will be under control and poverty will be reduced and also real estate has to be under control of government fully , not in the hands of private persons or organisations .

  • robin muirhead
    robin muirhead  2 days ago

    You use Billion instead of Trillion in the video