Financial Crisis of 2008 Analysis

In 2008, the US experienced traumatic turmoil during the financial crisis and affected Europe and Asia as a whole. Many economists believe this is the most serious crisis since the Great Depression, and its shocking result is still six years later. Indeed, the horrible scale of the recession and the frightening awakening can leave nobody influenced and can question only whether it is blocked or not. Although there are a variety of reasons, basically you can find plans based on illogical investment and greed.

After the financial crisis of 2008, countless discussions, analyzes, articles, books have been created. A general consensus was obtained about the main causes of the crisis. Loose monetary policy, greedy banks, silly borrowers, financial innovation, rating agency failure, loose regulation and flawed financial incentives are the most general explanation on the level of excess debt in the US financial system. All these things are causing this problem in some way. And the main focus of discussion is at the level of responsibility. One problem that is rarely discussed is the role of the dollar in the crisis, if any. Discussions have shown that trade imbalances and capital flows also play a role in promoting the conditions that trigger the crisis, but these arguments are often wrong and circumvent the real problem.

Currency insanity examines the financial crisis of 2008 and its continuing impact from the perspective of the international currency system. The purpose of this white paper is to conduct a more comprehensive and coherent investigation of several key factors underlying it, beyond the standard interpretation of the serious financial crisis. This is also an attempt to put the crisis in a wider historical context. In order to achieve this goal, we conducted critical research on the essence of modern currency and the process of creating money / credit. Both of these are difficult to understand for many so-called experts. It also examines the role of the dollar in the system and argues that the accumulation of excessive debt in the global economy is an inevitable and predictable result of having the national debt function as a major international reserve of the world central bank ing.