Potential of pressure, potentiality of blackmail

A derogatory term that emerged after 2010 in relation to the financial market. It is intended to express the fact that international investors are paying very close attention to a country’s economic policy. If decisions that are obviously detrimental to the economy now or in the future – primarily “boosting” consumption (expansion of consumption) at the expense of spending to expand and improve the capital stock – are made or initially announced by leadership candidates (front-runners) in election campaigns, the confidence of global investors falls. They sell corresponding securities, especially government bonds of this country. The rating agencies downgrade the credit rating of the country in question. As a result, higher interest rates have to be paid to take on new debt. – Politicians, and with them the majority of the media, are now scolding the financial markets and the rating agencies. They are the common enemy. Demands for their regulation – in other words: forced muzzling – are being raised everywhere with great public applause. – The fact that here the effect was exchanged with the cause shows the reason. Unfortunately, however, economic history teaches that it almost always takes long years to realize that it is not international dark forces but unreasonable actions at home that are responsible for the loss of prosperity. – See Bankocracy, Blame Game, European Resolution Fund, Financial Asophy, Financial Psychology, Greek Crisis, Know-Nots, Shitstorm, Structural Reforms, Conspiracy Theories, Competitiveness, Zombie Bank.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.gerhardmerk.de/