Record surplus in the Federal budget: Save power arm

The budget has for 2019, with a record surplus, the state reduces its debt. What seems like a good strategy, is damaging to the citizens. sounding absurd, but

Record surplus in the Federal budget: Save power arm

The budget has for 2019, with a record surplus, the state reduces its debt. What seems like a good strategy, is damaging to the citizens.

sounding absurd, but it's true. Because the state has no debt, is detrimental to the citizens photo: Dazeeley/getty

It sounds like good news: The Federal budget has listed in the year 2019 to a Surplus. 13.5 billion euros, an increase of a record. This sum fantasies releases: How would it be if the state would use this money to pay off his debts to further reduce? Normal companies or families are not allowed to but forth a huge mountain of debt in front of him.

at the moment, the German public debt amounted to 1.930 billion Euro. This corresponds to 23.229 Euro per inhabitant, as the German taxpayers ' Federation has calculated. Imagine, every citizen would have this 23.229 Euro on his account: a VW Golf or a trip around the world could Fund.

therefore, It is popular to believe that the German citizens would be much wealthier, would repay the state its debts. The tax number Federal fueled this idea even further, by letting its "debt clock" run and per second, calculate how deep the state is in the Minus. More recently, the debt clock runs backwards, because the state has begun to repay its debt: Per second the state debt falls to 47 Euro.

But as amazing as this may seem: This 47 Euro make anyone rich. Instead, it only creates problems, that the state pays back the debt and no new loans picks up.

The vicious circle: Because the state wants to, no loans, falling interest rates, the state saves even more and interest rates fall again

illustrate the Concerns of the insurance companies that no longer know how to invest. The Germans have 87.2 million life insurance contracts. In the average, expected, already has every Baby a contract. So extraordinary sums of money to collect, the need to invest in insurance groups: at the moment, these are more than 1 trillion euros.

Because the money has to be safe, you are not allowed to invest the insurance companies only in the form of shares or real estate, but have to rely on fixed-income securities.

German state are popular bonds, because it is unthinkable that the Federal Republic of slips in the Bankruptcy. But unfortunately, exactly these papers are scarce, because the German state does not take on new debt. Instead, he pays back his old loans and reduced the supply of government bonds.

How is Sahra wagenknecht to the farewell from the first row of the policy? In the big interview in the taz on the weekend of 18./19. January, talking about new freedoms, Marx, bullying, and politicians-Skills. Also: A report from Malta, where the murder of a journalist on the resignation of the heads of government led. And: the perfect boiled Egg hard or soft? Two protein pleadings-rich. Starting on Saturday at the Kiosk in the kiosks, in the practical Wochenendabo and in the case of Facebook and Twitter.

Since many insurance companies in order to a few government bonds to compete, the result is clear: The interest paid by the Federal government for a loan to fall. In December, a ten-year loan for minus 0.27 per cent, was to have. Translated: insurers and other investors afterwards throw the German government money, if you please, please be allowed to buy a government bond.

indicate The negative interest rates that the financial markets hope that the German state finally picks up credits. But the Federal government wants to get any money paid. Instead, she used the saved-up interest rates to reduce government debt even faster.

The vicious circle is programmed, Since the state wants to, no loans, falling interest rates, the state saves even more and interest rates fall again.

As insurance companies and banks no credit interest rates earn more, you can pay your savers, no returns. This is pure logic. However, many savers are to believe, they would be expropriated"". Just as irrational to the practical conduct of the German signal: negative interest rates, that it is not worth the financial wealth. You would have to spend his money so. However, the opposite is happening: in Order to compensate for the negative interest rates, savings and more.

more and more money looking for a borrower – while the state refuses just as persistent to be of this borrower. This is gonna get ugly. Actually, it is simple: the assets of The the liabilities of the other. But if no one wants to have debt, there are also no assets.

Updated Date: 17 January 2020, 19:00

TAZ

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