HaggardHawk
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Concerned European, sharing Daily News on globalism and Agenda 2030, privacy, personal sovereignty, and national independence. Committed to exposing the climate fraud. Choosing autonomy over the convenience of the cage.
@RealBenDover
Political EARTHQUAKE: Canada Just Admitted Justin Trudeau’s Climate Agenda Was A Scam – PM Carney declares climate policy ‘expensive’ & ‘divisive’ as policy reversals…
Political EARTHQUAKE: Canada Just Admitted Justin Trudeau’s Climate Agenda Was A Scam – PM Carney declares climate policy ‘expensive’ & ‘divisive’ as policy reversals…
Ottawa announced earlier this month a new West Coast pipeline that will ship up to one million barrels of crude oil per day from Alberta to Asian markets. The federal government gave its blessing t…
Political EARTHQUAKE: Canada Just Admitted Justin Trudeau’s Climate Agenda Was A Scam – PM Carney declares climate policy ‘expensive’ & ‘divisive’ as policy reversals see embrace of oil pipelines & natural gas – Climate Depot
💰 Groundbreaking Study: Bank Credit Creation — Not "Markets" — Drove Germany's 19th Century Economic Miracle
A new paper by Dragosch & Werner in the International Review of Economics and Finance just dropped empirical dynamite on mainstream economics.
The big finding: Bank credit creation (total banking system assets) was the dominant driver of Germany's explosive economic growth from 1860–1913 — the period that turned Germany from a backwater into an industrial powerhouse rivaling Britain.
Using rigorous GETS econometric modeling (letting the data speak rather than imposing priors), they found:
🏦 Bank credit → GDP growth runs one direction. Granger-causality flows from credit creation to national income, not the reverse. Banks aren't passive intermediaries — they create the money that fuels real economic expansion.
🏘️ Small local banks mattered massively. Over 10,000 community banks (savings banks, credit cooperatives) dominated the landscape — not just the big Berlin joint-stock banks that most previous research fixated on. Decentralized banking serving SMEs drove the real economy.
📉 The Gründerkrise recession? Caused by excessive bank credit flooding into asset speculation (stock market bubble), followed by the inevitable hangover of non-performing loans and credit contraction. Sound familiar? Same mechanism as Japan's lost decades.
⚡ The "too much finance" debate resolved: It's not about quantity — it's about where the credit goes. Credit for productive business investment = real growth, no inflation. Credit for asset purchases = bubbles and busts. Credit for consumption = inflation. The disaggregation is everything.
Why this matters now: The paper explicitly ties this to the East Asian miracle economies (Japan, Korea, Taiwan, China) that studied the German model and used directed bank credit ("window guidance") for industrial development. It also notes US Treasury Secretary Scott Bessent recently floated window guidance for America.
The implications are clear: if you want high growth, you need a decentralized banking system that creates credit for productive enterprise — not one funneling money into real estate speculation and financial asset inflation.
The paper confirms what heterodox economists have argued for decades: banks aren't neutral pipes — they're the engine. The question is whether that engine powers the real economy or inflates the next bubble.
Determinants of High Economic Growth – Empirical Evidence from Germany between 1860 and 1913.pdf
