Germany reports 34% increase in company insolvencies

[earth_imperator]

Germany reports an increase of 34% in corporate insolvencies in September
Source (in German): https://www.manager-magazin.de/unte...tember-a-f743eb48-09f1-44fc-b75e-90a3126a8b14
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34 Prozent mehr Firmenpleiten im September
Die steigenden Preise belasten die Unternehmen erheblich und zwingen viele davon in die Knie: Die Zahl der Firmenpleiten ist September stärker gestiegen als zuletzt erwartet.
10.10.2022, 16.36 Uhr
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[TrAndy2022]

...and this is not the end of insolvencies the number will get bigger/worse in the next months I guess.

 

[countryBoy641]

In 1944, The Bretton Woods Agreement was pure genius, but need updating as time progressed. This updating was never even considered, with Pres. Nixon/Henry Kissinger (self proclaimed smartest man on the planet). The structure of Bretton Woods made the U.S. Dollar in huge demand around the world. And the mechanism for these foreign countries to get Dollars was to manufacture products and export them to the U.S. I remember the first Toyota I ever saw. It was in 1970. That car looked like a toy. But appearances can be deceptive. When I was 17, the best summer job in my area was at the Ford plant in Mahwah, NJ. That factory was shuttered many years ago.

By August 1971 Bretton Woods needed to be updated, based on Industrial output in various nations (e.g. Germany) versus the distribution of natural resouces (e.g. Russia). Having made the U.S. dollar as the reserve currency, Dollars were in huge demand.

The U.S. did nothing to update the Bretton Woods framework. Any serious economist could safely predict this economic system was eventually doomed. But the only thing the Nixon/Kissenger team did was to remove the Dollar from the Gold Exchange. Politicians made the judgement that Americans would have nothing to do with austerity. Safer to just let "The good times roll"

Unfortunately the Nixon/Kisssinger team did not admit for the U.S. that the country needed to curtail spending. So, next best thing was to remove traces of accountability - delink U.S. Dollars from Gold. Print as many dollars as the FED ever wants.

What could go wrong?