The Money Deluge (2017)

The Money Deluge, a documentary produced in 2017, delves into the intricate world of global finance, exploring the consequences of central banks’ policies and their impact on wealth distribution.

The film begins by highlighting the central banks’ pursuit of a cheap money policy over the years. The European Central Bank (ECB), in particular, plays a pivotal role, in buying bad stocks and bonds to rescue banks, stimulate economic growth, and support debt-ridden states. However, while this approach eases state budgets, it frustrates savers due to near-zero interest rates.

The consequences of these fiscal policies are far-reaching. An uncontrolled global deluge of money ensues, leading to new financial bubbles. Real estate prices skyrocket not only in German cities but also in London, where a one-bedroom apartment can cost over a million euros. Money increasingly flows away from the real economy and into speculative ventures, creating a global casino where complex financial bets occur without proper checks and balances.

The winners in this scenario are the already wealthy. Professor Max Otte aptly observes, “This flood of money has caused a dangerous redistribution. Those who have, get more.” However, low-interest rates erode savings, leaving savers with diminishing returns. Meanwhile, companies seeking acquisitions benefit from cheap borrowing, further disconnecting money deals from the real economy.

States, too, rely on a constant source of new, cheap money to manage their mounting debts. This system perpetuates itself like a snowball rolling downhill, raising questions about the future of our money and the possibility of a looming crisis.

The Money Deluge sheds light on these critical issues during an era of zero interest rates, challenging viewers to rethink their understanding of money and its implications.