| ANOTHER GREAT DEPRESSION COMING AS FINANCIAL SYSTEM ENDS | |
|
25 Aug 2008 @ 09:56, by Erle Frayne Argonza
Is the global economy moving downward towards a devastating collapse?
If we employ a long-term Kondratieff cycle to model the world economy, we can see that the period beginning in 1935 approximately (when the big market economies US-UK-Germany moved towards another cycle of growth approximately after the Great Depression) should have ended around 1995 approximately, after which comes another great depression.
As early as 1989, ramblings of a global collapse began to murmur in the US economy. Mexico, Japan, Argentina, and other economies followed in the 1990s, while Europe went through a general low-growth trend that was the most sustainable for the continent as a whole. Then came the Asian meltdown of 1997. Then the USA again went through a recession in 2001, a pattern that has been repeated again from 2008 to the present. It seems that the pillars of the world economy couldn’t get out of a short-term crisis without having to crash back to another episode of short-term crisis altogether.
Erle Frayne Argonza
Is the global economy moving downward towards a devastating collapse?
If we employ a long-term Kondratieff cycle to model the world economy, we can see that the period beginning in 1935 approximately (when the big market economies US-UK-Germany moved towards another cycle of growth approximately after the Great Depression) should have ended around 1995 approximately, after which comes another great depression.
As early as 1989, ramblings of a global collapse began to murmur in the US economy. Mexico, Japan, Argentina, and other economies followed in the 1990s, while Europe went through a general low-growth trend that was the most sustainable for the continent as a whole. Then came the Asian meltdown of 1997. Then the USA again went through a recession in 2001, a pattern that has been repeated again from 2008 to the present. It seems that the pillars of the world economy couldn’t get out of a short-term crisis without having to crash back to another episode of short-term crisis altogether.
Is it really a ‘short-term’ crisis in the first place? Or is it in fact a ‘systemic crisis’, and that the financial downspin the Northern economic pillars are going through could very well be the terminal phase of a very long cycle of growth that began after the end yet of the Treaty of Westphalia (1648)? That in fact, several long-wave Kondratieff cycles have already passed over since that time, and that finally the system is DEAD in the wood?
Well, not only the financial system but the whole of CAPITALISM is already on its death throes. Those oligarchs behind the systems now dying won’t see the systems they built die down just that without “bringing down the other houses” with them, it seems. Which means that, right after the terminal phase of the system, another huge, catastrophic war will come, which will later see another Westphalian-type treaty or so that will re-carve the contours of polities into a Post-Westphalian totalitarian technotronic global order.
Below is a briefer from the Executive Intelligence Review that summarizes the issue at hand.
[18 August 2008, Quezon City, MetroManila. Thanks to Executive Intelligence Review database news.]
==================================================================================
End of the Line for Financial System; Bankruptcy Issue Raised
Aug. 10, 2008 (EIRNS)—The death of the financial system was the implicit subject of several articles in the financial press over the weekend, reflecting the way reality is setting in and attitudes are changing.
"Investment banking is dying," was the blunt statement by William Cohan, in a op-ed in today's Washington Post entitled "The End of the Masters of the Universe?" Cohan says that the revenue streams of the investment banks are drying up, and that there is genuine fear in the corridors of power on Wall Street.
"We have a banking crisis and an agency crisis and a mortgage crisis and a coming credit card crisis. We've never seen anything like that before. And it all seems to be coming home to roost at the same time. That's never happened either," Charles Geisst, a professor of finance at Manhattan University, told yesterday's Washington Post. He said the Great Depression was the last time the financial markets were hammered by such a variety of factors, adding: "But we did not even have credit cards in the 1930s; there was no such thing as student loans."
The specter of generalized bankruptcy was raised by Yale finance professor Robert J. Shiller in an op-ed in the New York Times. Citing the failure of Bear Stearns and the government measures to bail out Fannie Mae and Freddie Mac, Shiller asks, "What if the next case is worse? No one in government seems to feel a responsibility for warning about such possibilities and formulating a detailed policy for dealing with them." Shiller says that "Bankruptcy law is a good place to start. After all, the dreaded financial meltdown would amount to a wave of bankruptcies.... What would happen to the economy if hedge funds had to liquidate, one after another, in a financial crisis? We need to rethink the theory and practice of bankruptcy, given the new complexities."
Shiller points to the inherent limitations in current bankruptcy laws, which were largely drawn to protect narrow financial interests, and are poorly suited to deal with systemic problems, when a "subsidized system of triage would be needed to identify which companies should be saved, with the main criterion being the possible economic impact of their liquidation."
These comments, taken as a whole, represent the way discussions of the "unthinkable" are beginning to percolate, and converge upon the outlook of Lyndon LaRouche. Shiller's mention of triage by bankruptcy echoes the emergency measures proposed by LaRouche, of putting the financial system itself through bankruptcy, protecting the population with a firewall, and freezing the financial paper while we determine what debts will, and won't, be honored. Whatever Shiller may think about LaRouche's proposals, he is implicitly admitting that the system is finished, and that we must prepare for its demise, making decisions on the basis of the interests of society, and not merely the narrow interests of financial institutions. Reality is setting in, and reality leads inexorably to the policies outlined by LaRouche.
|
|
Category: Economics, Financing, Banking
3 comments
29 Jan 2015 @ 10:43 by Robert @31.7.150.219 : tRYrCQObDpI
re #227 3b To re-inflate the securitzation blbube the Bankers would need investors to buy whatever new form of ABS they can come up with. If you remember Paulson early on during the crisis was taking about European covered bonds. The securtization community is now coming up with a new plan called Project Restart and they had their conference two weeks ago in Vegas. Sandra Thompson, director of the division of supervision and consumer protection at the Federal Deposit Insurance Corp gave the keynote speech and talked about aligning incentives, simplifying pooling structures, improving credit analysis and strengthening servicing arrangements.They (gov and banks) firmly believe they can re-inflate the securitzation blbube, and you can bet Obama does too. U.S. banks are now looking to follow Washington Mutual's example to issue covered bonds here in the USA. European issuers are now testing placing covered bond issues in the U.S. With credit spreads continuing to tighten more investors are looking for alternatives.The only real money to be found today that our Government could control is to be found in Pension funds both public and private. The legislation is already in the pipeline to force this issue, that you can be sure of.
29 Jan 2015 @ 15:55 by Vaine @88.149.162.149 : UZYnuYTIOSfZWN
If you wrote an article about life we'd all reach enhtelienmgnt.
29 Apr 2016 @ 05:14 by @103.12.162.4 : brilliant! I would like to share this ar
Togel Online Singapore
Togel Online Hongkong
Bandar Togel Singapore
Bandar Togel
Togel Online Terpercaya
Bandar Togel Online Terpercaya
Togel Online
Agen Togel Online Terpercaya
Agen Togel Online
Other entries in Economics, Financing, Banking
2 Oct 2015 @ 22:16: Release of the iviCivi Project
24 Jun 2010 @ 02:13: BAILING OUT AILING BANKS IS IMMORAL/CRIMINAL
1 Jun 2010 @ 07:25: Extirpating Capitalism
30 May 2010 @ 06:13: ‘LATE’ CAPITALISM CRASHING DOWN ITS DEATH BED
28 May 2010 @ 02:27: EUROZONE’S BURNING, CONVENE GLOBAL FINANCIAL CONFERENCE!
7 Jan 2009 @ 15:36: Did God invent natural money?
11 Dec 2008 @ 14:29: Borrowing money to a beggar
2 Dec 2008 @ 07:03: 10,000 "uninsured" depositors of Indymac Bank
1 Dec 2008 @ 11:01: Important Notice Of Change In Terms
30 Nov 2008 @ 05:10: HEALING GLOBAL ECONOMY VIA NEW FINANCIAL ARCHITECTURE
|
