Analyzing the metrics and optics of our geo-political issues regionally and globally that are effecting the trans-atlantic nations.
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Wednesday, February 12, 2014
Part 2, Neo-Socialism A Concept Whose Time Has Come
The last lingering vestiges of the "old world" are fading away quickly before our very eyes. "Corporatocracies" can not "go it alone" without the public support of its consumers through government interventions such as creating "new money" ( taxes). A corporation can not do that, but public agencies also can not "market" a product like a free market corporation either. So, the two must merge together in a new socio-economic- political system where stimulus programs, multiple QEs, bail outs, Austerity-Sequester Programs and corporate tax breaks will be seen more along as the new corporate welfare of the 21st century . A car corporation can build a new tech car that will cost the public $100,000; but, to do that with heavy costs and demands of R & D, emissions and quality controls, the government will have to create "subsidies" for the manufacturer to make the vehicle, But, where do those subsidies come from? From the consumer who has received heavier taxes levied upon them to help that corporation build its new car. As previously stated, the "slate" will have to be wiped clean for the whole world; poor, middle class and wealthy alike to begin anew. It is known as a "reset" to the economic system. This newer type of hegemony will pull world resources together for a more uniformed effort. But, first economic and financial calamities and catastrophies will have to "assist" the process of a world wide economic "cleansing" according to this "doctrine" , It is neither moral nor based on partisan politics . Rather, it is a global solution that is both logistical and pragmatic. It is "the new paradigm". This system will make the policies created by Malthus, Engel, Hegel and Marx pale in comparison. Because Neo-Socialism calls heavily for computers, robots, micro-chipping of live beings and human beings as well as other inanimate products to be readily accessible to the digital divide. Just what has the world been enduring recently with hints to set that up? UNITED STATES: The last weeks of January and opening up in February, the markets saw their worst in 2 years. As "Stimulus is being cut", "Sequestration being bolstered" measures have all been instituted by national and international banks, the economy is still tanking. This is leading the U.S.A and world into a state of "Hyper-inflation", where just like the pre-WW2 Weimer Republic of Germany, a loaf of bread cost hundreds of equivalent dollars(Duetsche Marks). PEOPLES REPUBLIC OF CHINE: It is also "shakey times" as China , which leads the BRICS nations(Brazil, Russia, India, China, South Africa) economic initiative, is considering "dumping" its T-Bonds(Treasury Bonds) for newer stronger currencies. This will create the T-Bond bubble to burst. Both China and India another member of the BRICS are purchasing mass quantities of gold to back up what may be what's the next new currency for their nations(perhaps demanding the creation of a new world currency). On January 14th we saw the Word Economic Forum try to sue for peace as well as the other economic experts convened in Davos discuss how to correct and adjust the world economic crisis. The IMF(International Monetary Fund) also recently convened to discuss the "reset" to markets in the economy. The U.S.A. is a blueprint perhaps for what is to take place within the global shifts being prepared. As the U.S. economy slips , the BRICS ,ASEAN-TPP and Gulf State economic alliances strengthen in comparison to the U.S. economic attempts which seem feeble. Will the U.S., Canada and Mexico be forced to create a formal economic partnership with a common currency. It seems that's what the path of NAFTA, GATT, WTO, and CAFTA were all about. China is also looking looking at expanding and protecting natural resources with disputes not only between Japan's Sunkaku islands about petroleum, there is a bigger dispute between China, the Philippines, Vietnam, Malaysia, Taiwan about the Spratley Islands of the Philippines for minerals and fisheries. China seeks to empower it's expansionist powers by including a greater boarder of it's sovereignty into international waters, the East China Sea(ADIZ) and the South China Sea (Date Nine(9) are new stretched lines drawn by China that not only intersect their neighbor's borders , but crosses over into them. China's relationship with Tibet, disputes with India's Kashmere region, tensions with Burma and it's own Islamic population has sparked some potential for internal strife. It doesn't stop western nations , however, of "out-sourcing" billions of dollars to them as China's military "beefs up" one of the strongest and technologically advanced navies ever on the planet. Copying virtually every facet of the U.S. Air Force's F-35, the Chinese fleet is poised for action as they showed off their new air craft carriers recently in the Mediterranean. China's influences in Sub-Saharan Africa is also showing as it sets to control numerous natural resources from there.
What is happening with other AMERICAN ALLIES/NATO: Britain is in a stalemate with it's own version of inflation and economic crisis, but remains America's staunchest ally. Its economic and financial scandals with the London Whale and Libor has created something rotten in "The City" (London) that could cause things to further crack and ripple throughout Europe and the world. France's President Hollande after oddly obtaining the presidency from his opponent Dominic Strauss-Kahn(head of the IMF)was placed in the head role as leader of western forces in the war on Libya by spear heading the attacks on Benghazi and latter adding numerous forces in West African, particularly Mali. The Hollande Administration has launched new financial campaigns to tax those making over $1 million dollars in income at 75 %. France has seen protest about it's austerity as cuts to benefits for retirees are being cut throughout Europe. Spain's new unemployment rate comes in at over 40 % and has it's own "illegal immigration" issues from it's neighbors from the south. Italy has an unemployment rate of 41 %. Germany, the European country with the strongest economy has seen it's own central bank become the "de facto" central bank of Europe by handing out numerous stimulus packages to several European nations. THE MIDDLE EAST: It doesn't appear that the global war on terrorism is letting up at all. Iraq has seen more fighting that rivals that of that during the official war that the U.S.A participated in. Iran is poised to keep its nuclear program as a wider regional war creates destabilization of Syria and mass displacement of hundreds of thousands people. Egypt has only further deteriorated into an abyss of further strife, demonstrations, civil unrest and possibly another civil war. AFRICA: The Division of Sudan into South and North Sudan is being further divided as South Sudan will possibly split into yet another 2 new nations. The wars of central Africa are spreading continuously from Rwanda, Burundi and Uganda. The Southern states are in just as much disarray socially and economically. South Africa was poised to become the new jewel for a post-apartheid South Africa, but the abject poverty of "blacks" there rivals what it was like before during the apartheid era. Economic tensions could create a real civil unrest that would represent the protracted tensions that await release by poor blacks. ASIA: Tensions still escalate with other Asian nations while the first meeting of North and South Korean in 6 years happened this February. This occurs right in the midst of N. Koreas threats to destroy the U.S.A. militarily with nuclear arms along with S. Korea and Japan. Another earth shattering meeting also occurred in Asia this week when Taiwan met with The People's Republic of China for meetings the first time in 65 years,. Could it be that on the precipice of war, a glimmer of hope exists or is this the last final desperate talks that warring nations have before launching pre-attacks , in other words getting the "scripts" correct and ready for the teams that will participate in the future aggression. WHAT IT TOOK TO GET OUT OF THE GREAT DEPRESSION MAY BE SAME FOR TODAY: After the "Crash of 1929", it had to take more than Roosevelt's "shovel ready" jobs to get America back to work and the nation functioning normally. The world plunged into economic oblivion as impoverished conditions and numerous proxy wars began from the 1930's until 1939. Then, the world got it's chance. It's chance to employ virtually every human being on the planet. "The Industry of War" came to the world on a silver platter. The world was officially at war. The rate of productivity of armaments, planes, tanks, uniforms, foods, allowed for an economic boom at the expense of death . Death of soldiers, civilians, women, children and the elderly as well. Collateral damage is the price one has to pay to build a new idea, a new city, or a new world up from the ashes of it's own destruction. As most of Western and Eastern Europe was razed to the ground, parts of Africa and considerable amounts of Asia felt the brunt of the "war machine" in World War 2 . The Industry culminated into it's most brilliant machine called the Atomic Bomb. The game had to be stopped and a new reset before planetary annihilation occurred. The "referees" of the "War Game" thus created a New World Economic Policy called Bretton Woods via the World Bank, International Monetary Fund with the UN acting as it's main beneficiary. It even instilled a quick way to jump start war torn Europe with Lend Lease. America became the steward of Japan, the Philippines, Marshall Islands, and began to build bases throughout the world. But in the next "New Game" our closest ally, Russia would build an atomic bomb and become our enemies , just like that. By the time the early 1950s came, the world was booming, but booming to the tune of a new threat called the Cold War. Yet, in todays modern economic debacle, the potential 2nd economic crash would make the Great Depression look like child's play. Why? Because the world is bigger. We have a bigger population, bigger banking co-mingling of funds, a co-dependent world economy, massive shifts in cheaper labor sources off shore along with robots and computers, lower income mobility, less income equality. If a world war ensues after another economic crash, history will side with war. We are currently in a pre- world war mind set and environment currently with numerous regional and proxy wars occurring. Just like 1929 and the Great Depression we are also economically unstable. War is always the last card to be played when all else has failed to create stability. Usually the last signal that assures the world community war is imminent is when large economies do not pay back or default on their loans from central and world banks. When the U.S.A either pushes further it's debt ceiling to pay back it's loans, it makes the international bankers very nervous because they figure that the only chance they have in getting back their money if a nation's policy is only to "kick the can down the road" or default on loans is to create the situation of declaring "World War". When the war machinery kicks in , the War Industry recreates the means to pay back loans. The Stock Market Crash of 1929 started the American and the world's economic spiral . It took a world war effort to re-build a new world of peace , prosperity and growth. The war ended in 1945, but the economic boom didn't take effect until the early 1950s. That was a twenty year period of creating economic stabilization. If the Economic Crash of 2008 signaled a similar trend , then it won't be for at least 2038 before we would see the world get out from underneath its debt . To do that the "major players" in the "Great Game" will have to have already figured out what the new world de facto currency exchange will be, what will be the new technology that will be the standard, and who will be the new world leader countries. What happened after World War 2 was similar, but utilized a completely different set of tools, situations, and problems; the world was different, economies, banks and population all different. The current global economy doesn't have the time or means to create ideally Growth of yearly stabilization, lead with investments and savings over consumption, there is too much inequity in the general world population for all to gain equal access to technology and education as well as labor resources. No , we are at the end of our rope and not able to re-stabilize the fiat currency. Ladies and Gentlemen the "Industry of War" is come to be the last card to be played to assist the introduction of Neo-Socialization.
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