{UAH} THE COMING GLOBAL ECONOMIC COLLAPSE
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THE COMING GLOBAL ECONOMIC COLLAPSE
The global economy survived the crisis of 2008 by governments printing and borrowing money to prevent the collapse of the global banking system. While this has temporary saved the world from economic collapse at the time, nothing has been done to correct the problems that caused the crisis in the first place. As a consequences the world is now about to experience a far worse economic disaster than what caused the 2008 crisis.
The causes of the previous crisis were:
1. Governments operating on large deficits financed with borrowed money.
2. Large consumer debts financed by a highly liquid banking system.
3. A shift of capital from investment in goods and services into speculative activities.
4. An insolvent banking system
5. A growing welfare budget to support an ageing population
6. Governments draining the productive sectors of the economy to support regulatory environment to support their socialistic agendas, subsidies and military adventurism.
WHAT IS THE CURRENT SITUATION
As a result of governments printing money since the last crisis to purchase government debt and prop up an insolvent banking system, the world is now awash with liquidity. Yet this newly created money has not restored the global economy to health. Rather it created an economic time-bomb, waiting for the fuse to be lit. Many governments around the world are still suffering from:
1. High unemployment
2. Budget and current account deficits
3. Low economic growth.
4. Growing gulf between rich and poor.
5. Unsustainable Government debt.
6. Rising property prices
7. Over investment into production, causing a collapse in commodity prices.
WHAT IS EXPECTED TO HAPPEN NEXT?
Sadly it will take another crisis to bring about the necessary changes.
Changes necessary will not be made unless governments are forced to give up their independence - they would rather resort to military conflict than give up their sovereignty to preserve the benefits of a privileged few in power than care for the welfare of their citizens.
Many economies are now in deep trouble. China has unsustainable local government and corporate debt. Japan's government debt threatens the survival of theirs and the world's economy. North America Government debt is now so large that the USA is technically bankrupt. The Russian economy is in danger of unravelling. Many EU countries are in a similar position. The world is sitting on a political and economic powder-keg.
Already we are seeing the growing threat in Asia, especially between China and Japan. In Europe the conflict between Russia and the EU could quickly evolve into a much large war. Meanwhile the USA and its allies continue to engage in conflict in the Middle East. These conflicts can only worsen.
The one nation that has opposed the print and borrow policies is Germany, but Germany cannot save the world alone. Chancellor Angelika Merkel acknowledges that the only solution of reviving the EU economy is by creating a Federal United States of Europe. The fear that unless Europe can form a Federal European Government, it will be unavoidable to save the EU economy from unravelling. A new Federal EU Government would take over the debts of member states, managed by single Central Bank and with the power to tax similar to the USA today. It is becoming clear that the UK will no longer be a part on this new EU Government.
This new Federal Europe would be dominated by Germany, the only nation with the economic power to bring about the changes, creating a new super-power that will have the economic muscle to bring out the reforms to restore a shattered global economy. It will be this new Global Super-Power which will have the capacity to restore a new world order.
CHANGES THAT NEED TO BE MADE TO SAVE A COLLAPSE
Governments cannot continue printing money without inflation eventually causing loss of value in the currency. No longer can economic growth be achieved with borrowed and printed money. Rather there needs to be drastic changes on how the global economy is managed. We now live in an inter-connected world where national boundaries are circumnavigated by multi-national corporations and money speculators. There needs to be a world government to oversee the management of the global economy.
The economic and social changes that will need to be made are:
1. A single global currency
2. One global taxation system – a flat tax system.
3. Removal of trade tariffs allowing global free trade.
4. Reform of the world's banking system, directing capital into productive enterprises rather than speculation. To be monitored by the IMF.
5. Land reform – property ownership rights protected.
6. A common global legal system.
7. Reform of state welfare system – reduction in the role of the State in providing welfare to what nations can afford.
8. Management of the planet's environment to prevent a break-down of the world's eco-system.
Bruce Porteous
7 November, 2014
--
-- The global economy survived the crisis of 2008 by governments printing and borrowing money to prevent the collapse of the global banking system. While this has temporary saved the world from economic collapse at the time, nothing has been done to correct the problems that caused the crisis in the first place. As a consequences the world is now about to experience a far worse economic disaster than what caused the 2008 crisis.
The causes of the previous crisis were:
1. Governments operating on large deficits financed with borrowed money.
2. Large consumer debts financed by a highly liquid banking system.
3. A shift of capital from investment in goods and services into speculative activities.
4. An insolvent banking system
5. A growing welfare budget to support an ageing population
6. Governments draining the productive sectors of the economy to support regulatory environment to support their socialistic agendas, subsidies and military adventurism.
WHAT IS THE CURRENT SITUATION
As a result of governments printing money since the last crisis to purchase government debt and prop up an insolvent banking system, the world is now awash with liquidity. Yet this newly created money has not restored the global economy to health. Rather it created an economic time-bomb, waiting for the fuse to be lit. Many governments around the world are still suffering from:
1. High unemployment
2. Budget and current account deficits
3. Low economic growth.
4. Growing gulf between rich and poor.
5. Unsustainable Government debt.
6. Rising property prices
7. Over investment into production, causing a collapse in commodity prices.
WHAT IS EXPECTED TO HAPPEN NEXT?
Sadly it will take another crisis to bring about the necessary changes.
Changes necessary will not be made unless governments are forced to give up their independence - they would rather resort to military conflict than give up their sovereignty to preserve the benefits of a privileged few in power than care for the welfare of their citizens.
Many economies are now in deep trouble. China has unsustainable local government and corporate debt. Japan's government debt threatens the survival of theirs and the world's economy. North America Government debt is now so large that the USA is technically bankrupt. The Russian economy is in danger of unravelling. Many EU countries are in a similar position. The world is sitting on a political and economic powder-keg.
Already we are seeing the growing threat in Asia, especially between China and Japan. In Europe the conflict between Russia and the EU could quickly evolve into a much large war. Meanwhile the USA and its allies continue to engage in conflict in the Middle East. These conflicts can only worsen.
The one nation that has opposed the print and borrow policies is Germany, but Germany cannot save the world alone. Chancellor Angelika Merkel acknowledges that the only solution of reviving the EU economy is by creating a Federal United States of Europe. The fear that unless Europe can form a Federal European Government, it will be unavoidable to save the EU economy from unravelling. A new Federal EU Government would take over the debts of member states, managed by single Central Bank and with the power to tax similar to the USA today. It is becoming clear that the UK will no longer be a part on this new EU Government.
This new Federal Europe would be dominated by Germany, the only nation with the economic power to bring about the changes, creating a new super-power that will have the economic muscle to bring out the reforms to restore a shattered global economy. It will be this new Global Super-Power which will have the capacity to restore a new world order.
CHANGES THAT NEED TO BE MADE TO SAVE A COLLAPSE
Governments cannot continue printing money without inflation eventually causing loss of value in the currency. No longer can economic growth be achieved with borrowed and printed money. Rather there needs to be drastic changes on how the global economy is managed. We now live in an inter-connected world where national boundaries are circumnavigated by multi-national corporations and money speculators. There needs to be a world government to oversee the management of the global economy.
The economic and social changes that will need to be made are:
1. A single global currency
2. One global taxation system – a flat tax system.
3. Removal of trade tariffs allowing global free trade.
4. Reform of the world's banking system, directing capital into productive enterprises rather than speculation. To be monitored by the IMF.
5. Land reform – property ownership rights protected.
6. A common global legal system.
7. Reform of state welfare system – reduction in the role of the State in providing welfare to what nations can afford.
8. Management of the planet's environment to prevent a break-down of the world's eco-system.
Bruce Porteous
7 November, 2014
--
Abbey Kibirige Semuwemba
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