Opinion (Michael Khazin, economist): “The idea of the Bretton Woods system is an expansion of the territory of the dollar. Through expansion of the territory of the dollar it is possible to print dollars, creating additional income that can be redistributed. If these nations comply with the general rules of the International Monetary Fund, they receive a share of additional dollars.
In the ‘70s, the territory for expansion was finished, yet expansion continued through providing loans to private individuals and refinancing from private debt. In the year 1990, the Soviet Union broke up and expanded the territory for the dollar carried out at the expense of the socialist nations. In the year 2000 the crisis began, yet the printing of dollars continued through reducing the cost of credit.
“In the year 2008, the crisis erupted again, and the printing of dollars continued at the expense of changes in the supply of money (reduced rates, specifically the encouragement of loans). As a result of this, the allotment of money market credit was 17 times greater than the allotment of ready cash.
“When the resources for printing money were finished, the problems began; private demand was in decline, even though the economy of the United States apparently showed growth.
Today it is clear that the bubble in the stock markets will collapse; which is to say, the value of assets will fall and the liabilities, meaning the debt, will remain. This means mass bankruptcy. In order to wipe out the liabilities, the banks’ plan for wars in the Middle East, in which, on the one hand, there is oil, and on the other hand, there is Israel with its atomic bomb.
“Another possibility is a massive terrorist attack. This is something that will make it possible for the banks to say to those who have money that the risks have grown to such an extent that they are forced to delay payments because the system of insurance for financial risks has been destroyed.
“There are two scenarios: To save the global financial system at the expense of the American economy (this is the perception of the Democratic Party of the United States), or to save the American economy at the expense of the global financial system (this is the perception of the Republican Party). This situation caused the defeat of the Democratic Party in the midterm elections, and the enhancement of the isolationist forces in the Republican Party (the world doesn’t matter to us, we must save ourselves!).
“The European politicians depend upon the CIA, the SNA and so on, where each one of these organizations holds evidentiary material against them. So these politicians are fighting for their lives. The United States will destroy them if Europe takes steps in its interest and not in the interest of Washington. In this case, Europe will find itself facing a civil war, as in the Ukraine, and a state of disintegration. Russia has its fate – to a state of starvation.
“As of today the politicians active in the government are under the age of 65, and they are unfamiliar with the scale of these problems. And the elderly, like Kissinger, are no longer influential. So the world is standing at the door of a cruel reorganization (territorial, national, and a reorganization of the elites). Most likely some of these politicians will be defeated in the 2016 elections in the United States, and then the situation will change.
My Comment: We need to produce new socio-economic relationships based upon the conditions of the “Last Generation” through integral education, the unity of all in a single society based upon full equality, work only that is required to supply the essential needs of society. The freed resources and the time will be conveyed to national universities that are involved with the education of the new generation among humanity.
In the meantime, we currently don’t see the possibility of a gradual and easy transformation from a market economy to a communist economy, so it now depends upon the success of dissemination of integral education.