The World Economy Is Falling Apart

laitman_272Opinion (TheGuardian): “All is calm. All is still. Share prices are going up. Oil prices are rising. China has stabilised. The eurozone is over the worst. After a panicky start to 2016, investors have decided that things aren’t so bad after all. …

“Fears of a $20 oil price have receded. Prices have stopped falling in the eurozone. Employment growth has continued in the US. The International Monetary Fund is forecasting growth in the global economy of just over 3% this year – nothing spectacular, but not a disaster either.

“Don’t be fooled. China’s growth is the result of a surge in investment and the strongest credit growth in almost two years. There has been a return to a model that burdened the country with excess manufacturing capacity, a property bubble and a rising number of non-performing loans. The economy has been stabilised, but at a cost.

“The upward trend in oil prices also looks brittle. The fundamentals of the market – supply continues to exceed demand – have not changed.

“Then there’s the US. Here there are two problems – one glaringly apparent, the other lurking in the shadows. The overt weakness is that real incomes continue to be squeezed, despite the fall in unemployment.

“For a while, consumer spending was kept going because rock-bottom interest rates allowed auto dealers to offer tempting terms to those of limited means wanting to buy a new car or truck. In an echo of the subprime real estate crisis, vehicle sales are now falling. …

“Europe’s big problem, over and above the fact that the euro was a disastrously flawed concept, is that the banking system is not fit for purpose. As the IMF noted last week, a third of eurozone banks have no prospect of being profitable without urgent and meaningful reform. That requires two things: to reduce the number of banks and to do something about the €900bn (£715bn) of bad loans sitting on their books at the end of 2014. …

“Central banks, of course, swear blind that they are fully in control and that there is nothing to worry about. Perhaps not, but something doesn’t smell right. The fact that economists at Deutsche Bank published a helpful cut-out-and-keep guide to helicopter money last week is a straw in the wind.

“As the Deutsche research makes clear, the most basic variant of helicopter money involves a central bank creating money so that it can be handed to the finance ministry to spend on tax cuts or higher public spending. There are two differences with QE. The cash goes directly to firms and individuals rather than being channeled through banks, and there is no intention of the central bank ever getting it back.”

My Comment: The world is obliged to change its complete format because the economy expresses not only economic connections, but all the connections of humanity that are calculated with money, the universal parallel of the connections between us.

If the system ceases to operate, we must replace it, otherwise there will be a collapse! But how to change the system that is built on our nature, on egoism, and win? There is only one way: to change our nature from egoistic to altruistic! And that is how we reach the victory of the wisdom of Kabbalah.

Related Material:
“How To Save The World Economy?”
The Current Situation Of The World Economy
The World Economy: On The Threshold Of Drastic Changes

Discussion | Share Feedback | Ask a question Comments RSS Feed