Entries in the 'Economy' Category

The Crisis Is In Understanding What Is Happening

Dr. Michael LaitmanIn the News (from InoPressa, originally published in The Times): “Politicians were negligent by allowing the euro-zone crisis to spread. Now they are finally considering radical and necessary measures, including debt restructuring.

“The creation of the euro has become one of the greatest political mistakes of today. …Now, the world leaders can only reduce the damage. Judging by the measures proposed at the IMF summit in Washington…, politicians, at least, understand the importance and scale of the problem. This step… gives some hope that the right decisions will be made.

“The scheme of saving the euro has to be precise. According to the preliminary data, it will consist of three elements: a write-down of as much as 50 percent of Greek sovereign debt, the strengthening of the reserves of European banks, and a significant expansion of the European Financial Stability Fund (EFSF), a temporary rescue fund to save the euro, from 440 billion euros to around 2 trillion euros. … While the omens are not good, European governments are taking their time, and investors lack confidence.

“But this is the only logical course of stabilization of the euro zone and prevention of an economic collapse at even larger scale… Politicians are aware of this. Now, they must act.”

My Comment: Of course, all these measures will cushion the blows of the crisis because they are the actions of unity. But they do not solve the problem because the crisis manifests in our egoistic relationships on purpose so that we replace our egoistic relationships with mutual guarantee, bestowal, connection, and unity, meaning so that we change ourselves!
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Questions on The Economy, Government, And Life’s Purpose

Dr. Michael LaitmanQuestion: In response to the blog entry, Economics Done By The Balance Formula, there appears to be another dimension here, concerning resources. To cut down our use of non-renewable resources like oil will only extend the availability of these resources. But it’s still a very finite matter. It seems that to make the argument convincing, we need to show that this will indeed be long enough for new replacement resources to become available.

Answer: We don’t have to economize, but only use all the means for a balanced economy of reasonable necessities.

Question: What is the role of government for our next generation?

Answer: We have to educate the masses through the right environment (dissemination), and they will in turn demand changes from the government.

Question: Why do we talk about improving our life on Earth through mutual guarantee, etc.? Is not the aim of creation to progress beyond the physical life on Earth and enter spiritual unity? Will peace in the world not sink us deeper into this dreamlike state we think is reality?

Answer: That’s because for 99% of the world’s population, improving their lives is the purpose of life. And only for the 1%, those who have a point in the heart, the embryo of the soul, is the purpose of life to reveal the upper world. But by uniting together as Galgalta Eynaim and AHP, we reveal the upper world together.
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Competition Without A Winner

Dr. Michael LaitmanQuestion: Besides everything else, we have to establish contact with economists, but they are guided by specific computational models. We have not developed our own economic model. What axioms should it be based on?

Answer: First of all, we have to accept as a fact that the capitalistic model of the last 70-80 years went bankrupt. A race for consumer goods and services is no longer possible for several reasons: Resources are being depleted, the environment is polluted, and overall, the system no longer functions. We clearly see now that it goes against Nature’s development. It’s not realistic to keep increasing production and consumption; on the contrary, the tendency switched to bearish (downward moving) market activities.

We still want more, but it doesn’t work out. Human society is naturally developing in the other direction, towards unity, and absolutely not to where an egoistic economist would want to lead us. Nothing can be done: Regardless of what they think, everything is developing differently.

As a result, we find ourselves in a crisis, although in reality, it is not a crisis but a dead-end. Our own deadlocked way of thinking puts us into a hopeless situation. Thus, we need to open our eyes and realize that Nature sets a different course. It has its own program, and our counter plans won’t stop it. A stubborn child is sometimes allowed to do something on his or her own in order to learn from their error and to find themselves in a deadlock. And humanity is in that same situation now.

Thus, we have to show evidence that is supported by Nature itself: We are required to be in balance with it, meaning that we have to lower ourselves to the level of a balanced economy. Gradually, we have to “climb down the tree,” and go in a completely different direction, build a new paradigm, and look at life, ourselves, the family institution, employment, and so on through that prism.

First of all, there is no need for everyone to be working 8-10 hours a day. What is it needed for? Look at what is happening to our children. It’s better for them to stay with their mothers. That’s how it has been for ages, and only in the last hundred years we moved the rural population, both men and women, into cities and factories. Free the people from this yoke.

Then children will be getting a good education supported by an “adjusted” television and Internet. Finally, mothers will be spending time with them instead of sending them to full-time day care. Is it a right thing to do to leave a one or two month old baby out of the home from morning till evening? What is it needed for? What good does it do? Who is winning from that? Billions in profits for the rich, besides increasing their bank accounts, bring harm to everyone, and also stop bringing pleasure to them as well.

Thus, we have to build a new perception of the world, a new outlook on life: Everyone is working as much as it is needed for social balance, and not for an imposed “prosperity.” Real prosperity reflects a blossoming of our relationships, with a feeling of life being full, and not an exhausting competition. We’ve had enough of competition with each other for imaginary prizes that melt in our hands.

It’s necessary to consciously and thoughtfully, with the help of upbringing, bring “everyone down to earth” and put their feet firmly on the ground after this prolonged stay with our heads in the clouds of illusions. Otherwise there will be a crash, and we will be learning via troubles and suffering. Thus it’s better to initiate changes through education and alleviate the blows society will have to go through.

We simply have no other choice. The new economy has to gradually lower us to a level of balanced consumption.
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From the 5th part of the Daily Kabbalah Lesson 10/21/2011, “One Commandment”

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“Occupy” Protesters Find Allies In Ranks Of The Wealthy

Dr. Michael LaitmanIn the News (from Todaynews): “The ‘Occupy Wall Street’ protesters — also known as the ’99 percent’ — have struck a chord with at least a few members of an unexpected audience: America’s rich and privileged.

“United under the banner ‘We are the 1 percent: We stand with the 99 percent,’ a band of entrepreneurs, trust fund babies, professionals and inheritors has taken to the web to share their abhorrence of corporate greed and support for tax code changes that would see them pay a higher share of their considerable wealth.

“Among other things, they’re posting their stories on a Tumblr page created by Wealth for the Common Good and Resource Generation, two groups dedicated to working for ‘fair taxation and just wealth distribution.’

“Farhad A. Ebrahimi, 33, who shares his inherited wealth through a charity that he founded, says he attends the Occupy Boston protest every day. … At the protest, he often wears a homemade T-shirt that reads: ‘I’m a member of the 1 percent and I fully support the 99 percent’ on the front, and, ‘Tax me, I’m good for it,’ on the back.”

My Comment: Thus, we are getting closer to understanding the solution to the question of shifting to a society of equal, reasonable consumption. Their funds should be used to organize a common, worldwide, integral upbringing for everyone, especially the unemployed, which will replace their working hours and have their studies be considered the same as work because there won’t be other work in the future!
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Ben Bernanke: The US Is An “Innocent Bystander” To The Crisis

Dr. Michael LaitmanIn the News (from BBC News): “US Federal Reserve Chairman Ben Bernanke has told Congress that the US economy is ‘close to faltering’ and more action may be needed.

“But he warned that the eurozone debt crisis, as well as overly hasty spending cuts by the federal government, risked undermining the US recovery.

“But he added that the US central bank’s monetary policies were ‘no panacea.’

“On the subject of the eurozone debt crisis, Mr Bernanke said there was little help the US could offer.

“’The problems are not really economic, they’re political,’ he said. ‘Because what they are trying to do is find solutions that are acceptable to 17 different countries, which you can imagine is very difficult.’

“He said that the US was an ‘innocent bystander’ to the crisis, and while the country’s direct exposure to any debt default by Greece was limited, the real risk was that a disorderly default could trigger a run on other eurozone governments and a banking crisis, which would hit the US badly.”

My Comment: The expression “that the United States was an ‘innocent bystander’ to the crisis” is especially moving. One may shed tears, touched by the suffering of pure innocence.
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The Capitalist Network That Runs The World

In the News (from NewScientist): “As protests against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

“From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power.

“The work… revealed a core of 1318 companies with interlocking ownerships…. Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the ‘real’ economy – representing a further 60 per cent of global revenues.

“When the team further untangled the web of ownership, it found much of it tracked back to a ‘super-entity’ of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. ‘In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,’ says Glattfelder.

“John Driffill of the University of London, a macroeconomics expert, says the value of the analysis is not just to see if a small number of people controls the global economy, but rather its insights into economic stability.”
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Obama: The Crisis In Europe Is “Scaring The World”

In the News (from Reuters, my comments are in brackets): “U.S. President Barack Obama said on Monday the debt crisis in Europe was ‘scaring the world’ and that leaders in the euro zone were not dealing with the issue quickly enough.

“The recovery of the U.S. economy suffered setbacks this year due to problems around the world, Obama said [it is not our fault, meaning not mine!], including the Arab Spring uprisings [and who provoked them or at least allowed them to happen?] that drove up energy prices and worries about the financial health of European nations [and whom does it benefit?]

“’They have not fully healed from the crisis back in 2007 and never fully dealt with all the challenges that their banking system faced. It is now being compounded with what is happening in Greece,’ Obama said…

“The Democratic president, who pushed through an $800 billion economic stimulus plan in 2009, has set out a new $447 billion plan to create jobs and cut taxes for small businesses but has faced fresh opposition from Republicans.” [The unemployment rate in the United States is 9.1 percent, but it is not going to be better: Everything is heading to the employment to the extent it’s necessary!]
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A Global “Wallet”

Dr. Michael LaitmanEuropean countries assumed that by creating a common currency and uniting against America and Russia, they would become the third power. But it turned out that union also involves trust, a feeling of collectivity, mutual participation, common finances, and the disappearance of borders, meaning cultures. In other words, everything is common.

Boundaries can still be removed between countries, but the “wallet” cannot be common. After all, this is the most important! It reflects our feelings and relationships. When do we say that people live together? When they have a “common pot.” This is the way it was in ancient times, and this is the way it is now.

If a husband and a wife have separate bank accounts, they go out to a restaurant, and each pays for himself, is this a real family? But today this is considered to be normal: You pay for this, I pay for that, and this is how we exist.

The process of evolution has led us to a point where we find ourselves connected with one another in the entire world, and not just in Europe. However, people still experience it differently in different places. The world must come to a state where people must treat each other well. This is where the problem is!

We are unable to come to a certain diplomatic agreement with one another. Europe is a good example of this. They just cannot do it! It is necessary to destroy the egoistic connections and build altruistic, meaning, common connections instead. There must be collectivity! And this collectivity must be above all our differences. Here, I am not referring to contradictions. Contradictions must be destroyed, but differences have to remain. Above them, we have to create a collective, which will be called a “common nation”: Europeans. And that is it. Nothing else.

Why should the Spanish, Italians, Greeks, French, Germans, and others feel like they are separate nations? Is it because they have different languages? Their languages will gradually be replaced with just one language or a combination of languages, for example with Esperanto. It does not matter. Nature is obligating us to do it, otherwise we will not be able to fix things.
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From the Talk on Mutual Guarantee 9/25/2011

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In The Grip Of The Common Interconnection

Dr. Michael LaitmanThe evolution of humanity and its advancement was always happening on the basis of the development of our desires. New desires were constantly appearing in us: We wanted to develop technologies, agriculture, science, and culture; we discovered new lands, and so on. Overall, it’s as if man wanted to “consume” this entire world, and he has almost succeeded. As a result, he has basically mutilated nature, quite possibly irrevocably.

Now, however, a completely different action is taking place in nature. New desires no longer develop in us, and all the desires, qualities, and relationships that develop are beginning to take a completely different qualitative form.

We are no longer connected between us in a simple egoistic manner where we can regulate our relationships with legal, practical, and social laws, which somehow give us the ability to exist without “consuming” one another. Today we are beginning to feel like we exist beyond the laws accepted in human society. We are beginning to feel that we are connected with one another against our will and this is what is bad. I don’t want to be connected with anyone, I just cannot!

We left the caves, built huge cities, separated ourselves from the ground, and formed a human society where everything is so intermixed and interconnected that I am unable to exist without thousands of other people. And today I cannot exist without the entire world. I depend on different countries: One product is made in China, another in Japan, something else in the US. My car is from Japan, my television is from Germany, and so on. In general, none of my things are mine; they come from who knows where.

It is in this way that I am involved with the entire world through reception and bestowal since I also must give. This is with regard to the economic, financial, and trade connections.

What if we take into consideration everything else: health and safety (medications, materials), education, rearing, not to mention books and mass media? Today nothing can exist in a separate country. The world has become so interconnected that we all are obliged to one another.

And here a problem arises: Our egoism wishes to remain individualistic. “I don’t care about anyone else, leave me alone! Who cares about you and why do you care about me?” But this is no longer possible—I depend on everyone. Everyone demands something from me, and I must also receive something from them whether I want to or not.

And now this connection contradicts our egoism. I am ready to use everyone in the world, but what about giving? Sure, I am ready to buy-give. That is not it! A completely different connection is being revealed here: We affect one another with our thoughts, qualities, and feelings. Everything is passed from one person to another; the entire world seems to have become common.

I arrive in another country, and I don’t feel like I am in another country: It has the same hamburgers, the same pizza, the same soft drink, everything is the same. When you know the language (today English is becoming the international language), there is no difference at all where you live. You go to a supermarket or other stores, and there are the same things everywhere: goods, brands, and cars. In other words, the world has become one.

I am so involved in the entire world that I suddenly feel like I owe something to the rest. And this is a bad thing for me. My egoism does not tolerate this!

It turns out that the system we have created (the financial, trade, and world systems) does not take into consideration this type of interconnection, which is called mutual guarantee and is based on a normal, good attitude towards one another. This is not taken into consideration in the treaties. A situation arises when a certain willful, sensitive, and moral interaction with others is required of me. And I don’t want it! But the world, the entire system, is obligating me. This is where the crisis is.
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From the Talk on Mutual Guarantee 9/25/2011

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The Economy Of Global Mutual Guarantee

Dr. Michael LaitmanThe economic system of today’s world is the most obvious demonstration of our connection with one another. That’s because we are primarily connected through the economy, production, and trade. And we see that there are several thousand large corporations in the world that are interconnected, that envelop the whole world, not giving us a chance to move.

But they also can’t move! And now, to their shock, they are discovering this and don’t know what to do. They don’t have any freedom of movement in relation to one another.

This is how the common, global system of mutual guarantee is being revealed to us. But we don’t desire it, we don’t aspire to it from our end. Yet nature, the Creator, is showing us the mutual guarantee, our connection with one another. Under these conditions, how can my mind possibly help me?

The mind can only help me in one regard: to leave my animate mind and start learning, becoming familiar with this system.

However, this system is not built according to my earthly mind because my mind is personal, individual. It helps me exist in this egoistic world, showing me how to win more and do more for my own benefit, thinking that others were created to serve me.

But now, when I am revealing a system with which I am firmly connected and on which I am fully dependent, my previous mind stops working. I have to adapt to this new system! It’s as if I come to some unknown place and first of all I try to take a close look at what’s around me, to learn the customs of this place in order to adapt to them. And once I get to know it well, I can start acting in it and improving my state.

But how can we get to know this global system in which we have found ourselves if we cannot figure it out with our earthly mind? Even all of these huge corporations which seem to control the world, are in reality not in control of anything. And this is now being revealed to them. The mind of every particular person individually does not work just as the corporate mind does not.

It turns out that I now have to discard my animate mind and acquire a new mind—an integral way of thinking. This will be the creative mind, the mind of the common system, meaning the mind of the Creator.

It won’t be easy for us to acquire it. We will have to develop ourselves, turn ourselves into one, connected whole, try to feel ourselves as one person, one system. Then we will attain this single, connected system and will thereby “wrap up” our own egoistic desire and connect with one another. That is how we will gradually build our common vessel, reuniting the parts of the broken Lego.

Within the connection between us, we will reveal the upper mind, the program, its essence, and then we will understand what is happening! Only in this case will our state be corrected.
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From the 1st part of the Daily Kabbalah Lesson 10/21/11, “The Acting Mind”

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