Entries in the 'Economy' Category

Will The Elite Help Us?

Dr. Michael LaitmanQuestion: What is the use in educating the masses if the elite will continue to take the lion’s share?

Answer: The lion’s share of what? Do you think that the elite will not help us in providing basic needs? I do not think so. The government and the rich will not stand aside; they will lend a helping hand. In fact, neither they nor the masses have a choice. If we are heading towards general recovery, any part of the nation can take part in this.

For example, everyone but the poorest will allocate 10 percent of their income to social needs. What will motivate them? The threat of social riot and the collapse of country. The state will also cut one-tenth of the fat, both from the budget as well as from informal resources.

We need to understand what will follow. Unemployment will increase; the gap between rich and poor will grow, and people, as well as the government, will be confused. This is what will happen if we do not proceed to global education. The same thing is happening in Europe and America. Everyone will have to resort to this method. And we, Israelis, should set an example for the whole world.

And above all, it is desirable to demonstrate to people as soon as possible that “fair distribution” without global education is not fair and provides no solutions. We will not be able to deal with any modern problem without radical changes in society.
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From the 5th part of the Daily Kabbalah Lesson 9/20/2011, “The Nation”

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The Economy For Unified Humanity

Karl Marx, “Theses On Feuerbach”: Philosophers have hitherto only interpreted the world in various ways; the point is to change it.

Comment: With regard to this, it is necessary to set a goal for our economic development. Otherwise, continuing the process of reproduction becomes pointless.

At this stage of its development, despite various contradictions, humanity sees itself more and more as a single whole and wonders about the purpose of its existence. In our opinion, economic theory must include the study of the meaning and purpose of the economic process, taking into account the increasing unity of human society.
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The Crisis Will Last For Many Years

Dr. Michael LaitmanOpinion: (Michael Khazin, an economist, from newsland.ru): “I am confident that the crisis will last a long time. Here is why: Crisis is a change of a certain parameter that transitions from an unnatural state into a natural one. Until this process is over, the crisis will continue. Our modern day crisis is related… to credit-based demand stimulation, that is, people lived on credit. As a result, huge amounts of debt have been accumulated. In and of themselves, debt is not deadly… but it cannot be increased any more. And if so, it is impossible to maintain a high level of demand.

“This is the reason why the world economy will decline by 30-35%, …while the American by 55-60%. In a country like the U.S., this will cause a socio-political catastrophe.

“The crisis will persist until world demand will continue to decline. The collapse will end when demand stops exceeding the real income of the population.

“Ordinary people will experience the crisis through the growth of unemployment, lower standard of living, smaller salaries, increasing cost of goods, the transition of many goods that we currently consider ‘common’ into the ranks of ‘luxury’ items, and so on.

“For the last 30 years the middle class in the West was sustained only by credit. The reduction of credit will force many people into poverty; they won’t be able to afford a car, an apartment, or medical services. Fifty percent of Europeans belong to this pool of population, and forty percent of them will fall into poverty.

“Prices will grow faster than wages, and hence purchasing capacity will drop.

“The price of gold will continue to grow… and eventually gold will replace the dollar as a measure of value.”

My Comment: Slow movement towards rational consumption would be a bliss, but it won’t happen because Nature doesn’t plan simply to return us to balance. Instead, it wants us to unite into one system similar to Nature itself. No tricks will help until we go through change towards reciprocity and unity, in similarity to a unified system of Nature, and stop being a cancerous tumor in it.
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The World’s New Director

Dr. Michael LaitmanQuestion: Does a person need to know that he needs mutual guarantee in order to not end up hungry?

Answer: Yes, of course. We have the same problem in the economy today. And if financial experts knew for sure that they would fail to control the bank system without the mutual guarantee, without establishing a connection between them, imagine how eager they would be to finally understand and feel what this precious mutual guarantee is.

A new director came and established a new order between all the world banks, all the exchange houses, and all the funds. And we come to work the day after he did all this and we cannot figure out what’s happening. We try to do something but it doesn’t work, and the next day it doesn’t work either. So what can we do?

And then this director’s messenger comes to explain that there is a completely different approach, a different order, and a new net of connections. Before you used to connect one way, but now you need to do it differently, not the same as before, but in a completely different manner.

And naturally, he explains that first we’ll begin to study about what’s happening, how we can do our work now, where we can find the new control levers, and what we’ll get in return. We need to know that there is a new system called “mutual guarantee,” and we’ll readjust ourselves to correspond to it the same way we used to correspond to the old system. And then we’ll have more success than before; we only need to learn this system.

Today we are discovering that the old system no longer works. Every day it keeps slowing down and dying more, and we don’t know what to do. So, won’t it make you happy to have the reason revealed and explained to you? People visit specialists and pay a lot of money to find out how to deal with problems, establish proper relationships, to create peace at work, at home with their children, and for oneself. And here the same “psychologist” comes to you and explains what is happening. He explains about new relationships that you didn’t know about.

And naturally, we will not be able to succeed without understanding these new relationships between people. If you want to eat every day, you must attain the mutual guarantee to this extent. If you want a more important position, money, or power, you must be in the state of mutual guarantee.

The government is completely losing its power and influence in the modern world. There’s nothing they can do because every government depends on two hundred other governments from around the world. Today, we see that people are stronger than the government. People protest and the government immediately retires. Powerful rulers with strong armies resign and surrender before the people. Everything has turned upside down. This is why this new connection, mutual guarantee, needs to be explained to people.
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From the Daily Kabbalah Lesson 9/2/2011, Rabash’s article

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If The Process Cannot Be Stopped, It Should Be Controlled

Dr. Michael LaitmanOpinion: (Michael Khazin, an economist, from worldcrisis.ru): “Ten years ago the American elite once and for all refused to continue a dialogue with society at large and decided to safeguard their profits at any cost.

“In the summer of 2001, I drafted the theory of structural economic crises. …At the time, it was already impossible to avoid the financial crisis, meaning the stock market collapse. I suspected that the U.S. government would decide that if the process cannot be avoided, it should be controlled …in the form of a huge terrorist attack that would benefit all participants of the process.

“Journalists who wrote about this situation were harshly expelled from their profession (you know, freedom of speech…). It’s not the first time in American history: the war with Spain in 1898 (the loss of the battleship Maine in Havana harbor), Pearl Harbor, the Gulf of Tonkin incident…

“The natural flow of events rendered ineffective the traditional and rational ways of influencing the situation, and the “rules of the game” had to be drastically altered.

“One either has to admit the presence of principal changes and look for a solution together with the entire society, or one has to hide them from society… and change the methods of governance so as to compensate for the negative changes that influence the elite.

“The gap between rich and poor in the US reached all-time highs, and real household income continues to decline.

“Certain events are about to follow and show the elite that their loss of status and profits is as unavoidable as the collapse of Lehman Brothers. Such events will take place more often, and rich people will repeatedly become their victims.

“The political situation in the world will be aggravated since unfolding regional conflicts and manipulation with prices on the world market always worked as a method of getting rid of undesirable people. So, September 11, 2001 became a symbol of a doorway to a new terribly uncomfortable world in which we live now and will continue to live for a long time.”

My Comment: I hope it won’t last for a long time because it’s starting to affect Israel….
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Harmful Opinion

Dr. Michael LaitmanOpinion: (Jyrki Katainen, Prime Minister of Finland): “Europe is falling behind the emerging economies. Growth calls for structural economic change and a well-functioning, Europe-wide internal market.

“Finland wants a European Union in which each country takes care of its own public finances.

“On an exceptional basis, we have had to help the countries in crisis, Ireland, Greece and Portugal. This has been necessary in order to avoid economic paralysis throughout the euro area. But loans to help other Member States must be the exception – a rare exception – and never the rule. In the first and last instance, each country is responsible for its own economy.”

My Comment: This attitude will lead the European Union to total economic collapse and as a result, to war. In our time, when the universal interdependence is being revealed, we need to serve as a guarantor for each other. To play “against” means to harm ourselves.
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European Crisis Could Kill Weak Banks

Dr. Michael LaitmanOpinion: (Josef Ackermann, Deutsche Bank Chief Executive): “Europe’s sovereign debt crisis will stunt bank profit for years and could kill off the weakest, Deutsche Bank Chief Executive Josef Ackermann told industry bosses, amid intense scrutiny of the sector’s finances.

“’Prospects for the financial sector overall … are rather limited,’ the CEO of Germany’s top bank said on Monday. ‘The outlook for the future growth of revenues is limited by both the current situation and structurally.’

“Ackermann said that the financial services industry needed to go beyond curbing the excesses of the past and reevaluate what role banks play in the global economy, signaling that the lender will not revive some of the risky businesses…”

My Comment: Surely, those who deal with economic relationships, more than anyone else, feel how impossible it is to manage them.

The problem can be solved only by changing the way we perceive the real state of society: We find ourselves in a interconnected world, and hence, we are obliged to change the strategy of our relationships. Unilateral egoistic profit should be substituted by multi-lateral mutual benefit to maximize our interconnection rather than individual profit—for the well-being of society. Economists in particular have to ponder over the crisis of their own perception(!) and its repair.
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Slowdown Brings Forward New Crisis

Dr. Michael LaitmanOpinion: (Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC): “The current slowdown in the world economy has brought forward the timing of a new financial crisis.

“’I thought a few months ago that the perfect storm would be 2013,’ Roubini said in an interview in London today. ‘But now, the economic weakness in the U.S., euro zone and the U.K. is front loaded. So we’re going to double dip earlier. The climax of it could be 2013, or it could be already earlier. It depends on what policy tools are available.’

“Another financial crisis ‘is already manifesting itself’ in developed economies.

“Roubini said if he had large amounts of money to invest, he would ‘mostly keep it in cash,’ especially in dollars, as the U.S. currency tends to strengthen during financial crises.”

My Comment: The more frequently we will experience crises, the quicker we will understand that they have their purpose, nature, cause, and goal: to force us to realize our egoistic opposition to global, integral nature.

Nature compels us toward mutual guarantee, flexibility, and realization that we are integral parts of a single mechanism. We are entering the stage of our “human” development, and we will be forced to reach the quality of “love thy neighbor as thyself”—the law of commutation of single system elements.
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Which Businesses Will Succeed?

Dr. Michael LaitmanQuestion: Lately, you have been saying that no economic program or transaction will be successful without taking humanity into consideration. How can we explain this to people? They are unable to take all of humanity into consideration. The most they can understand is to consider a few companies or a number of people.

Answer: If I want to make a deal with someone and I want it to be successful, I must think: “What deal can be successful if the world has become round and is in a global crisis because we are unable to consider all the connections between us? What deals can I make without considering all these connections?” True, you can’t make any. So, what should I do? I should consider them as best as I can.

A business can be successful on condition that I also care for a fellow human being as much as I am able to the extent of my correction, as much as the fact that the world is round becomes revealed in the world. If the fact that the world is one hundred percent round would be revealed to us, we would find our hands and feet tied, and we would not be able to do anything. I am not able to find a piece of bread until you bring it to me, and you will not be able to feed yourself until I give you a piece of cake.

This is why these connections are not being revealed to us. We only discover minor faults in the connection between us: “So, what is the big deal?…” In this case, I need to take into consideration that I must contribute to the world and care for preparing people for the new world and their global education.

Education is the primary priority. If people and the world as a whole do not know where they are, this would be the worst thing. Essentially, this is the only difference between the current and the future reality: the perception of common interconnection where we exist, to see the strings that connect us with our own eyes.

This is why it is necessary to educate people first, to open their eyes, to impress them, make them feel and see that we are really connected, and that there is nothing that can be done. People will be able to make deals, conduct business, make calculations, and earn interest to the extent that they feel that there is nothing else they can and that we are really connected.

So, what do we do now? We try to act this way regardless, even if we do it artificially, to the extent of our understanding, for example, to give several percent to the world’s global education.

Let us say that the common connection between us is now being revealed as 3%. Then, a person is not required to be connected to the world more closely than an extra 3%. He must think that the world is interconnected and contribute to the world’s advancement in this direction. In our example, he would give 3% of his profit to global education.

Then, success will really accompany him. This is because in this way, he becomes harmoniously connected to nature, makes himself similar to it and in balance with it to a certain degree, and changes in the direction of a new tendency. He is not required to know at all the entire connection between us and act according to it.

When he attains this entire network and begins to realize the connections according to it, everything will become very simple. He will only take what he and his employees need and give everything else for the benefit of society. Then it is said that he knows the entire network and is connected with it like a cell in a single organism.

However, this is not required of him now. Instead of only keeping what he needs, he keeps 97% and gives 3% to the education of the world. It may be 5% a year from now, and 50% in another five years. And thus we will advance gradually, to the extent that we sense and move toward the contemplation of the network that connects us and obligates us to act in accordance with it.
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From the 1st part of the Daily Kabbalah Lesson 9/9/2011, Rabash’s article

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ECB President Calls For Swift Action To Help Greece

Dr. Michael LaitmanIn the News (from bbc.co.uk): “European Central Bank (ECB) president Jean-Claude Trichet has called for swift action to help Greece.

“He urged eurozone governments to rapidly implement the agreement, which allows for a second bailout.

“His comments to the European Parliament’s economic affairs committee echo those of European Commission President Jose Manuel Barroso.

“The latest problem for the implementation of the second bailout is that the government of Finland wants collateral for its fresh loans to Greece.”

My Comment: This demonstrates how a lack of understanding of the necessity to be in mutual guarantee for the survival of everybody will lead to the collapse of the European Union and war. After all, by not helping, you cause bankruptcy. This is similar to people in one boat: There is a leak under one of them, and the rest think that it doesn’t concern them—most importantly, it’s still dry under them.

Finland’s reactions show how necessary it is to provide universal upbringing and education—an explanation of the fundamentals of global and integral humanity and its laws—for decision-making politicians in the first place. We, all those who understand from Kabbalah that unity is salvation, have a duty to introduce this into the world.
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