Entries in the 'Economy' Category

World Bank President: We Are Moving Into A “New And More Dangerous Phase” Of The Crisis

Dr. Michael LaitmanIn the News (From Theaustralian.com.au): “The world has moved into a ‘new and more dangerous phase’ of economic uncertainty because of the European sovereign debt crisis, according to World Bank president Robert Zoellick.

“Despite decades of fixing problems at the top of US and international institutions, Mr Zoellick could offer no ready solution to Europe’s problems.

“He urged European leaders to approach their continent’s sovereign debt malaise with a greater sense of urgency, and lamented the European Union structures that made effective economic reform difficult.

“‘It’s not the same as 2008 (when the previous global financial crisis hit),’ he said.

“‘On the positive side, people have paid down debt and there is not the same sudden shock as in 2009. But, on the other hand, most developed countries have used up fiscal space and monetary policy is about as loose as it can be.'”

My Comment: Everything is going according to plan: Nature presses us, still leaving time for reflection. Then the pressure will increase, and there will be no more time to think. Assessing the situation correctly and understanding that we must quickly become global and integral: This the solution to all problems. Will we understand this before it’s too late?
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France’s Richest Say: “Please Tax Us!”

Dr. Michael LaitmanIn the News (From BBC News): “Some of France’s wealthiest people have called on the government to tackle its deficit by raising taxes – on the rich.

“Sixteen executives, including Europe’s richest woman, the L’Oreal heiress Liliane Bettencourt, offered in an open letter to pay a ‘special contribution’ in a spirit of ‘solidarity.’

“Later the government is due to announce tighter fiscal measures as it seeks to reassure markets and curb the deficit. They are expected to include a special tax on the super-rich.

“Before the announcement, expected on Wednesday evening, a letter appeared on the website of the French magazine Le Nouvel Observateur.

“It was signed by some of France’s most high-profile chief executives, including Christophe de Margerie of oil firm Total, Frederic Oudea of bank Societe Generale, and Air France’s Jean-Cyril Spinetta.

“They said: ‘We, the presidents and leaders of industry, businessmen and women, bankers and wealthy citizens would like the richest people to have to pay a “special contribution”.’

“They said they had benefited from the French system and that: ‘When the public finances deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute.’

“They warned, however, that the contribution should not be so severe that it would provoke an exodus of the rich or increased tax avoidance.

“The move follows a call by US billionaire investor Warren Buffett for higher taxes on the American ultra-rich.”

My Comment: This is a commendable step. However, it will not change the general course of the crisis because its cause is in the program from Above, the program of Nature (the Creator), which, according to the plan of creation (Nature), should bring the whole of creation, all its parts, to general balance.

Of all creation, it is a human being who stands out due to his egoism and disregard towards other parts of nature. His egoism has fully ripened, and that is why time has arrived to force him to come to equilibrium within himself, in society, and with the environment.

No action weakening man’s conflict with the environment will help other than temporarily. And even this step of altruistic egoism is necessary in order to see its negative result and wish to hear and to be able to understand (from us) the correct solution.
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European Banks: The Mistrust Grows In Expectation Of The New Wave Of Crisis

Dr. Michael LaitmanIn the News (From economicsnewspaper.com): “Against the background of the debt crisis in Europe is a growing distrust among banks. They borrow less money….

“The mistrust of banks taking each other for the assessment European Central Bank, given the debt crisis in Europe. ‘Banks prefer in certain regions of the euro area to its to deposit excess liquidity with the ECB, rather than to other Banks borrow,’ said ECB chief economist Juergen Stark to the ‘Handelsblatt’ in the Monday edition. ‘The signal we take seriously.’

“Alone between last Thursday and Friday, the offshore banks Stark’s statement after 90.5 billion euros at the ECB, rather than the money other banks to borrow. The situation was not yet comparable with the Situation in fall 2008. After the bankruptcy of U.S. investment bank Lehman Brothers was at that time the so-called interbank market, on which the Financial institutions provide liquidity to each other, in a state of shock fallen. The report shows that at times were in the € 200 billion ECB depot. (Abendblatt.de / dpa)”

My Comment: Since increasing mutual dependence is manifested in the world, the alienation of the banks from each other will lead to the collapse of the whole system. However, namely because of this, from the realization of their death, they will understand that there is no other way out but connection in the form of “mutual guarantee.” Through these crises (sufferings), Nature (the Creator) will bring humanity to correction.
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Affairs In Poland

Dr. Michael LaitmanIn the News (From Investors.com): “[Polish] Prime Minister Donald Tusk presented government assessment of the aggravating international financial turbulence in the Sejm on Friday [19 August]. He said his government would continue responsible policies to ensure that public spending is under control, and Poland is perceived as a stable and reliable country.

“It is the task of every responsible government and political party to ‘shield the country against the threat of chaos, nervous reactions and wave of emotions’ because such things harmed local and international economies, Tusk argued. He said that the main problem of countries engulfed by the present crisis was nervous reactions of investors and businessmen as well as waning confidence of citizens in financial institutions, including banks.…

“Poland is well prepared to stave off another wave of international crisis, he repeated. ‘We have currency reserves large enough for the foreseeable future and the Flexible Credit Line (with the IMF) makes it possible to effectively protect the zloty if it becomes necessary,’ Tusk assured.…

“’We are not afraid of (..) a more effective management of the euro zone because we believe that the euro zone is deeply in need of a stronger management,’ Tusk declared.”

My Comment: If the crisis is global, how could it not affect the country in the middle of Europe, how can a country not depend on export and import and on the earnings of Polish workers in other countries? Even leaders still do not understand what the globality of the world entails.
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The New World Needs A New Economy

Dr. Michael LaitmanQuestion: Isn’t our message socialist in essence?

Answer: Who cares what it is called? People demand this, regardless of names and labels. The nation of Israel demands social justice, which has to be the same as in the family. The word “socialism” triggers rejection. People have already tried it, yet the question is not about the words, but the essence.

Social justice means a “family” approach where we all consider each other. We have to build an economy consistent with this principle. We have no other alternative. If we want to succeed in the modern world, even regardless of the protests, then we have to rebuild the economy in all countries exactly on this foundation.

We need a new economy, and, meanwhile, leading experts still do not understand this. We see where they have brought us. If the person who was responsible for a family’s overall budget had brought the family to such a crisis, all the money would be taken from him immediately and the fate of the household entrusted to a more competent and knowledgeable person.

However, let us go back to the Israeli wave of protest. People demand social justice, and the economy should be built on this principle. From now on, it should be based on a different attitude. We need formulas of budget allocation that will leave everyone satisfied. But how can we achieve this?

To this end, the nation’s representatives should sit down at the “family” table, put the available resources in the center, and decide together how to divide them so that everyone is satisfied, knowing that this is the only possible solution. After all, we do not have any other savings, and every person should understand that he is treated fairly even if he receives two shekels while another receives twenty.

Of course, to do this, there has to be mass education and a nationwide debate. And besides, there are simple calculations to be made as well: If a person earns less than a certain amount, then he simply cannot provide for himself. If a single mother raising her children on her own receives less than a certain minimum, she cannot cope. Thus, there are priorities that need to be solved at least on a basic level so that people can survive. Then, we will move on to other issues, arranging them in the order of priority.

Moreover, we need this kind of economy in the modern world. Otherwise, the time will come when people show the government the door. Today, this is easy. The games have ended. The system of mutual guarantee is now revealed among people, and they will begin to feel that we are all interconnected.

However, governments are disconnected from reality and do not feel this. They still rely on various commissions and other outdated resources to divert attention. However, the people will not calm down.

That is why we need other specialists. We will explain the principle of social justice to them, and they will build the appropriate economic system. Moreover, they will transform the state to meet the new requirements.

Today, people demand that the state function differently with all of its mechanisms, ministries, and agencies in relation to each person and each part of the country. We want the Land Administration, National Insurance, and other institutions to operate differently, and this requires huge changes. They are not simple, but they are necessary.

We must also understand that new political parties and other political methods won’t help us either. After all, we already know that whoever finds himself in this environment becomes similar to it. Instead, the next government should take the form of a round table. This government will not be there to explain mysterious facts to the people from a high pedestal. This no longer works. The world has entered a new state and gradually, this will become obvious to everyone.
From the 5th part of the Daily Kabbalah Lesson 8/22/11, “Arvut
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Food Riots: Approaching The Edge

Dr. Michael LaitmanIn the News: “What causes riots? That’s not a question you would expect to have a simple answer. But today, Marco Lagi and buddies at the New England Complex Systems Institute in Cambridge, say they’ve found a single factor that seems to trigger riots around the world.

“This single factor is the price of food. Lagi says that when it rises above a certain threshold, social unrest sweeps the planet….

“But what’s interesting about this analysis is that Lagi and co say that high food prices don’t necessarily trigger riots themselves, they simply create the conditions in which social unrest can flourish. ‘These observations are consistent with a hypothesis that high global food prices are a precipitating condition for social unrest,’ say Lagi and co….

“That leads to an obvious thought. If high food prices condition the world for social unrest, then reducing the prices should stabilise the planet.

“Today, the food price index remains above the threshold but the long term trend is still below. But it is rising. Lagi and co say that if the trend continues, the index is likely to cross the threshold in August 2013.

“If their model has the predictive power they suggest, when that happens, the world will become a tinderbox waiting for a match.”

Comment: According to Kabbalah, all the events in the world are caused only by the need to bring humanity to correction, similarity with nature, balance among everyone. This is reflected in the transition to a society of reasonable consumption where everyone consumes to the extent he needs to exist, and not more. In this case, there will be enough resources for everyone.

But reaching this state is possible only under the condition of “mutual guarantee” where “one is for all and all are for one.” Kabbalah explains how to achieve such a connection between everyone in the world. Otherwise, incorrect distribution of food will lead to a world war.
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Take Care Of The Tycoons, You Just Might Need Them

Dr. Michael LaitmanA person should use his innate capacities given to him by nature to their fullest potential for the benefit of others. But then, from where will one draw his satisfaction? It will come from using themselves to the utmost to serve others.

After all, when I make a profit, I receive a personal gain. I engage my ego to serve myself, selfishly using the qualities and abilities that the Creator gave me, although He could have given them to someone else. So, it turns out that people with means or with advanced capabilities, which the Creator has given them, are causing more damage when using their capacity for personal gain. However, this fact must manifest full force in order for everyone to understand what is going on.

This will be revealed in a state where we’ll see that the integral system must be engaged full force, and all are equal in it. Whatever qualities may have been given to me, I see myself as part of the common mechanism, the part that must diligently do its job to the utmost.

In this way, I am not different from anyone else. If both of us are doing what we are supposed to do, then, in spirituality, we are absolutely equal. There are no differences between us. We were simply born different. Hence, we have a different impact, but its efficiency quotient is the same.

This refers to the effort that each of us is capable of inputting, rather than to the qualitative indicators of the output. We evaluate a person not by the results that appear to our eyes, but only by his specific efforts.

This does not mean forcing people, as was done in Soviet Russia where the government took away businesses from the talented individuals who owned them, and thus destroyed the country. If you kill or exile such people, who will manage the industry and the economy?

So, we definitely must protect the tycoons and provide opportunities for them to open as many businesses as possible. They are the ones who can do it.

We have already seen what happens under socialism. Here is the egoistic desire at work, and it should be handled as sensibly as possible, until a person unilaterally decides that it’s time to become corrected. One way or the other, everything should be grounded on desire.

However, what if people take to the streets and begin making specific demands? The most important key here is to educate the people. Obviously, we have to put the fire out.

Some people actually live in poverty and do need help, but only when the level of our education begins to rise shall we see how things will begin to get better. After all, we ourselves begin to understand that one must give up something for the sake of others.

This won’t be an ideology or an opinion, but a feeling that will permeate us all. Then, we will feel like a nation.

Besides, we will receive the assistance of the upper Light. By the law of equivalence of form, our system will become the garment for the upper Light and we will see enormous fruits of our unification, similar to the fruits seen by the scouts who were the first to make their way into the land of Israel after 40 years of wandering in the desert. We will suddenly discover the energy and the potential that is contained in everything that we are dealing with.

All of this can be achieved only through education. That’s why we need a round table where we discuss issues together and raise the level of interaction and mutual interest among the people. That is all we need. The government, in the wake of our discussion, will take on executive functions.

The round table will be a nationwide debate conducted together with experts who have a critical approach and analysis, but based on common agreement such as in a close-knit family. Then we will succeed. Otherwise, we will fail.
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From the lesson on 8/19/11, “One Precept”

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The New Economic Base

Dr. Michael LaitmanQuestion: How do you propose to solve the social problems in Israel, practically speaking?

Answer: First of all, we have to sit at a round table and begin the discussion, strictly adhering to the principles of the mutual guarantee. This is the only way we will find the answer to the nation’s demand for social justice.

At the round table, the representatives of various sectors would speak about the given social problems. Then, having considered the picture as a whole, we would begin to evaluate our possibilities, making use of the services of experts and specialists in their various fields.

However, they must adhere to the principle of mutual guarantee. Practical solutions in any professional field must always be proposed by the experts who are also connected to each other by the guarantee. This is because they differ in their opinions and evaluations.

The economy is molded from our egoism, which we do not really understand. Besides, the necessity to rise above it intensifies our ignorance. In the end, even the professionals are confused; we see where they have taken us and what they have done.

In any case, it is clear that if, up until today, everything used to be based on the egoistic desire of the person, then, from this point on, we have to build a different economy based on our common desire of bestowal, which is called the “mutual guarantee.” That is why making decisions and implementing them surely must be built on the principle of the guarantee. This is the main distinction of the new approach.
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From the 5th part of the Daily Kabbalah Lesson 8/22/11, “Arvut

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How To Equalize A Boxer And A Nerd

Dr. Michael LaitmanQuestion: How will we switch to an economy system based on a mutual guarantee?

Answer: Baal HaSulam writes about this very simply: Everyone does everything he can for his society and receives enough to cover his needs. Therefore, we can draw precise formulas from this statement, and it is, in fact, fair distribution that protestors in Israel are demanding.

Until now, what a person received was equal to how much he stole, lied, and snatched from others. People acted egoistically, used their connections through family members, and exerted pressure through different factors in order to receive as much as possible. From now on, “more” will no longer exist. Consequently, we should reach fairness.

In other words, why do you deserve more than I? Maybe you are smarter than me. So what? Is it my fault that I was born stupid? Let’s suppose that I have grown to be 7 feet tall and 400 lbs, and I’m a boxer. You are just 5’2 and 100 lbs, and you are smart. While I may have trouble earning my $2,000 a month, you are making millions. If I could, I would come over to you now, hit you with an uppercut, and take away your millions, leaving you $5,000 out of the goodness of my heart.

So, which of these two variables is fair? I was given strength, and I use it to live at the expense of others. You were given brains, and you use them the same exact way. This is our society.

Consequently, this system is leading to a general collapse. We simply have no choice but to create some balanced formula that would establish balance between us. The coefficient in this formula will not be my strength or your brains. We need a different, fair calculation here.

Baal HaSulam gives it to us simply, but in the socialistic “package” of his time. Until we utilize this calculation, there always will be people who will be unsatisfied with their share of the “pie.”

On the other hand, we need to understand why someone else would take the money that I could make for myself. In actuality, no one is stealing from me. We simply must provide for each other like in a family, such as when you give all the very best to your child and receive more pleasure from this than from your own earnings.

Certainly, on the path to such interactions, we need to go through many corrections. We don’t want to implement anything by force as happened in Soviet Russia. However, we really need to create a new upbringing. There is no other choice; nothing will be done on its own. We gradually need to inform people about the fact of the matter, and put it on the agenda of the society, country, and world. Otherwise, we will not take even the first step.

However, when this step is taken, we suddenly will find in amazement that everything is running smoothly and working out for the best right before our eyes. We just need to start.

The final formula seems very harsh now. Without any pressure from the outside, you are obliging yourself to give to others everything other than what is necessary for you, as if they were your children for whom you are willing to put in as much as needed. First, everyone needs to reach this sensation or perception of the world according to their own good will, since there is no coercion on the spiritual path.

We are talking about a deep, difficult, and massive revolution of consciousness. Yet, we need to begin. Otherwise, nature will drive us forward quickly. After all, we are constantly at less than optimal speed. We need to advance on our own, conforming with educating society. The most important thing here is precisely the education process according to which the world will be transformed.
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From the 5th Part of the Daily Kabbalah Lesson 8/22/11, The Arvut

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Using Bureaucracy To Deal With The Crisis

Dr. Michael LaitmanOpinion: (Philipp Roesler, German Economics Minister): “German Economy Minister Philipp Roesler called for a euro zone ‘stability council’ with the power to sanction countries that mismanage their finances.

“Such a council would be independent of governments and have the power to help countries implement economic reforms, if need be by determining where financial aid from fellow members would best be spent, Mr. Roesler, who is also vice-chancellor in Angela Merkel’s government, told reporters.

“‘A stability council wouldn’t mean – “you’re not getting any money”, but rather we’ll apportion it for you,’ he added.

“Mr Roesler, the head of the small pro-business Free Democrats (FDP), also called for ‘competitiveness tests’ to determine how countries were managing their finances.”

My Comment: Needless to say, this decision is very much German. But we shall soon see that without the ballast of industrially developing countries, Germany itself will fall into the crisis more deeply than anybody else. And no establishment will help until they change egoistic society to a “family.”
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