Entries in the 'Economy' Category

The Dual Shock Of October 2012

Dr. Michael LaitmanOpinion (GlobalEurope Anticipation Bulletin): “As LEAP/E2020 anticipated since the end of 2011, the end of summer 2012 marks the beginning of the revival for Euroland. … That being said, Europe will be in recession for the next six to twelve months. …

“The more Euroland advances constructively, the more the ‘Potemkinien’ ‘character of the US, Chinese, Japanese and Brazilian…economies’ ‘health’ will show itself. The tree will no longer hide the forest, namely that all the major global economies are entering recession or slowing growth simultaneously, leading the socio-economic and financial world into a black hole. …

“For these reasons, LEAP/E2020 maintains its June 2012 Red Alert and estimates that, by the end of October 2012, the global economy will be sucked into a black hole against a backdrop of world geopolitics heated white-hot. Suffice it to say that the coming weeks will, according to our team, carry the planet away in a hurricane of unprecedented crises and conflicts. …

“As we have underlined on many occasions in the GEAB, the United States has, since the beginning of this crisis, refused to face reality by having increasing recourse to financial, monetary,… (and military) subterfuge to try and mitigate the consequences of the crisis. All this however is proving to be ineffective at the end of summer 2012, in spite of the trillions of Dollars thrown down what is proving to be a bottomless hole. …

“The US political system’s current and future impotence in facing its deficit problems combined with ‘sequestration’ of the Federal budget the effects of which are already making themselves felt throughout the US economy (as we had anticipated from spring 2012), will turn the coming weeks into an endless succession of bad economic news … against a backdrop of increasingly less well-managed geopolitical challenges. Because the anaesthetic is finished on this front as well! …

“Let’s quote Europe also as an anecdote, since Euroland’s accelerated integration de facto constitutes an ousting of US influence at the heart of European construction.”

My Comment: It all depends on the nature of the movement of the world towards unity, either along the good path, through an understanding of the only healthy condition, or when the understanding of this inevitable future state becomes clear not through thinking, but through suffering. It is necessary to reach such a state that every person in the world understands these two opportunities of bringing the world to unity, to similarity with Nature, which guarantees his welfare.
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In The Era Of Globalization The Crisis Is A Contagious Disease

Dr. Michael LaitmanIn the News (from TD Waterhouse): “World trade will grow by a mere 2.5 percent this year, dragged down by Europe to less than half of the previous 20-year average, the World Trade Organization (WTO) said on Friday [September 21, 2012]…

“‘I see the risk more on the downside than the upside,’ WTO Director General Pascal Lamy said at a news conference in Singapore. ‘What could be surprising is that you have a volume of trade that is lower than world (economic) growth.’ …

“‘The main reason for the growth slowdown is of course Europe,’ said Lamy… ‘We also know U.S. growth is lower than expected, (and) Japan is not in great shape.’”

My Comment: It is left only to discover how much we are connected not only economically and politically, but also spiritually. We, all of humanity, are a single whole in nature and completely dependent on each other in everything. The development of nature and human evolution are intended for us to reveal this fact in the near future, either through suffering or awareness, and thus evoke in us the need to unite as one family, contrary to and above all our contradictions “by love above hatred.”
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The Crisis Teaches Us To Consume The Necessary

Dr. Michael LaitmanIn the News (from Euronews): “With many Spaniards struggling to make ends meet, many have found a novel way to find one off items on a budget.

“A growing number of people are breaking the habit of a lifetime and starting to buy goods second hand.

“Shoppers are now looking for all kinds of things which they had previously only considered buying new, from clothes to cars…

“Retail sales in Spain have slumped as the country enters its second recession in as many years, but second hand stores are one of the few places reporting huge increases. A result of struggling Spaniards learning to bag bargains and make do and mend.”

My Comment: So inevitably, we will all “descend” to the level of the production and consumption of essential goods and not more. In this case, the economy will “deflate” to its necessary normal size. Humanity will be satisfied with what is necessary for material existence and will change all its desires and possibilities to spiritual fulfillment through suffering, the expansion of the crisis, or through the realization of such development as the best one.
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“Interview: U.S. Fate Is In U.S. Hands”

Dr. Michael LaitmanOpinion (Zbigniew Brzezinski, political scientist [blog author’s comments in bold font]): “I do think that we have unfortunately delegitimized ourselves, therefore making it easier for some parts of the world driven by historical narratives to be instinctively hostile to us. We have ignored that, and we have acted as if we were endowed with some special mission. George W. Bush even said, ‘Our nation is chosen by God and commissioned by history to be a model to the world.’”

This is the mistake on the part of the US.

“We have to start understanding as a nation that we have to act differently. We have to rebuild coalitions. … If we are intelligent about it, we are still in position to be the most influential force in the world, but we have to be intelligent. And to be intelligent, we have to have leaders who understand this, who have a sense of the fundamental historical change that is making this century different from the preceding one.”

This is impossible because for this they need to know the plan of the Creator, Nature, instead of inventing the future themselves that is opposite to the goal of Nature.

“But more important, perhaps, or at least as important, we have to have a public that has some rudimentary understanding of foreign affairs. What really makes me worried is that our public doesn’t understand the world. It’s not even informed about the world. … We have a public that’s ignorant and susceptible to demagogy. And that handicaps leadership, even if it is intelligent. Of course, it becomes worse if the leadership is not very intelligent and itself operates with simplistic slogans.”

Ignorance of the world and its future form is in our case the general condition of all those controlling the world.

“We are less aware for a very simple reason: because the world is much more complex. Americans weren’t better informed about global history before, and they are still abysmally informed about global history. Americans weren’t very informed about global geography. They’re still basically ignorant, even though that is scandalous. …

“But I think what it would take is some shared national consensus about how we define a decent and responsible life in the modern complex world. I don’t think we have that. We have slogans about being successful. We have slogans about ‘job creators.’ We have slogans about everybody having the right to reach the sky in the quest for material self-satisfaction. We have a definition of the good life, which involves the accumulation of material goods plus entertainment.

“These are clusters of issues that are interrelated, and it will require a real jolt for us to start thinking seriously about how we can re-create a healthy society here that is still the compelling image for the world that it once was. Then, the American dream was widely shared. Today, it isn’t.”

For this, you must at least have a plan of the future history of humankind and the possible ways of development as they are dependent on our behavior; all this is given by the science of Kabbalah if we will wish to reveal it for ourselves. The fate of the world is in his hands if he understands how to manage this fate.
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“Earth Has Enough Wind To Power The World”

Dr. Michael LaitmanIn the News (from CBS News): “Two new studies say Earth has more than enough wind to power the entire world, at least technically. … The first line in the [first] study says it all: ‘There is enough power in Earth’s winds to be a primary source of near-zero-emission electric power as the global economy continues to grow through the twenty-first century.’…
“The studies are by two different U.S. science teams and were published in separate journals Sunday and Monday. They calculate existing wind turbine technology could produce hundreds of trillions of watts of power. That’s more than 10 times what the world now consumes.”

My Comment: First, we must study all the side effects of heat and air changes that windmills create. Then, they need to attract businessmen who make profits on other sources of energy, as well as the governments who depend on them. Of course, without changing people, we will not be able to approach the implementation of pure energy and the protection of the environment because it is contrary to our egoism to think about something but ourselves.
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USA Handcuffed The Economy

Dr. Michael LaitmanIn the News (from Chicago Now): “We all agree that we need to create jobs in this country. The U.S. economy has been stalled for years. While coming down from its highs of over 10 %, unemployment still hasn’t improved much, hovering between 8.1% to 8.3%, with no signs of enough job growth to stimulate our economy and get people back to work.

“So what do we do, especially in an election year? We print money!

“Federal Reserve Chairman Ben Bernanke contends that he is trying to help our economy by doing something that President Obama can’t, nor can Congress do and which Mitt Romney opposes. He is electronically creating money! The Fed says that it will ‘buy’ $40 billion a month in mortgage bonds until the high unemployment eases significantly.”

My Comment: Since the dollar became detached from gold, the economy has ceased to be the economy and turned into a game….
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The Financial System As The World Web


Opinion (From Nature): “Financial regulators and policy makers should focus on financial institutions that are ‘too central to fail’ as well as those that are ‘too big to fail’, research published in Scientific Reports this week suggests. …The authors find that during the peak of the crisis, a group of 22 financial institutions, which received most of the loans, became more central to the network, which means that the default of each one would have a larger economic impact on the whole network.

“Nodes represent financial institutions (selected as explained in the text). Outgoing links represent the estimated potential impact of an institution to another one. The nodes are positioned within a circle of radius 1, centered in 0. …Thus, the closer a node is to the center the higher is its Debt Rank. A node in the center (Debt Rank = 1) is able to put under distress the entire economic value of the network. Debt Rank decreases by moving outwards and leftwards along the spiral. The diagram allows at the same time to visualise the structure of the network and to compare the importance of any two given nodes. The size and the color of the node reflects the Debt Rank value (larger and red nodes have higher Debt Rank). The color of a link reflects the Debt Rank of the node from which it originates (red links originate from node with high Debt Rank and make high impact to the destination nodes). (a) Period one, at the beginning of the crisis. Most of the nodes have low levels of Debt Rank, i.e., they are located close to the border. (b) Period four (peak of the crisis). Nodes have comparable levels of Debt Rank. However, they are also much more central, i.e., they can impact a large fraction of the total economic value. A single default is likely to trigger a systemic failure.”
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We Are “One Year Away From Global Food Riots”

Dr. Michael LaitmanIn the News (from CounterCurrents.org): “In a 2011 paper, researchers at the Complex Systems Institute unveiled a model that accurately explained why the waves of unrest that swept the world in 2008 and 2011 crashed when they did. The number one determinant was soaring food prices. Their model identified a precise threshold for global food prices that, if breached, would lead to worldwide unrest….

“Even before the extreme weather scrambled food prices this year, their 2011 report predicted that the next great breach would occur in August 2013, and that the risk of more worldwide rioting would follow. So, if trends hold, these complex systems theorists say we’re less than one year and counting from a fireball of global unrest.”

My Comment: Perhaps then, they will hear about the necessity of integral education that carries the knowledge of how to unite not to wreck everything, but to create a new world order in mutual connection with the purpose of achieving equal standards and to rise in the perception of the upper world of the “Human” level. Nature compels us to this.
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“World Economy Entering Into Financial Hurricane Season”

Dr. Michael LaitmanOpinion (from Insurance Journal): “The North Atlantic hurricane season runs from mid-August to October, with a strong peak in storm activity around the middle of September. A less familiar but even more destructive pattern of disturbances is the financial hurricane season, which coincides with the meteorological one almost to the day. …

“The coincidence between financial and meteorological hurricanes may not be entirely fortuitous. The global economy, like the world’s atmosphere, is a finely balanced complex system.

“In such systems, small perturbations can accumulate to trigger big effects. And just as the meteorological tipping points tend to occur when autumn air circulation starts to disrupt the humid air accumulated in the summer doldrums, something similar seems to happen to financial markets when trading becalmed by the summer holidays returns to normal. The result can be sudden and violent reaction to events accumulated over the summer that markets had seemed to ignore. …

“In China, economic activity has failed to accelerate as expected, despite repeated attempts at monetary and fiscal stimulus. This could mean simply that the government and the central bank have not yet done enough. It is possible, however, that the Chinese economy has become too complex to be managed and fine-tuned as effectively as in the past. Or perhaps the disappointing results of Chinese stimulus thus far reflect a broader failure of monetary policy, which is becoming evident around the world. Recent disappointments in Britain support the latter interpretation.

“In the U.S. and Britain they refuse to acknowledge that printing money can ever be counterproductive. In Germany, by contrast, they refuse to accept that printing money can ever work. Which brings us finally to the most important source of instability that threatens a financial hurricane this autumn – the impending clash between the ECB, Germany and the rest of the euro zone.”

My Comment: A lack of understanding of the nature of the process is the cause of our state, and the problem will disappear only when we become aware of its cause and our actions are in accordance with the program of nature (See Baal HaSulam’s article “Peace in the World”).
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The Wellbeing Of The World Is An Imperative Of Our Time

Dr. Michael LaitmanQuestion: Today it’s quite clear that a person depends on and is enslaved to his environment. But how can we conclude from this fact that we must act for the wellbeing of society?

Answer: If a person doesn’t serve the world, the world will not provide him with what he needs. Today what I need actually depends on the whole world. I will have nothing if the world doesn’t give it to me, in other words, if the whole world is not mutually connected. This means that I need to worry that the whole world will be connected and will cooperate in harmony. Only then will it be able to provide me with what I need.

Somewhere in the world people are digging for iron, in another place for copper, in another for oil, and in another place for gas. Factories provide the goods and ships transport them; scientists develop new technologies and eventually the end product reaches me. In the past we weren’t really concerned about this. There was enough “local” ego of the factory owner or of the oil well owner, but today it doesn’t work that way anymore. Soon we’ll be surprised to see how major production mechanisms don’t function. Why? Doesn’t the oil well owner want to make a profit? Still, his business will fail since we don’t give him power, we don’t worry about him.

It’s time to worry about the wellbeing of the whole world. The system is operating integrally now and it needs everyone’s deficiency in order to function. “But can I know and remember everything that happens in the world? One could go mad, not even a computer can do that!”

True, therefore the only option is the connection of the hearts and desires, not the thoughts. Start operating on the level of the desires and you’ll suddenly see how the thought accurately “dresses” on the awakening of the heart, on the desire, and is able to worry about everyone. Then you’ll see and know why a great potential of your brain is still inactive.
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From the 4th part of the Daily Kabbalah Lesson 9/11/12, “Peace in the World”

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