Entries in the 'Economy' Category

Europeans Go Overseas

Dr. Michael LaitmanIn the News (from RightWorld.net): “Young Europeans with higher education are going overseas to seek employment, most likely in Argentina. The economic crisis, whose end is nowhere in sight, forces them to leave. Only a few years ago, Spain attracted thousands of Latin Americans who were moving to the Iberian Peninsula in search of a better life.

“Today, many young Spaniards move overseas. However Argentina, where European professionals can still find a suitable job relatively easily, also attracts Italians, Frenchmen, Brits and even Germans. They arrive on student or tourist visas. The only drawback is the fact that once in three months they have to visit neighboring Uruguay to get their passports stamped and thus extend their visas. The majority of new immigrants admit that they dream of returning to their homeland; they just do not know when it will happen.”

Comment: The world increasingly looks like the labor market, where millions of people are rushing in search of work. But this happens just to mix people further, blend their mentalities, and bring them closer to each other. Then, when all the “bubbles” burst and only necessary production remains with a billion unemployed individuals, people will understand that their correction, learning a new integral life, is their new job, their work on themselves, on the mistakes of nature. And meanwhile, nature leads us to greater communication and mutual understanding by the path of suffering.
[71976]

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Hard Defaults Are Inevitable

Dr. Michael LaitmanOpinion (Kyle Bass, Hedge-fund manager, Hayman Capital Management): “In his latest investor letter Kyle Bass lays out his case that a wave of hard defaults is coming.

“His basic argument: The world is just saddled with too much debt.

“Throughout history, he says, total debt-to-GDP only ever breached 200% when nations were spending on war. Today we’re at 310%.

“Says Bass: ‘There is no savior large enough with a magical pool of capital to stave off this unfortunate conclusion to the global debt super cycle. We think hard defaults are imminent.’”

Comment: If we look at the crisis of humanity in this way, then, of course, there is no salvation. If we look from the perspective that the world finally will climb out of its dead-end “development,” and head not toward financial development, but toward a civilized, unified integral society, then it turns out that we are not in a crisis, but at a turning point between the fall and a great ascent to a brighter future. It would not be in competition, mutual destruction, and victories at any cost and to our own detriment, but in an integral, confident, peaceful flow of life.
[62596]

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“Is This Really The End?”

Dr. Michael LaitmanIn the News (from The Economist): “Unless Germany and the ECB move quickly, the single currency’s collapse is looming …

“A Euro break-up would cause a global bust worse even than the one in 2008-09. The world’s most financially integrated region would be ripped apart by defaults, bank failures and the imposition of capital controls…The euro zone could shatter into different pieces, or a large block in the north and a fragmented south. Amid the recriminations and broken treaties after the failure of the European Union’s biggest economic project, wild currency swings between those in the core and those in the periphery would almost certainly bring the single market to a shuddering halt. The survival of the EU itself would be in doubt.”

My Comment: There is anxiety and joy. The anxiety is due to the dramatic turn of events, and the joy is due to the fact that they take place. There is a hope that the “patient” will finally listen to the “doctor” and will not accept the “band-aid,” but only the real medication.
[62685]

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The Three Experts: Be Prepared For A Crash

Dr. Michael LaitmanOpinion (Gerald Celente, Harry Dent, and Robert Prechter): “‘The economic recovery has been weak, so the next downturn should generate bad news in a big way,’ Mr Prechter told USA Today, saying the markets look ‘very bearish’ for the third time in 12 years.

“Mr Prechter told USA Today both markets will crash back below their lows hit at the height of the financial crisis in March 2009. Unemployment fell last month to 8.3 per cent, a three-year low, and weekly jobless claims are at a four-year-low.

“But Mr Dent believes that people will be left out of work again in 2013 or 2014 and U.S. markets will crash because central banks have been pumping so much money into markets that they are unrealistically strong.

“Mr Celente told USA Today that a higher unemployment rate will cause social unrest and there will be a growing rich-poor divide. This would no doubt help fuel movements such as Occupy Wall Street.”

My Comment: No comment—people’s mentality will change only under the threat of bankruptcy and destruction. Meanwhile, we can only prepare materials and disseminate as much as possible, the method of improving the quality of life.
[71980]

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Curb Your Appetite!

Dr. Michael LaitmanOpinion (Ashok Khosla is one of world’s leading experts on the environment and sustainable development, a former director of the United Nations Environment Programme): “The Earth has entered into another period of extinction of the biosphere, which resulted in thousands of species disappear, President of the International Union for Conservation of Nature (IUCN), Ashok Khosla. ‘We are witnessing the 6th mass extinction, which takes place on the planet Earth from the moment of her life. Last – the fifth – led to the extinction of the dinosaurs,’ – said Khosla in a meeting with reporters in Moscow. In particular, the human race be without risk of fishery resources by 2050. Every day the world is cut down and burnt about 50 hectares of forests every day about 20 thousand hectares of farmland turning into desert, and broken by ravines. Every day in the atmosphere 60 million tons of carbon dioxide, which is reflected in all corners of the earth.

“For example, some island nations may be flooded in the next century due to rising waters in the oceans. Currently, scientists recognize five major mass extinctions. The latter led to the disappearance of dinosaurs  65 million years ago . His reasons still not fully understood. The death of the dinosaurs could have caused the fall of the meteorite, a supernova explosion, powerful volcanic eruptions, or climate change. Now on the brink of extinction are 19.6 thousand species of animals and plants – a third of all species that exist on Earth. Over the past two decades, the number of species threatened with extinction, has doubled. If the predatory attitude toward nature will continue, then, as some pessimists, 2050 Planet empty.” (Source: Mysteriousall)

“Industrialized countries are suffering from excess consumption. They are encouraged to reduce the level of consumerism and use fewer resources per capita. Business must be socially responsible and care for nature.

“Why would you fill the refrigerator with food if you do not eat everything? In Germany, 17% of produce is thrown away unpacked. In fact, can we not donate it to poor countries? The food there is 100 times cheaper.

“Some of the recommendations are difficult to implement because it requires to change habits: for example, travel to work by public transport, work during daylight hours, which means getting up and going to bed early, do not litter, and slow down child-bearing (one child per family).

“The future must be based on social justice and a green economy. Over-consumption can be stopped only through innovation. New technologies available now are enough to get four times as many products without a corresponding increase in resource spending. There are about 2300 resource and energy saving technologies in the world.” (Source: STRF.ru)

My Comment: The Club of Rome has been talking about these ideas for decades, and who hears them? And this is in spite of the fact that it includes well-known and influential people. We must understand that green technologies, reducing excess production, saving, and caring about cleanliness, all this can be achieved only through prior integral education and upbringing of people. Precisely due to upbringing, people will relate to one another, others, society, nature, and the world differently, and the messages of the Club of Rome and other clubs will be heard.
[71988]

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The Saving Of The Euro Has Been Postponed

Dr. Michael LaitmanIn the News (from Associated Press): ” The leaders of the 17 countries that use the euro have delayed a decision on whether to give their bailout funds more firepower until later in March, European officials said Tuesday [February 28, 2012].

“Eurozone leaders were expected to meet Friday afternoon to decide whether the currency union’s bailout funds will be allowed to give more than €500 billion ($669 billion) in loans.

“However, Germany, the eurozone’s largest economy and the biggest contributor to both bailout funds, has so far resisted such a move.

“The delay of the decision on the bailout funds is yet another example of the slow pace of decision-making in the eurozone’s two-year-old debt crisis.”

My Comment: The euro will disappear if the EU doesn’t move on to full integration, which is impossible without compulsory integral education. This necessity was not taken into account by the founders of the EU, and they ignore it to this day. In the meantime, there is the threat of the disintegration of the EU, and if they don’t try to prevent it by implementing further integration measures, the disintegration will take place. Let’s hope it doesn’t happen by an explosion.
[71553]

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The Unemployed Are Graduates

Dr. Michael LaitmanOpinion (Sergey Gubanov, professor at the Moscow State University): “One of the main problems in Russia today is unemployment. There are plenty of young graduates, but not everyone can get a job in their field. The social crisis is growing; there is a wide gap between the availability of jobs and the number of specialists. This contradiction is disastrous for the country because we are releasing an army of protest. Some economists believe that the unemployment problem can be solved by small and medium enterprises. This opinion is erroneous. The social crisis can be overcome only by large corporations. This happens in developed countries, for example, with the help of the famous Microsoft. Imagine how many personnel are involved in this system! Unfortunately, there are just five neo-industrial countries in the world now. The rest are their customers.”

My Comment: The numbers of the employed will decrease until it reaches the level sufficient to support the society at a reasonable level of consumption. All the sources of employment, except the necessary ones, will disappear. We need to develop a system of education and upbringing that will be perceived by society as work because being in this system, a person brings the world into balance, and this is the most productive human work there is.
[71662]

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The End Of Capitalism

Dr. Michael LaitmanOpinion (Michael Khazin, an economist, from km.ru):Since the end of the 19th century ‘left’ views have developed under the strong influence of Karl Marx who created a systematic and global description of the whole world, starting from ‘Adam’…. History, philosophy, and political economy, all of it was conveyed in a ‘transparent’ language, which created a very appealing and convincing approach whose authority increased constantly until the 1980’s.

“The capitalist world, however, didn’t have such a ‘transparent,’ unified approach, and so it was decided to create it in the form of ideological resistance, which began but did not succeed, and the current ideological crisis is an example of this.

“Since ideological resistance wasn’t very serious, some of its basic principles were not based on logical philosophic constructs, but were rather a rigid negation of corresponding Marxist ideals. In particular, if Marxism was a result of the end of capitalism, the basis for the Western approach is the assumption that capitalism is infinite.

“[However] …since the process of the expansion of markets is limited by the size of the earth, the scientific-technological process is limited by time and must, therefore, come to an end!

“The crisis of the decline in the effectiveness of capital that has been going on for several years cannot come to an end in the framework that preserves the previous model.

“…similar crises in the past were overcome by destroying the competition, and expansion was possible. But today the markets are global and it is impossible to expand them.

“All the theories included the principle of ‘infinite’ capitalism. And this is the tragedy of the modern ‘Western’ economic thought: The current crisis is the end of the scientific-technological paradigm, which actually cannot be described using its language.”

My Comment: Here comes the realization that it is impossible to describe the new economic system by using the old terminology, and in the meantime our egoistic thinking doesn’t allow us to move on to new concepts. Only the recognition of the bitter end will enable us to accept a new social model: integral, equal, and reasonable production and consumption, as described in “The Future Generation” section of Kabbalah.
[71561]

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World Bank: China Faces Crisis

Dr. Michael LaitmanIn the News (from The Wall Street Journal): “An exclusive preview of an economic report on China, prepared by the World Bank and government insiders considered to have the ear of the nation’s leaders, offers a surprising prescription: China could face an economic crisis unless it implements deep reforms, including scaling back its vast state-owned enterprises and making them operate more like commercial firms.

“The report warns that China’s growth is in danger of decelerating rapidly and without much warning… A sharp slowdown could deepen problems in the Chinese banking sector and elsewhere, the report warns, and could prompt a crisis, according to those involved with the project.

“It recommends that state-owned firms be overseen by asset-management firms, say those involved in the report. It also urges China to overhaul local government finances and promote competition and entrepreneurship.

“While some reduction in growth is inevitable—China has been growing at an average of 10% a year for 30 years—the rate of decline matters greatly to the world economy. With Europe and Japan fighting recession and the U.S. experiencing a weak recovery, China has become the most reliable source of growth globally.

“But current forecasts by the Conference Board, a U.S. think tank, see the Chinese economy growing 8% in 2012, and slowing to an average annual growth rate of 6.6% from 2013 to 2016. …China’s annual growth rate will begin to ‘downshift’ by at least two percentage points starting around 2015.”

My Comment: The crisis will hit China in any case. The only solution is to restructure the entire society through integral upbringing of the population, and according to this, rebuild the whole country on the principles of reasonable consumption, equal distribution, and protection of the environment.
[71556]

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We Are Facing Great Turmoil

Dr. Michael LaitmanBestowal as the general population sees it is helping others, which brings a person satisfaction, decorates one’s life and “fuels” him. A person assumes that thanks to this our world becomes a better place. Accordingly we can explain to people what the right connection is and what the benefit in it is.

For example, in Israel there is going to be some social boycott of certain food companies that raise the price of their products in the local market while selling the same products for much less abroad. So why doesn’t the workers’ union organize these protests? Why doesn’t it organize an appeal to the tycoons on behalf of society? This will lead to lowering the prices significantly and the manufacturers will still have enough “fat” left.

But apparently the Union isn’t interested in that.

Comment: The union was founded in 1927 while the state of Israel was founded in 1948.

Answer: The participation of the union in the foundation of the state is felt through this day. Of course, we don’t negate what happened. At first the movement had ideals, but it is impossible to “rest on one’s laurels” for so long.

Question: Tycoons today are trying to erase 40% – 60% of their debt, at our expense of course. Even in the Knesset (Israeli house of representatives) they are passing a law that would rule out such an option. This means that for the first time people disagree and are unwilling to accept the “stew” they are being fed. Something is going on these days. What is going on?

Answer: It isn’t about the tycoons or the poor, the unemployed or the rich. We should see the trend itself, that the Reforming Light is arranging the vessels and tying all the social classes in certain relationships. On the whole the goal is to bring a person to the recognition of the evil of the present state. A person should be “shaken” so that he will see that he cannot exist in the old lifestyle, and that he has to change his outlook of life.

I go to work in the morning, make money, produce unnecessary things, waste natural resources and energy in the process, and produce totally worthless products. In the supermarket I choose from the endless variety of cheeses. All that is because my boss, with the help of good advertising, knows how to push these products to people, thus adding a few more zeros to his bank account, which he doesn’t even use and they just sit there in the bank.

The more money the tycoons make the more it means that we are “growing” and that our economy is “flourishing.” It isn’t clear who is flourishing. I am not even sure the business owner is flourishing; after all, he doesn’t know what to do with all his wealth. Ultimately, It is about an inner feeling: an inner impression and a feeling of control over others; a certain sense of security money gives. Eventually, it is all about a feeling. And we will do anything to feel more secure; to feel control, self-respect, and self-worth.

This period is over and humanity must acknowledge that the present paradigm has ended. Therefore, we go through phases of recognition of evil, but the process is delayed; governments hide the crisis and promise to turn things around. In the meantime an explosive mixture boils ready to blow up; economists recognize this. In the coming year we will see how things develop.

On the other hand, this development must be gradual because the Light arranges everything, not anyone else. That Light is arranged so that the general population will rise above their outlook of life. There is no other choice.

It is impossible to ignore half of the seven billion people “as if” they are not developed enough. It is totally untrue! Everyone, who has a human form must participate in the life of the general vessel and together reach the end of correction, Gmar Tikkun.

Whatever you say, and no matter if it seems that a person cannot develop, understand, or feel, in spirituality he may be closer than you are. He is surely closer than you are because he has fewer barriers than you do. You have many calculations that he doesn’t. His calculations are much simpler, and he is much closer to correction.

Everyone must advance and perceive the new reality, understand that the world is round and that we too should be “round.”

It isn’t easy, it is hard to explain what “bestowal is, even to those who are willing to listen and who agree with you. They think: “Smart guy, but not so down to earth,” “He speaks so nicely, but. …” This means that they listen to you and agree with you, but in the end they applaud and go home as if they heard nothing. People aren’t ready internally yet; the Light hasn’t influenced them yet. It has to go through many actions. We can see it in ourselves: We hear it every day and it is still not easy.
[71526]
From the 2nd part of the Daily Kabbalah Lesson 3/2/12, The Zohar

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