In the News (from Gallup): “Gallup surveys in China and the U.S. reveal Chinese are struggling less than Americans to put food on their tables. Six percent of Chinese in 2011 say there have been times in the past 12 months when they did not have enough money to buy food that they or their family needed, down significantly from 16% in 2008. Over the same period, the percentage of Americans saying they did not have money for food in the previous 12 months more than doubled from 9% in 2008 to 19% in 2011.”

My Comment: The figures show the pace of the growing crisis.
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Opinion: (Veniamin Popov, Director, Moscow State Institute of Foreign Affairs, from ng.ru): “The 21st century is marked with the acceleration of social-economic and political processes in the world, their increased diversity and complexity. Cataclysms have become so frequent that we are unable to evaluate the essence of phenomena and to draw conclusions.

“The crisis of the western civilization is obvious. Two historic processes are coming to an end:

• the Eurocentric world is falling apart, Eastern civilizations are coming forward;
• the 200-year old industrial civilization is coming to an end, and an integrated civilization is being born.

“A need for a systematic renewal of the global strategy is irreversible. Its purpose is the formation of a new way of production and consumption, which provides balance between nature and society, overcomes the abyss between the rich and the poor, and forms a true multi-polar world structure based on a dialogue and partnership of countries and civilizations.

“Europe has given the world science, technology, culture, progress, power, freedom, and comfort. But today’s Europe is degenerating. To maintain their livelihood, Europeans are obligated to accept a foreign work force, which causes interethnic conflicts. The EU was not able to work out an efficient policy to incorporate immigrants into the modern society.

“The financial-economic problems have become the other side of the system crisis of the western civilization. They were caused by the unstoppable greed of banks and corporations, which kept pushing countries to live beyond their means. Fast growing flows of virtual capital have come out from under the control of society and separated from the movement of the real economy.

“The gap between the very rich and the very poor has become immeasurably large. An aspiration to achieve maximum profits increases aggression, greed, and the desire to take over. Facing an increasing lack of resources, the governing circles of European nations are becoming more aggressive.

“Global informational revolution threatens culture and morality. Moral degradation, the collapse of family unit, same sex marriages, drug addiction, alcoholism, prostitution, and pedophilia are on the rise.

“The distance between the government and the general public and the decline in political trust are growing in European countries.

“As the domination of the western civilization is coming to an end, a new giant is appearing on the world arena: Asian civilizations, where more than half of the population are young people with great human potential and natural resources, who prefer “benevolent” authoritarianism to moral pragmatism.”
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Opinion (Dmitry Voblikov, financial analyst, Forex Club, from finmarket.ru): “Unexpectedly for many, the debt crisis has gone beyond the eurozone and begun to infect neighboring countries. New regions are already in danger. This is not surprising because the decision to localize the infection in Greece was not taken on time.

“Now Hungary, which is not even a member of the eurozone, officially seeks credit from the European Commission and the IMF. Investors are concerned about the increased risks associated with the European debt crisis and slow economic growth in Hungary. Thus, the spreading of financial contagion continues, and given the risk of recession in the EU, the extent of infection can be significant.”

My Comment: Still, there is no understanding of the scope of global changes in all spheres of human life and activity. After becoming aware of the global financial crisis, we will begin to recognize it in all areas of life, and the cure for it is only in our unity, universal mutual guarantee, in similarity to the nature of the crisis.
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Opinion: (Yakov Mirkin, Professor, Head of International Capital Markets Department, the Russian Academy of Sciences, from nr2.ru): “Numerous discussions of the EU leaders show that they cannot cope with the risks of the global financial system. Greece’s referendum means the declaration of Greek default, followed by the chain reaction of defaults of credit institutions.

“If Europe starts to look at the Greek debt as at its domestic debt, the problem will be solved gradually through emission and inflation. The problem is not the debt, but the debtor seeking the best conditions for himself and dictating terms to the lender.

“The Greek Government is unable to obtain the consent of the population on economic reforms and austerity measures. Even if now the ‘fire’ in Greece is put out, in a year we will see new areas of shocking debts.”
[61081]

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In the News (from the Demography Report): “Demographic change in Germany is marked by low birth rates and a declining population size.

“The population of Germany has been shrinking since 2003 and is now 81.7 million residents.

“According to models of the Federal Statistical Office, Germany’s population will decline to 65-70 million by 2060. …This trend is also accompanied by a decline in the working-age population.

“While the population is declining, the age structure is also shifting. …In 2060, every third person (34%) will be at least 65 years old.

“There are two reasons for population ageing: Germany has had low birth rates for many years.

“In addition, average life expectancy in Germany, as in other industrial countries, has steadily risen over the past 150 years by about three months per year.

“This trend will affect almost every area of life, society and public policy, giving rise to new challenges to social cohesion and economic prosperity in Germany over the long term.”

My Comment: The global integral crisis will force us to change and become a society of total interdependence, in which humanity will no longer be divided into countries and civilizations. So the problem of the aging of the Old World will disappear by itself.
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The laws of nature are irreversible. We’re unable to add anything artificially because the conditions within our society’s political, industrial, familial, and social systems force us to come to a mutual and integral interdependence. We will be forced to do this regardless of whether we’re rich or a regular worker, a jobless person, a student, or an elderly person.

Nature is locking us into a single general system and forces each person, in accordance with his status, qualities, and interrelations with the society to gradually transform. We can’t remain in our previous state.

Do you see what’s happening in the world today? Could anyone imagine that Germany would give Greece 500 billion dollars and then pardon the debt? Can you imagine Germans giving 500 billion to Greece? There is also Italy and Spain on the line. No one knows how this will end. However, people aren’t out on the streets protesting, they’re not trying to overthrow the government, and they’re not demanding their money back.

Imagine that we have 500 billion in the bank saved up by all of the country’s workers. This is the government’s fortune, and instead of putting this money into realizing the country’s needs, we give it to someone who we don’t even wish to know.

Why doesn’t this result in a civil war? I know Germany, I’ve been there and I’ve talked to the German people. People aren’t particularly happy with the situation, but no one is really opposing it. This is because people understand that for the politicians and the economists having to come to this decision was a lot more painful than for the rest of the people.

They are “sitting” on this money, and with its help they rule over the people and the nation. But if they’ve decided to part with this money, then things must really be bad. We are really that interconnected that I have to give to other countries and pardon the debt, just as I would give to my own nation. They realize the depth of the interconnection and see that the law of nature connects everyone and that this tie cannot be undone.

This is an inner tragedy for those who had to make this decision because parting with 500 billion dollars isn’t easy. Just imagine what your family would say if you took all of your possessions and money from the bank and gave it away?

What we are talking about here is a sense of total connection and necessity. The politicians see no other way out. We, the “small people,” don’t see it, but they do. This is why the biggest tycoons and billionaires will part with their money just as these politicians did, otherwise they won’t be able to exist. They will understand the necessity of this action. Totally paradoxical things are happening right before our eyes, we simply don’t realize it yet.
[61414]
From a TV Program “The Integral World” 10/30/2011

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In the News: “‘The crisis of its [Italy’s] debt can destabilize the entire world, beginning with France. … I realized that we are falling into the abyss, the clock of the policy makers does not coincide with that of the market, and we need a great acceleration,’ said [Carlo de Benedetti, CEO of the Italian manufacturer Olivetti]. (Source: Corriere della Sera) 

“Fitch Ratings warned that it may reduce its ‘stable’ rating outlook for U.S. banks with large capital markets businesses because of contagion from problems in troubled European markets.

“Agency Fitch Ratings warns that a further worsening of the eurozone debt crisis promises serious risks to American banks that have a portfolio of government bonds of countries of concern. The size of national debt exceeded $15 trillion and is almost 100 percent of GDP, the established ceiling of the official national debt.

“‘Unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad outlook for U.S. banks will darken,’ Fitch said. ‘The risks of a negative shock are rising.’

“The analysts don’t expect a resolution of the issues for another 12 months or so, and are unlikely to adjust their outlook on the sector quickly. ‘This is going to have a prolonged and uncertain income,’ Mr. Scott [one of the analysts who wrote the Fitch report] said.” (Source: The Globe and Mail)

“It may well be so that if the U.S. government initiates political games around its debt problem again, a new wave of the global crisis might cover the world by the New Year.” (Source: Utro.ru)
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Opinion: (Jacques Sapir, Professor, Director of the Industrial Studies Research Centre, School for Advanced Studies in the Social Sciences, from expert.ru):

1. Is there any hope for a favorable resolution of the situation in Greece? No.

2. Will the crisis expand? Yes.

3. Can’t the leading European states offer help? The Germans and the French are debating it. The Germans are against help, and the French are in favour. If the German position prevails, the future of the eurozone is uncertain.

4. How do you explain the German position? Already in the 90s, a greater fiscal, budgetary, and economic integration was needed. But for the time being, the integration is not happening, and if so, Germany will have to subsidize the EU countries. Thus, the German elite are ready to accept the fact that the eurozone will cease to exist.

5. Why did the Stability and Growth Pact fail? This Pact is not about growth, but about saving the budget. And those countries that had introduced it have gotten the reduced growth and recession: Tax revenues get smaller, and this increases the debt.

6. The worst scenario for the global economy is the collapse of the eurozone, isn’t it? The collapse of the eurozone will impact the reserves, but in the long term will keep Europe from recession. If the euro is saved, Europe and countries that depend on it, such as Russia, will face a long recession and reduced demand.

7. And how will it affect Russia? In both cases, Russia will go through hard times because Europe is the main consumer of Russian exports: oil, gas, and metals.
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In the News (from American Free Press): “In November 2010, CNBC’s Eamon Javers had this to say about last year’s exercise: ‘Ever since the crash of 2008, the defense-intelligence establishment has been paying a lot of attention to global markets and how they can serve as a threat to U.S. national security interests.’

“Javers went on to report: ‘The Army is having a very interesting yearlong exercise called Unified Quest 2011. In that war-gaming series, the Army is looking at the implications of a large-scale economic breakdown in the U.S. that would force the Army to keep domestic order amid civil unrest and deal with global fragmented power and drastically lower budgets.’

“Officials picked the scenario of a worldwide economic collapse because it was deemed a plausible course of events given the current global security environment. In such a future, the United States would be broke, causing a domino effect that would push economies across the globe into chaos.”

“According to Army Lt. Col. Mark Elfendahl, these were some of the conclusions drawn during a three-day session connected to that exercise: ‘The Army would have to significantly alter its ‘investment portfolio,’ focusing on light and inexpensive forces… an increased focus on domestic activities might be a way of justifying whatever Army force structure the country can still afford.’

“‘The only silver lining,’ concluded the article, is that ‘the Army would have an influx of qualified recruits as the result of an unemployment rate of 25 and 30 percent.’

“Tracing the government’s contingency plans back even further—to 2008—we find The Washington Post and Russia Today both reporting on the Pentagon’s plans to train 20,000 troops by 2011 to help as a response to threats of a possible mass terror attack or civil unrest following an economic collapse.

“In July, Shepard Ambelas wrote for the popular alternative news website The Intel Hub that the Pentagon’s 2008 announcement dovetails ‘into the current troop and equipment movements around the country reported by truckers as well as many troop sightings by citizens.’”

My Comment: Namely in order to prevent clashes between exasperated citizens and the authorities, we suggest creating a wide education and upbringing network for newly unemployed and, in general, for all citizens in advance. Only this will allow everyone to understand the new world that is being born and what exactly the new circumstances require from us. This will help us go through the birth of the new society of mutual guarantee peacefully.
[61464]

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Opinion: (Ben Bernanke, Federal Reserve Chairman): ‘“I do think that a considerable part of the unemployment that we are seeing is cyclical. Final comment, cyclical unemployment left untreated, so to speak, for a long time can become structural unemployment as people lose skills, they lose attachment to the labor force.’

‘“Unemployment is far too high. Inequality, which is not a new phenomenon – increases in inequality have been going on for at least 30 years – but as that has continued, we have a more unequal society than we’ve had in the past.”’

My Comment: Unemployment and inequality will continue to grow until market capitalism is replaced by the system of mutual guarantee with reasonable consumption. We can come to it through wars or through a deliberate change.
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