The Great Depression that inhabited the Thirties left a scab on America that took until the Nineties to heal. Since then, the Great Recession of 2007-09 has been effecting America in the same way.
As new generations form, there is a gap of people who would rather rip the scab right off than realize what role politics actually plays in this spasmodic state of economic crises’ the world keeps “stumbling“ upon.
Is the world bound to perpetual banking bailouts by the tax payer? Could we even survive another one? According to The Telegraph, another collapse “would trigger a cataclysmic, uncontrollable backlash,“ and down that road the signs insists that the world could not afford another financial crash as it would drag Britain, Europe, and the United States back into poverty, and possibly create the collapse of capitalism itself.
The recipe is clear, and the ingredients are set. How could the world be so close to another economic crisis?
To cope with the recent recession, some countries wound up jailing their bankers, while others did not. Therefore, some countries began leaning towards the theories of populism and populist parties. We see those theories reflect in some of our presidential hopefuls running in this years election. The ones who claim long-term prosperity, or “make America great again.“
The goal for the government is to destroy capitalism without involving themselves in a long-term relationship with populist, or any other party wanting to break up the banks.
The answer to capitalism is not populism, it is not socialism, it is only with a perspicacious transparency through criminally political powers that our country will be able to make the dollar worth something again.
Capitalism has been our only economic model for the past 150 years, and just like the Thirties when Americans had turned a stock market crash and a series of monetary policy blunders into a depression, we cannot back out now. To make matters worse President Herbert Hoover had signed into law the Smoot-Hawley Tariff Act thinking it would save them for some reason when instead it slapped massive taxes on the imports of 20,000 goods and triggered a global trade war. Sounds a little like today’s Trans Pacific Partnership.
The goal to destroy capitalism has become a giant propaganda scheme as Christiana Figueres, the executive secretary for the U.N.’s Framework Convention on Climate Change actually admitted during a news conference that “this is the first time in the history of mankind that we are setting ourselves the task of intentionally, within a defined period, to change the economic development model.“ The goal of environmental activists is not to save the world from ecological calamity but to destroy capitalism. Read more here.
Reasons why stock markets have been getting whacked:
Investors in equities, including millions of people with private pensions and Isas, have already lost a fortune; they won’t be too happy when they begin to realise the extent of the damage. Growth is slowing everywhere, and the monetary pump-priming of the past few years is looking increasingly ineffective. Traders believe that interest rates won’t go up in Britain until 2019, and there is increasing talk that negative interest rates could become necessary across the developed world, further crippling savers.
No positive spin can be put on any of the latest developments. Banking shares have taken a beating; China’s slowdown continues; Maersk, the shipping giant, believes that conditions for world trade are worse than in 2008-09; industrial production slumped in December, not just in Britain but more so in France and Germany; energy prices are devastating Middle Eastern and Russian economies; and sterling has tumbled.
It is always a sure sign that panic has broken out when financial markets respond badly to all possible scenarios. The prospect of higher interest rates? Sell, sell, sell. A chance of lower rates? Sell, sell and sell again. A rise in the price of oil is met with as much angst as a decline. The financial markets remain addicted to help from central banks: they are desperate for yet more interventions, regardless of the consequences on the pricing of risk, the allocation of resources or the creation of unsustainable bubbles that only enrich the owners of assets.