What an amazing article in the UK Telegraph on what this global economic turmoil is all about and how it will be the catalyst to bring about world government!
This analysis will help anyone not learned in economics to understand how it is driving, and in fact, forcing the hand of geopolitics to align globally. That is simply, a global economy requires a global government.
The World Economy Beast is beyond your control, George Osborne
By Janet Daley
9:00PM BST 16 Jun 2012
First the size, magnitude and scope of the problem.....
And what is required in light of this truly global problem...The global market has become too big, too electronically automated, too rapacious and ungovernable for any country to handle.
George Osborne made a rather extraordinary pronouncement at the Mansion House last week. Just before presenting his latest plan to stimulate growth (or, as the headline writers say, “kick-start the economy”), he stated firmly: “We are not powerless in the face of the eurozone debt storm.” The grim defiance of his tone seemed to suggest that he expected most people to have concluded precisely the opposite. Presumably he and the Prime Minister have decided that it is better politics to insist that they are not helpless bystanders in the global economic cataclysm, even if that makes it incumbent upon them to produce home-grown solutions.
Interestingly, on the other side of the Atlantic, Barack Obama seems to have embraced the antithetical strategy: he is trying to persuade the American electorate that he is indeed impotent in the face of Europe’s perverse determination to destroy the prospect of recovery. The American economy may still be in the tank in spite of his inspirational commitment to hope and change, but that is not – definitely not – his fault. If the EU (Germany) simply refuses to take the sort of effective action which is necessary, blah-blah, then he (and, by implication, any president) cannot be expected to pull the United States back into prosperity.
These are rather startlingly different ways of addressing the impasse but they actually point to the same problem – and it is bigger than the euro disaster, although that is the clearest and most acute manifestation of it. The economy is now beyond the control of national governments, and therefore outside the remit of democratic politics. It has become truly global, and thus a law unto itself; nation states have gone broke in their attempt to feed its gargantuan appetites for consumption and debt. The remedies for this began in panic and are now ending in delusion: first the banks went bust and were bailed out by governments; then the governments went bust and needed to be bailed out by – whom? International funding agencies which get their cash from – where? From central banks which will have to print gigantic amounts of money to replace all the money that simply disappeared in the bad debt that bankrupted the banks in the first place. And if we all agree to accept the illusion that this newly printed cash has actual value – if we all clap really hard and say that we believe in fairies – then the whole show can get back on the road and we will be rich again.
If you thought the problem was confined only to Europe and the US, you'd be wrong...But what will be required is a world-wide agreement to participate in the illusion. It will rely on every country, and every government, and every electorate, being prepared to say: “Wealth can come from thin air. It doesn’t need any basis in real income or assets to make it viable.” If the population or the political leadership of one country (Germany) insists that money must be earned before it is spent, then the game is up and Tinker Bell dies. What has been happening for the past year – and will continue to happen at the G20 summit in Mexico tomorrow, whichever way the Greek election goes, is the browbeating of Angela Merkel into playing “let’s pretend”. We know now that she will not do it. She may make small concessions – baby steps in the direction of debt-pooling or Eurobonds – but the conditions and the guarantees will have to be there. Reality will always be asserted. And her country supports her in this with overwhelming approval ratings. Indeed, her population would not permit her to relent, even if she were inclined to do so (which she is clearly not). The Germans know better than anyone where it ends when you tell lies about the value of the currency.
So the only way that the World Economy, which has now become an apolitical, undemocratic, supra-national force of nature, could be brought under control is to erase the divisive historical memory of nations and create an equal and opposite force of World Government. This, of course, is just what the EU was designed to do on a continental scale, and that hasn’t quite worked out. The official solution – endlessly reiterated by increasingly desperate European commissars – is to eradicate more forcibly than ever the messy democratic accountability of national governments to their people.
So then, can we avoid going down the road to 'international regulation', the erosion of national democracy and 'being held to ransom by this rampant new global force' heading toward global government - because of this problem?But don’t make the mistake of thinking that it is only the western democracies that are caught in this: the totalitarian superpower of China, and indeed all the tiger economies of Asia, will be brought down too when the West implodes and they lose the prime markets for their goods.
Not likely!Is this the choice? Can the only remedy, as Gordon Brown used to claim in his saving-the-world days, be international regulation that will supersede the power of elected governments? Or the fiscal union being urged on the EU, which would rob national electorates of any voice in their country’s tax and spending policies? Is there any way out of the mess that does not involve dismantling important parts of the democratic settlement, which most of us regard as a birthright: that our governments are answerable to us and not to some supra-national agency?
There is one possibility. Governments are being held to ransom by this rampant new global force, the World Economy, because they are, understandably, fearful of the poverty which would result from its collapse. The Beast must be fed and placated – restored to its previous health – or the people will starve.
But they need not starve: not if governments decide to take the hit instead. A really serious cutback in state spending – not the Osborne nibble but drastic, meaningful reductions in the size of government – could reduce the dependence of democracies on global capital. It is government entitlement programmes which devour wealth and produce nothing in return. If they were stripped away – and if government got out of the wealth redistribution business – taxation could be reduced. So instead of “stimulating” the economy by offering more debt (as Mr Osborne proposed at the Mansion House), and so getting even deeper into hock to the Beast, we might get the genuine stimulus that comes from people spending money that they have earned.
http://www.telegraph.co.uk/news/worl...e-Osborne.htmlPerhaps it is simply too late for the World Economy to be brought back under any sort of national management: the operations of the market may have become too big, too electronically automated, too rapacious and ungovernable for any country to handle. If that is so, then the idea of the democratic nation state has reached a turning point. Get ready to hear a lot more bluster and self-pity from political leaders as they realise how little power they have left.
Thank you Lord that our home is with you!