Collapse of the Global Economy (II)

Collapse of the Global Economy (II)

Written by Alfonso Elizondo

According to John Wagoner, financial analyst for USA Today, the current increase in food prices is driving millions of people around the world into poverty. The price of corn has risen 52% in just one year, sugar 60%, soy 41% and wheat 24%. For more than 45 million people, these price increases mean more extreme poverty and more hunger. According to the World Bank, the causes are many and among them are oil price speculation, population explosion and trade wars.


According to TIME magazine, in an article titled ‘The New Global Conflict between the Poor and the Rich,’ a new conflict is developing between two worlds – one rich and one poor – on a battlefield that is the planet itself. TIME notes that 25 rich countries with 750 million inhabitants consume most of the world’s resources, produce most of the manufactured goods and enjoy the highest standards of living, while at the same time having to face the reality of 100 underdeveloped countries with 2 billion people living in poverty and demanding a greater share of the world’s wealth.


In fact, financial markets are a system for creating virtual money that is not based on real wealth creation. This formula which operates currently and which does not create material economic wealth is the exact definition of artificial money. That does not matter to the megarich since they live trapped in the Forbes 400 bubble; they see the public as faceless workers, clients and taxpayers. Meanwhile the Republicans have regained power, the Reagan era is back, trade unionists are retreating and the ignorant masses are being manipulated by their governments. In fact Obama worked for those same wealthy Republicans who are again living the illusion of a super-wealthy United States.


According to Wagoner, only 1% of Americans lead privileged lives, vacation in the world’s best resorts and are concerned about having the best servants, doctors, masseurs and private school teachers. They do not care about the growing deterioration of the rest of the world since they are not affected by it. They are only concerned with protecting and improving their economic and social situations. Although they say that all men are equal and entitled to their opinion, those who hold power in the media, politics, the economy and business use their influence to modify only the results that interest them.


Since the twentieth century, the general outlook of the political order has had serious problems, such as the collapse of liberal democracies, the return of fascism, leftist totalitarianism and the emergence of new mass media that have led democracy to a crisis of legitimacy. When a culture is not enlightened it cannot effectively oversee the political order because it relies on technical-bureaucratic minorities who monitor, discipline and replace the elites who are in charge of the government. But in fact, regimes on both the left and the right have failed completely in the governance of the state.


At the time of the 2007 crisis, the Federal Reserve pumped $700 trillion into the US banking system to save it from bankruptcy. And indirectly $4.25 trillion was spent on large private corporations that had also come to the brink of bankruptcy after having used and exploited people for dozens of years, taking away jobs from more than 200,000 people. Now the crisis is back and the state coffers are empty; there is no money left to save anyone, according to the most eminent economic and financial analysts in the US. And because of the interconnection between the US economy and the global economy in general, when the US goes down, the rest of the world will go down.


The most well-known economic and financial analysts in the US, like Paul B. Ferrell, agree that the last global economic crisis was child’s play compared to the catastrophe that will occur in this decade. Although Ferrell is not a seer, he is very knowledgeable about microeconomic issues and he predicts very meticulously what the last economic crisis in the world will be like.

Ferrell says that in 2016 the world’s economic, political and social system will explode, which has happened already. By 2017 the middle class revolution will begin and by 2018 one can expect the total collapse of the Federal Reserve and the US Stock Exchange. Although politicians will try to convince the enraged population, this crisis will spark a new cultural revolution. As the New York Stock Exchange falls apart, the Federal Reserve will no longer be able to fulfill any of its obligations.


Ferrell says that in 2019 the global war for natural resources will begin, more than half of the Federal Reserve will be spent on a useless military system and nothing will be left for fiscal and monetary needs. Then the United States will decide to send its military forces to occupy territories with natural resources to secure the immediate future of the nation. In other words, that will be the beginning of World War III.


In 2020 the United States will have the first female president and the political and social order will come to an end as it has become a system that does not work and it has brought the world to the brink of destruction. It is then that Americans will regain faith in their country and a new era of prosperity will begin.


Addendum: It is very probable that by that date the new world order will be headed by several world powers and there will be no military conflicts or significant differences in the conservation standards for the planet’s ecology and in issues of universal human rights.