New World Order University Forum

Bad news seems to get the biggest headlines. The center of the crisis appears to be in Eastern Europe at the moment. Ambrose Evans-Pritchard has a scary article on the meltdown at the Telegraph.

Reuters reports that The Czech Republic is paying foreign workers to leave the country.

Evans-Pritchard believes the Eastern European crash may bring down the EU. NWOU wishes it were so. With global leaders set to meet in April to reconfigure a global capitalist system, the race is on between global financial cooperation and economic nationalism. Mish reviews the Evans-Pritchard article and adds more statistics of economic shrinkage. Japan’s economy shrank by 12 percent in the fourth quarter. The IMF doesn’t have enough money to bail out Europe, and Mish speculates that countries will withdraw from the Euro as their economies cascade into bankruptcy. John Mauldin, in the the article following, indicates that Portugal, Italy, Spain, and Greece are in deep trouble due to socialist policies, and only Germany can bail out Europe. Will Germany do so or turn nationalist? Meanwhile, the Brits are nationalizing their banks, and Latin America is suffering increasing unemployment. Who is going to buy all the debt that is coming due?

Reuters covers the Japanese economic decline. Reuters neglects to point out that the countries who depended on exports are now the ones that are shrinking the fastest. Edward Hugh has more on Japan’s economic crisis. Japan’s economy is shrinking at a 22 percent annual rate. Moreover, Japan’s population is now declining so drastically that the government is going to import workers.

Eurowatch reports that the spectre of Russian debt default is driving down the value of the Euro. This article also documents how rising debt levels in Eastern Europe are mortgaging its economic future. Latvia in particular is facing drastic population aging and probably cannot resume normal economic functioning. Who is going to buy all the debt as companies and nations around the globe threaten to default on their bonds?

By this point the financial globalists are in so much trouble they must realize that they can’t bail everybody out. Moreover, they are going to have trouble raising enough money (who has any money left?) to create a super IMF that will bail out winners and let losing countries go under. If you imagine that China or the Gulf States has enough money to make a difference, understand that Dubai’s construction projects have ground to a halt and workers are leaving the country. China’s economy depends on exports, and its surplus is held in U.S. Treasury bonds.

The question of the moment seems to be, will the entire global credit system crash, or can the globalists make new arrangements to preserve some banks and some countries?

As Europe faces its crisis, the European Central Bank refuses to issue unlimited funds to bail out bad debtors. But in the U.S., the Federal Reserve is issuing virtually unlimited new credit to support government spending, mortgage loans, bank deposits, etc. But as the global bankers meet to decide what to do next, it should dawn on the U.S. financial manipulators that hard choices will need to be made about whom to let fail and whom to bail out. Won’t their new globalist ideas basically come down to, who are the supporters and enemies of a global financial system? Won’t they eye private savings as a source of capital they can figure out how to grab?

Some economists are casting the present choices in terms of a Japan model and a Zimbabwe model. Either keep control over debt issuance and face years of economic stagnation or risk massive currency devaluation as central banks issue new, cheap debt. But politics is also involved, and each country in Europe is facing protectionist pressures that may decouple its economy from failed globalism. NWOU is rooting for the latter. If we cannot break the globalist economy during its worst crisis and reinstate economic nationalism, our future is a one-way street to global financial control under the same globalist pricks that created this tragic system.

Tags: global economic crisis

This entry was posted by Director on Monday, February 16th, 2009 at 7:24 pm and is filed under Global Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.