The Global Economy Begins Its Fall

The news programs are all covering the latest bad news about the so-called "Global Economy" and the massive stock market turmoil which supposedly began in Asia. All of the news accounts have the obligatory talking head "economic advisors" who proceed to explain how terrible it all is but how, if only the Asian nations would just make the "right" changes to their economies, all would be well. What isn't expounded on any further, of course, is exactly what these "right" changes might be.

Well, allow me to let you in on just a few of the major demands that the IMF (International Monetary Fund) and Washington are demanding. Don't be eating while you read this because anyone with a heart will find themselves a tad nauseated.

To begin, both the IMF and Washington are demanding that Japan, in particular, begin the honorable process of "rethinking the salary average" or, as it known outside the seventh circle of hell, reducing the wages and benefits to the nation's workers in order to increase profits and dividends and make the wealthy happier.

Next, it wants Japan to raise interest rates in order to attract more money into their markets through the process of increasing the profits of those who then happily lend the nation that same profit in the shape of loans at exhorbidant rates. The fact that the huge loans that Asian countries are now defaulting on were the basis for the market crisis in the first place isn't much discussed. Neither is the fact that the banks which lent the original money and then pulled out of the Asian markets by calling in their loans when the nations' currency values began to fall now are demanding, through the IMF, that these nations now take out new loans at far higher interest rates to cover the first loans. Somehow, the Global Economy's banking industry has convinced the media that the latest crisis is completely the fault of those economies who are failing and not the banking industry's misguided and greedy practices.

These initial demands will only hasten the decline of the world's economies because, as the value of each nation's currencies fall further due to the IMF's demand that more money be printed in order to pay off the loans and to buy more of its own stocks in a cycle of propping up the prices trying to protect the investments of the world's wealthiest individuals and corporate schemes, the value of the currency is diluted over and over.

Another offensive demand is what Corporate America likes to call "becoming generationally conscious" or, again in the words that real people use, they mean laying off the older, more experienced (i.e. better paid) workers and replacing them with younger, less experienced workers who have entered the job market without that ridiculous desire to be treated like a human being and who sees no irony in their employers demanding complete loyalty without even a hint of reciprocation. These workers will accept far lower wages and will work whatever hours they are told to without even expecting health benefits or a safe work environment or any of that nonsense which, thus, allows for far higher payments to the executives and stock holders.

One of the major demands is that unemployment must be allowed to increase to at least 6% (Japan's unemployment rate has historically hovered around 2% and that figure was mostly made up of the younger workers trying to break into the business world). In fact, Japan has been cut out from the rest for a special demand that unemployment must rise to nearer 7 - 8% and that the majority must be the older workers.

Finally, the IMF is demanding that the corporate leaders must make more profit available for dividends and reinvest far less towards increasing the actual efficiency of the various companies.

Gentle readers, eventually it will all fail due to the fact that such circular reasoning (increasing unemployment while printing more money to pay off loans and to prop up the markets which reduces the value of that currency which forces the nations to print more money and on and on) is a recipe for ruin since our currency will become stronger and stronger meaning that Asia will no longer be able to afford American products unless they either print more money or take out larger loans which will negatively affect our stock market which will decrease sales from America which will result in higher unemployment which will decrease American's ability to purchase products which, well, you get the picture.

Corporate America and the world's banking industry are stupidly driving the world into a planet wide depression. By demanding that Asia and, particularly, Japan must get rid of their most experienced employees and replace them with employees whose only asset is their youth and willingness to be abused by their employer and that Japan must pay these new employees far less and grant fewer if any benefits to them will, of course, cause them to be as disloyal and unmotivated as American workers are becoming.

These two demands alone will have the added benefit, at least for Corporate America, of making their Asian competitors far less competitive. Not bad, huh?!?

Those Americans who own 90% of the America's stock market (the top 2% of American income earners) will see much larger dividends since they will be virtually assured of less money being foolishly reinvested by the Asian companies which leaves far more for investors and bankers. The rest of us will see only job losses and higher and higher costs for life's necessities and a loss of the dollar's purchasing power and on and on. The costs of their foolishness will be cushioned for the wealthy by the banking industry passing on the costs to the middle- and lower-classes Americans as well as any to nation which proved irrational enough to take out huge loans today.

What do I see in the very near future for the world's economies? Sadly, but very clearly, the world is going to be dragged into financial oblivion by the very Global Economy that our "leaders" have so happily forced upon the rest of us. Unless our "leaders" refocus themselves on the American people and turn away from the obscene campaign contributions of those who care very little for working people we face some truly disastrous years ahead. How will the world pull itself up from these depths? Remember, the main reason that Germany elected evil to lead them into WW II was because of their desperate economic straits. It will happen again.

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Copyright 10/29/98