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NEWNATIONS BULLETIN 15 DECEMBER 2008
RECOVERY OR THE BLACK HOLE
"Fear has replaced trust in our approach to the economy"
"The great economic thinkers of the 20th Century, Keynes and Galbraith, knew that left to their own devices, the bankers and financiers would bring the roof in on the whole system. Banking as we have known it has totally failed and must be replaced by a new and preferably more democratically structured global format".
"The mind-boggling global financial derivatives market, including interest rate and credit default swaps at the end of 2007, had a gross value of an estimated $393 trillion. Ignorance plays a large role here. The truth is that even now nobody knows exactly how bad things are and how many trillions of uncollected derivative debts are still out there. More than $200 trillion in open derivative contracts were not on the balance sheets because so many of the derivatives were zero sum contracts where one liability was set off against another credit elsewhere
"What is called for in this global economic crisis is an entirely new economic order".
"Is "Boom and Bust" the trade-mark of capitalism, truly the best economic scenario available to us? It is a popular myth that there is no alternative to capitalism when in reality there are a number".
With the year running out, the economy on its back, and another agonising month to wait before the inauguration of President Obama, we are pleased to present this evaluation of where we are at, written by YORICK BLUMENFELD. His 2004 Book "DoIlars or Democracy" predicted the present miseries and their causes. Now he analyses what should be done about them. The above quotations give a flavour of the whole and it is an important contribution to the understanding of the predicament we are in.
We have witnessed socialism fail in practice, communism prove to be a grand deception, and now capitalism lying broken, which by default, has been the system on which we relied. What we have got left is only there because of the taxpayers coming to the rescue.
This time we don't want to settle for 'a band-aid solution' leading to yet another 'boom and bust.' Governments must be open to serious, positive and constructive thinking and we hope this article will be seen in that context.
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