Global economy needs structural rethink


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https://youtu.be/DB65amu523o

Data persistently shows the U.S. and EU economies being weak with unemployment and low wages prevalent.

Governments keep trying to make things look far better than they actually are instead of facing facts head on. We all know that there is no improvement of any real nature.

Something we have never witnessed before is happening globally in all economies

Here is an excerpt from Jack Rasmus, the author of the forthcoming book, ‘Systemic Fragility in the Global Economy’, by Clarity Press, 2015, and the prior book’s, ‘Epic Recession: Prelude to Global Depression’, 2012, and ‘Obama’s Economy: Recovery for the Few’, 2012. He blogs at jackrasmus.com.

 

“First, there is insufficient wage and income growth for the approximate 100 million wage earning households that constitute the bulk of consumer spending in the U.S., which accounts for roughly 70 percent of the US economy annually. In turn, the reason for the lack of wage and income growth by these households is the lack of full time, decent paying jobs creation in the US. Jobs that are being created are low pay, no benefit jobs. Part time and temp jobs. Service jobs, and few manufacturing or construction jobs. Working class consumption is also compressed by inability to earn interest on basic savings accounts. Then there’s household debt, for past education borrowing, for auto purchases, and credit cards, which also takes a toll on spending.

Second, there’s the lack of investment spending by business. Large, multinational corporations in particular continue to prefer to invest outside the U.S. rather than in it. When not investing abroad, they prefer to ‘spend’ their record profits on stock buybacks and dividend payouts to shareholders. More than US$5 trillion worth since 2009. Another trillion dollars projected in 2015 alone as well. Then there’s their growing investing in financial asset markets and securities, which now constitute about 25 percent of all multinational corporate investing. And what they don’t invest in financial assets, invest abroad, or spend in buybacks and dividends, they just hoard as cash on their balance sheets, reportedly now in excess of US$1.7 trillion in their offshore subsidiaries. None of these alternatives and diversions result in real investment that create real decent paying jobs, at decent pay and benefits. Hence, consumption by the 100 million households stagnates or lags—except for more debt based spending perhaps.”

 You can read the rest here: http://jackrasmus.com/

Money is only ever created as debt. Governments worldwide believe that the debt will eventually be paid off with the tax emanating from waged income or stealth taxes but this is a ridiculous and unworkable assumption when you look at the transformation that is taking place in business that produces the product and services to the rest of us. That change is unstoppable for the very fact that business must remain accountable to the board and to the shareholders in terms of being profitable. Being profitable will in almost all cases mean opting for auto machine and AI robotic software intelligence. Indeed the board itself may find themselves replaced with AI robotic intelligence which never sleeps and never eats, not takes time off. There is an argument that the AI software robotics and auto robotics will produce jobs itself that we have yet to see. If you can make that argument work then good luck to you.

In the meantime politics continues much as usual between the two bastions of conservative and socialist logic but neither tell the truth about the situation and for this reason we can only organise and manage the issues ourselves starting with an honest appraisal of how our economy works and how it plugs in to the rest of the global economy, but NOT FROM the angle of any political persuasion.

 Our aim is to produce a comprehensive algorythym that will produce a guaranteed income to those that will be falling from the waged labour force for good that is more realistic than the social security system we have, that recognises we are all conduit to business, and that currency must maintain its value within a global climate.  It gos without saying that we will need funds, as well as extensive input from mathmatical genious and those who can accurately map a system that is operating presently.

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