What lies ahead of us looks rather bleak and certainly questions what we're told about the economy since the 2008 crisis. Central banks reassured us that everything was back on track and that the unemployment numbers were pointing to a full global economic recovery.
Central bankers omitted to say one thing though, that all the quantitative easing would have to be repaid, and beyond we'd add because quantitative easing also prevented "other bubbles" from popping out, the latter have been kept inflated artificially for more than a decade. And with this new crisis on the horizon, nothing will prevent the latter from deflating.
Mervyn King, former BOE chairman, tells it without sugar coating. Central banks will do "nothing" because this time they have gone way too far. There is no monetary policy that can be used even as a temporary bandaid.
People who have followed the trends since the early 1900's know that we'd get to this point. That eventually the whole planet would be bankrupted by greed, collusion and the thirst for power. This outcome is embedded in the monetarism. The mere presence of money.
We've written so much about the "anti-human rights aspects" of our economic framework that we do not want to sound redundant, though the choice is pretty clear now. Either we degrow the economy before (well it's too late already) and after this dire upcoming downturn or we allow wallstreet to tell us more lies, knowing that the automation conundrum is set to hit us in 5 or so years.
What do we choose now?
One thing is certain though, people are waking up, and in our view most could throw in the towel and choose Degrowth in the wake of the next stock market explosion. The Protests to the finish in France could become a template as people are completely fed up with political corruption and the destruction of the environment.
Yes, crypto-currencies could do well during and after the crashbut 80% off population didn't invest in them because they didn't have the finanical resources to start with - so theproblem with inequallity won't disappear.
All good for Degrowth and RBE!
People are starting to realize the deadly illusion of consumerism, CEOs getting fat paycheck and the number of billionaires on the increase each year. And when they will lose their job because of a $19tn corporate debt timebomb, they are going to feel so desperate that they will be ready to hear about a simple and utopian solution.
Well realistically speaking, our system is so Dystopian that any valid solution sounds like Utopia!
Thank you for spreading the word about Degrowth and RBE
The Buy Nothing Day, has already some interesting success. People are declaring the day after Thanksgiving 'Buy Nothing Day' as part of a backlash against Black Friday https://www.businessinsider.com/black-friday-buy-nothing-day-backlash-2019-11 ---- While the world gets sucked up into crazy Black Friday over-consumerism, there is a large group of people who are taking up a better cause with a different perspective called Buy Nothing Day. https://www.goodthingsguy.com/opinion/blackfriday-buynothingday/
Buy Nothing Day is where you challenge yourself, your family and friends to switch off from shopping and tune into life. The rules are simple, for 24 hours you will detox from buying stuff - anyone can take part provided they spend a day without spending! Instead of shopping people around the world will take part in a 24 hour moratorium on consuming, either as a personal experiment or public statement. ------------------- The anarchy that ensues on Black Friday has now become an absurd dystopian phenomenon. The big retailers use the event to spin out highly competitive one day offers, which often creates a rabid free for all. Black Friday is creating a brand of shoppers who will trample and fight each other to get their hands on next years landfill. http://buynothingday.co.uk/
GLOBAL CRASH ON THE HORIZON
Global economy faces $19tn corporate debt timebomb, warns IMF (OCT 2019)
In its half-yearly update on the state of the world’s financial markets, the IMF said that almost 40% of the corporate debt in eight leading countries – the US, China, Japan, Germany, Britain, France, Italy and Spain – would be impossible to service if there was a downturn half as serious as that of a decade ago. The IMF noted that the stimulus provided by central banks in both developed and developing countries had the side-effect of encouraging firms to borrow more, even though many would have trouble paying it back. MORE https://www.theguardian.com/business/2019/oct/16/global-economy-faces-19tn-corporate-debt-timebomb-warns-imf
World economy is sleepwalking into a new financial crisis, warns Mervyn King (oct 2019)
Lord King, who was in charge at Threadneedle Street during the near-death of the global banking system and deep economic slump a decade ago, said the resistance to new thinking meant a repeat of the chaos of the 2008-09 period was looming. Giving a lecture in Washington at the annual meeting of the International Monetary Fund, King said there had been no fundamental questioning of the ideas that led to the crisis of a decade ago. “Another economic and financial crisis would be devastating to the legitimacy of a democratic market system,” he said. “By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.” He added that the US would suffer a “financial armageddon” if its central bank – the Federal Reserve – lacked the necessary firepower to combat another episode similar to the sub-prime mortgage sell-off. MORE https://www.theguardian.com/business/2019/oct/20/world-sleepwalking-to-another-financial-crisis-says-mervyn-king