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Thursday, 19 January 08:54 (GMT -05:00)



Business And Politics News

New Global Crisis Is Coming, Some Experts Say


 

The very fact that more and more populists are getting integrated into the political elite all around the world is a sign that a new global economic and financial crisis is round the corner. Apparently, this is not the reason why the crisis is coming. This is just an indicator telling us just that.

 

Yet, this is not about Western Europe alone. Over the last few years, populism has become the world’s most popular political trend. But the question is, can we talk about one and the same phenomenon with common roots or can we say that the so-called global populism is nothing but fiction?

 

Populists have always come into power during crisis times in the political system as well as the society and economy. When the old school politicians cannot offer the people a distinct way out of the crisis, and plain folks are feeling scared and disoriented, when they don’t know what’s really going on, this is the time when populists start enjoying popularity.

 

Experts say that even though populism is a pretty old phenomenon, the contemporary form of populism has several distinctive features.

 

Peculiarities of today’s crises

 

Up until approximately in the 1960-1970s, all the major crises resulting in populists coming into power boiled down to the conflict between 2 major systems of values – the pre-industrial and industrial value systems.

 

The pre-industrial system of values and relations derives from an economy based on a relatively undeveloped level of commodity production. This means that the production level is low and is designed to serve purely domestic needs. The focus on redistribution rather than external trade. It’s clear that within such an environment the ultimate value is something the very redistribution of goods is based on, which is the ruler’s will.

 

As for the industrial system, it can boast decent production, and that’s why it’s superior to the pre-industrial counterpart. This means that the economy produces way more that it can consume and therefore has to export the goods and use some of the export revenues to cover the producers’ needs. This implies a network of close ties between trade partners. For those ties to work both ends and to be mutually beneficial for the participants, each of them needs guarantees. In this case, the ultimate guarantee is the private ownership right.  

 

Simply put, instead of a vertical hierarchy distributing the goods, we get an environment rich in horizontal ties between equal private owners. The environment naturally tends to go international.

 

Those 2 systems have been competing ever since they both came into existence. Moreover, within each of them, there is a fight going on to get the power and resources. That was enough to trigger major conflicts resulting in severe crises. Since mid the 1900s, a third system has been trying to come into play and dominate. This is the so-called post-industrial system of values, which emerged as the result of the increasing share of intellectual products in the global production value.

 

The thing is, intellectual products have a bunch of specific features preventing them from being included in the industrial system of values and trade relations.

 

By standing out form the crowd, the system creates a whole new ultimate value, which is the right for creative and intellectual self-expression. There is the same clash for resources going on within the 3rd system.

 

The whole point is, the world has got more complicated since there are 3 rivals instead of 2. This leads us to believe that understanding and predicting global processes, which used to be rather complicated, has now become even more complicated and less predictable than ever.

 

That’s why, amid the absence of clear and reasonable theories, most people out there get disoriented, including those who consider themselves as politicians or economists. At the same time, most of those experts keep on living with the old mindset and outlook, which is why they are basically unable to make decent decisions within a new environment and reality.

 

The economic and political picture of today’s world is in crisis. The picture describes the isolated elements of the system and therefore cannot present a complete view of what’s really going on. At the same time, the level of globalization in each and every field of human activities has gone beyond expectation. This only escalated the situation, turning everything into a permanent global economic, political, and management crisis. In its turn, the crisis resulted in permanent public discontent, promoting higher and higher demand for populism.

 

All of the mentioned systems of values are systemic, which means they penetrate each and every field, including politics, economy, etc. This means that each for them is trying to swallow the entire world. Since none of them can co-exist with the others, this is a tough fight going one at each level.

 

Experts say, that the humanity is now living the last couple of decades before facing a global crisis of values. A war for new values is coming. The war will end with one of the 3 systems dominating. No one can definitely tell which one is going to win the war. But one thing is sure, the humanity is on the verge of a new era and a new world.

 

You are free to discuss this article here:   forum for traders and investors

 

Text: Yekaterina Kravets
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Why Did Trump Decide to Defend Putin?

As Barack Obama is leaving the White House, the relations between Moscow and Washington are getting tenser. In this situation, President-Elect Trump is acting as Putin’s advocate.

 

 
For those of you who don’t know, Barack Obama expanded the sanctions against Russia in late 2016 as a respond to Russia’s cyber-attacks in advance of the U.S. presidential election won by Donald Trump. Obama’s decision implies further confrontations between the Kremlin and the U.S. Democrats, including Obama’s administration and American secret agencies.
Publication date: 18 January 07:09 AM

Trump Hates Democratic Standards, That’s Dangerous for the Entire World, Foreign Policy Expert Says

After the end of World War II, the international community started spreading democratic standards across the planet. The USA seems to have been the leader in spreading democracy around the world, at least until recently. Now many experts are concerned that the situation may change because of the fact that Donald Trump is about to become President of the United States.

 

 
In his speeches, President-Elect Trump questioned the democratic world a number of times. They are afraid that if he makes the USA stop fighting for justice, mutual respect, and peace in the entire world, many of those dictators in various parts of the world may get greater freedom and power, and may start threatening weaker nations.
Publication date: 18 January 05:03 AM

Trump's Isolationism Policy May Lead To Major Conflict, Roubini Says

Nouriel Roubini, a world-famous economist who predicted the 2008 global crisis, expressed his opinion on how Trump’s isolationism policy may affect the entire world.

 

 
First of all, Donald Trump’s victory during the latest presidential election in the USA is not just a populist attempt to react to globalization. Chances are, the very “Pax Americana” is coming to an end. For those of you who don’t know, this is a system led by the Western community based on free exchange and collective security and created by the USA and its allies after World War II.
Publication date: 15 January 06:30 AM

Trump Will Need Revolutionary Methods to Make America Great Again, Experts Say

It’s not a secret that Donald Trump has been the focus of international mass media ever since he decided to participate in the 2016 U.S. presidential election and eventually won it to become the 45th President of the United States.

 

 
For those of you who don’t know, President-Elect Trump promised to make America great again. If to take a closer look at his ambitious plan he is going to implement, it becomes clear why the current American political elite started accusing him of sexism, racism, and even fascism, not to mention other accusations.
Publication date: 13 January 06:12 AM

London Doesn't Know What To Do After Brexit

The United Kingdom seems to have already recovered from the shock triggered by the results of the Brexit referendum in June 2016. At this point, the British authorities are busy getting ready for quitting the European Union for good.
 

 

British Prime Minister Theresa May promised to appeal to Article 50 – the legal mechanism of quitting the EU. This is likely to happen in March 2017. She got a round of applause for saying that during the party conference. This means that even the High Court’s detailed investigation into the referendum results won’t prevent her from triggering the Brexit process. 
Publication date: 11 January 03:07 PM

Ukraine's 48 Achievements in November 2016

November 2016 happened to be full of good news and achievements for Ukraine and its economy. No months of the year goes without such achievements. The situation seems to be changing for the better on a regular basis.
 
In November 2016, the Supreme Military Court at The Hague recognized the Russian takeover of the Crimea on 2014 a military conflict. The Ukrainian were looking forward to Russia’s reaction to this court decision. At the same time, the Ukrainian government simplified the conditions for conduction a business in Ukraine. However, there was a pause in the Ukraine-IMF talks due to the government’s inefficiency in fighting corruption to get a loan. Along with political changes in Ukraine, there were some economic changes as well. Let’s take a closer look at them:
Publication date: 29 December 01:19 PM

Obama Calls Not to Make Hasty Conclusions About Trump's Policy

President Obama call the international community to avoid making hasty conclusions when it comes to President-Elect Trump’s future policies. He thinks that it’s important to avoid any premature conclusions and give the new president a chance to collect a team of experts and show the world what they all are capable of. This statement was made during the recent summit in Peru.
 
Publication date: 18 December 09:05 AM

Italy Throws Europe Into Uncertainty Period

For those of you who don’t know, during the recent referendum in Italy, the Italians voted against the constitutional reform offered by Premier Minister Matteo Renzi. This resulted in him wanting to resign his post. This means, that Italy is about to face a period of uncertainty, with either reformatting the government or early parliamentary elections.

Publication date: 15 December 08:47 AM

Trump’s Victory Won’t Bring Russia Any Good, Expert Says

According to Steen Jacobsen, chief economist for Saxo Bank, Donald Trump’s victory doesn’t necessarily mean that the Russian economy is going to benefit from that.

 

 
Mr. Jacobsen assumes that those who say that Donald Trump’s victory is a nightmare for America are completely wrong. His victory showed an urgent necessity of radical changes in the USA. Today, the USA is living in a world with the lowest labor productivity, the highest social inequality, the lowest interest rates and inflation, and the most inflated stock market in history.
If the latest U.S. presidential election had been all about candidates' personalities, and politics, neither Donald Trump, nor Hillary Clinton would have managed to become even candidates.
Publication date: 07 December 07:32 PM

During Trump's Presidency, Global Economy May See Stagflation, Bank of America Says

Bank of America warns after Donald Trump’s victory in the presidential election, over 20% of international investors are expecting stagflation in the global economy in the near future.

 

 
To be more specific, the recent survey conducted by the bank shows that 20% of 177 portfolio managers running over 456 billion dollars in assets assume that the global economy is going to fall into stagflation within the next 12 months.
Publication date: 05 December 09:20 AM